RYKO Touch Free Car Wash

1
RYKO Touch Free Car Wash

• How to Play the Game
• Ken Barr
• 2000 Summer Sales Meeting

2
Is RYKO The Touch Free Car Wash Company?

• Through the Gamesmanship and Perception Building
  by our touch free competitors painting RYKO as
  the friction only company our recognition as the
  touch free car wash company has been effected.

3
Is RYKO The Touch Free Car Wash Company?

• How do we overcome this perception and have RYKO
  thought of as one of the major touch free car
  wash companies in the industry while still
  retaining our World Leader Multi-Product Supplier
  Status.

4
RYKO Is a Touch Free Car Wash Company!

• Fact!
• Touch free car washes have been 40 of RYKOs
  sales over the past 5 years.
• Therefore, RYKO has been and is a significant
  factor in the touch free industry.

5
How Did We Get To Where We Are?

• Why is RYKO sometimes not thought of as the touch
  free car wash company?
• RYKO car wash offering more diverse than
  competitors.
• Competitors say we do not focus on touch free
  washing.

6
How Did We Get Where We Are?

• Competitors said that our earlier touch free, was
  not as flashy as theirs.
• Competitors had triple foaming wax applications.

7
How Did We Get Where We Are?

• Competitors had two-step chemicals.
• Our spot free rinse system was more expensive.
• The US 2001 population in some areas was sparse,
  making it more difficult to show the equipment.

8
How Did We Get Where We Are?

• Success in selling FoamBrite has taken some of
  our focus away from selling Touch Free.
• Sales force not as comfortable or knowledgeable
  selling touch free as selling friction.
• Sales people not confident in understanding touch
  free chemicals vs. competitors.

9
Ryko The Touch Free Car Wash Company!

• Our goal is to re-establish the industry
  perception of RYKO as a strong touch free
  supplier!

10
WHY BE CONCERNED?

• Touch free will be a continuing part of the car
  wash sales market.
• Some major oil companies prefer touch free car
  wash equipment.

11
WHY BE CONCERNED?

• Our touch free competitors have presented a
  perception to the Oil Industry of RYKO as a
  friction only company.
• Some major oil companies have created perceptions
  of touch free washing that although not accurate,
  they have accepted this perception as reality.

12
WHY BE CONCERNED?

• All worked to build a successful touch free car
  wash sales business as part of multi product
  offering.
• Important to maintain this part of our business
  to continue growth of RYKO, each distributor area
  and each sales area.

13
Oil Companies Buy Some Touch Free

• Various major oil companies have demonstrated in
  some parts of the country a preference for touch
  free car washing.
• These companies are
• BP/Amoco
• Exxon/Mobil
• Tosco/Unocal
• Chevron
• Conoco
• Phillips
• Utramar/Diamond Shamrock

14
Oil Companies Buy Some Touch Free

• These companies have purchased friction washes
  either in the past or along with touch free
  washes.
• Some of these companies have moved or are moving
  toward friction washing with FoamBrite.

15
Oil Companies Buy Some Touch Free

• Bottom line is all of these companies are
  purchasing some touch free washes.
• We want to be their touch free wash supplier!

16
How Major Oil Perceives Touch Free Washing

• Reasons some major oil company personnel give for
  buying touch free car washes.
• Perceive no damage claims
• Perceived safe wash
• Perceived modern image
• Perceived acceptable wash quality
• Perceive installation easier and faster with few
  major building modifications

17
How Major Oil Perceives Touch Free Washing

• Perceive touch free commands a higher price for
  the car wash.
• Perceive fewer moving parts with touch free
  equipment results in lower maintenance costs.
• Perceive that entire market is not reluctant to
  wash their vehicles touch free but a part of the
  market will not wash with friction.

18
How Major Oil Perceives Touch Free Washing

• Perceive touch free washing as the preference of
  the higher end demographic customers, the market
  segment that they all see as their desired
  customer.
• Perceive lower equipment cost with touch free
  washes.
• Perceive greater profitability. Higher operating
  cost of touch free washing is overlooked.

19
How Major Oil Perceives Touch Free Washing

• We Know - Most if not all of the above
  perceptions are not reality.
• Many of the more experienced people in the oil
  industry and the car wash industry realize this
  also.

20
How Major Oil Perceives Touch Free Washing

• However, many of the people that are in positions
  of responsibility in the oil industry are not as
  experienced and knowledgeable and for them
  PERCEPTION BECOMES REALITY!

21
PERCEPTIONS!

• Where have these perceptions about touch free
  washing come from?
• Our touch free competitors have done an excellent
  job of spreading these perceptions throughout the
  oil industry.

22
PERCEPTIONS!

• Where have the perceptions come from that RYKO is
  not a touch free company?
• Our touch free competitors have done an excellent
  job of spreading this perception throughout the
  oil industry also.
• Now it is our job to change these perceptions!

23
RYKO THE TOUCH FREE CAR WASH COMPANY!

• Our goal is to re-establish the industry
  perception of RYKO as a strong touch free
  supplier!

24
RYKOs TOUCH FREE OFFERING TODAY

• US 2001 has the most attractive appearance of any
  touch free car wash in the industry.
• Glossy panels look good, but must be kept clean.
• Personalized Image on top fascia of machine.

25
RYKOs TOUCH FREE OFFERING TODAY

• Pictogram Panel displays are at a level for the
  customer to see them.
• Attractive Color coordinated plastic covers.
• US 2001 is the fastest touch free car wash in the
  industry.

26
Touch Free Car Wash Speed Comparisons

• All two step wash times, not including dry.
• US 2001
• Basic Wash 1 min. and 44 sec.
• Mark VII Aqua Jet
• Basic Wash 2 min. and 28 sec.
• PDQ Laserwash 4000
• Basic Wash - 4 min.
• (Mark VII and PDQ wash times were based on my
  timing of recently installed washes in the
  Phoenix market.)

27
RYKOs TOUCH FREE OFFERING TODAY

• The RYKO High Impact technology
• Longest operating life.
• Lowest maintenance costs.
• Best wash quality.
• 5 year pump warranty.
• Acceptance to the use of reclaim water .
• Strongest mechanical action on the wash surface.

28
RYKOS TOUCH FREE OFFERING TODAY

• Minimum vibration.
• Quiet running.
• Minimum nozzle wear.
• No nozzle clogging.

29
RYKOS TOUCH FREE OFFERING TODAY

• The Rainmaker III a very competitive Reverse
  Osmosis/Spot Free Rinse system.

30
RYKOS TOUCH FREE OFFERING TODAY

• Fixed cost service programs from the best car
  wash service organization in the industry.

31
RYKOS TOUCH FREE OFFERING TODAY

• Fixed cost chemical programs provide customers
  with advanced knowledge of chemical costs.
• Keep full chemical programs assure no chemicals
  run outs.
• No downtime or wash quality problems caused by
  chemicals losing prime.

32
RYKOS TOUCH FREE OFFERING TODAY

• Two step chemical application capability.
• RYKO Prep Pro I Low PH or acid chemical
  solution.
• RYKO Prep Pro II High PH or alkaline chemical
  solution.

33
RYKOS TOUCH FREE OFFERING TODAY

• Tri-foam wax as an option for increasing revenue.

34
Understanding Touch Free Washing

• Our competitors in selling Touch Free car washes
  present an image of success in their ability to
  get cars clean. I do not think we always
  demonstrate the same image of success.
• Do they know or have anything that we do not
  have? Is the difference in the image presented
  or perception created?

35
Understanding Touch Free Washing

• Our major Touch Free competitors work directly
  with chemical companies as the chemical supplier
  to their customers. The chemical people create a
  perception of knowing more about how to get
  cleaning results.

36
WHAT OUR COMPETITORS SAY

• Excerpts from a recent Mobil car wash session
  featuring Mark VII and Eco Lab/Blue Corral.
• Not fact but only what our competition is saying.

37
WHAT OUR COMPETITORS SAY

• There are five factors of Touch Free Cleaning.
• Water
• Temperature
• Chemistry
• Time
• Mechanical Action

38
WHAT OUR COMPETITORS SAY

• Maximum cleaning requires all factors working
  together.
• Reduction in one factor will require increasing
  the others.

39
Water

• Water used for chemical application must be soft.
  
• Dissolved calcium and magnesium in hard water
  reacts with active ingredients of the chemical
  solution causing loss of cleaning.

40
Water

• Loss of cleaning ability from hard water
• 2-5 grains 15 loss
• 5-10 grains 25 loss
• 10-15 grains 35 loss

41
Water

• Total dissolved solids (TDS)
• Above 30 PPM (Parts per million) will leave
  spots.
• TDS generally will not effect cleaning.

42
Temperature

• Chemical solutions work best on a dry car.
• Temperature Activity of chemicals.
• Quick to say that this has some limitations, such
  as difference in car surface temperature, ambient
  temperature of the air, etc.
• Continually emphasized that there are lot of
  variables.

43
Chemistry

• Chemistry - the reaction of solution with water
  and the ability of that solution to clean soils.
• Soils made up of Organic and Inorganic.
• Organic - dirt in the ground.
• Best cleaned by alkaline cleaners.
• Inorganic - pollution from the air
• Best cleaned by acidic cleaners.

44
Chemistry

• Use the right product or products at the right
  concentration.
• Cleaners have a point of diminishing returns.

45
Two Step Cleaning

• pH scale - 0 to 14, 7 is neutral. Chemicals
  concentrations at either extreme is dangerous.
• Low pH products or acids are corrosive.

46
Two Step Cleaning

• Normal order - acid presoak first pass and
  alkaline presoak second pass.
• Some climates in the winter they apply the
  alkaline first.
• Phoenix best cleaning with the least problems
  with double pass alkaline.
• Nothing is constant!

47
Time

• Dwell time is an important factor in cleaning.
• Soaking of chemical solutions on the vehicle
  surface increases cleaning.
• Ideal dwell time 5 to 20 seconds.
• After 20 seconds - diminishing returns on
  cleaning.
• Soils and oil may redeposit on the vehicle
  surface.

48
Mechanical Action

• Water pressure mechanical action.
• Admitted friction provides a better mechanical
  action than touch free.
• We know High Impact offers better mechanical
  action that High Pressure.

49
What Our Competitors Say

• Challenges our competitors see with touch free
  are
• Removal of film
• Variable water quality and temperature
• Limited dwell time to increase throughput(although
  they said earlier that over 20 seconds in most
  cases had diminishing returns)
• Cost constraints
• Meeting and exceeding customer expectations (not
  cleaning)

50
What Our Competitors Say

• Claim to pursue the focus on profit through
• Removal of film
• Limited dwell time to increase throughput
• Optimize solution usage
• Focus on extra service revenues

51
What Our Competitors Say

• Exceed customers expectations
• Focus on convenience and esthetics

52
Facts About What Our Competitors Say

• Our competitors in the car wash equipment
  business along with their chemical supplier
  partners no absolute answers for touch free
  washing.
• RYKO Research Report on Touch Free Washing,
  published in January of 1997 I contains
  everything stated by our competitors and more.

53
RYKO TOUCH FREE RESEARCH REPORT

• Brief review just of some contents of report.
• Reminder of information on touch free washing is
  available to us in report.

54
RYKO TOUCH FREE RESEARCH REPORT

• Summary information from report.
• Soft water with chemical application.
• Wash quality decreases by 8 to 24 as water
  hardness increases.
• Using hard water the presoak usage will increase
  by 8 to 31.

55
RYKO TOUCH FREE RESEARCH REPORT

• High Impact vs. High Pressure rinsing 7.5
  greater wash quality.

56
RYKO TOUCH FREE RESEARCH REPORT

• Wash quality decreased after precipitation.
• First day after precipitation 20.5 lower
• Third day after precipitation 5.7 lower.
• Wash quality increases as dwell time increases up
  to 40 seconds, above which there are diminishing
  returns.

57
RYKO TOUCH FREE RESEARCH REPORT

• Double pass presoak applications enhances wash
  quality more in cold weather than in warm
  weather.
• Positives of double pass presoak are better
  coverage and longer dwell times.
• Double pass presoak does not require a double
  pass high impact rinse in the interest of speed.

58
RYKO TOUCH FREE RESEARCH REPORT

• Small amount of air injected into presoak
  increases wash quality.
• Too much air may keep the presoak from soaking
  into the road film on the surface therefore
  decreasing wash quality.

59
RYKO TOUCH FREE RESEARCH REPORT

• Cleaning results better on a newly painted or
  waxed surface than on an older or oxidized
  surface.
• Window (glass) surfaces provide 4.9 lower
  cleaning quality than painted surfaces.
• Two step chemicals use the low pH (acid)
  solutions to increase cleaning quality on glass
  surfaces.

60
RYKO TOUCH FREE RESEARCH REPORT

• Wash quality does not change when high pressure
  rinsing with hard or soft water.
• Wash quality does not change when high pressure
  rinsing with fresh or reclaim water.
• A double high pressure rinse increases wash
  quality by 8.3.

61
RYKO TOUCH FREE RESEARCH REPORT

• Best wash quality is achieved when presoak is
  applied to a dry surface.
• Soft water on the surface creates a slightly
  worse wash result than hard water on the wash
  surface.
• Soft water from a pre-rinse or cool down cycle
  and
• Hard water would come from over spray of the
  rocker panel blaster.

62
RYKO TOUCH FREE RESEARCH REPORT

• Washing second time immediately after the first
  wash improves wash quality only slightly.
• Improvement decreases in additional washes down
  to no benefit on the fourth wash.
• When using high quality Presoak solution, heating
  the presoak solution water does not improve wash
  quality.

63
RYKO TOUCH FREE RESEARCH REPORT

• The pH of the presoak WATER has an effect on the
  amount of presoak needed to obtain a quality
  wash.
• Need to know the pH of this water to determine
  the presoak setting.

64
RYKO TOUCH FREE RESEARCH REPORT

• TDS in water used with presoak will increase the
  presoak usage.
• TDS does not directly decrease cleaning quality.

65
RYKO TOUCH FREE RESEARCH REPORT

• The information that I have presented is only a
  brief summary of some of the information about
  touch free washing in this book.

66
RYKO TOUCH FREE RESEARCH REPORT

• SuggestionGet a copy of the RYKO Touch Free
  Research Report and review it.
• To renew your effectiveness in selling touch
  free.
• For information to assist your service group with
  touch free cleaning problems.

67
RYKO THE TOUCH FREE CAR WASH COMPANY!

• Our goal is to re-establish the industry
  perception of RYKO as a strong touch free
  supplier!

68
Direction For Success in Selling Touch Free

• Focus on selling touch free car wash equipment.
• Approach national account customers at all levels
  with a positive approach to selling touch free
  car washes.

69
Direction for Success in Selling Touch Free

• Listen to what the customer wants.
• If it is touch free make a touch free
  presentation with confidence.
• Present the US 2001 as the best touch free car
  wash available today.

70
Direction For Success in Selling Touch Free

• Present the US 2001 as the best touch free car
  wash available.
• Stay with the touch free customer after the sale
  to insure ongoing quality cleaning.
• Make your technicians responsible for clean cars
  in their touch free preventive maintenance, not
  just mechanical adjustments.

71
Direction For Success In Selling Touch Free

• Maximize the menu pricing of the touch free wash
  packages for excellent profit results.
• Make sure good menu signs are displayed as well
  or better than the chemical companies who work
  with our touch free competitors.

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Direction For Success In Selling Touch Free

• Remember
• Per Blue Coral, they sell 10 times as much
  chemical for a touch free car wash versus a
  friction rollover.
• Means 10 times commission and company profit.
• Which one do you think they will be promoting?

73
Direction For Success In Selling Touch Free

• To overcome these INCORRECT PERCEPTIONS WITH THE
  OIL INDUSTRY we need to be presenting the same
  confident touch free story from corporate through
  territory reps, jobbers and dealers.

74
Direction For Success In Selling Touch Free

• This is how to PLAY THE GAME of selling touch
  free.
• Overcome the GAMESMANSHIP of our competitors.
• And return this sales organization to its
  rightful positions as..
• THE TOUCH FREE SUPPLIER TO THE OIL INDUSTRY AND
  THE CAR WASH INDUSTRY!

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SUMMARY

• RYKOs touch free offering is second to no one in
  the car wash industry.
• We have
• Attractive equipment!
• Options for customer appeal and menu upgrades!
• Options to maximize cleaning!

76
SUMMARY

• We have
• The knowledge!
• The wash speed!
• Equal or better cleaning abilities!
• A competitive spot free rinse system!
• Low maintenance!
• Best pump warranty!

77
SUMMARY

• We have
• Tri-foam wax!
• Two-step chemical solutions!
• The touch free expertise to maximize wash
  quality!

78
CONCLUSION

• With the tools we have and the efforts of this
  sales group we are on the road back to being
  thought of by the car wash industry and by our
  oil industry customers as..

79
RYKO THE TOUCH FREE CAR WASH COMPANY