A fuel tank monitoring product that will revolutionize the fuel delivery industry.
1) The Business:
TankView is a purpose-built tank monitoring system for fuel companies that reduces delivery cost by up to 33% and eliminates runouts, while generating a 35% ROI. The tank monitoring product is an RF-based system in which mobile transceivers on fuel company vehicles collect fuel level data sent from a tank monitor at a fuel customer’s home and transmits it to the cloud, from which it is then downloaded into the fuel company’s back-office software system to update the customer’s fuel record.
2) Identification of Market Size:
Existing technologies have not been able to remedy delivery inefficiency for decades, which wastes more than $1.3 billion to $1.6 billion per year industry wide. The cost of fuel delivery is on the increase caused by inflationary pressure on labor, truck fuel & maintenance and other financial overhead. All fuel delivery companies know that improvement in delivery efficiency is the key to survival and that a remote tank monitoring system is the enabling technology. Fuel deliveries have two conflicting objectives, those being (a) avoid runouts and (b) maximize delivery efficiency. The ideal scenario is to lower costs by making as few deliveries as possible without letting customers run out of fuel. This multi-billion-dollar market has for decades been aware of delivery inefficiencies, an industry problem begging for a viable solution.
3) Market Growth:
Summary Financial Projections ($000)
Year 1 Year 2 Year 3 Year 4 Year 5
Units Deployed: 12,750 71,106 175,558 306,000 475,673
Revenue: 237 3,969 13,945 27,397 46,552
EBITDA: (2,287) (1,467) 2,570 9,316 19,531
Gross Margin: NM 34% 46% 51% 55%
EBITDA Margin: NM NM 18% 34% 42%
4) Monetization of Opportunity:
Today, over 95 percent (23 million tanks) of the heating oil and propane tanks in the United States are not monitored. Most fuel delivery companies are certainly aware of the benefits of monitoring but can’t justify the economics of using existing products to monitor all their tanks. This represents a significant opportunity for the more comprehensive and less expensive TankVision System.
Total Available Market:
***U.S. Hardware Sales: $1.5+ Billion AND $450 Million in annual recurring revenue for oil and propane Tank Monitoring Hardware and Software
***Western European Fuel Market Applications (Scalability), Oil & Propane Tank Monitoring
***Applications that can capitalize on proprietary fuel consumption data
5) Showcase Traction:
With over 50 years of combined experience in the oil delivery industry, the owners of Tank Vision, Inc. have clearly articulated all the reasons that scheduled periodic deliveries and the degree day system don’t accurately predict how much fuel a customer needs, leading to gross inefficiency. Also, Tank Vision, Inc has tested many new tank monitoring offerings, only to realize their failures in the field. Not being able to garner successful employment from any of the tank monitoring systems on the market today due to various technical roadblocks, Tank Vision, Inc. set off to develop its own proprietary system.
Tank Vision, Inc. product, with the registered trade name "TankView", addresses all the learned deficiencies of other systems and capitalizes on the implementation of four US patents Tank Vision, Inc. has applied for and been granted which focus on the sensor technology charged with reading and reporting tank levels. Hundreds of thousands of dollars have been invested by the owners to bring forward this technology. A prominent Brown University study on the main patent found the system to be accurate in determining fuel consumption leading the way to completion of the first prototype.
Continuous development work with a prominent national engineering company (DMC) is underway to create limited quantities of sensors and transceivers followed by deliberate beta testing in the field utilizing Tank Vision, Inc. owners' own fleet and customer base as well as three additional leading fuel delivery companies in the Northeast.
6) Relevant Team Experience:
In 1976 Jay McMann began his first oil delivery company with a single oil truck in Boston. He successfully built his fleet of oil delivery trucks by focusing on outstanding service, reliability, and fair prices. In 1998 he successfully acquired a larger oil delivery company named Bermingham Oil Inc. and the combined McMann-Bermingham Oil developed into a prominent fuel distributor in the Boston market, delivering heating oil, diesel, and gasoline. Jay sold this business to Global Partners LP, one of the largest petroleum product distributors in North America in 1993.
After five years of consulting for home heating companies, Jay relocated to the now famous Island of Martha’s Vineyard off the coast of Massachusetts. After this move Jay founded a heating and air conditioning company. Over time, Jay realized the Island market needed a heating oil company like the one he had started in Boston, a business committed to reliability, customer satisfaction and the local community.
Jay founded Island Fuel Inc. in 2008 with an unparalleled focus on heating oil delivery to residential and commercial customers. Over the most recent years Jay has expanded the capabilities of the company to create the Islands only full-service oil company. The company was renamed Island Energy Inc. in 2014 to reflect its comprehensive service offering to its base of over 1500 customers. Then in 2021 Island Energy Inc. acquired the Home Heating Division of AmeriGas strengthening its position on the Island.
To this day, Jay holds an unrestricted oil burner license as well as other related mechanical licenses. Jay is truly the quintessential oil company expert who knows how to get the job done and have the company flourish. There is no doubt that his acumen will lead Tank Vision, Inc. to industry stardom.
In 2011 Jay brought his new business partner and co-owner Brian McBride onboard, armed with a Wharton School MBA and 25 years of investment banking experience as well as having successfully managed 50+ person leveraged finance teams in London at leading investment banks for almost a decade. His experience grew to include transaction-specific skills (complex financial and legal analysis) as well as managerial skills (client origination, attracting key hires, and setting group strategy). At Island Energy Inc., Brian is responsible for financial oversight, marketing, and fuel hedging. He has gained a thorough understanding of the financial and operational issues that fuel delivery companies face.
Jay and Brian have seen it all and have experienced just about every possible disruption to getting oil distributed to customers on time. They knew that a remote Tank Monitoring System (TMS) for the entire industry was the future and that no one had brought a low cost / high performance solution to the marketplace yet. In fact, Jay and Brian have tested over a dozen systems that didn’t meet their meticulously high-performance standards.
Jay and Brian bring an unequivocal passion to the science and art of commercial and residential oil delivery. After unsuccessful results while experimenting with many proposed systems (that just didn’t get the job done when tested on their own fleet of delivery trucks), they founded Tank Vision, Inc. and the branded TMS known as TankView which promises to overcome the short comings of all previously tested systems available on the market today.
7) Funding Needs:
Although Jay and Brian have personally invested heavily in Tank Vision, Inc., new outsides funding is being sought for completion of product development and beta testing in the field under various environmental conditions. Tank Vision, Inc. is offering $1M of convertible notes to savvy investor(s) who can see the vision. For further insight, interested investors should contact co-owner, Brian McBride at 508-696-5959.