HOUSEHOLD GOODS MANAGEMENT AS A REVENUE STREAM

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HOUSEHOLD GOODS MANAGEMENT AS A REVENUE STREAM
Your Logo Here

• Jan Harbor, ABR, CRP, GRI
• President, Mid-South Division

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Overview

• Why consider HHG Management for the Relocation
  Division?
• Value added benefit for corporate clients and
  others
• Ability to compete
• Low Cost to deliver service
• Types of HHG Management Services
• Simple Request for Quote (COD)
• Monitoring and Managing the Move
• Auditing the Invoice

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Benefits

• Transferee has an advocate for the move
• Company and/or transferee benefits from volume
  based discounts
• Receives Preferential treatment during peak
  moving periods

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Programs

• Corporate Clients
• Want total outsourcing
• Ease of initiation
• Big Discounts
• Accountability

• C. O. D. Customer
• (Sales Associates Customers without relocation
  benefits)
• Wants help in arranging myriad details
• Discounts
• Accountability

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The Process

• Personal Move Manager(PMM) assists transferees in
  selecting Van Line to ensure smooth move
• PMM monitors the move
• Contacts the Van Line with Customers
  information
• Telephone, Fax, or E-Mail
• Follows up with Customer
• Insures contact has been made
• Service delivery satisfactory

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Discounts/Pricing

• Rates Discounted with volume business from 49
  61 (Gross Tariff )
• HHG Manager receives 3-9 of gross discountable
  charges
• Customer is given significant discount
• Interstate moves vs Local Moves
• Separate contracts for C.O.D. moves
• Fee earned is lower or non existent

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What does it take to get started?

• Household Goods Broker License
• Surety Bond
• Personnel
• Relationship with Van Line Agents
• Marketing plan
• Knowledge of Industry

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Licensing

• The Federal Motor Carrier Safety Administration
  has instructions and forms on line at
  http//www.tianet.org/includes/broker.asp
• Pay the licensing fee
• Sign with a registered agent
• Obtain a 10,000 surety bond or put up the same
  amount as a trust fund

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Consultants - option

• If you dont want to go through the process
  yourself, there are consultants available who
  will facilitate the licensing process for you
• Bruce Hocum Presdient, Rubenstein Logistics
  Services 763-542-1121 x 112
• Renita Charrlin or Mike Daughtery The Solutions
  Group 440-333-2705

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Operating Expenses

• Initial costs to set up
• 300 for license
• 500 for Surety Bond
• 750 for Consultant
• Marketing Expenses
• Ongoing Expenses
• Personnel Salary/ Sales staff bonus
• Rent (space percentage)
• Computer/ Technology/ Office Equipment
• Telephone/ Office Supplies/ Postage
• Annual renewal of Surety Bond
• Marketing/Promotional

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Rate of Return Analysis

• Costs Approximate 2500 per year
• Revenue projected 70,000 in 2002
• 2800 Rate of Return

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Things weve learned

• Relationship with van line is critical
• Limit to Three
• Expect the best dont settle for less
• Respect your partners and be loyal
• Liability is a factor
• Have a separate contract for C.O.D. moves
• Always have the client billed directly
• Regularly review contracts

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Thank you for your time and attention.