Secure Ride Tire & Wheel Program

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Presentation transcript:

Secure Ride Tire & Wheel Program Protect Your Investment

Our Goal: To work in partnership with your dealership to provide and manage new profit-making opportunities in every department. To introduce our highly-successful Secure Ride Nitrogen Program. To present a cost-effective customer retention program that is profitable while showing excellent consumer acceptance and value. Secure Ride 07.19.11 2 Protect Your Investment

Who We Are Who We Are Pro-Tech Seal Manufacturing Inc. is Canada’s premier name in automotive protection, supplying our dealer network with superior products and fully-insured warranty programs for over 20 years. Pro-Tech Seal is 100% Canadian owned and operated, supplying products formulated and produced in Canada. We provide our customers with the finest dealer service and training in the country. Secure Ride 07.19.11 3 Protect Your Investment

Easy Online Administration Finance: Online real-time warranty registration Automatic remittances Easy customer service Easy Online Administration Service / Parts: Fast and easy online claims processing No phone calls required Self-authorization up to $40 Per occurrence Online product orders Searchable order history Controller: Online month-end remittances Secure Ride 07.19.11 4 Protect Your Investment

Driving on underinflated tires is like Why Nitrogen? Filling tires with nitrogen is important, but even more important is removing the oxygen, water vapour, and other gases. Driving on underinflated tires is like driving your car through sand! Tires lose 1-2 psi every month. That’s 6 psi low by the time you have your oil changed. The engine has to work harder, burning more fuel and adding wear to engine components. Improved TPMS performance NHTSA* studies show that tires inflated with nitrogen retain optimal pressure 3 to 4 times longer. *National Highway Traffic Safety Administration Secure Ride 07.19.11 5 Protect Your Investment

Why Nitrogen? Save Money: Save Lives: Save the Environment: Riding on nitrogen will save the average driver $300 or more per year in fuel and tire savings. Save Money: Almost all tire blowouts are caused by underinflated tires. Inflating tires with nitrogen will improve handling, reduce catastrophic blowouts, and save lives. Save Lives: If 85% of the drivers in North America rode on nitrogen we’d save over 50 billion liters of fuel per year and reduce our carbon output by 126 million tonnes per year. Save the Environment: Secure Ride 07.19.11 6 Protect Your Investment

Road Hazard Programs Customized to Suit Your Dealership Secure Ride 07.19.11 7 Protect Your Investment

Nitrogen Loyalty Kit Nitrogen Loyalty Kits create awareness and increase program sale penetration at the business office on new and used vehicles. Nitrogen Loyalty Kits remind customers of their warranty. 90% of customers return to your service department, providing both replacement tire sales and repairs plus alignment, balancing, and other service or product sales. Premium N2 Loyalty Kit Basic N2 Loyalty Kit Valve Stem Caps × 6 Nitrogen Program Decals × 10 Nitrogen Program Decals × 5 Consumer Information Booklet   Inflation Certificate Tread Depth Indicator Mirror Hanger Secure Ride 07.19.11 8 Protect Your Investment

2nd Car Customer / Service Drive 18-month Customer Loyalty Program Secure Ride Road Hazard: Premium Value Features Features Premium Value Program Tire Damage caused by Road Hazards ü Wheel/Rim Damage caused by Road Hazards Covers original or replacement tires/wheels Mounting, balancing, and installation Flat tire repairs (no auth. max $40 per occurrence incl. tax) No deductable Covers all taxes Not pro-rated; covers 100% Unlimited kilometres (4/32) Roadside Service (3,4,5-yr plans, $50 max.) Replacement Vehicle or Out-of-town Accommodations (3,4,5-yr plans) *150 km from home, $300 max. Features Premium Value Program ü 2nd Car Customer / Service Drive Bonus Program 18-month Customer Loyalty Program 3-, 4-, 5-year upsell programs available Premium Features PREMIUM KIT For a period of 30 days from today’s date, Pro-Tech Seal offers coverage to a second vehicle in your immediate family (spouse, child, parent, sibling). Simply bring the vehicle in to your selling dealership to have the tires filled with nitrogen and pay only the service installation fee. Upon installation, a warranty certificate for $300 tire coverage will be provided to you at no additional charge. Increase your overall profit and retention with a second car contract. Here’s How: With every contract sold, a warranty offer coupon will be produced. * See rate card for details; terms and conditions may apply. Secure Ride 07.19.11 9 Protect Your Investment

24-month Customer Loyalty Program 24-month Customer Loyalty Program Secure Ride Road Hazard: Basic Value Features Basic Features Features Basic Value Program Tire Damage caused by Road Hazards ü Wheel/Rim Damage caused by Road Hazards Covers original or replacement tires/wheels* Mounting, balancing, and installation Flat tire repairs (no auth.max $40 per occurrence incl. tax) No deductable Covers all taxes Not pro-rated; covers 100% Unlimited kilometres (4/32) Roadside Service (3,4,5-yr plans, $50 max.) Replacement Vehicle or Out-of-town Accommodations (3,4,5-yr plans) *150 km from home, $300 max. 24-month Customer Loyalty Program 24-month Customer Loyalty Program 3-, 4-, 5-year upsell programs available BASIC KIT * See rate card for details; terms and conditions may apply. Secure Ride 07.19.11 10 Protect Your Investment

36-month Customer Loyalty Program 36-month Customer Loyalty Program Secure Ride Road Hazard: Economy Value Features Economy Features Features Economy Value Program Tire Damage caused by Road Hazards ü Wheel/Rim Damage caused by Road Hazards tire only Covers original or replacement tires/wheels* Mounting, balancing, and installation Flat tire repairs (no auth.max $40 per occurrence incl. tax) No deductable Covers all taxes Not pro-rated; covers 100% Unlimited kilometres (4/32) 60/80/100K Roadside Service (3,4,5-yr plans, $50 max.)   Replacement Vehicle or Out-of-town Accommodations (3,4,5-yr plans) *150 km from home, $300 max. 36-month Customer Loyalty Program 36-month Customer Loyalty Program 3-, 4-, 5-year upsell programs available BASIC KIT * See rate card for details; terms and conditions may apply. Secure Ride 07.19.11 11 Protect Your Investment

Lot-Pack Summary: All Programs Secure Ride Road Hazard: Select Your Lot-Pack Program Premium Loyalty Program Basic Loyalty Program Economy Loyalty Program 18* months 24* months 36* months Premium Kit Basic Kit $5000 aggregate limit $1000 aggregate limit Tire & Wheel coverage + 2nd Car Customer Bonus Program Tire & Wheel coverage Tire coverage only Dealer Cost: $36 + $15 kit Dealer Cost: $47 + $6 kit Dealer Cost: $70 + $6 kit * All programs available for upgrade to 36-, 48-, and 60-month terms Optional Membership Program: One of the Secure Ride programs above may be packaged with any or all of the program selections listed below. Pro-Secure Pro-Key Pro-View Pro-Dent Antitheft system deters theft, promotes asset recovery Provides replacement on lost/stolen keys & remotes Glass protection prevents damage, ensures clear vision Provides for repair should minor dents occur No etch required All programming charges included Provides for repair/replacement should damage occur No product application required up to $5000† aggregate limit †combined with Secure Ride coverage up to $1000† aggregate limit up to $500† aggregate limit Available on new‡ & used units Available on new‡ units Dealer Cost: $29 (18-month) Dealer Cost: $125 (18-month) + $10 kit Dealer Cost: $175 (18-month) Lot-Pack Summary: All Programs † Aggregate coverage variable based on program and term selected ‡ Any vehicle 2 model years (1 calendar year) old or newer with less than 24,000 km. Secure Ride 07.19.11 12 Protect Your Investment

Dealer Pricing: Premium Program Options Effective February 1, 2011 Premium Program Premium Program Surcharge Groups Suggested Retail Add appropriate surcharges to Passenger Vehicle Road Hazard Passenger Vehicle CATEGORY A CATEGORY B CATEGORY C CATEGORY D Run Flat All Vehicles All Run Flat Tires Warranty Car, Minivan, or SUV Truck, Full Size Van, or R.V. 19”-22” Tires, or Motorcycle Dual Wheel Vehicles, or R.V. 22.5” $300 Cost Max/ Plus Tire** 30% Term Dealer Cost* Dealer Cost MSRP Lot-Pack 18 month $36 included  $50 $265 $199 $499 36 month $97 $15 $30 $45 $100 $409 $399 $799 48 month $119 $20 $40 $60 $150 $487 $899 60 month $130 $25 $50 $75 $200 $576 $599 $999 Tire & Wheel coverage $5000 aggregate limit 2nd Car Customer Bonus Program Premium Kit: $15 Install kits must be applied to all retail and lease vehicles sold. ** $300 max per tire option not available on BMW’s Secure Ride 04.02.12 13 Protect Your Investment

Dealer Pricing: Basic Program Options Effective February 1, 2011 Basic Program Basic Program Surcharge Groups Suggested Retail Add appropriate surcharges to Passenger Vehicle Road Hazard Passenger Vehicle CATEGORY A CATEGORY B CATEGORY C CATEGORY D Run Flat All Vehicles All Run Flat Tires Warranty Car, Minivan, or SUV Truck, Full Size Van, or R.V. 19”-22” Tires, or Motorcycle Dual Wheel Vehicles, or R.V. 22.5” $300 Cost Max/ Plus Tire** 30% Term Dealer Cost* Dealer Cost MSRP Lot-Pack 24 month $47 included  $75 $337 $299 $699 36 month $90 $15 $30 $45 $100 $409 $399 $799 48 month $110 $20 $40 $60 $150 $475 $499 $899 60 month $126 $25 $50 $75 $200 $576 $599 $999 Tire & Wheel coverage $5000 aggregate limit Basic Kit: $6 Install kits must be applied to all retail and lease vehicles sold. ** $300 max per tire option not available on BMW’s Secure Ride 04.02.12 14 Protect Your Investment

Dealer Pricing: Economy Program Options Effective February 1, 2011 Economy Program Economy Program Surcharge Groups Suggested Retail Add appropriate surcharges to Passenger Vehicle Road Hazard Passenger Vehicle CATEGORY A CATEGORY B CATEGORY C CATEGORY D Run Flat All Vehicles All Run Flat Tires Warranty Car, Minivan, or SUV Truck, Full Size Van, or R.V. 19”-22” Tires, or Motorcycle Dual Wheel Vehicles, or R.V. 22.5” $300 Cost Max/ Plus Tire** 30% Term Dealer Cost* Dealer Cost MSRP Lot-Pack 36 month $70 included  $100 $409 $299 $599 48 month $89 $20 $40 $60 $150 $475 $399 $699 60 month $106 $25 $50 $75 $200 $576 $499 $799 Tire coverage only $1000 aggregate limit Basic Kit: $6 Install kits must be applied to all retail and lease vehicles sold. ** $300 max per tire option not available on BMW’s Secure Ride 04.02.12 15 Protect Your Investment

Dealer Pricing: Membership Program Options Effective June 1, 2011 Pro-Tech Membership Programs Surcharge Groups Suggested Retail Add appropriate surcharges to Passenger Vehicle Road Hazard Pro-Secure Antitheft Protection Program Pro-Key Remote Replacement Program Pro-View Glass Protection Program Pro-Dent Paintless Dent Removal Program All Vehicles: add the following figure to Dealer Cost Warranty Term Dealer Cost MSRP Lot-Pack 18 month $ 29 125 175 100 24 month 145 180 36 month 34 37 160 185 150 48 month 39 44 190 60 month 51 195 200 Kit Cost - 10 Terms, Conditions and Limitations Maximum aggregate benefit for all programs limited to aggregate Secure Ride Nitrogen Program selection coverage limits. Pro-Secure Antitheft Protection: up to $5000.00 maximum aggregate limit depending on Secure Ride Nitrogen Program selection. Dealer lot coverage unavailable. Program unavailable in the province of British Columbia. Pro-Key Remote Replacement: 18 & 24 month policies limited to one claim, max $500.00. 36, 48, & 60 month policies limited to two claims, maximum aggregate $1000.00. Only keys, fobs or remotes provided to you on the effective date of contract sale are eligible for coverage. Non OEM keys fobs or remotes are subject to a $50 deductible at time of claim. Pro-View Glass Protection: Pro-View product must be applied to vehicles in order to be eligible for warranty coverage. Pro-View Glass Protection: limit one claim per calendar year from effective date, max $250.00 per claim, two claim maximum. $25 deductible on repair or $50 deductable on replacement for reapplication of Pro-View product Pro-Dent Paintless Dent Removal: one claim is defined as one body panel. Limit one claim per calendar year from effective date, max $250.00 per claim, two claim maximum. $50 deductible per repair for application of Auto Paint Conditioner to revitalize the repaired area. See warranty certificate for further details. Secure Ride 07.19.11 16 Protect Your Investment

Premium Profit Analysis Dealer Profit Analysis Premium Loyalty Program Dealer Cost: (No parts dept. mark-up shown) $71 N2 Kit: $15 Premium Value 18 Month Road Hazard: $36 0.2 Hour Labor: $20 Premium Profit Analysis F&I Profit: $178 Per Vehicle Vehicle Sales (New & Used) per Month: 50 Retail Price on Bill of Sale: $249 Monthly Profit $6,764 $3,600 75% Penetration of Lot Pack Program: 38 x $178 25% to 3,4,5 - Year Program @ $300 Avg. Profit: 12 x $300 2nd Car Customer Sales : N2 Sales with $300 Road Hazard: $69 N2 Kit: $15 1000 RO @ 5%: 50 x $54 Service Department Profit $2,700 $13,064/ Month $156, 768 / Year Total Secure Ride 07.19.11 17 Protect Your Investment

Membership Profit Analysis Dealer Profit Analysis Premium Loyalty Program /w Pro-Key Membership Dealer Cost: (No parts dept. mark-up shown) $100 Membership Profit Analysis N2 Kit: $15 Membership 18 Month Road Hazard: $65 0.2 Hour Labor: $20 F&I Profit: $299 Per Vehicle Vehicle Sales (New & Used) per Month: 50 Retail Price on Bill of Sale: $399 Monthly Profit $11,362 $6,000 75% Penetration of Lot Pack Program: 38 x $299 25% to 3,4,5 - Year Program @ $500 Avg. Profit: 12 x $500 $17,362 / month $208,344 / year Total Secure Ride 07.19.11 18 Protect Your Investment

Steps to Success Train staff on nitrogen conversion. Install nitrogen in all vehicles using service department or detail centre (recommend 0.2 hrs charge, hoist not required). Install N2 kit, marketing material , and valve caps to all new and used vehicles. F&I adds retail price to sales worksheet and bill of sale. Train the Dealer Admin, Service, and F&I personnel on the Online program functions. Train the Accounting Department to ensure online remittance and claims procedures. Supply and install signage, posters, and all marketing material, ensuring consumer awareness. Identify the program start date. Introduce the nitrogen program to the sales staff. Secure Ride 07.19.11 19 Protect Your Investment

Dealer Support Our Commitment to Your Dealership F&I: Parts & Service: Produce and maintain menus and PowerPoint selling tools. Assist in up-sell strategies for the N2 program. Assist in Membership Program customer strategies. Review penetration ratios and develop correction plans. Review with the accounting department: ensure remittance payment and claim work-orders are current. Parts & Service: Ensure application of N2 to all inventory. Assist service in submission of claims. Equipment testing to ensure proper nitrogen purity. Implement Service Drive Program. New tire sales strategy. Secure Ride 07.19.11 20 Protect Your Investment

Road Hazard Warranty Secure Ride 07.19.11 21 Protect Your Investment Tire and Wheel Premium/Basic/Economy Program Item 2nd Car Customer / Service Drive Program 18 - 60 months, $1000 - $5000 aggregate limit Coverage and Term 12 months, $300 aggregate limit Nitrogen and Install Kit must be installed for coverage. Product Requirement Any Authorized Secure Ride Repair Facility. Repairs Must be Returned to Selling Dealer Only. Tires greater than 22”, valve stems and Tire Pressure Monitoring Systems (TPMS) or failures caused by valve stems or TPMS are not covered. Coverage Exceptions Time of sale 6/32 inch tread; no weather cracking. Eligibility for Sale of Warranty Time of sale 7/32 inch tread; no weather cracking. No claim will be paid where the tire tread indicator has become visible or there is 4/32 inch or less tread. Eligibility for Claim No claim will be paid where the tire tread wear indicator has become visible or there is 6/32 inch or less tread. Coverage applies only to OEM Vehicle Manufacturer supplied tires and rims. Aftermarket tire and rim coverage is limited to the same OEM Manufacturer supplied cost. Customizing Coverage applies only to OEM Vehicle Manufacturer supplied tires. Aftermarket tire coverage is limited to the same OEM Manufacturer supplied cost. Maximum 4 tires and wheels replaced. Frequency Unlimited tire repair and/or 1 tire replacement; maximum $300 Repair mounting, balancing, installation, taxes. Other Tire repairs pre-authorized to maximum $40 per occurrence including labor & taxes; Authorization Authorization required if any estimate is greater than $40, and pictures must be attached to the Claims File . Retail service tire & rim rate, 30% mark-up on replacement tire and rim. Dealer Charges Retail service rate, 30% mark-up on replacement tire only. Available on 3, 4, 5 years only; Tow/Tire change $50 max. Roadside Service None. Available on 3, 4, 5 years only; 150 km from home dealer, $300 maximum. Replacement Vehicle/ Hotel Deductible 15% on tire replacement only Vehicles with claims on tires and wheels where a surcharge is applicable and the surcharge has not been paid will either be limited to Basic Passenger Tire Coverage or coverage may be declined. Surcharge Items Terms, Conditions and Limitations * A road hazard condition is defined as a circumstance on a public highway which should not exist there, such as pot holes, cracks, nails, glass, etc. * Damage caused by normal wear, off-road use, negligence, high speed spin out, vandalism, racing, fire, auto accident, curb impact, overloading, improper inflation alignment or balancing, misapplication, chain damage, manufacturer's defects, appearance alteration, or any cosmetic damages, impact with any object not defined as a road hazard, theft, chemical contaminants, dry rot, neglect or abuse is not covered by this guarantee. * Any accident caused by tire blow out or other tire condition is not the responsibility of this guarantee and is excluded. Please read your owner's manual and information on the sidewall of your tires for essential safety and maintenance information. * Pro-Tech Seal does not assume any liability other than to repair or replace the damaged tire or wheel or both. This guarantee does not cover factory seconds, blemishes or flaws. * Commercial Use (Multi-Driver), Delivery, Emergency Use, ambulance, fire, police, courier, rental, taxi, limousine, racing etc., are not eligible. * Exotic Vehicles including but not limited to: Rolls Royce, Bentley, Ferrari, Lamborghini, Aston Martin, Porsche, BMW Z-8, Acura NSX, Prowler, Nissan GTR and Viper are not eligible. Claims Approval Procedure Necessary for Payment 1. Complete Online Claims Form with all information fields filled in as requested. 2. Attach digital photograph of affected tire area and wheel for all estimates above $40. 3. When the claim has been approved with a PO#, in order to be paid you must attach an invoice to Pro-Tech Seal on the online claims form or fax to 780.489.1814 “Attention: Claims Department”. Please reference the contract #. Secure Ride 07.19.11 21 Protect Your Investment

Time is Money Time is Money Equipment: Kenvo N2-930 capable of filling cars in 6-10 minutes or pickup trucks in up to 15-20 minutes. Higher volume or custom wall mount units are available upon request. Kenvo Technology brings you the very best in replacing regular air with nitrogen. Kenvo has developed a six-tire valve system in order to enable the user to service all six tires at once. The machine requires only shop air to operate; no electronics. The competition obliges the user to fill and deflate the tires multiple times to achieve the appropriate level of nitrogen purity in the tire. The Kenvo 930 applies a slight vacuum in order to evacuate all the air before filling the tires with nitrogen, needing to inflate them only once. The end result is much faster service, saving your dealership time and money.   With Minimum purchases of 48 kits per month: Pro-Tech Secure provides a filter, $600.00 value, max 1 per year if required, plus a 5 year Nitrogen Generating Membrane Warranty $4,000.00 value Package. Repairs due to negligence are not included. Time is Money Secure Ride 07.19.11 22 Protect Your Investment

Secure Ride 07.19.11 23 Protect Your Investment