5 Star Freight Factoring
Go To Market Strategy
We have identified two primary avatars for this market and there will be a different message presented to each of these. We will also test some small cross-over audiences to see how the mess in the one group tests with the message designed for the other avatar.
Nathan Newbie prospects are excited to be running under their own authority and have a lot of optimism about finally being able to experience freedom in their life. We will sell them on that concept of freedom and having the cash flow to always be free to do things on their terms. We will target this group with a video sales letter that we drive traffic to via targeted email from the FMCSA database as well as Facebook traffic.
Cyrus Cynical prospects are more jaded about the business and are starting to feel the pressure of regulations and expense pressures. They are no less concerned with freedom and more concerned with getting the best factoring deal possible.
The offer for Nathan Newbie is a cash flow system based on factoring.
Genetic mutation kills 85% of all new trucking companies within first 2 years.
The UM is the DNA Cash Management – Drivers Not Accountants
The headline for the offer
5 Star Freight Factoring is a factoring broker that sells factoring contracts in the transportation / logistics industry. 5 Star does not manufacture products, they sell them for a number of product manufacturers on a broker / commission basis.
The prospects are trucking companies ranging primarily from 1-5 trucks. Two primary avatars will be targeted: Nathan Newbie is a new trucking company that has recently obtained their own authority. The company owners have 10 years in the trucking business as drivers but now they have taken a step to operate as their own authority. Cyrus Cynical is the owner of a trucking company that has been running under their own authority for more than 2 years and has grown more cynical with the business. He has 20 years in the business and feels that the best days of trucking are in the past.
The products being sold are factoring contracts that are competitive in the marketplace but becoming fairly commodity. Many trucking companies will purchase based on price, or perceived price but pricing is fairly complex with many add-on fees that can take a base commission and significantly increase the cost.
This is a very large market with factoring contracts in this market are easily in the 100’s of millions perhaps billions per year. As such, there are a few very large players and many smaller players. We will routinely compete against very large players with very deep pockets. We can not buy traffic the same way that the competitors buy traffic.
American Transportation Research Institute – Only 15% of newly formed trucking companies will survive n their 2nd year
US Bank – 86% of small business failures are due to poor cash flow
Wall Street Journal – Since the factoring firm handles collections, the factor customer doesn’t have to worry about billing and credit checking and about staffing those functions