Marketing Programs Care more than others think is wise Risk more than others think is safe Dream...
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Transcript of Marketing Programs Care more than others think is wise Risk more than others think is safe Dream...
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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
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Agenda
System PricingNon-StandardsThird-Party ProductsPackagingLiterature ProgramPromotions
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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
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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
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Ryko Price Increases
Aluminum Up 60% since 2005Fuel Up 50% since 2005Most manufacturers have
increased pricing (PWC Manufacturing Index)
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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
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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
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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
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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
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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
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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)
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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
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Hosted Data Collection Solution
Mag Card BasedRyko’s Only Mag
Card Based Loyalty Program
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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
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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.
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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
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System Packaging - SGXS
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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%
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Package ProgramIncluded
All On Board FeaturesNot Included
R/O, Reclaim, Doors, Dryers, Signs, Frost Protect
Order As NeededChanges and Deviations
Not Necessary, Not Allowed
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Package Program
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Distributor PricingStandard Discount Structure2%, 4%, 6% Discounts
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Package ImplementationSGXS (June, 2006)Signature Series (July, 2006)
Part Number ImplementationLiterature and Documentation
TouchFree (September, 2006)With New Product Launch
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Selling Services (Direct)Service Part NumbersPre-paid, Monthly, Cents per WashAdd to Any Quote, Order
No Package Discounts
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Selling ServicesS
erv
ice P
rice L
ist
Service Sell Sheet
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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
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Literature Program
Available for DownloadOrders for 20 or Less – No ChargeLimited to .25% of Quota
Example $1.5M Quota = $3,750
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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
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SummaryAre Increasing PricesAre Working to Protect MarginsStandardized DiscountsMore System FlexibilityEasy to Order Packages – DiscountedNo Charge for Basic Literature
ProgramNo Payments for 180 Days Continues