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Platform Purchase Program

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Presentation on theme: "Platform Purchase Program"— Presentation transcript:

1 Platform Purchase Program
The Diagnostic Opportunity! The Platform Purchase Program, or PPP, is a new program we will be launching to Mobile Company Stores (MCS) this month.

2 Platform Purchase Program (PPP)
Stock red units at smaller upfront investment Red Unit Start-up Kit is invoiced at Demo Price Receive kit on “Tool-up” SOLUS PRO VERDICT VERUS Wireless Remainder billed only after unit is sold Benefit Saleable product in inventory Lower cost of inventory Improve sales Eligible for Loyalty Rewards credit MCS can replenish stock through the program The Start-up kit includes our most popular scan tool products – SOLUS PRO, VERDICT & VERUS Wireless – so that they can show and sell the best selection of diagnostic tools available today! Benefit: Now they start off with saleable product in inventory They have an overall lower cost of inventory Being in the Diagnostics game early on will train them to succeed And we’ll improve their sales – did you know that today Franchisees with Demo units sell 10% less than those who don’t use them? And for MCS, they can replenish their stock through the program (more details about that later): SOLUS PRO VERDICT VERUS

3 Eligibility US & Canada New Franchisees Mobile Company Stores
Gateway Standard Mobile Company Stores Begins June 6th! Note: Expansions and 2nd Vans that don’t take an initial consignment are unable to be eligible for PPP Eligible in US and Canada for New Franchisees (including Gateway and Standard) and MCS. Only Expansions or 2nd Vans that take the initial consignment will be able to participate in this program.

4 PPP - How It Works Initial Inventory & Customer Sale
Initial Inventory Purchase The kit is part of your initial tool order. You are charged for only a fraction of the total cost of the platforms contained in the kit. Customer Sale When you sell a unit, the individual unit balance (amount due) is invoiced to you after the unit is sold and activated. You are charged only the balance of each unit sold, as you sell them. The full purchase price appears on the customer’s receipt, but your invoice reflects only the balance due (sale price less the initial payment). The handheld diagnostic platforms contained in the kit are purchase in two steps: Initial Purchase The kit is part of your initial tool order. You are charged only a portion of the cost of the kit at this time. Typically, the upfront investment is about one third of the price-per-unit of the items in the kit. Customer Sale – triggered by activation The balance of the amount due for an individual unit is invoiced to you after you sell one of the handheld units in the kit to a customer and activate it. You are only charged the balance of the unit sold, not the entire kit. The full purchase price appears on the customer’s receipt, but your invoice reflects only the balance due (sale price less the initial payment).

5 Customer Sale Procedure to activate the unit and print a receipt for your customer. To activate a Platform Purchase Program unit: Using DSS or Chrome, open an invoice Launch ScanBay Connect the unit to ScanBay. Follow the ScanBay screen prompts to activate the unit. Once the “programming complete” message displays, return to the Invoice screen. Create a customer receipt by selecting the appropriate special part number, marked on the platform case, which will reflect the full unit List Price. Once the sale is complete, an order is placed and you are invoiced the remainder of your purchase price (sale price less the initial payment) against your statement. Starts out like any other activation Once the sale is complete, an order is placed using the special Part Number that invoices the remainder of your purchase price (sale price less the initial payment) against your statement. And yes, Chrome is supported.

6 Customer Sale Open New Invoice Launch ScanBay

7 Customer Sale Process As Activation 4

8 Proceed like regular Activation
Customer Sale 4 $0.00 is OK! Proceed like regular Activation

9 Finish download and complete activation
Customer Sale Finish download and complete activation

10 Customer Sale SN is not required
This is a DSS screen. We are not sure if this would show up in Chrome. Serial Number is not required in this instance, therefore select “OK” to proceed.

11 Return to invoice and complete with ‘P32’ part number
Customer Sale Return to invoice and complete with ‘P32’ part number (in this case EESC316P32 which can be found on platform case) NOTE: the part number can be entered into DSS at any time after opening the invoice – either before or after the activation. This presentation currently illustrates it after the activation step. NOTE: The part number shown here is for use by MCS only. In the case of the Franchisees, they will see a different part number reflected on the unit’s case to use. In this example, for the SOLUS PRO, the number the Franchisees will see is EESC316P3F2 – the “F” designating the part number for use by Franchisees. List Price appears

12 Print Customer Receipt
Customer Sale Print Customer Receipt

13 Customer Sale Instructions included in each kit and platform order

14 Important Points Cash Flow Replenish Stock No Transfers
Opportunity for SD/FD/DSD Replenish Stock No Transfers See next slide

15 PPP & Cash Flow Franchisee’s Opportunity - Great Foundation for Sales
Coaching This is your opportunity! This program provides a great foundation to get new Franchisees or MCS into the diagnostics game, but to take advantage of the opportunity we have to help them, especially Franchisees, work the program because this will make cash flow different from anything else on their truck. Although the benefit is that we are able to put saleable product into the Franchisees inventory at a reduced price there are some cash flow nuances that you need to make sure you explain carefully. With other product that comes in the consignment the Franchisee would be selling product out of their original consignment that was financed at startup. The Platform Purchase Program improves cash flow over the previous demo program since it allows the Franchisee to earn the profit at the time of sale with a smaller upfront cost. The nuance is that the Franchisee only finances the reduced consignment cost initially so the replenished inventory, after the first sale, will be partially funded from the profit they receive on sale and partially from their initial consignment financing. It is a good thing for Franchisees but needs to be something you are aware of so you can effectively coach them on how to leverage hold invoice and promotions upon replenishing their Diagnostic inventory.

16 Franchisee: Replenish Stock
Once you sell a platform, Restock and be ready to sell again! Platform Order Part Number Price SOLUS PRO EESC316 Current List Price VERDICT EEMS324 VERUS Wireless EEMS325 Note that the specific list price is not documented as new pricing will be implemented at the end of May.

17 MCS: Replenish Stock Once you sell a platform, Restock and be ready to sell again! Platform Purchase Program The Smart Way to Sell Diagnostics! Platform Order Part Number Tool-up List SOLUS PRO EESC316P31 $ ,024.01 VERDICT EEMS324P31 $ ,014.43 VERUS Wireless EEMS325P31 $ ,710.00

18 Your customers are different and so are their needs
MCS: Order the Family Your customers are different and so are their needs Platform Order Part Number Tool-up List VERUS EEMS323P31 $ ,453.34 ETHOS STD. EESC312P31 $ Vantage PRO EETM303P31 $

19 NO TRANSFERS Reasons not to transfer PPP units:
If the unit is transferred using a standard item# the receiving Franchisee may be overcharged Example SOLUS PRO is transferred from Franchisee A to Franchisee B. On transfer, Franchisee B is invoiced list price $4,095. On unit activation, Franchisee B is invoiced for $2,214 per PPP. List price total to Franchisee B = $6,309! NOTE: Credits will not be performed to accommodate transfers. New Franchisees may lack the cash flow to replenish this unit because new Franchisees replenish using the standard item pricing Reasons not to transfer PPP units: If the unit is transferred using a standard item# the receiving Franchisee may be overcharged Example SOLUS PRO is transferred from Franchisee A to Franchisee B. On transfer, Franchisee B is invoiced list price $4,095 based on standard item # pricing. Because the unit is part of PPP ScanBay recognizes it upon activation and Franchisee B is automatically invoiced for $2,214 per PPP pricing. This Franchisee just paid $6,309 for a SOLUS PRO! Very Important: The CCC will not perform adjustments or give credit for charges related to PPP transfers outside of eligible program participants. New Franchisees may lack the cash flow to replenish this unit because new Franchisees replenish using the standard item pricing (background: unlike MCS, new Franchisees do not replenish using the platform purchase program)

20 Questions/Support Program Details & Support Contact your FPT or Zone Manager (MCS) Diagnostics Customer Care

21 Appendix

22 PPP MCS Quick Reference
Additional Platforms (Ordering PNs) (1) Buy Tool-up List (XXXXXXXP31) (2) Sell Customer List (XXXXXXXP32) (3) Pay After Sale List VERUS Wireless (EEMS325P31) $ 2,710.00 $ 8,595.00 $ 5,885.00 VERDICT (EEMS324P31) $ 1,968.75 $ 6,250.00 $ 4,380.58 VERUS (EEMS323P31) $ 2,453.34 $ 7,751.53 $ 5,298.19 SOLUS PRO (EESC316P31) $ 1,024.01 $ 3,148.82 $ 2,124.81 ETHOS STD. (EESC312P31) $ $ $ Vantage PRO (EETM303P31) $ $ 2,199.00 $ 1,506.32 IMPORTANT: 1) To reorder MCS must use ‘P31’ part number 2) ‘P32’ part number used for platform activation ONLY


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