MBCI C O -O P P ROGRAM & G ROWTH I NCENTIVE OCTOBER 11, 2014 OCTOBER 11, 2014 OCTOBER 11, 20141

W HAT IS THE CO - OP PROGRAM  Co-Op is designed to help our dealers ADVERTISE and PROMOTE MBCI products.  By working with our dealers in this manner, we provide them with more resources to increase exposure and make more sales.  Unused Co-Op funds are dollars thrown away and buyers that are not being reached. OCTOBER 11, 2014 OCTOBER 11, 2014 OCTOBER 11, $1 of Co- Op $12 in Sales According to Nielsen Research Co-Op dollars have the highest rate of return. On average, this is $12 for large ticket items per dollar spent.

H OW TO HELP YOUR DEALERS  Check your Co-Op reports: Business Objects - 60, 62, 64  Follow up with your dealers to ensure that they are advertising and using Co-Op to stretch their advertising dollars.  Pay attention to what works… and what doesn’t  Newspaper: Costs are up and circulation is down  Radio: Oversaturation of media blocks leads to drop in primary advertisers – Nielsen  Web: Local targeting lowers acquisition costs  Mobile: Mobile apps now available at the address level OCTOBER 11, 2014 OCTOBER 11, 2014 OCTOBER 11,

 Consumers are shopping differently. Can they find you?  Most Popular Request Type: Newspaper Ads account for about 20% of all requests. (Newspaper Circulation Continues to Drop media_biz/)  Least Popular Request Type: 0.2%... Website development/advertising/search engine optimization (Roughly Half Of All Buyers Search Online Before Purchase before-buying-online)  Co-Op eligible items include Search Engine Optimization, one-time web development costs and online advertising banners. OCTOBER 11, 2014 OCTOBER 11, 2014 OCTOBER 11, H OW TO HELP YOUR DEALERS

 When working with your dealers, remember that using a few simple rules will help better track the effectiveness of any advertising:  Vary your offers by medium to see what customers are asking for.  Make sure your advertising tells customers specifically why they should buy from you and over the competition.  Ask your customers and track your leads by advertising medium. Web Billboard Radio Direct Mail Flyers OCTOBER 11, 2014 OCTOBER 11, 2014 OCTOBER 11, H OW TO HELP YOUR DEALERS

PROGRAM REQUIREMENTS  Dealer must have a minimum of $75k in overall sales.  Dealers accrue at a set % on their “Qualifying Sales”  Qualifying Sales are those sales that do not fall into the excluded door styles.  Contractor’s Choice and GBC do not accrue on any sales  Requests must include proper documentation.  All requests must be submitted by February 15 following the fiscal year cut off to be considered.  Funds not utilized during the calendar year are forfeit. OCTOBER 11, 2014 OCTOBER 11, 2014 OCTOBER 11,

M ISCELLANEOUS  Review the program guidelines with your dealers and include advertising in your planning.  Primary reason for declined requests involve missing or incorrect documentation.  When in doubt… check the guidelines.  There are less than 2 weeks left before 2010 cut off. OCTOBER 11, 2014 OCTOBER 11, 2014 OCTOBER 11, Program Details Available on One Touch

G ROWTH INCENTIVE  Sales Base is the higher of:  $300,000 minimum  Prior Year Net Sales  Average of Prior TWO years Net Sales OCTOBER 11, 2014 OCTOBER 11, 2014 OCTOBER 11,

G ROWTH INCENTIVE  You should be able to give your dealers a target for Growth Incentive during the year.  You can calculate their sales base.  This will give you the baseline from where all growth will be measured.  SPA’s, Contractor’s Choice, and other elements can effect a dealers Growth Incentive.  For this reason, do not provide estimates to dealers for Growth Incentives.  February 15 th is the target date for Growth Incentives to be released. OCTOBER 11, 2014 OCTOBER 11, 2014 OCTOBER 11,

Q UESTIONS OCTOBER 11, 2014 OCTOBER 11, 2014 OCTOBER 11,