International ED18 2 Deployment Program INTERNATIONAL ED 182 DEPLOYMENT PROGRAM 1 International ED18 2 Deployment Program ED-18 2 - Early Detection Analyzer The ED-182 Early Detection Battery & Electrical System Analyzer is able to make a clear-cut identification of good, marginal and replacement batteries. The ED-182 also tests the vehicle's starter and charging system, making it a valuable tool for the technician, who needs a fast, accurate and comprehensive electrical system diagnosis The ED-182 is an analyzer that detects the battery’s capacity and state of health at a determined temperature and then predicts SOH, State of Charge and Capacity in relationship to one of several categories: Good Good Recharge Marginal Marginal Recharge Replace Replace -bad cell Charge / Retest This tool was designed for automotive service centers to maintain and grow parts and service revenue, adopting a “proactive – preventative maintenance” over a “reactive – fix the problem” service approach will result in more revenue opportunities and happier customers! ED182 Customer Service and Sale Opportunities Test Every Vehicle The first key to a successful ED-18 program is that you test every vehicle that comes through your shop. Perform • Promote and Perform the ED-18 battery free test with each courtesy check. • Is easy to use, the battery test only takes about 30 seconds to complete. • The combined Battery & electrical system test takes about 2 minutes. Communicate and build loyalty • • All results, whether “good”, “marginal”, or “replace” should be communicated to customers. (This builds loyalty and credibility with customers). In the case of a “marginal” or “replace” result, explain what this means. 2 International ED18 2 Deployment Program ED-18 Marginality Result • Starting batteries do not offer the customer a ‘warning’ as to when the failure might occur therefore often leaving the customer stranded • Marginality is a term designated to indicate “close to the lower limit of designed qualification, acceptability or function” • The term ‘Marginality’ was chosen by Interstate to indicate a battery that is continuing to function (starting the vehicle); however is quickly approaching its failure point under extreme temperature • This result creates a unique opportunity to sell a battery which others testers don’t provide Surveys conducted in the United States, indicated that 38% of the customers made their last battery purchase because they expected failure. Equipment Highlights These are the main characteristics of the early detection analyzer ED-18 2: • • • • • An analyzer that has the capacity to verify its own operation, with an internal test (TVT), which will alert the user the need to conduct an equipment internal calibration process. Digital Reader Spanish/ English Language options Easy to Use Protective Case ED-182 Dealer Benefits Increase Customer Loyalty Increase Sales, as you test more batteries, the more sales opportunities you will have Strengthen relationship between the Distributor and Dealers Improve Interstate brand positioning in the market place Reduce warranty claims Reinforce Brand awareness and Interstate Value Proposition Positions Interstate Batteries as a high technology Brand 3 International ED18 2 Deployment Program REVENUE OPPORTUNITIES The revenue opportunities and success of this program are well based on the following criteria: proper dealer selection, equipment deployment and dealer performance evaluation. Dealer Selection To maximize the profitability of this program is necessary to evaluate ED182 dealers candidates based on proven business characteristics. Some of them are listed below: 1. Dealer’s Location: This is one of the most important criteria as it relates to impact the areas where customers will look for battery checks and replacements. ED182 dealers must be in a convenient location, ideally with a service area to allow for full testing and battery service. Heavy Traffic: The ED182 is a tool that provides opportunities to replace batteries deemed to decreased of battery life. The more vehicles you test, the more opportunities you will have to sell a new battery. 2. Common ED182 Dealers: Quick Lubes Gas stations Mechanical shops Battery centers (if they meet the location criteria) Proper dealer selection provides an opportunity to promote Interstate Batteries as the primary brand in that location. 3. Evaluation of Dealer Actual Sales and Opportunities: The number of tested batteries, and results in relationship with actual battery sales will provide the data to measure success. 4 International ED18 2 Deployment Program Measuring Profitability of an ED-182 Program The profitability of an ED18 dealer can also be measured by using ED-182 reports and data. See example below. Qty Description 400 Total Monthly Tests Performed 20 % de Marginal & Replace Batteries Results Sales opportunity Average Battery Gross Profit $20.00 Gross Profit $1,600.00 $19,200.00 Annual Gross Profit 80 Deployment Requirements The proper deployment procedure of an ED-182 consists primarily in establishing common goals between distributor and the prospect dealers. Once that is establish there some important steps needed before delivering the equipment: Jericho: You must register the equipment in Jericho: a) Record Deployment Date b) Record Serial Number Pre deployment equipment preparation: 1. Set up the equipment on the language of choice 2. Enter dealer name, address and phone number 3. Enter the assigned US zip code based on location average temperature (Contact IBSA Home if you need assistance with this feature) 5 International ED18 2 Deployment Program User Training a) Inventory of equipment and its components b) Perform initial equipment set up c) Enter user names d) Conduct training in accordance with equipment manual ED182 Dealer Performance Evaluation Once the dealer is selected, you need to establish the corresponding commitment by dealer with clear goals to incentivize ED18 2 use, increase of battery sales and maximize dealer revenue. a) Pull information of each dealer actual sales from Jericho Reports and record. b) Establish clear sales goals for each dealer for: • Expected Monthly sales after deployment. • Initial review period: After 6 months of the deployment date, with a minimum of 15 % increase of actual sales over the monthly average of last 12 months. • If is a new dealer you may base the sales commitment from actual dealer battery sales from other brands. • In comparison, USA Dealers increased sales on an average 18% -20 % after deployment and proper use of the ED182. Int'l Distributor ED-18 Performance 756 800 700 600 425 % 600 571 Sales Growth PCT Last Year Sales Value This Year Sales Value 500 1293 % 400 305 % 336 302 300 200 100 148 144 41 522 % 1788 % 16 54 0 Customer 1 Customer 2 Customer 3 Customer 4 Customer 5 6 International ED18 2 Deployment Program Pop Supportive Material: We have available Collateral and POP material to support this program: • ED-18 (Spanish and English version) • ED18 Flyer in Spanish • Jericho Registration process • Process to transfer data, reports from the ED-18 equipment to Jericho All supportive materials are available in Spanish on the following link: http://corporate.interstatebatteries.com/international_images/ ) ED-182 Manual Flyer in Spanish Additional Income Opportunities • These battery sales will also generate sales opportunities for alternators, starters, engine belts and related electrical repairs 7 International ED18 2 Deployment Program ED-182: International Distributor Units Purchase Program o TECHNICAL SUPPORT: For technical questions, consult the ED-182 Manual or call your Distributor Manager at Interstate. 8