Marketing Programs

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
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
Net Change - June
14
7
Net Change - Sept
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

TouchFree Value
List/Direct 5 5,000
Distributor Cost -7 -3,750
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
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
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
• Rykos 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

• PROS
• Total Offering
• Easy to Order
• Chemical, Services
• No Payment for 180 Days
• Net Pricing

• CONS
• Package Pricing
• Manual Processing
• Simplistic Chemical Pricing
• Not Set Up for Contract Renewal

17
System Packaging - SGXS
18
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
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)
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

• 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