Pono Transfer and Reuse, LLC | Application Preview
Pono Transfer and Reuse, LLC (Pono T and R) is seeking government grant funding to develop a nationwide network of recycling transfer stations specifically for disposable nicotine and cannabis vapes. The company aims to streamline the recycling process for these devices, which have a growing environmental impact.
The business model includes a monthly service where customers can collect used vapes in provided recycling boxes, which are later picked up by Pono T and R. Once brought to their transfer stations, the vapes are sorted by brand and type, disassembled, and separated into recyclable components such as batteries and plastics. These materials are then transported to recycling facilities.
Pono T and R's operations consist of several departments:
1. **Warehouse Operations**: Includes receiving, sorting, and disassembling vapes into designated containers for different materials.
2. **Sales and Marketing**: Engages with retailers to promote recycling programs. They offer services including branded recycling bins for companies, a mixed-bin service for retail spaces, and bulk recycling options for manufacturers.
3. **Logistics**: Manages efficient collection routes for pick-up and ensures timely delivery of recycled materials to facilities.
4. **Office Administration**: Handles administrative duties, invoice collection, and strategic management of the business's expansion plans.
The grant will help cover various operational costs, including personnel, facility expenses, and equipment. Pono T and R is positioned to become the industry leader in disposable vape recycling due to the lack of competition and increasing demand for sustainable waste management solutions.
By receiving a funding request of $1.5 million, Pono T and R believes it can build the necessary infrastructure to operate efficiently and profitably, while also addressing an urgent environmental issue. The company's innovative approach aims to foster responsibility within the vaping industry, making recycling a standard practice.
-
General Information
Business Registration Number: 216447599
Location: Eugene, OR, United States
Length of Operation: 1-5
Number of Employees: 11-25 Employees
Annual Gross Income: $1M to $10M
Annual Gross Expense: $1M to $10M
Open to Loans: YES
-
Funding Usage
Introduction: Pono T and R is on a mission to create a nation-wide network of transfer stations that manage the recycling of used disposable nicotine and cannabis vapes. The vapes are collected from customers within each transfer station’s service area who purchase a monthly service. We provide a recycling box to be used to collect the used disposable vapes until their monthly scheduled pick-up. Once collected they are dropped off at the Transfer Station and separated into different bins based on brand and type. The disposable vapes are then disassembled and the batteries, plastic, and reservoirs are separated into different pallet storage bins. The storage bins are stored in a “Shipping / Storage” area until a full truckload has accumulated, then it is shipped to the appropriate recycle center. There are four main parts to Pono T and R starting with the Warehouse transfer station itself which is sized to the area it services and can range anywhere from 14 to 50+ employees. Next, there is a Sales/Marketing department who works with retailers and manufacturers in the region to implement recycling programs that include a monthly recycling service fee and in some cases even holding events to encourage customer participation. There is a logistics department that creates efficient pick-up routes within the service areas and organizes the delivery of bulk components to recycling centers. Lastly, there is an office department that manages all administrative tasks, invoice collections, and seeks new opportunities for growth and expansion. The entire operation is a streamlined process that encourages and facilitates recycling, helping to reduce the environmental impact of disposable vapes. Breakdown: 1. Transfer and Reuse Warehouse (Transfer Station): a. Receiving and Sorting: Box Trucks carrying poly hand trucks filled with different types of used vapes from retail locations arrive at the Transfer and Reuse Warehouse. The trucks are unloaded by employees wearing protective gear, who sort the vapes based on brand and vape type into different Poly Box Trucks - specially designed containers on wheels that maximize space and enhance ease of handling. b. Disassembly: Sorted vapes are then transferred to Disassembly workstations. These workstations are equipped with a broad range of tools suitable for disassembling vapes, such as wire snips, vice grips, pliers, hammers, and screwdriver sets. Each workstation also has three large Folding Pallet Bulk Containers labeled for either batteries, plastic, or Hazardous Waste. Employees, wearing heavy-duty gloves and industrial protective clothing for safety, methodically disassemble the vapes. The components - battery, plastic shell, mouthpiece, and the internal components such as the reservoir and wiring - are deposited into their corresponding bulk containers. On average, an employee can disassemble 1,260 units a day, factoring in setup, breakdown time, and other influencing factors. c. Shipping and Storage: Once a bulk container reaches capacity, a forklift operator comes over to the Disassembly Workstation and picks it up and moves it to a dedicated space within the Shipping and Storage area. The Forklift Operator then replaces it with an empty Folding Pallet Bulk Container. Filled containers are stored securely until enough containers (approximately 20 containers depending on truck size) are accumulated to create a full truckload for cost-effective shipping. These containers are then dispatched to the appropriate recycling centers, emptied, and returned to the warehouse for reuse. 2. Sales / Marketing Department: Once a service area and collection routes are established the Sales Representatives can start selling the Pono T and R services. a. Mixed Bin Service: The Sales Team approaches potential participants within the warehouse's service area - such as smoke shops, vape stores, dispensaries, and local convenience stores - explaining the benefits of the Pono T and R Recycling Programs and signing them up for a $59.95 per month Mixed Bin Service. The Mixed Bin Service includes a Pono T and R branded recycle bin that can be used to collect any type of disposable cannabis or nicotine vape. A Pono T and R recycling truck will be by once a month to collect the used vapes. Not only will participants be able to leverage the marketing behind the benefits of recycling and keeping batteries out of the landfills, but they could potentially drive traffic to their stores by offering a true recycling service. b. Branded Recycle Bin Service: This service is meant for vape production companies and wholesalers who would like to have their own branded recycling bin at the locations they sell their products. Pono T and R provides a customized branded recycling bin which includes a monthly pick-up for only $19.95. This means brands like Elf Bar, DRAGBAR, iJOY, and even cannabis companies like Entourage Cannabis can have their own branded box that can be put into stores who are within the service area and sell their products. This is not only a way to contribute to saving the environment and protecting the future of this industry, but it can also be used as a marketing tool to promote brand loyalty. c. Bulk Separated / Mixed Per Pound Recycling Service ($6 - $8 per Pound): This service is meant for vape manufacturers who have bulk faulty or un-usable equipment who needs them to be recycled and disposed of. For manufacturers who have large amounts of different types of vapes all mixed together we offer the Bulk Mixed Recycling Service for $8.00 per pound. For manufacturers who have already separated the vapes by type we offer the Seperated per Pound Recycling Service which costs only $6.00 per pound to recycle. d. Marketing and Outreach: The Sales Department provides marketing materials and signage to retailers, promoting awareness and encouraging customer participation. Collaborations with vape hardware producers help drive recycling campaigns, reaching a broader audience and promoting the brand. Customers of disposable vapes must be educated on the consequences of not recycling their vapes. Landfills are already being overwhelmed by the number of batteries now being thrown away. e. Reselling Recycled Components: The separated plastic and batteries are sold in bulk truckloads to recycling centers across the nation. These components are then repurposed into new products, closing the recycling loop and reducing environmental impact. 3. Logistics Department: a. Collection Routes: This team creates efficient pick-up routes that cover all program participants in each region. Using state-of-the-art route optimization tools, they ensure that each journey maximizes the number of pick-ups while minimizing fuel consumption and time. Using a Box Truck filled with poly box hand trucks the driver goes to each recycling location and empties their collection box into one of the poly box hand trucks in the back of the Box Truck moving onto the next empty hand truck once one fills up. b. Delivery to Warehouse: Drivers navigate the routes, collecting filled boxes from stores and transferring them into Poly Box Trucks. These trucks are then driven back to the warehouse, where the poly box hand trucks are unloaded into the Receiving / Sorting area of the Pono T and R Warehouse. Employees take the poly box hand trucks with different types of disposable vapes inside and begin to sort them by brand and type. c. Bulk Deliveries to Recycling Centers: At regular intervals, the Logistics Department works with recycling centers to schedule deliveries of bulk plastic and batteries.Trucks will be backed into the Shipping / Storage area of the Pono T and R Warehouse and a forklift will slide 20+ full pallet boxes into the back of the truck. Using their fleet of trucks, they ensure that these shipments reach the recycling centers promptly and efficiently. 4. Office Department: a. Administrative Tasks: This department undertakes a variety of administrative responsibilities, from managing personnel records to overseeing equipment inventory. They ensure that each department has the resources it needs and helps facilitate inter-departmental communication. b. Invoice Collection: The Administrative Department is tasked with ensuring the prompt payment of all invoices issued. They maintain a detailed database of all invoices, payments received, and outstanding balances. They also run an on-site cash register and POS system for customers doing on-site drop offs directly to the Pono T and R Warehouse. c. Expansion and Management: Beyond their daily administrative duties, the Office Department also focuses on strategic initiatives. They oversee the management of the transfer stations, look for opportunities to establish new regions, and explore potential business opportunities for growth. They regularly review market trends, legislative changes, and technological advancements to identify opportunities for improvement and expansion. 5. Expense Overview (Oregon) a. Personnel Costs: - Warehouse Manager: $4,000 - $6,000 monthly - Admin/Office Controller: $4,000 - $6,000 monthly - Sales/Marketing Manager: $4,000 - $6,000 monthly - Logistics Specialist: $4,000 - $6,000 monthly - Hourly Employees: $16 - $18 hourly b. Facility Costs: - Warehouse (20,000 sq. ft. with truck bays): $22,750 monthly - Office Buildout: $10,000 (one-time cost) - Warehouse Buildout: $13,000 (one-time cost) c. Equipment Costs: $258,820 Poly Box Trucks Folding Pallet Bulk Containers Combination Package Mixed Tool Set Vice Grip Sets MIRA Safety HAZ-SUIT Chemical Resistant Butyl Rubber Gloves Uvex® Flex Seal® Safety Goggles Hazardous materials pallet box Utility Carts Industrial Packing Table - 72 x 30" Pallet Jacks Global Industrial™ Capital® 2-Tier 6 Door Locker Eye Wash Station Custom Collection Boxes Forklift d. Once operational, the cost to recycle and transfer the disposables will range from $1.74 - $0.35 per unit. 6. Production Flow Breakdown a. The Warehouse Manager oversees the flow of disposable vapes, managing all hourly employees and storage of supplies within the warehouse. They also manage the shipping and receiving of the bulk materials out of the warehouse. b. The Office Controller handles on site sales from drop-offs, records and bills incoming invoices from retail locations participating in the recycle program, and tracks outgoing shipments. c. The Sales Manager signs up retail locations for the program, manages the website, and creates marketing materials to drive customers to recycle. The aim is to get a collection box in every smoke shop in the area. d. The Logistics Specialist handles pickups from retail locations and deliveries of sorted materials to the appropriate recycling center. They require proficiency in forklift driving and maneuvering a box truck in tight spaces. e. Hourly employees work at the warehouse, receiving, transferring, sorting, and disassembling the disposable vapes, which are then sorted into separate Folding Pallet Bins and stored in the shipping staging area. Conclusion: Pono T and R is addressing the significant challenge of waste from disposable vapes, and plans to build a comprehensive network of transfer stations nationwide. Through the meticulous operations in the warehouse to the strategic sales and marketing campaigns, Pono T and R will ensure that disposable vapes are recycled and not left to harm the environment. With an optimized logistics system, we will efficiently navigate the process of collecting and transporting waste, while the office department ensures that the business remains viable and poised for growth. The company’s holistic approach to vape recycling encompasses not just the physical act of recycling but also fosters an environment of awareness and accountability among producers, retailers, and consumers. By providing a solution to a pressing environmental concern, Pono T and R reinforces the need for responsible business practices while showcasing the potential for profit and sustainability to coexist harmoniously.
-
Business Plan
We plan to take this business Nation-wide helping to solve the disposable vape crisis. Once the concept is proven in Oregon, we should be able to secure large enough loans with affordable rates on our own for expansion. Pono T and R presents a lucrative business opportunity with promising returns, while also addressing an environmental concern. We would be the first of our kind so there would be no competition. Vape companies are looking for a solution before disposable vapes get banned all together and we will be the first to provide a viable recycling solution that they can then market to their customers. With the requested loan of one million five hundred thousand dollars, the company can establish its infrastructure, equipment, and workforce, ensuring a smooth and effective operation. The strong projected revenues and returns further emphasize the viability of the project.
-
Self Identified Competition
Being we will be the first Disposable Vape Recycling company we will have no competition in the beginning. We are the first of our kind. Disposable vapes are a relatively new product on the market and solutions for their disposal haven't been built yet. Pono Transfer and Reuse aims to create the industry standard for the proper disposal of these electronic devices. Furthermore, we will work closely with the Government Agencies in each region that we operate to create processes and procedures that work for everyone.
-
Contact Applicant
Subscribe to our Administrator Dashboard to gain full access to this application. Learn More
