Mobil Oil / RYKO

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Mobil Oil / RYKO
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A little History

• Mobil Has Been a RYKO Customer for Years
• 1995 RYKO Was Formally Un-approved
• 1996 RYKO Was Formally Approved Again!
• 1997 Mobil Corporately Purchased 6 Car Wash
  Systems From RYKO
• 1998 Mobil Corporately Purchased 10 Car Wash
  Systems From RYKO
• Many Wash Systems Were Purchased By Mobil Dealers
  and Jobbers

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Mobil / RYKO 1998

• First RFP March 1998 - Touch Free Only!
• General Information
• Company
• Equipment
• Pricing
• Wash Equipment Packages and Maintenance
• All Locations - Company, Dealer, and Jobber
• Three Suppliers to Two - Consideration
• Distribution
• Miscellaneous Information

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First RFP RYKO Response

• Provided all of the information
• Offered all of our current programs
• Quantity Discount, Extended Protection etc.
• Offered to pass through with corporate PO to
  Dealers and Jobbers
• Guaranteed the lowest price to Mobil

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The Mobil MeetingApril 1998

• Wayne Smith and Steve Davis Meet With Mobil and
  Review the Entire Proposal
• Listened to Our Explanations
• Asked for Our Proposal for the Mobil Convention
  Car Wash Bay

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Mobil - Next

• RYKO Was Now in Second Place and Ready for Phase
  II
• New RFP July 2, 1998
• Firm One Year Price on Two Wash Packages
• Include 12 Month Labor and 24 month Parts
  Warranty
• Outline Included Training
• Firm Cost Per Wash Maintenance Proposal
• All to Be Passed Directly to All Locations

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Mobil 2 RFP

• Firm One Year Price on Two Wash Packages
• Offered National Account Pricing Through December
  31, 1998
• Include 12 Month Labor and 24 month Parts
  Warranty
• Offered Competitive Maintenance Program in cents
  per wash as well as monthly
• Outline Included Training
• Firm Cost Per Wash Maintenance Proposal
• Offered Competitive Maintenance Program in cents
  per wash as well as monthly
• All to Be Passed Directly to All Locations

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We Are Now 3 and Your Out!

• Late August Wayne was informed we had moved into
  the 3 spot and we would be out!
• Mobil Issues
• No Special Pricing Offered
• Not Long Enough for the Price Guarantee
• Need to Pass Directly to Dealers and Jobbers
• Warranty Was Not Extended
• No Trade in Dollars Offered As Standard

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RYKO Responded

• We Decided to Make Another Attempt and Offered
• Pass All Programs To Dealers and Jobbers
• Free Back-lit Custom Image Option
• Guaranteed Price Through 2000
• Quantity Purchase Count for All Locations
• Extended Warranty to Six Months Parts and 18
  Months Labor
• Guaranteed Trade in of 2000 - 5000

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Meeting in Las Vegas

• RYKO Is Still 3
• Asked Us to Deal With Their Chosen Chemical
  Suppliers
• Lower Maintenance Price in Florida
• Lower Equipment Price
• Larger Trade in

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Response to the Meeting in Las Vegas

• Asked Us to Deal With Their Chosen Chemical
  Suppliers
• We Agreed
• Lower Maintenance Price in Florida
• Re-Quoted
• Lower Equipment Price
• Declined
• Larger Trade in
• Declined

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Mobil Approved Three Suppliers

• Mobil Said it Would be Two...
• We Are Again an Approved Car Wash Supplier to
  Mobil
• We Are Awaiting the Contract
• Mobil is Sending it to the Other Suppliers First

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Our Deal to Mobil

• 2000 - 5000 Guaranteed Trade-In
• Free Back-Lit Custom Image
• Six Month Labor and Eighteen Months Parts
  Warranty
• Pass Through to All Locations
• Volume Rebate of 3 - 7
• Extended Protection Program
• Work With Their Chosen Chemical Suppliers

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Pluses / Minuses

• Pluses
• Significant Business
• Coat-tail Others Car Wash Business
• Prevents Our Competitors Form Getting All of It

• Minuses
• Costs Between 6000 - 10,012 Per Sale - Plus the
  Value of the Extended Warranty and the Extended
  Protection Program
• Distributor Margins Reduced by up 4.4
• Costs More Than Our Best Programs
• Most Favored Nations

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Most Importantly!

• Most Favored Nations
• Phillips, Amoco, Shell/ Texaco/Star and Others
• Requires Best Offer of Pricing
• Amoco Has Their Own Negotiating Coming
• Truly Could change the way were doing business.