Account managers using Terralanes.

Summary: Extremely conservative estimate: $24k in revenue and $2400 in margin per employee

More “real world” numbers: $624k in revenue and $93k in margin per employee

Conservative Numbers

For the sake of this example, we are going to be using extremely conservative estimates here. Real world application of Terralanes will likely see ROI’s at multiples higher than the example below.

The Situation

You have one account manager. Their role is to manage and grow their existing customers. You just signed them and yourself up for an account in Terralanes. What happens if this AM starts using Terralanes? Let’s take a look.

Let’s assume this account manager is working with a customer who has a lane that you currently do not manage. The AM has mentioned this lane to you once or twice, but it seems to be something they always forget to ask the customer about or push to try and acquire it.

This lane runs just 12 times a year, once a month, and the customer assigns all 12 loads to one provider.

Using Terralanes to focus on this lane opportunity, the AM has strategically and efficiently gathered information on the requirements, pain points, incumbent pricing, and potential carrier partners.

The AM is confident they can run the lane for $2,000 at 10% margin. The customer gives you the lane. How does that impact your business?

The Numbers

With the extremely conservative numbers used above, we can calculate the revenue and margin per year this lane will generate as a result of using Terralanes.

1 Account Manager * 1 New Lane Won for the Whole Year * $2,000 Avg. Lane Revenue * 12 Loads in Annual Volume = $24,000 in Annual Revenue

$24,000 in Annual Revenue * 10% Avg. Margin per Load = $2,400 in Annual Margin

The Cost

Terralanes has three pricing options. The first user for any brokerage is always free, permanently!

For this example, we have a sales director and an account manager on the same brokerage account. Every user after the first is charged at $50 per person per month.

There is also an annual billing option. Users can get a 20% discount if they opt into annual billing. For the second user in a brokerage, that would be $480 due when they sign up, saving the brokerage $120 a year.

Taking the annual margin we acquired from this lane opportunity using Terralanes and dividing by our two user cost, we can get the return on investment estimate.

$2,400 Annual Margin / $600 Monthly Billing Annual Cost = 4 = 400% ROI

Making Some Changes

The example above is unrealistic in a number of ways.

  1. The example assumes that account managers using Terralanes will win only one new lane a year.
  2. The example lane opportunity has a very small annual volume of 12 loads.
  3. The example assumes the average margin for this lane will be fairly low at 10%.

Let’s change the example above in a few ways.

  1. Let’s assume the account manager will win 6 lane opportunities a year. This is still a low number for an AM using Terralanes as that’s only winning a new opportunity every 2 months.
  2. Let’s assume those lane opportunities have an annual volume of 52 (one a week).
  3. Let’s assume the average margin for those lanes will be 15%.

1 Account Manager * 6 New Lanes Won for the Whole Year * $2,000 Avg. Lane Revenue * 52 Loads in Annual Volume = $624,000 in Annual Revenue

$624,000 in Annual Revenue * 15% Avg. Margin per Load = $93,600 in Annual Margin

$93,600 Annual Margin / $600 Monthly Billing Annual Cost = 195

19,500% Terralanes ROI!!!

Head to our website now and sign up for a FREE ACOUNT!

We are a knowledge management system designed specifically for freight brokerages.