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Marketing Programs

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  1. Marketing Programs Care more than others think is wise Risk more than others think is safe Dream more than others think is practical Expect more than others think is possible

  2. Agenda • System Pricing • Non-Standards • Third-Party Products • Packaging • Literature Program • Promotions

  3. Pricing Philosophy • Increase Prices Over Several Years • Direct, Distributor, and National Accounts • Justified and Achievable • Protect Distributor Margins • Maintain/Increase Spread • Increase Direct Pricing First • Increase Install and Service Pricing • Impact Market Pricing • Key Technology Developments • Direct Area Pricing Strategy

  4. Distributor Costs Jun, 2006 Jan, 1997 Jun, 2007

  5. Ryko Price Increases • Aluminum Up 60% since 2005 • Fuel Up 50% since 2005 • Most manufacturers have increased pricing (PWC Manufacturing Index)

  6. 2 Year Pricing Changes Net Change - June ~13% ~5% Net Change - Sept ~14% ~7%

  7. Price Increase Implementation • Direct Areas • Order by June 9, Ship by June 30 • Distributor Areas • Order by June 30, Ship by July 31 • TouchFree • 5% Increase in Direct Areas • No Price Increase in Distributor Areas • Expect 4% Price Increase with New System • Distributor Margin • Now Standardized (By Line Item) • Will be able to add service, chemicals • Will continue to offer No Payment for 180 Days

  8. Touch-Free Pricing • Direct Areas • Have Increased List/Direct Pricing by 5% • Distributor Areas • Have Increase Distributor Margin 7% • Net 5% Reduction in Distributor Pricing • September, 2005 • 4% Increase Direct, National Account, Distributor

  9. National Account Pricing • Increased Standard Pricing • SGXS 9%, OHD 6% • Standard 15% from New List • Increased Installation Pricing • 30% increase to 6.5% of List • Implementation • One Account At A Time

  10. June, 2006 National Account Pricing Net Change - June ~8% ~2% Net Change - Sept ~9% ~3%

  11. Non-Standards • Aggressive Innovation Program • Friction, Touchfree, Conveyors, Activation • Necessary to Manage Non-Standards • Marketing Manager Approval • Before Offering to Customer • Requires Rich Grier and Tom Swalla Support (Marketing manages this)

  12. Third-Party Products • Total Source Partners • Fully Engineered • Unique Solutions • Integrated with Ryko Systems • Fully Supported • No Pre Approval • Pricing Established • Supported In Field • To Be Listed on Ryko Price Lists

  13. Hosted Data Collection Solution • Mag Card Based • Ryko’s Only Mag Card Based Loyalty Program

  14. New Wave (Pur-Clean) • Ryko Solutions Designed for Ryko Washes • But – Often Different Than Other Systems • Remove Major Conversion Hurdle • Water Recovery, Odor Control, and Spot-Free • Will Continue to Offer Both Systems • Will Improve Pur-Clean Support • Fully Documented, Ryko Part Numbers • Available in Ryko Price List

  15. Other Third Party Products • Preferred Process • Distributor Buys Direct • Ryko Provides Necessary Support • Alternate Process • Handle As Non-Standard • Pre Approval (Before Offering to Customer) • Issues to Address • Terms • Payment • Installation • Warranty Other Reclaim Systems Hamilton Activation Pet Wash Non-Ryko Vacuums Unique Signage Etc.

  16. Spring Promotion • CONS • Package Pricing • Manual Processing • Simplistic Chemical Pricing • Not Set Up for Contract Renewal • PROS • Total Offering • Easy to Order • Chemical, Services • No Payment for 180 Days • Net Pricing

  17. System Packaging - SGXS

  18. System Packaging - SGXS

  19. Package Program • Included • All On Board Features • Not Included • R/O, Reclaim, Doors, Dryers, Signs, Frost Protect • Order As Needed • Changes and Deviations • Not Necessary, Not Allowed

  20. Package Program

  21. Distributor Pricing • Standard Discount Structure • 2%, 4%, 6% Discounts

  22. Package Implementation • SGXS (June, 2006) • Signature Series (July, 2006) • Part Number Implementation • Literature and Documentation • TouchFree (September, 2006) • With New Product Launch

  23. Selling Services (Direct) • Service Part Numbers • Pre-paid, Monthly, Cents per Wash • Add to Any Quote, Order No Package Discounts

  24. Selling Services Service Price List Service Sell Sheet

  25. Chemical Price List (Direct) • Chemical Part Numbers • Cents per Wash Pricing • Add to Any Quote, Order • Chemical Worksheets • Standard Pricing • Support Process No Package Discounts Etc. As Needed

  26. Literature Program • Available for Download • Orders for 20 or Less – No Charge • Limited to .25% of Quota • Example $1.5M Quota = $3,750

  27. No Payment for 180 Days • Leasing Partners Have Special Rates • Based on 2.5% Ryko Subsidy • Financing Not Available Elsewhere • Any Package with Rollover • Ryko Pays 100% of Costs (2.5%) • Extended Through September 30

  28. Summary • Are Increasing Prices • Are Working to Protect Margins • Standardized Discounts • More System Flexibility • Easy to Order Packages – Discounted • No Charge for Basic Literature Program • No Payments for 180 Days Continues