Pricing Option 10% Margin
Palo Alto IBS 10% Margin Model Item Description
Sourcewell Monthly First Year
Second Year Third Year Fourth Year Fifth Year
% of Purchases
Sixth Year
3%
escalation
3%
escalation
5%
Escalation
5%
Escalation
7%
Escalation
Customer Purchases 67,826 813,912 838,329 863,479 906,653 951,986 1,018,625 Parts Bill For Customer Cost of Goods to NAPA 61,043 732,521 754,496 777,131 815,988 856,787 916,762 90.00% NAPA IBS Cost of Goods NAPA Margin on Parts 6,783 81,391 83,833 86,348 90,665 95,199 101,862 10.00% NAPA IBS Gross Margin (Point of Sale) GROSS MARGIN 6,783 81,391 83,833 86,348 90,665 95,199 101,862 10.00% NAPA IBS Gross Margin (Point of Sale)
Centralized Accounting/Admin Fees 678 8,139 8,383 8,635 9,067 9,520 10,186 1.00% Fixed Expense at .99% of purchases, Accounting & Data Processing Fee Payroll These costs will vary based on scope, hours and responsibilities as required per each contract Manager/Counter Salaries 5,891.61 70,699 72,820 75,005 78,755 82,693 88,481 8.69% Cost of Dedicated Parts Manager/Project Manager and any parts clerks for IBS Site Delivery Driver Salaries 0 0 0 0 0 0 0 0.00% Delivery Driver Pay - if applicable for a site there will be a charge in this category Pension/401K 324 3,888 4,005 4,125 4,331 4,548 4,866 0.48% Fixed Expense at .45% of customer monthly purchases Insurance 626 7,513 7,739 7,971 8,369 8,788 9,403 0.92% Mainly Group Insurance Premiums for on-site NAPA IBS staff Workers Comp Insurance 0 0 0 0 0 0 0 0.00% Insurance - General and Worker's Comp for on-site NAPA IBS staff FICA 467 5,604 5,772 5,945 6,243 6,555 7,014 0.69% Payroll Taxes for NAPA IBS On-Site Employees Total IBS Payroll 7,309 87,705 90,336 93,046 97,698 102,583 109,764 10.78% Miscellaneous Expenses
Delivery Truck Insurance 0 0 0 0 0 0 0 0.00% Insurance Coverage for delivery trucks required per contract - if applicable Delivery Maintenance/Gas 0 0 0 0 0 0 0 0.00% Vehicle Repairs and Fuel for Delivery Vehicles required per contract - if applicable Truck Payment 0 0 0 0 0 0 0 0.00% Lease/Depreciation Payment for any Delivery Trucks required per contract - if applicable Inventory Insurance 0 0 0 0 0 0 0 0.00% Small insurance on our on-site inventory assets Shelving/Equipment Depreciation 0 0 0 0 0 0 0 0.00% Shelving needed for secure parts location - if customer requires us to add shelving. Cage, etc - if applicable Store Expenses 103 1,236 1,273 1,311 1,377 1,446 1,547 0.15% Misc. Store Expenses (Printer Ink, Paper, Barcode Labels etc.) P-Card Card Fees 0 0 0 0 0 0 0 0.00% Credit Card Processing Fees - only if agency uses a p-card to pay NAPA parts and or operating statements Phone/Internet 0 0 0 0 0 0 0 0.00% Phone and/or Internet Charges (if not provided from Customer) TAMS Inventory Computer 1,000 12,000 12,360 12,731 13,367 14,036 15,018 1.47% TAMS Computer & Equipment Lease/Depreciation Expense, Maint./Support Fee's & Tams Misc. Expenses Taxes 1,106 13,272 13,670 14,080 14,784 15,523 16,610 1.63% Sales and Use Taxes, Personal Property Tax - only if applicable Freight & Postage 442 5,304 5,463 5,627 5,908 6,204 6,638 0.65% Estimated Freight Charges Incurred by this Operation to procure special order parts Training 0 0 0 0 0 0 0 0.00% Training Materials for NAPA IBS (including Hazmat) Total IBS Misc Expense 2,651 31,812 32,766 33,749 35,437 37,209 39,813 3.91% TOTAL EXPENSES 10,638 127,656 131,485 135,430 142,201 149,311 159,763 15.68% Total Monthly Expenses to Operate this IBS Gross Margin Less Expenses -3,855 -46,264 -47,652 -49,082 -51,536 -54,113 -57,901 -5.68% ROI for NAPA 6,783 81,391 83,833 86,348 90,665 95,199 101,862 10.00% NAPA's contracted return on investment Sample Billing Summary
Customer Purchases 67,826 813,912 838,329 863,479 906,653 951,986 1,018,625 Parts Bill For Customer including 10% margin Management Fee 0 0 0 0 0 0 0 0.00%
Expense Bill 10,638 127,656 131,485 135,430 142,201 149,311 159,763 15.68% Expense Reimbursement by Customer Adjustment to Customer 0 0 0 0 0 0 0 0.00% Margin reimbursement to Customer after all expenses and NAPA ROI are realized Total Cost of Operation 78,464 941,568 969,815 998,909 1,048,855 1,101,297 1,178,388 *It is important to note that these sample operating statements are issued to inform new, existing and potential Sourcewell members of the flexibility of the NAPA IBS program. ** These sample operating statements reflect NAPA IBS's typical expense structure but all categories are subject to change based on scope, hours and responsibilities as required per each contract.