To Do List Pricing Manager & lockdowns Eliminate price pointers (5.22) Eliminate discounts (5.27) Eliminate fixed customer contracts Establish EDLP programs Quarterly LPM review Quarterly customer review

Daily Pricing Tasks EOD contracts with cost change EOD products with cost change EOD new products transmission EOD customer with no LPM Event Notification price overrides Event Notification price hold Event Notification sold below cost JEN Price bulletins

Weekly/Monthly Pricing Tasks JEN upcoming price changes 5.23 FT into folder and review, delete programs that have expired 5.35 FT into folder, review & save have company meeting and discuss pricing set goals to reduce the number of overrides

Quarterly/Yearly Pricing Tasks Customer review by salesman Review customer classes Review programs Review List Price Multipliers Review all customers with programs

Ron Stogsdill is helping prioritize & test jobs in St. Louis stores Jobs are being added to U or weekly upgrades during 2008 Pricing Development

Pricing – cleanup products/programs DELETE 5.3 records WITH NO A.PROD.NO DELETE 5.15 records WITH PVCTG "P" AND WITH NO A.PROD.NO AND WITH PROD.NO # “ALL” DELETE 5.15 records WITH CP “C” AND WITH NO A.CUST.NO MENU List of Unused Pricing Programs MENU PROGRAM A.PROD.NO 5.3 CD L CD L HVAC S HVAC S88-503

Pricing – EOD.XREF

Pricing – PB from stock status Menu – COSTS = N PB (price buckets from stock status or Menu- 5.12)

Pricing – add #INV to

Pricing – Programs by Customer Class

Customer Classes

Menu-5.4. Contract Bulk Menu 1. Menu-5.3 Only Menu for 5.15 copies - Copy by contract or customer 2. Deletes off both 5.3 & 5.15 – prompt for Remove from CUST.MAST (Y/N) 3. Menu-5.3 Only Menu for 5.15 copy & then to delete 4. Will be changed with tonight’s upgrade to change both 5.3 & 5.15 eff/exp dates

Corporate price transmissions  Flyer Pricing  Beginning in March, 2008  Five Regional Flyers  List Price does not change during flyer months  Store Specific strans - Menu / Auto EOD 1. Clear all store specific branch & direct costs 2. Post all pricing from the EOM ftp directory (which is the full catalog on March 31 st and April 30 th ) 3. Post all the individual STRANS from the EOM ftp directory (for store specific branch & direct costs) 4. Post all pricing from the current PTRANS (which comes from the company 01 STRANS) 5. Post all pricing from the individual STRANS (for store specific branch & direct costs)

List Less Pricing  Menu Convert Programs from Cost plus to List less  Margins can change dramatically, if the List Price changes at a different percentage than the Cost changes. Conversion to cost plus is an option.  Menu List Less Matrix Pricing – selects all 5.15 list less pricing by product. Columns include sell price, branch/direct costs & gp%.  New Orleans has been storing the list price for all items for a day time period and then running a comparison report to identify items where the list price has changed at a different percentage from the costs.

Questions & Answers ?????? CONTRACTS LIST PRICING MATRIX

Controlling Prices on Cost plus 5.15 pricing matrix Catalog Items EOD.XREF Menu List of Contract Prices with Cost Changes = Y Menu-5.3 Contract Prices with cost changes Menu-5.15 Contract Prices with cost changes Non-catalog Items ATCO-1 ATM ATCO-2 ATM Request Manufacturer to send price changes in excel format Menu to upload new costs Sales staff need to give input on the “street” prices to decide if adjustments are needed to the cost plus margins

Non-stock pricing example Cost 0 - $2 Cost $ $10 Cost $ $100 Cost $ $300 Rebuilt compressors Cost $ $500 Cost $ plus

Fixed pricing – lockdown period Same Program in 5.3 & 5.15 Lockdown prices with an expiration date in 5.3 Set your general matrix in Menu-5.15 Active 5.3 fixed program prices takes priority over 5.15 price matrix Once 5.3 expires, general matrix kicks in EDLP – Menu-5.3 Set effective date Set expiration date Set Sell Price