BBOM Renting Bonus Sustainability
To help you understand how BBOM is sustainable, we will present an explanation in 3 parts, as follows:
Part 1: The Brazilian Automotive Market;
Part 2: Acquisition of GPS Units;
Part 3: Monthly Rental of GPS Units;
Before presenting the three parts above, it is important to understand that anyone can become an authorized BBOM micro franchisee member by purchasing any of the three types of packages below:
Gold Package = $1,500
Silver Package = $900
Bronze Package = $300
PART 1: The Brazilian Automotive Market:
According to a February 29, 2012 article published by SBD, entitled “Comprehensive Guide to Vehicle Theft and Insurance in Brazil1,” here are some excerpts:
Brazil has one of the highest theft rates in the world. Due to the high levels of theft, car insurance that provides theft coverage can be very expensive and is a significant cost of ownership consideration for Brazilians. However, sales of new passenger cars in Brazil show no signs of slowing. New car sales have increased year on year since 2002 and are at almost twice the level they were just five years ago. To understand these contrasting trends it is essential to get an in-depth understanding of the Brazil market.
SBD’s report [Brazil – Car Theft & Insurance] gives a comprehensive guide to the market situation in Brazil and summarizes the status of vehicle theft in the country. The reasons for theft, methods and theft reduction initiatives are discussed, and the main requirements outlined by the CONTRAN Regulation 245 are analyzed.
The legislation has been delayed several times and mandatory fitment of tracking devices is now as follows:
20% of total production for the domestic market – By 30 August 2012;
40% of total production for the domestic market – By 30 October 2012;
70% of total production for the domestic market – By 30 January 2013;
100% of total production for the domestic market – By 30 March 2013.
This report also takes a detailed look at how the insurance system works and the different types of insurance policies that are available. The requirements used by the insurance industry to assess damage and repairability and vehicle security are also examined.
According to a November 10, 2010 article published by Auto evolution®, entitled “Brazilian Government Struggles to Stop Car Theft2,” here are some excerpts:
Car theft is a global problem, but when a car is stolen every 12 minutes the matter must be urgently solved. Actually, this is what happens in Rio de Janeiro every day. In Sao Paulo, the situation is even worse as a car is stolen every 3 minutes. And since these thefts are often accompanied by violent assault, measures against such crimes cannot be postponed.
That's why, with the anti-theft and tracking system, these crimes might come very soon to an end, Digital Planet reported. Or at least, this is what is believed by the Brazilian government.
Unfortunately this affects the considered safe areas in Brazil as well. Pablo Schargrotsky had his car stolen from one of the supposedly safest and wealthiest areas of the city. "It was in Leblon, a very rich place. I was working there and it wasn't very late, seven PM," he said.
"They put a gun in my head and they said 'give me everything', then they took the car away and I called the police," he added. "They could never find the car."
Moreover, according to police statistics, 80% of Rio's stolen cars end up in the northern part of the city. In order to stop similar phenomena in the future, the Brazilian government will equip every new and imported car with an anti-theft and tracking system.
According to a March 21, 2013 article published by WardsAuto.com, entitled “Brazil Sees Auto Plant Boom as Vehicle Importers Rethink Strategies3,” here are some excerpts:
SAO PAULO – With the Brazilian government actively deterring vehicle imports and working to encourage the construction of assembly plants on local soil, domestic andBrazil already is the world’s seventh-largest vehicle producer, building 3.6 million units in 2012, according to Fenabrave, the national dealer association. Anfavea forecasts sales of 3.9 million domestically built vehicles in Brazil this year, and is encouraging more international auto makers to set up plants here. Italy’s Fiat earlier this month said it planned to invest about BR14.2 billion ($7 billion) by 2016 in new and expanded factories that will create 7,700 jobs. international auto makers are setting up new factories here at a steady clip.
According to a January 8, 2013 article published by Industry Week, entitled “Brazil Sells Record 3.8 Million Cars in 20124,” here are some excerpts:
SAO PAULO – Brazil, the world's fourth largest car market, sold a record 3.8 million vehicles last year, according to industry data released on Monday.
Brazil's National Association of Motor Vehicle Manufacturers (ANFAVEA) reported that sales were up 4.6% on the previous year despite a 1.9% drop in production, the first decline since 2002. ANFAVEA forecast continued growth of between 3.5% and 4.5% in 2013.
Although overall sales were up, auto exports took a big hit last year, falling 20.1%, from 553,000 vehicles in 2011 to 442,100 last year, the association said. Industry officials said a troubled global market, especially in Europe, could lead to another overseas sales drop in 2013.
Note: In 2010, Latin American revenues from vehicle location hardware sales and services for fleets and consumers are projected to total nearly US $1.5 billion, growing to nearly $2.7 billion by 2014.5
Part 2: Acquisition of GPS Units;
Each package has a value and quantity of different GPS units, as follows:
Gold Package = $1,500 (includes 20 GPS units, in which you rent 1 and BBOM rents remaining 19)
Silver Package = $900 (includes 12 GPS units, in which you rent 1 and BBOM rents remaining 11)
Bronze Package = $300 (includes 4 GPS units, in which you rent 1 and BBOM rents remaining 3)
Let us examine each package separately, in order to understand the relationship between cost and quantity of GPS units below:
The Gold Package costs $1,500. When divided by 20 GPS units, the cost per GPS unit is $75;
The Silver Package costs $900. When divided by 12 GPS units, the cost per GPS unit is $75;
The Bronze Package costs $300. When divided by 4 GPS units, the cost per GPS unit is $75;
Conclusion: Notice that in all three packages, the GPS units cost $75 each; which means, we are floating the purchase of each GPS unit, so that BBOM (through their auto insurance company affiliations), can rent out each GPS unit to new and existing GPS tracking service customers, in exchange for members interested in paying the ($40) monthly fee of each GPS unit rented by BBOM.
Part 3: Monthly Rental of GPS Units;
When you buy any of the packages, you will receive one GPS unit, but you also have the option to request the remaining GPS units in the package(s) you have purchased (if you reside in Brazil).
Each GPS unit will generate a gross monthly fee of $40 for BBOM. The GPS units, that you did not request to physically receive, will be rented to new and existing GPS tracking service customers (through BBOM’s auto insurance company affiliations, which are the largest in all of Brazil), whom will each pay a $40 per month rental fee.
At this point it is important to highlight that because “you” are essentially “floating” the cost of each GPS unit, it means that BBOM spends NOTHING on the costs of each GPS unit. In return, you will receive a Lending Bonus, paid monthly, of 50% of the profits generated by the renting of each unit, as follows:
Gold Package = $400 - $40 = $360 (24.0%) per month x 12 = $4,320 (288%) per yearly contract
Silver Package = $240 - $40 = $200 (22.2%) per month x 12 = $2,400 (266%) per yearly contract
Bronze Package = $80 - $40 = $40 (13.3%) per month x 12 = $480 (160%) per yearly contract
The remaining 50% is used to cover BBOM’s overheads expenses, including, but not limited to: office space, employees, licensing, manufacturing, transportation, marketing, and commissions to the over 5,000 insurance agents in their network, responsible for acquiring new customers to rent the GPS units to, etc.!
After explaining the three parts of what makes the Renting Bonus sustainable, here are some examples that break-down the actual payouts involved, as follows:
Assuming you purchase 1 Gold Package for $1,500; you will receive a total of 20 GPS units. Of the 20, you will receive 1 GPS unit, and the remaining 19 will be rented to new and existing customers.
Each month, you will pay a $40 monthly (rental) fee that will be automatically deducted from your gross monthly Rental Bonus of $400, creating a net income of $360 per month, for 12 months.
The remaining 19 GPS units will be rented to new and existing customers, generating total gross monthly rental fees of $760 per month ($40 x 19), paid to BBOM.
This means BBOM will gross $800 in monthly fees ($40 from your GPS unit + $760 from remaining 19).
We will now highlight some key points to understanding the sustainability of the Renting Bonus:
1. BBOM received $1,500 for the purchase of your Gold Package;
2. BBOM received $800 in total monthly fees from the renting of 20 GPS units;
3. BBOM has paid out 50% ($400) of the total monthly fees, as a Gold Package Renting bonus.
The above math equation is: $1,500 + $800 - $400 = $1,900, which is what BBOM has grossed at the end of the 1st month, from the purchase of your Gold Package.
By the end of the 2nd month, the retail value of your Gold Package will be the same $800. And since BBOM will split the retail profits 50/50 with you, you will earn $400 - $40 (monthly fee) = $360 (net) per month, and BBOM will earn the remaining $400 per month.
The 3rd to the 12th month will create the same positive balance for both you and BBOM, month to month.
The 1st to the 12th month will result in profits of $1,900 one-time + $400 x 11 months, resulting in $6,300 in total gross earnings for BBOM, at the end of a year-long contract for each Gold Package sold!
This proves how BBOM is a company with a very strong sustainability model!
Why will customers want to rent BBOM’s GPS tracking service?
As you have read, not only is the demand for GPS vehicle tracking services growing every day due to high automotive thefts in Brazil, but also because the Brazilian government has put into law, CONTRAN 245 regulations, that requires all new and currently registered vehicles (70+ million of them), will have to install and/or be equipped with a GPS tracking devise. And since BBOM is one of the top GPS service providers in all of Brazil, they are positioned to dominate this growing market over the next 2-3 years, as more manufacturers obtain contracts to produce millions of new cars in Brazil. BBOM’s GPS tracking service will also allow renters to obtain a significant discount on their auto insurance costs, which are some of the highest in the world!
What if the Brazilian GPS market gets saturated?
Even though there are over 70 million registered vehicles in Brazil, that, at the end of 2013, will be required by law to have a GPS tracking device installed or equipped on them, currently, less than 3 million registered vehicles are equipped with GPS tracking devices, which means the market is wide open! And since BBOM’s parent company “Unepxmil” is one of Brazil’s largest GPS service provider, as well as the #2 franchise in the automotive niche to own, they are positioned to dominate the market in 2013 and beyond. In addition, Unepxmil will soon be acquiring other companies, to expand into other profitable and emerging markets such as coffee (Brazil is the #1 producer of coffee in the world6), wireless services, cloud storage,Airlines,Cosmetics,Perfumes,Mobiles,Home security products and more, to keep BBOM profitable! Make no mistake, Unepxmil is positioned to become a billion-dollar brand, and was doing over $150 million in annual sales before the launch of their (BBOM) MLM division May 5, 2013. In addition, the BBOM executive team has made a commitment to manufacture an additional 50 million GPS units by the year 2015, to meet the growing market demands. And considering the fact that, according to a January 4, 2013 article published by The Rio Times, entitled: “Brazil Sees Record Sales In 2012: Daily7,” “...sales figures from the twelve months released by Brazil’s Federation of Vehicle Distribution, Fenabrave, have revealed. Some 3.8 million units were sold in 2012, an increase of 4.65 percent on 2011, itself a record year.”
To help you understand how BBOM is sustainable, we will present an explanation in 3 parts, as follows:
Part 1: The Brazilian Automotive Market;
Part 2: Acquisition of GPS Units;
Part 3: Monthly Rental of GPS Units;
Before presenting the three parts above, it is important to understand that anyone can become an authorized BBOM micro franchisee member by purchasing any of the three types of packages below:
Gold Package = $1,500
Silver Package = $900
Bronze Package = $300
PART 1: The Brazilian Automotive Market:
According to a February 29, 2012 article published by SBD, entitled “Comprehensive Guide to Vehicle Theft and Insurance in Brazil1,” here are some excerpts:
Brazil has one of the highest theft rates in the world. Due to the high levels of theft, car insurance that provides theft coverage can be very expensive and is a significant cost of ownership consideration for Brazilians. However, sales of new passenger cars in Brazil show no signs of slowing. New car sales have increased year on year since 2002 and are at almost twice the level they were just five years ago. To understand these contrasting trends it is essential to get an in-depth understanding of the Brazil market.
SBD’s report [Brazil – Car Theft & Insurance] gives a comprehensive guide to the market situation in Brazil and summarizes the status of vehicle theft in the country. The reasons for theft, methods and theft reduction initiatives are discussed, and the main requirements outlined by the CONTRAN Regulation 245 are analyzed.
The legislation has been delayed several times and mandatory fitment of tracking devices is now as follows:
20% of total production for the domestic market – By 30 August 2012;
40% of total production for the domestic market – By 30 October 2012;
70% of total production for the domestic market – By 30 January 2013;
100% of total production for the domestic market – By 30 March 2013.
This report also takes a detailed look at how the insurance system works and the different types of insurance policies that are available. The requirements used by the insurance industry to assess damage and repairability and vehicle security are also examined.
According to a November 10, 2010 article published by Auto evolution®, entitled “Brazilian Government Struggles to Stop Car Theft2,” here are some excerpts:
Car theft is a global problem, but when a car is stolen every 12 minutes the matter must be urgently solved. Actually, this is what happens in Rio de Janeiro every day. In Sao Paulo, the situation is even worse as a car is stolen every 3 minutes. And since these thefts are often accompanied by violent assault, measures against such crimes cannot be postponed.
That's why, with the anti-theft and tracking system, these crimes might come very soon to an end, Digital Planet reported. Or at least, this is what is believed by the Brazilian government.
Unfortunately this affects the considered safe areas in Brazil as well. Pablo Schargrotsky had his car stolen from one of the supposedly safest and wealthiest areas of the city. "It was in Leblon, a very rich place. I was working there and it wasn't very late, seven PM," he said.
"They put a gun in my head and they said 'give me everything', then they took the car away and I called the police," he added. "They could never find the car."
Moreover, according to police statistics, 80% of Rio's stolen cars end up in the northern part of the city. In order to stop similar phenomena in the future, the Brazilian government will equip every new and imported car with an anti-theft and tracking system.
According to a March 21, 2013 article published by WardsAuto.com, entitled “Brazil Sees Auto Plant Boom as Vehicle Importers Rethink Strategies3,” here are some excerpts:
SAO PAULO – With the Brazilian government actively deterring vehicle imports and working to encourage the construction of assembly plants on local soil, domestic andBrazil already is the world’s seventh-largest vehicle producer, building 3.6 million units in 2012, according to Fenabrave, the national dealer association. Anfavea forecasts sales of 3.9 million domestically built vehicles in Brazil this year, and is encouraging more international auto makers to set up plants here. Italy’s Fiat earlier this month said it planned to invest about BR14.2 billion ($7 billion) by 2016 in new and expanded factories that will create 7,700 jobs. international auto makers are setting up new factories here at a steady clip.
According to a January 8, 2013 article published by Industry Week, entitled “Brazil Sells Record 3.8 Million Cars in 20124,” here are some excerpts:
SAO PAULO – Brazil, the world's fourth largest car market, sold a record 3.8 million vehicles last year, according to industry data released on Monday.
Brazil's National Association of Motor Vehicle Manufacturers (ANFAVEA) reported that sales were up 4.6% on the previous year despite a 1.9% drop in production, the first decline since 2002. ANFAVEA forecast continued growth of between 3.5% and 4.5% in 2013.
Although overall sales were up, auto exports took a big hit last year, falling 20.1%, from 553,000 vehicles in 2011 to 442,100 last year, the association said. Industry officials said a troubled global market, especially in Europe, could lead to another overseas sales drop in 2013.
Note: In 2010, Latin American revenues from vehicle location hardware sales and services for fleets and consumers are projected to total nearly US $1.5 billion, growing to nearly $2.7 billion by 2014.5
Part 2: Acquisition of GPS Units;
Each package has a value and quantity of different GPS units, as follows:
Gold Package = $1,500 (includes 20 GPS units, in which you rent 1 and BBOM rents remaining 19)
Silver Package = $900 (includes 12 GPS units, in which you rent 1 and BBOM rents remaining 11)
Bronze Package = $300 (includes 4 GPS units, in which you rent 1 and BBOM rents remaining 3)
Let us examine each package separately, in order to understand the relationship between cost and quantity of GPS units below:
The Gold Package costs $1,500. When divided by 20 GPS units, the cost per GPS unit is $75;
The Silver Package costs $900. When divided by 12 GPS units, the cost per GPS unit is $75;
The Bronze Package costs $300. When divided by 4 GPS units, the cost per GPS unit is $75;
Conclusion: Notice that in all three packages, the GPS units cost $75 each; which means, we are floating the purchase of each GPS unit, so that BBOM (through their auto insurance company affiliations), can rent out each GPS unit to new and existing GPS tracking service customers, in exchange for members interested in paying the ($40) monthly fee of each GPS unit rented by BBOM.
Part 3: Monthly Rental of GPS Units;
When you buy any of the packages, you will receive one GPS unit, but you also have the option to request the remaining GPS units in the package(s) you have purchased (if you reside in Brazil).
Each GPS unit will generate a gross monthly fee of $40 for BBOM. The GPS units, that you did not request to physically receive, will be rented to new and existing GPS tracking service customers (through BBOM’s auto insurance company affiliations, which are the largest in all of Brazil), whom will each pay a $40 per month rental fee.
At this point it is important to highlight that because “you” are essentially “floating” the cost of each GPS unit, it means that BBOM spends NOTHING on the costs of each GPS unit. In return, you will receive a Lending Bonus, paid monthly, of 50% of the profits generated by the renting of each unit, as follows:
Gold Package = $400 - $40 = $360 (24.0%) per month x 12 = $4,320 (288%) per yearly contract
Silver Package = $240 - $40 = $200 (22.2%) per month x 12 = $2,400 (266%) per yearly contract
Bronze Package = $80 - $40 = $40 (13.3%) per month x 12 = $480 (160%) per yearly contract
The remaining 50% is used to cover BBOM’s overheads expenses, including, but not limited to: office space, employees, licensing, manufacturing, transportation, marketing, and commissions to the over 5,000 insurance agents in their network, responsible for acquiring new customers to rent the GPS units to, etc.!
After explaining the three parts of what makes the Renting Bonus sustainable, here are some examples that break-down the actual payouts involved, as follows:
Assuming you purchase 1 Gold Package for $1,500; you will receive a total of 20 GPS units. Of the 20, you will receive 1 GPS unit, and the remaining 19 will be rented to new and existing customers.
Each month, you will pay a $40 monthly (rental) fee that will be automatically deducted from your gross monthly Rental Bonus of $400, creating a net income of $360 per month, for 12 months.
The remaining 19 GPS units will be rented to new and existing customers, generating total gross monthly rental fees of $760 per month ($40 x 19), paid to BBOM.
This means BBOM will gross $800 in monthly fees ($40 from your GPS unit + $760 from remaining 19).
We will now highlight some key points to understanding the sustainability of the Renting Bonus:
1. BBOM received $1,500 for the purchase of your Gold Package;
2. BBOM received $800 in total monthly fees from the renting of 20 GPS units;
3. BBOM has paid out 50% ($400) of the total monthly fees, as a Gold Package Renting bonus.
The above math equation is: $1,500 + $800 - $400 = $1,900, which is what BBOM has grossed at the end of the 1st month, from the purchase of your Gold Package.
By the end of the 2nd month, the retail value of your Gold Package will be the same $800. And since BBOM will split the retail profits 50/50 with you, you will earn $400 - $40 (monthly fee) = $360 (net) per month, and BBOM will earn the remaining $400 per month.
The 3rd to the 12th month will create the same positive balance for both you and BBOM, month to month.
The 1st to the 12th month will result in profits of $1,900 one-time + $400 x 11 months, resulting in $6,300 in total gross earnings for BBOM, at the end of a year-long contract for each Gold Package sold!
This proves how BBOM is a company with a very strong sustainability model!
Why will customers want to rent BBOM’s GPS tracking service?
As you have read, not only is the demand for GPS vehicle tracking services growing every day due to high automotive thefts in Brazil, but also because the Brazilian government has put into law, CONTRAN 245 regulations, that requires all new and currently registered vehicles (70+ million of them), will have to install and/or be equipped with a GPS tracking devise. And since BBOM is one of the top GPS service providers in all of Brazil, they are positioned to dominate this growing market over the next 2-3 years, as more manufacturers obtain contracts to produce millions of new cars in Brazil. BBOM’s GPS tracking service will also allow renters to obtain a significant discount on their auto insurance costs, which are some of the highest in the world!
What if the Brazilian GPS market gets saturated?
Even though there are over 70 million registered vehicles in Brazil, that, at the end of 2013, will be required by law to have a GPS tracking device installed or equipped on them, currently, less than 3 million registered vehicles are equipped with GPS tracking devices, which means the market is wide open! And since BBOM’s parent company “Unepxmil” is one of Brazil’s largest GPS service provider, as well as the #2 franchise in the automotive niche to own, they are positioned to dominate the market in 2013 and beyond. In addition, Unepxmil will soon be acquiring other companies, to expand into other profitable and emerging markets such as coffee (Brazil is the #1 producer of coffee in the world6), wireless services, cloud storage,Airlines,Cosmetics,Perfumes,Mobiles,Home security products and more, to keep BBOM profitable! Make no mistake, Unepxmil is positioned to become a billion-dollar brand, and was doing over $150 million in annual sales before the launch of their (BBOM) MLM division May 5, 2013. In addition, the BBOM executive team has made a commitment to manufacture an additional 50 million GPS units by the year 2015, to meet the growing market demands. And considering the fact that, according to a January 4, 2013 article published by The Rio Times, entitled: “Brazil Sees Record Sales In 2012: Daily7,” “...sales figures from the twelve months released by Brazil’s Federation of Vehicle Distribution, Fenabrave, have revealed. Some 3.8 million units were sold in 2012, an increase of 4.65 percent on 2011, itself a record year.”
No comments:
Post a Comment