NO RISK TRIAL GO NANO - Who's IN? Trials Savings-Based Partnership Program draft outline
Help us launch and work out a WIN WIN GO NANO Trials Savings-Based Partnership Program Contact Jim at 907-830-8198 or 808-493-7370
1. Executive Summary
- Introduction to Go Nano Lubricants and the value of NANO products.
- Overview of the proposed trial program for fleet operators.
- Key benefits: risk-free trial, proven performance metrics, and shared financial benefits through a percentage of cost savings.
- Example: A fleet operator achieving a 30% reduction in costs could see $30,000 in annual savings for every $100,000 of baseline costs, of which $10,000 (one-third) would be paid to Go Nano Lubricants.
2. Objectives
- Demonstrate the effectiveness of NANO lubricants in real-world fleet operations.
- Provide measurable savings in fuel efficiency, maintenance costs, and operational uptime.
- Establish long-term partnerships based on mutual success.
3. Program Overview
- Description of the NANO product line and its unique performance advantages.
- Explanation of the trial structure: duration, scope, and performance metrics.
- Key performance indicators (KPIs): fuel consumption reduction, maintenance frequency, engine wear analysis, and overall cost savings.
- Example: Metrics include a 10% improvement in fuel efficiency, a 20% reduction in maintenance costs, and a total savings of 30%.
4. Partnership Model
- Risk-Free Trial: Provide initial supply of NANO products for the trial period at no upfront cost.
- Savings-Based Payment: Upon successful demonstration of savings, the fleet operator agrees to share a predetermined percentage (one-third) of the realized savings with Go Nano Lubricants.
- Proof of Compliance: Fleet operators must document their baseline data and follow all trial protocols. Non-compliance will result in billing for the product at its standard cost.
- Transparency in measurement: Clear reporting on savings calculations ensures trust and accountability.
5. Trial Implementation Plan
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Phase 1: Assessment
- Identify and onboard suitable fleets for the trial program.
- Baseline measurement: Gather historical data on fuel consumption, maintenance records, and operational costs.
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Phase 2: Deployment
- Application of NANO products across selected fleet vehicles.
- Monitoring and support during the trial period to ensure proper product usage.
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Phase 3: Analysis
- Data collection and comparison against baseline metrics.
- Final performance report detailing cost savings and additional benefits.
- Example: A fleet with baseline fuel costs of $50,000 per month reducing costs by 30% saves $15,000 monthly, of which $5,000 is paid to Go Nano Lubricants.
6. Savings Calculation and Payment Structure
- Methodology for calculating savings:
- Fuel efficiency: % improvement × average cost per gallon.
- Maintenance reduction: documented cost savings in repairs and downtime.
- Agreed-upon percentage of total verified savings to be paid to Go Nano Lubricants (e.g., one-third of $30,000 savings equals $10,000).
- Payment timeline and terms:
- Payments are made quarterly based on verified savings reports.
- Failure to provide compliance documentation results in billing at the standard product rate.
7. Benefits to Fleet Operators
- No upfront investment required.
- Opportunity to validate performance claims in their own operations.
- Direct cost savings and operational improvements.
- Strengthened commitment to sustainability through reduced emissions.
- Example: Annualized savings of $360,000 for a fleet with $1.2 million baseline costs, sharing $120,000 with Go Nano Lubricants.
8. Go Nano Lubricants Commitment
- Provide expert support during the trial, including training, monitoring, and troubleshooting.
- Offer transparent and reliable data analysis to validate savings.
- Deliver a high-quality product designed to exceed expectations.
- Example: Dedicated account manager for each trial partner.
9. Next Steps
- Expression of interest from fleet operators.
- Formal agreement on trial terms, savings-sharing percentages, and compliance requirements.
- Scheduling of trial commencement and ongoing check-ins.
- Example: Sign agreements within 30 days and initiate trials within the following quarter.
10. Contact Information
- Go Nano Lubricants representative details.
- Invitation for questions and discussion of custom trial arrangements.
11. Real-Life Examples of Similar Programs
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Metso's Performance-Based Contracts: Metso, a company in the mining industry, has seen a surge in performance-based maintenance contracts. These contracts include mutually agreed targets with customers and commercial models that foster win-win partnerships.
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Shared Savings Clauses in Construction: In the construction industry, shared savings clauses are agreements where the contractor is paid a percentage of the difference between actual costs and a guaranteed maximum price. This incentivizes contractors to control costs and aligns their goals with project owners.
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Performance-Based Maintenance in Mining: Studies have explored performance-based maintenance contracts for equipment like dump trucks in the mining industry. These contracts use incentives to motivate service providers to enhance equipment performance beyond set targets.
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McGriff Treading Company's Service Contracts: McGriff Treading Company implemented service contracts with shared savings, aligning incentives for both retreaders and fleet operators to reduce tire costs. This approach ensures both parties benefit from cost reductions.
These examples demonstrate the effectiveness of performance-based and shared savings contracts in various industries, including mining and trucking, highlighting the potential benefits of such models.
