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John Deere WorkSight ™ New C&F Tiered Pricing April 2015

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Presentation on theme: "John Deere WorkSight ™ New C&F Tiered Pricing April 2015"— Presentation transcript:

1 John Deere WorkSight ™ New C&F Tiered Pricing April 2015

2 Fleet Based Tiered Pricing
Beginning Wednesday 4/8/ 2015 Available: U.S. and Canada Only Subscriptions Available for Sale: Locate – UTG Express – UTG Ultimate - MTG Ultimate Dual – MTG Discounts will apply to Ultimate and Ultimate Dual only No change to UTG subscription prices (Locate and Express) - No discounts Subscriptions No Longer Available for Sale: Select – MTG Select Dual – MTG Discontinuation of a separate price point for Select Features - Last day for Purchases is Monday 4/6 When Ultimate is on a machine that is not capable of Ultimate, the Select features will still work $0 Upgrades from any Select subscription level to Ultimate available beginning 4/8/15 Select owners will typically have more than 1 terminal, so the tiered discounts offset the impact of the increased price

3 JDLink Ultimate and Ultimate Dual Satellite Fleet Based Tiered Renewal Pricing
Description List Price MDP DISCOUNT % JDLink Ultimate - 1 Year Tier 1 (1 Unit) (Individual) $600.00 $462.00 Tier 2 (2-10 Units) (Small) $510.39 $393.00 % Tier 3 (11-24 Units) (Medium) $450.65 $347.00 % Tier 4 (25-74 Units) (Large) $389.61 $300.00 % Tier 5 (75+ Units) (Xlarge) $231.00 % JDLink Ultimate Dual - 1 Year $780.00 $600.60 $690.39 $531.60 % $630.65 $485.60 % $569.61 $438.60 % $480.00 $369.60 % Dealer can go into StellarSupport and purchase the additional two years priced at fleet based. But those machines won’t qualify for 4G hardware reimbursement. Whatever the best option is. “Ultimate Dual Satellite” will be $180/year more than Ultimate in each tier with the same level of discounts. Per year price in the pre-paid 5 Year Option is subject to machine discounting = $365

4 Rules of the Tiered Pricing Model
Tiered Pricing is only available for purchases in Stellar Anything sold in Comar must be full price, or “Promotional” Units will be counted even if they are on equipment from a different division or competitive equipment. UTG subscriptions are included in the tier count, however, no discounts will apply to the actual purchase of these subscriptions. The system cannot count across MJD organizations.

5 Fleet Based Pricing Program Overview and Changes
4G Hardware Reimbursement only provided on machines purchased from factory with 5 Years JDLink. Machines w/ additional years added via StellarSupport don’t qualify JDLink Locate and Express (Universal Telematics) count toward total active units, but do not get additional discounts. Auditing settled machines. Customer MTGs must be in customer JDLink accounts per the Dealer Services Agreement. Eliminating the JDLink Select option. Look at offering the All Makes MTG kit without subscription included. Apply subscription and qualifying tiered based pricing at StellarSupport. Offer 1 year, 2 year, 3 year renewal options.

6 How Users “See” Tiered Pricing in StellarSupport
Dealer’s first exposure to a product price is in either the Add or Renew subscription modal. These modals will always show the full market value of the product. Tier 1 is considered full Market Value. The dealer will be making between 1 and 20 different purchases in a single order. Each subscription not only has it’s own qualifications for the discount, but can also impact the price that will be paid for other subscription As a result, within a single selection we don’t have enough information to calculate the price without risk of it changing (up or down) with the dealer’s next selection.

7 How Users “See” Tiered Pricing
Once a dealer has configured their order they will be presented with a Transaction Summary page. Each line item that has a discount will have a discount symbol next to the line item. By clicking on the symbol the user can review the original price and the name and amount of the discount. Dealers can download this page and at the completion of a transaction, an is automatically sent to the dealership. Both the download and the will include a line that describes the discount (or the specific tier of the discount) and show the original amount and value of each discount.

8 Rules of the Tiered Pricing Model
What Counts What Doesn’t Count Account status at the END of the transaction Any* “Active” Regular subscription for any JDLink Subscription level sold in the US currently or in the past. Locate and Express subscriptions ARE included, but those specific subscription purchases are not discounted Expired subscriptions that ARE being renewed Equipment that is on order but not yet in the customer’s account. Pre-purchased Inactive Subscription (Anything in a NEW status) Expired Subscriptions that are NOT being renewed “Demo” Subscriptions “Temporary” Subscriptions “Internal Use” Subscriptions *Base Station Manager Select and Ultimate Subscription levels that are not approved for use in US/CAN Do not Count Non Reassignable Promotional subscriptions transferred from Mexico or Russia (the words Mexico, Russia or Promotional will show in the subscription name) CS (Customer Owned SIM) subscriptions Why doesn’t Base Station Manager count? Base Station Manager is a dealer only tool and could throw off your discounts for dealer rental fleets for dual dealers. It should only be purchased and impact AG pricing

9 Fleet Based Pricing Best Practices

10 What to look out for – Expired Terminals
Best Practices: Dealers should always consider the order in which they renew to ensure the maximum pricing discounts. Ensure that all new machines have been transferred into the Customer’s Org Renew expired subscription and/or purchase subscriptions for units with only Demo subscriptions before renewing active units (or in the same transactions) For accounts with a large number of inactive units, process as many units as possible in each transaction (cap of 20). Sync subscriptions to a common end date to reduce the number of transactions that are required throughout the year.

11 What To Look Out For – What Tier?
Dealer: How Do I Know what Tier the customer is in? Answer: Status can change daily as new equipment is delivered, equipment is sold, terminals expire. For the customer’s benefit we offer real time logic for calculating discounts. Review the Hardware List page to determine the current discount level. Click on the Status column to get all “Active” terminals together. Change the items per page view to see more (or fewer terminals) Set view to 1000 items and copy/paste into Excel Watch out for Demo and Temp subscriptions

12 What to look out for – Multiple JDLink Organizations
There is currently no relationship between Customer Orgs tracked in JDLink, therefore only the terminals in a single organization count.

13 Transition – The “Select” User
Unexpired Select subscriptions must be UPGRADED to Ultimate before they can be Renewed or Synced The upgrade is free The renewal will be experienced as a price increase unless they are in the top tier

14 Transition – Buying a Field Kit
If the kit was purchased with a Select subscription, Stellar will honor (allow activation of the license) the subscription as long as it is activated within 2 years of the original purchase date. Field Kits will be updated to include a “No Subscription” option. Subscription is purchased in Stellar. Only Ultimate would be available in Stellar, but it would still work on all makes field kits Tiered pricing would apply from the first subscription forward.

15 Additional Information and Resources

16 Biggest impact you can have on renewals is educating your customers!
Additional Resources Bulletin Released & Fleet based pricing live in Stellar April 08, 2015 HELP GUIDE in Stellar Support's ACTIVATION section John Deere WorkSight section of Info-to-Go. See Frequently Asked Questions Document Stellar changes to accommodate Construction fleet based pricing would require about 2 weeks. Biggest impact you can have on renewals is educating your customers!

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