MBCI Co-Op Program & Growth Incentive

1. MBCI Co-Op Program & Growth Incentive

2. What is the co-op program • Co-Op is designed to help our dealers ADVERTISE and PROMOTE MBCI products. • By working with our dealers in this manner, we provide them with more resources to increase exposure and make more sales. • Unused Co-Op funds are dollars thrown away and buyers that are not being reached. • According to Nielsen Research Co-Op dollars have the highest rate of return. On average, this is $12 for large ticket items per dollar spent.

3. How to help your dealers • Check your Co-Op reports: Business Objects - 60, 62, 64 • Follow up with your dealers to ensure that they are advertising and using Co-Op to stretch their advertising dollars. • Pay attention to what works… and what doesn’t • Newspaper: Costs are up and circulation is down • Radio: Oversaturation of media blocks leads to drop in primary advertisers – Nielsen • Web: Local targeting lowers acquisition costs • Mobile: Mobile apps now available at the address level

4. How to help your dealers • Consumers are shopping differently. Can they find you? • Most Popular Request Type: Newspaper Ads account for about 20% of all requests. (Newspaper Circulation Continues to Drop www.msnbc.msn.com/id/39830512/ns/business-media_biz/) • Least Popular Request Type: 0.2%... Website development/advertising/search engine optimization (Roughly Half Of All Buyers Search Online Before Purchase www.clickz.com/clickz/stats/1699434/consumers-search-before-buying-online) • Co-Op eligible items include Search Engine Optimization, one-time web development costs and online advertising banners.

5. How to help your dealers • When working with your dealers, remember that using a few simple rules will help better track the effectiveness of any advertising: • Vary your offers by medium to see what customers are asking for. • Make sure your advertising tells customers specifically why they should buy from you and over the competition. • Ask your customers and track your leads by advertising medium. • Web • Billboard • Radio • Direct Mail • Flyers

6. program requirements • Dealer must have a minimum of $75k in overall sales. • Dealers accrue at a set % on their “Qualifying Sales” • Qualifying Sales are those sales that do not fall into the excluded door styles. • Contractor’s Choice and GBC do not accrue on any sales • Requests must include proper documentation. • All requests must be submitted by February 15 following the fiscal year cut off to be considered. • Funds not utilized during the calendar year are forfeit.

7. Miscellaneous • Review the program guidelines with your dealers and include advertising in your planning. • Primary reason for declined requests involve missing or incorrect documentation. • When in doubt… check the guidelines. • There are less than 2 weeks left before 2010 cut off. Program Details Available on One Touch

8. Growth incentive • Sales Base is the higher of: • $300,000 minimum • Prior Year Net Sales • Average of Prior TWO years Net Sales

9. Growth incentive • You should be able to give your dealers a target for Growth Incentive during the year. • You can calculate their sales base. • This will give you the baseline from where all growth will be measured. • SPA’s, Contractor’s Choice, and other elements can effect a dealers Growth Incentive. • For this reason, do not provide estimates to dealers for Growth Incentives. • February 15th is the target date for Growth Incentives to be released.

10. Questions