KONICA MINOLTA Partner Program New and Enhanced KONICA MINOLTA Partner Program KONICA MINOLTA Confidential July 2005
KONICA MINOLTA Confidential Agenda Partner Reseller Program Enhancements Platinum Program Review of Overall Reseller Program Submit your questions online during the webinar using this button at the top of your screen KONICA MINOLTA Confidential
Partner Reseller Program Enhancements
KONICA MINOLTA Confidential Key Enhancements Increase Profits from Printer Sales Rebates increased at every printer volume milestone Make it Easier to Do Business Eliminated need to claim rebates Doubled time period to qualify for rebates to smooth out volume spikes Standardized rebate calculation with Estimated Street price Monthly attainment report will be issued from KMPS for those who achieve $5k+ in printer sales Reward and Recognize the Highest Levels of Performance Platinum Program enhanced with full suite of benefits Notes:__________________________________________________________________________________________________________________________ ________________________________________________________________ _______________________________________________________________ KONICA MINOLTA Confidential
Increased Printer Rebates at Every Level New Incentive scheme Half year Hardware Incentive on Incentive on Purchases Hardware Consumables Buy 40k or more 10% 4% Buy 20k or more 8% 3% Buy 10k or more 6% 2% Current Incentive scheme Quarterly Hardware Quarterly Consumables Purchases Purchases Notes:__________________________________________________________________________________________________________________________ ________________________________________________________________ _______________________________________________________________ Buy 20k or more 8% Buy 20k or more 4% Buy 10k or more 6% Buy 10k or more 3% Buy less than $10k 3% Buy less than $10k 2% * Incentive on Consumables will be driven by Printer hardware purchases ** Purchase of PP1350W, 2300W, 2400W are applied towards purchase goal, but are not eligible for the incentive *** Resellers who claimed Q1 ’05 rebate under current program will have their Q1 rebate subtracted from their 1st Half rebate check KONICA MINOLTA Confidential
KONICA MINOLTA Confidential Easier to Do Business Rebate amounts will be calculated and checks cut automatically No need to claim rebates Measurement will be based on 6 month purchases: Apr-Sep & Oct-Mar Lengthen qualification period to qualify for rebates to smooth out volume spikes Purchase amount will be based on Purchased Qty x Street price Standardized formula for all purchases through authorized sources Monthly attainment reports distributed for $5K+ resellers Enables easy tracking of progress towards goals All other elements of Partner Program remain the same Spiff, Try & Buy, Demo, Notes:__________________________________________________________________________________________________________________________ ________________________________________________________________ _______________________________________________________________ KONICA MINOLTA Confidential
Rebate Calculation Example One time transition to new program in 1H 05 Q1 Q2 Apr 1 Jul 1 Sep 30 Q1 Printer Hardware Purchases - $25K Q2 Printer Hardware Purchases - $25K Rebate Claimed Q1 05 (Old) - $2K Rebate Calculated 1H 05 (New) - $5K - Rebate Claimed Q1 05 (Old) $2K Rebate Check Issued 1H 05 $3K KONICA MINOLTA Confidential
Platinum Reseller Program Notes:__________________________________________________________________________________________________________________________ ________________________________________________________________ _______________________________________________________________
Platinum Program Qualification Program will be offered based upon approved business plan Potential and Commitment to grow business with KMPS Value added Reseller No focus on On-line sales Preferably have store front with Demo space Preferably have sales people on the street $40k Hardware purchase required in previous Half year Reseller must continue to purchase a minimum of $40K in Hardware every half year to maintain Platinum status Addendum needs to be Signed by Reseller and KMPS VP Marketing Notes:__________________________________________________________________________________________________________________________ ________________________________________________________________ _______________________________________________________________ KONICA MINOLTA Confidential
Platinum Program Benefit Assigned Account Executive Platinum Discount (No Back end rebate but up front discount) Direct Platinum Discount Platinum Discount through Authorized Distributor Back end incentive on Growth target $50k HW purchase over Half year period: 2% of HW purchase $100k HW purchase over Half year period: 5% of HW purchase One Custom Flyer available every quarter (upon request) Direct mail program initiated by KMPS for those who have demo space with KMPS demo unit MDF for executing joint marketing campaign Plaque & Logo recognizing status Status identified on “Where to buy” listing KONICA MINOLTA Confidential
Konica Minolta Partner Reseller Program Notes:__________________________________________________________________________________________________________________________ ________________________________________________________________ _______________________________________________________________
KONICA MINOLTA Confidential Program Objective “Our goal is to allow our partners to make more money selling KONICA MINOLTA printers than other brands, while offering unparalleled support in sales, service, and marketing.” KONICA MINOLTA Confidential
KONICA MINOLTA Confidential Program Highlights PROFIT ■ Industry-leading, upfront margins Yes ■ Aggressive back-end incentives Up to 10% ■ SPIFF rewards Up to $75 ■ Essential Rewards debit card RESOURCES ■ Award-winning partner web site ■ FREE product literature & samples ■ Online ‘Where to Buy’ listing ■ Dedicated field & inside sales reps ■ Direct technical support line ■ World-class communication PROGRAMS ■ Leasing program ■ Demonstration equipment program ■ Try & Buy 30-day product evaluation PRODUCTS ■ Award-winning, profit-yielding products KONICA MINOLTA Confidential
KONICA MINOLTA Confidential Program Foundation The KONICA MINOLTA Partner Program received VARBusiness magazine’s 5-Star award for the breadth & depth it provides to our partners – March 2005 KONICA MINOLTA Confidential
KONICA MINOLTA Confidential PROFIT “With the KONICA MINOLTA Partner Program you’ll immediately begin tallying rewards with our volume incentives, product SPIFFs, and competitive margins.” KONICA MINOLTA Confidential
Get a SPIFF on the sales of any Extended Warranty Plan on SPIFFs Rewards magicolor 5450 magicolor 5440 $50 magicolor 5430 $25 PagePro 9100 $25 $60 magicolor 7300 $75 magicolor 3300 $50 $20 Get a SPIFF on the sales of any Extended Warranty Plan on • magicolor 7300 • magicolor 3300 • PagePro 9100 KONICA MINOLTA Confidential SPIFFs valid 7/1 – 9/30/05 and payable in U.S. dollars
Essential Rewards Card Fastest, most flexible way to receive and spend rewards SPIFFs paid on a convenient debit card Partners claim & track SPIFFs conveniently online — no paperwork, no hassles! “The KONICA MINOLTA Essential Rewards card — the convenient, online way to claim and receive SPIFF rewards.” KONICA MINOLTA Confidential
Profit Potential: an example Gross Profit before Incentives magicolor 7300 15% profit Mfg. Est. Street: $3,199.00 Reseller cost (direct): $2,719.15 Upfront profit = $479.85 Gross Profit after Incentives 27.3% profit Upfront profit $479.85 10% backend incentive $319.90 SPIFF reward $75.00 Total profit = $874.75 KONICA MINOLTA Confidential Sell supplies, accessories, & service options to build your profit even more!
KONICA MINOLTA Confidential RESOURCES “All the tools you need the to make the sale, make more money, and satisfy your customer are at your fingertips.” KONICA MINOLTA Confidential
Convenient Partner Portal Only registered partners have access to the Partner portal. It’s the place to get detailed information, order literature, & access tools to close the sale. KONICA MINOLTA Confidential
Marketing Materials Online Easy to navigate, the site has program information, product data, pricing, & so much more! KONICA MINOLTA Confidential
Order Literature Online Partners can order spec sheets & print samples —absolutely FREE! KONICA MINOLTA Confidential
Online ‘Where to Buy’ Listing Registered Partners are listed on the KONICA MINOLTA ‘Where to Buy’ locator KONICA MINOLTA Confidential
KONICA MINOLTA Confidential Partner Product Pages Feature KONICA MINOLTA products on your Web with Product Pages that include: • up-to-date product info • data sheets for download • manufacturer list of supplies • no links back to KONICA MINOLTA site KONICA MINOLTA Confidential
Dedicated Field & Inside Representation Dedicated Field Team: Joint customer visits available Support major sales opportunities System’s Engineer services (including on-site training) available Help you satisfy customers while reaching maximum profit potential Inside Sales Rep: Your primary KONICA MINOLTA point of contact Answer your questions about products, programs, and resources Provide order status and follow-up KONICA MINOLTA Confidential
Special Partner Technical Support Partners receive special handling in telephone technical support Dedicated line to “Level 3” specialists 7:00AM until 7:00PM (Central) Web, e-mail support available 24/7 KONICA MINOLTA Confidential
Informative Communication Registered Partners are informed of new programs, promotions, and events via: • face-to-face field representation • inside rep telephone communication • online Webinars • mail correspondence • corporate-generated email KONICA MINOLTA Confidential
KONICA MINOLTA Confidential Demand Generation Consumers are driven to buy through: • e-mails featuring special promotions & incentives • national advertising in publications such as PC World, PC Magazine, & Inc. Magazine • Customizable flyers for consumer mailings • ‘Where to Buy’ web listing KONICA MINOLTA Confidential
Broad Purchasing Channels Partners can buy direct from KONICA MINOLTA or use any of these top-ranked distribution partners United States: All Products Canada: All Products United States: Consumables Canada: Consumables KONICA MINOLTA Confidential
KONICA MINOLTA Confidential PROGRAMS “KONICA MINOLTA offers innovative sales programs for special situations.” KONICA MINOLTA Confidential
KONICA MINOLTA Confidential Leasing Program Leasing is an easy way for your customers to enjoy the benefits of new systems without expensing capital budgets Leasing provides your customers with a manageable, low monthly payment KONICA MINOLTA’s partnership with CITICAPITAL provides you with leasing programs that fit your customers’ needs 24 to 60 month lease terms available Printers, supplies, accessories, and service plans can be included in the lease Terms & Conditions KONICA MINOLTA Confidential
Demonstration Equipment Program Receive discounted pricing on select printers when they’re used for demonstration purposes Demonstrate KONICA MINOLTA printers on your showroom floor Demo printers offered at a special, discounted price Ask your field or inside sales representative for details Terms & Conditions KONICA MINOLTA Confidential
Try-it & Buy-it Program Offers your customers a 30-day test before final decision is made to purchase KONICA MINOLTA ships unit to VAR’s location or drop ships to customer site VAR issues P.O. number and installs printer Customer has 30 days to test drive the printer Try It & Buy It program available to all registered VAR Partners magicolor 5430 DL, magicolor 5440 DL, magicolor 5450, magicolor 3300 EN/DN, magicolor 7300 EN, and PagePro 9100 N printers qualify Terms & Conditions “Once a KONICA MINOLTA printer is placed, it stays!.” KONICA MINOLTA Confidential
KONICA MINOLTA Confidential Test Drive Program Let us print your customers’ files Submit your customers’ custom print files for output on any KONICA MINOLTA laser printer Prove that KONICA MINOLTA offers the best solution Terms & Conditions KONICA MINOLTA Confidential
Award-Winning Color Printers [CLICK ONCE] The unique four-beam laser unit focuses on a system of prisms and mirrors that separate the beam into four distinct beams – one for each of the imaging drums (cyan, magenta, yellow, and black). [CLICK AGAIN] The prisms and mirrors direct the individual beams to the area of the two intermediate transfer drums. On one drum, the cyan and magenta planes are combined into one image. On the other, the yellow and black planes. Finally the planes from the two intermediate drums combine on the single transfer drum. Here, on the surface of this transfer drum, the complete image is assembled and contacts the paper in a single pass. KONICA MINOLTA Confidential
KONICA MINOLTA’s 5-Star Program ü Make more money right away with high upfront margins, back-end incentives, and SPIFFs Use the vast number of available resources to learn about and sell KONICA MINOLTA products Count on our programs, like Test Drive and Try It & Buy It, to prove the KONICA MINOLTA solution Sell the award-winning laser printers that are value-leaders in their class ü ü ü Register on-line at printer.konicaminolta.com/reseller KONICA MINOLTA Confidential
KONICA MINOLTA Confidential Thank You KONICA MINOLTA Confidential
How to Use Konica Minolta Total Cost of Ownership Tools Thank you for your attention! SAVE THE DATE Next webinar: August 16 How to Use Konica Minolta Total Cost of Ownership Tools