Commercial Resources

Commercial Inventory Commercial Stock (CS) Base models (C) 120 common models 60 common accessories 3-25 ton $8-12M in stock – Fort Smith 5 day delivery 3 day LTL shipment (contact customer service) Base models (C) 4 week lead time Build-to order (D) 6 week lead time 4 weak lead time – mid 2015

Lead Time Reduction – 4 week Phase 1 (43%) – Completed 5/14 3-5 ton G/E and A/C 13 & 14 SEER HumidiDry (dehumid) ClearControl (DDC) All factory options Phase 2 (32%) – 4/15 6-12.5 ton G/E and A/C All base models Variable Frequency Drive (VFD) Phase 3 (11%) – 7/15 15-25 ton G/E and A/C All base models ClearControl (DDC) Variable Frequency Drive (VFD) HumidiDry (dehumid) All factory options Phase 4 (14%) – 7/15 3-15 ton package HP 15 SEER G/E and A/C 6 ton Splits A/C and HP

Selling Commercial “The most important single central fact about a free market system is that no exchange takes place unless both parties benefit” – Milton Friedman

Commercial – Distributor Best Practices

Commercial – Distributor Best Practices 1. Commercial Plan Know your market Know your share of market Set a commercial sales goal Dollars or units Average unit = $3100 sell price Training schedule New account target list 2. Commercial Stock Immediate need for replacement market Demonstrates market presence Commercial Business Plan Template.xlsx Commercial Marketing Plan Template.xlsx “When opportunity comes, it’s too late to prepare” – John Wooden

Commercial – Distributor Best Practices 3. Commercial Champion Single point contact Streamlined sales process Enhanced customer service 4. Commercial Training TopTech Training “Lunch and Learns” “Commercial Road Show” 5. Plan Room Subscription Commercial network – A/E, GC, MC, Sales tool

Who to Target Existing customers Companies w/ service / replacement focus Light commercial Refrigeration *Service department of large mechanical Service Manager Dispatcher / scheduler “Things may come to those who wait, but only the things left by those who hustle” – Abraham Lincoln

Finding New Customers Competitor’s dealer locator *SCIS list Plan room networking *A/E General Contractors http://www.bidclerk.com ASHRAE

Plan & Spec Plan Room Subscription Who is making the decision Inclusive list of projects Excess to project status and updates Tracking tool Not reliant on the contractor channel Demonstrates a commercial market presence

BidClerk

Where?

Who is deciding?

Sales Call Initial call Be brief (5-10 minutes) Line card Product brochure No pricing Do not offer to quote Begin customer analysis Follow-up calls Introduce additional products or services Initiate discussion from bid list (plan room) Schedule demo trailer visit Commercial Profile.xlsx Commercial Contractor Call Sheet.docx HVAC Replacement Form.doc “If I had asked my customers what they wanted, they’d have said a faster horse” – Henry Ford

Sales Toolbox Updated commercial literature Line card Product breadth Selection software – DSP Commercial financing Commercial best practices Inventory Customer service / support Training

ROI www.pnnl.gov/uac/costestimator/main.stm

PNNL

PNNL

Commercial Financing 10 Ton replacement = $10,000 $10,000 X .0217 = $217.00 / month Energy savings = $186.75 / month Net cost = $30.25 / month

Our partner - Great America Est.1992 in Cedar Rapids Largest private independent equipment finance company in the U.S. Over $1.3 billion Creative and flexible Easy to work with Competitive rates For the first time, Ruud has partnered with a company to provide commercial financing. Our commercial finance partner is GreatAmerica Financial Services of Cedar Rapids, Iowa. They are the largest private, independent equipment finance company in the United States, with a current portfolio in excess of $1.3 billion. We chose them because of their financial strength, their stability, and their reputation for integrity based customer lending. They maintain consistent credit philosophies, regardless of economic conditions. Not only do they have a “Customers for Life®” philosophy – but the term “Customers for Life®” is actually a GreatAmerica registered trademark. Virtually all of their growth has been organic – coming from repeat business from satisfied clients and customers. Last year, more than 2,900 national, regional, and local equipment manufacturers, distributors, and dealer/contractors used GreatAmerica for financing.

The Program Applies to all commercial equipment sold to Businesses (large, small, LLCs) Schools, churches, state and local government agencies Property management firms, Apartment complexes Does not need to be owner occupied Large corporations and small Mom & Pop shops Any commercial entity No consumer residential financing. However, residential product used in light commercial applications is OK. The key is – is a commercial entity signing the finance agreement? Non owner-occupied transactions may require a landlord waiver since we are attaching equipment to the landlord’s building.

Parameters $5,000 and up Bundle all costs into one payment Equipment, ductwork, installation, labor, extended warranties, other “soft” costs Terms 12-60 months No cost or recourse to contractor Contractors in good standing qualify to use the program $5,000 and up. Largest application to date was $1.2 million. GreatAmerica encourages contractors to bundle the complete cost of a project into one convenient, affordable monthly payment for the customer No cost and no recourse to the contractor (or the distributor) to use the standard programs Any contractor in good standing with their distributor qualifies to use the program. They do not have to apply and be approved to use the program. They do have to register to use the program, which consists of going to a website and answering 12 questions.

Get Started Go to: www.greatamerica.com/specialty-markets/ru1a.aspx Register and Download Gary W. Porter – Columbus, Ohio (507) 929.5105 gporter@greatamerica.com

Technical Training ClearControl Reheat / VFD H2AC

Questions?