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Marketing Programs Care more than others think is wise Risk more than others think is safe Dream more than others think is practical Expect more than others.

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Presentation on theme: "Marketing Programs Care more than others think is wise Risk more than others think is safe Dream more than others think is practical Expect more than others."— Presentation transcript:

1 Marketing Programs Care more than others think is wise Risk more than others think is safe Dream more than others think is practical Expect more than others think is possible

2 Agenda  System Pricing  Non-Standards  Third-Party Products  Packaging  Literature Program  Promotions

3 Pricing Philosophy  Increase Prices Over Several Years  Direct, Distributor, and National Accounts  Justified and Achievable  Protect Distributor Margins  Maintain/Increase Spread  Increase Direct Pricing First  Increase Install and Service Pricing  Impact Market Pricing  Key Technology Developments  Direct Area Pricing Strategy

4 Distributor Costs Jan, 1997 Jun, 2007 Jun, 2006

5 Ryko Price Increases  Aluminum Up 60% since 2005  Fuel Up 50% since 2005  Most manufacturers have increased pricing (PWC Manufacturing Index)

6 2 Year Pricing Changes PlatformRykoDistributor SGXS14%7.5% OHD11%-1.4% S-A-W 19%8.0% Conveyor13%3.4% Self Serve7%1.8% ~13%~5% ~14%~7% Net Change - June Net Change - Sept

7 Price Increase Implementation  Direct Areas  Order by June 9, Ship by June 30  Distributor Areas  Order by June 30, Ship by July 31  TouchFree  5% Increase in Direct Areas  No Price Increase in Distributor Areas  Expect 4% Price Increase with New System  Distributor Margin  Now Standardized (By Line Item)  Will be able to add service, chemicals  Will continue to offer No Payment for 180 Days

8 Touch-Free Pricing TouchFree%Value List/Direct+5%+$5,000 Distributor Cost-7%-$3,750  Direct Areas  Have Increased List/Direct Pricing by 5%  Distributor Areas  Have Increase Distributor Margin 7%  Net 5% Reduction in Distributor Pricing  September, 2005  4% Increase Direct, National Account, Distributor

9 National Account Pricing  Increased Standard Pricing  SGXS 9%, OHD 6%  Standard 15% from New List  Increased Installation Pricing  30% increase to 6.5% of List  Implementation  One Account At A Time

10 June, 2006 National Account Pricing PlatformN.A.Distributor SGXS9%3.5% OHD6%-5.4% S-A-W 15%4.0% Conveyor9%-0.6% Self ServeEliminate1.8% ~8%~2%Net Change - June ~9%~3%Net Change - Sept

11 Non-Standards  Aggressive Innovation Program  Friction, Touchfree, Conveyors, Activation  Necessary to Manage Non-Standards  Marketing Manager Approval  Before Offering to Customer  Requires Rich Grier and Tom Swalla Support (Marketing manages this)

12 Third-Party Products  Total Source Partners  Fully Engineered  Unique Solutions  Integrated with Ryko Systems  Fully Supported  No Pre Approval  Pricing Established  Supported In Field  To Be Listed on Ryko Price Lists

13  Hosted Data Collection Solution  Mag Card Based  Ryko’s Only Mag Card Based Loyalty Program

14 New Wave (Pur-Clean)  Ryko Solutions Designed for Ryko Washes  But – Often Different Than Other Systems  Remove Major Conversion Hurdle  Water Recovery, Odor Control, and Spot-Free  Will Continue to Offer Both Systems  Will Improve Pur-Clean Support  Fully Documented, Ryko Part Numbers  Available in Ryko Price List

15 Other Third Party Products  Preferred Process  Distributor Buys Direct  Ryko Provides Necessary Support  Alternate Process  Handle As Non-Standard  Pre Approval (Before Offering to Customer)  Issues to Address  Terms  Payment  Installation  Warranty Other Reclaim Systems Hamilton Activation Pet Wash Non-Ryko Vacuums Unique Signage Etc.

16 Spring Promotion  PROS  Total Offering  Easy to Order  Chemical, Services  No Payment for 180 Days  Net Pricing  CONS  Package Pricing  Manual Processing  Simplistic Chemical Pricing  Not Set Up for Contract Renewal

17 System Packaging - SGXS

18 Off-Board Dry DeluxeAdvantageUltimate Price$69,923$89,885$112,213 Part Number##### Discount 2%4%6% On-Board Dry DeluxeAdvantageUltimate Price$TBD Part Number##### Discount 2%4%6%

19 Package Program  Included  All On Board Features  Not Included  R/O, Reclaim, Doors, Dryers, Signs, Frost Protect  Order As Needed  Changes and Deviations  Not Necessary, Not Allowed

20 Package Program

21 Distributor Pricing  Standard Discount Structure  2%, 4%, 6% Discounts

22 Package Implementation  SGXS (June, 2006)  Signature Series (July, 2006)  Part Number Implementation  Literature and Documentation  TouchFree (September, 2006)  With New Product Launch

23 Selling Services (Direct)  Service Part Numbers  Pre-paid, Monthly, Cents per Wash  Add to Any Quote, Order No Package Discounts

24 Selling Services Service Price List Service Sell Sheet

25 Chemical Price List (Direct) Part Number CPW Price C027$.27/Wash C032$.32/Wash C044$.44/Wash C057$.57/Wash C085$.85/Wash C108$1.08/Wash C113$1.13/Wash Etc. As Needed  Chemical Part Numbers  Cents per Wash Pricing  Add to Any Quote, Order  Chemical Worksheets  Standard Pricing  Support Process No Package Discounts

26 Literature Program  Available for Download  Orders for 20 or Less – No Charge  Limited to.25% of Quota  Example $1.5M Quota = $3,750

27 No Payment for 180 Days  Leasing Partners Have Special Rates  Based on 2.5% Ryko Subsidy  Financing Not Available Elsewhere  Any Package with Rollover  Ryko Pays 100% of Costs (2.5%)  Extended Through September 30

28 Summary  Are Increasing Prices  Are Working to Protect Margins  Standardized Discounts  More System Flexibility  Easy to Order Packages – Discounted  No Charge for Basic Literature Program  No Payments for 180 Days Continues


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