marketing programs care more than others think is wise risk more than others think is safe dream...
TRANSCRIPT
Marketing Programs
Care more than others think is wiseRisk more than others think is safe
Dream more than others think is practicalExpect more than others think is possible
Agenda
System PricingNon-StandardsThird-Party ProductsPackagingLiterature ProgramPromotions
Pricing Philosophy
Increase Prices Over Several YearsDirect, Distributor, and National Accounts Justified and Achievable
Protect Distributor MarginsMaintain/Increase Spread Increase Direct Pricing First Increase Install and Service Pricing
Impact Market PricingKey Technology DevelopmentsDirect Area Pricing Strategy
Distributor Cost and Consumer Price Index
-5%
0%
5%
10%
15%
20%
25%
30%
35% CPI
SGXS
OHD
Distributor Costs
Jan, 1997 Jun, 2007
Jun, 2006
Ryko Price Increases
Aluminum Up 60% since 2005Fuel Up 50% since 2005Most manufacturers have
increased pricing (PWC Manufacturing Index)
2 Year Pricing Changes
Platform Ryko Distributor
SGXS 14% 7.5%
OHD 11% -1.4%
S-A-W 19% 8.0% Conveyor 13% 3.4%
Self Serve 7% 1.8%
~13% ~5%~14% ~7%
Net Change - JuneNet Change - Sept
Price Increase ImplementationDirect Areas
Order by June 9, Ship by June 30Distributor Areas
Order by June 30, Ship by July 31TouchFree
5% Increase in Direct AreasNo Price Increase in Distributor AreasExpect 4% Price Increase with New System
Distributor MarginNow Standardized (By Line Item)Will be able to add service, chemicalsWill continue to offer No Payment for 180 Days
Touch-Free Pricing
TouchFree % ValueList/Direct +5% +$5,000
Distributor Cost
-7% -$3,750
Direct AreasHave Increased List/Direct Pricing by 5%
Distributor AreasHave Increase Distributor Margin 7%Net 5% Reduction in Distributor Pricing
September, 20054% Increase Direct, National Account,
Distributor
National Account Pricing
Increased Standard PricingSGXS 9%, OHD 6%
Standard 15% from New ListIncreased Installation Pricing
30% increase to 6.5% of ListImplementation
One Account At A Time
June, 2006 National Account Pricing
Platform N.A. Distributor
SGXS 9% 3.5%
OHD 6% -5.4%
S-A-W 15% 4.0% Conveyor 9% -0.6%
Self Serve Eliminate
1.8%
~8% ~2%Net Change - June~9% ~3%Net Change - Sept
Non-Standards
Aggressive Innovation ProgramFriction, Touchfree, Conveyors,
ActivationNecessary to Manage Non-Standards
Marketing Manager ApprovalBefore Offering to CustomerRequires Rich Grier and Tom Swalla
Support (Marketing manages this)
Third-Party ProductsTotal Source
PartnersFully Engineered
Unique Solutions Integrated with Ryko
SystemsFully Supported
No Pre ApprovalPricing EstablishedSupported In FieldTo Be Listed on Ryko
Price Lists
Hosted Data Collection Solution
Mag Card BasedRyko’s Only Mag
Card Based Loyalty Program
New Wave (Pur-Clean)Ryko Solutions Designed for Ryko Washes
But – Often Different Than Other Systems
Remove Major Conversion HurdleWater Recovery, Odor Control, and Spot-
FreeWill Continue to Offer Both SystemsWill Improve Pur-Clean Support
Fully Documented, Ryko Part NumbersAvailable in Ryko Price List
Other Third Party ProductsPreferred Process
Distributor Buys DirectRyko Provides Necessary Support
Alternate ProcessHandle As Non-StandardPre Approval (Before Offering to Customer)
Issues to AddressTermsPayment InstallationWarranty
Other Reclaim SystemsHamilton ActivationPet WashNon-Ryko VacuumsUnique SignageEtc.
Spring PromotionPROS
Total OfferingEasy to Order
Chemical, Services
No Payment for 180 Days
Net Pricing
CONSPackage PricingManual
ProcessingSimplistic
Chemical PricingNot Set Up for
Contract Renewal
System Packaging - SGXS
System Packaging - SGXS
Off-Board Dry Deluxe Advantage
Ultimate
Price $69,923 $89,885 $112,213
Part Number
##### ##### #####
Discount 2% 4% 6%On-Board Dry Deluxe Advantage
Ultimate
Price $TBD $TBD $TBD
Part Number
##### ##### #####
Discount 2% 4% 6%
Package ProgramIncluded
All On Board FeaturesNot Included
R/O, Reclaim, Doors, Dryers, Signs, Frost Protect
Order As NeededChanges and Deviations
Not Necessary, Not Allowed
Package Program
Distributor PricingStandard Discount Structure2%, 4%, 6% Discounts
Package ImplementationSGXS (June, 2006)Signature Series (July, 2006)
Part Number ImplementationLiterature and Documentation
TouchFree (September, 2006)With New Product Launch
Selling Services (Direct)Service Part NumbersPre-paid, Monthly, Cents per WashAdd to Any Quote, Order
No Package Discounts
Selling ServicesS
erv
ice P
rice L
ist
Service Sell Sheet
Chemical Price List (Direct)Part
Number
CPW Price
C027 $.27/Wash
C032 $.32/Wash
C044 $.44/Wash
C057 $.57/Wash
C085 $.85/Wash
C108 $1.08/Wash
C113 $1.13/Wash
Etc. As Needed
Chemical Part NumbersCents per Wash PricingAdd to Any Quote, OrderChemical WorksheetsStandard PricingSupport Process
No Package Discounts
Literature Program
Available for DownloadOrders for 20 or Less – No ChargeLimited to .25% of Quota
Example $1.5M Quota = $3,750
No Payment for 180 DaysLeasing Partners Have Special
RatesBased on 2.5% Ryko SubsidyFinancing Not Available ElsewhereAny Package with RolloverRyko Pays 100% of Costs (2.5%)Extended Through September 30
SummaryAre Increasing PricesAre Working to Protect MarginsStandardized DiscountsMore System FlexibilityEasy to Order Packages – DiscountedNo Charge for Basic Literature
ProgramNo Payments for 180 Days Continues