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2012 Handbook for Media Conversion & Transfer Services Our Contact Information: 800-325-9541 or 636-343-0178; or [email protected] , or [email protected] , or [email protected] , or [email protected] INTRODUCTION............................................................................................................... 2 MARKETPLACE TECHNOLOGIES CREATE NEW OPPORTUNITIES ......................... 2 CINTREX AV SERVICE PRODUCT CATEGORIES ........................................................ 3 SUGGESTED RETAIL PRICE LIST ................................................................................. 4 HOW TO SELL CONVERSION SERVICES ................................................................... 10 CINTREX AV PROCESS FOR MEDIA CONVERSION & TRANSFER ......................... 14 SERVICE AGREEMENT BETWEEN CINTREX AV AND ITS RETAILERS .................. 15 PURPOSE OF AGREEMENT ............................................................................................................ 15 SERVICES........................................................................................................................................... 15 OUTSOURCING TO CINTREX.......................................................................................................... 15 ORDER FLOW PROCESS .................................................................................................................. 15 CINTREX RESPONSIBILITIES IN THE SERVICE DELIVERY PROCESS ....................................... 18 DEALER RESPONSIBILITIES IN THE SERVICE DELIVERY PROCESS ........................................ 18 PRICING............................................................................................................................................. 19 PAYMENT TERMS ............................................................................................................................. 19 WARRANTY ........................................................................................................................................ 19 LIMITATION OF LIABILITY.............................................................................................................. 19 COPYRIGHT LIMITATION................................................................................................................ 19 CONFIDENTIALITY........................................................................................................................... 19 NON-EXCLUSIVITY: ......................................................................................................................... 20 MARKETING MATERIALS ............................................................................................ 21 Page 1 Cintrex AV 2012 Services Handbook

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Page 1: 2012 Handbook for Media Conversion & Transfer Services Our ...partners.cintrexav.com/docs/Cintrex AV Reseller Handbook July 2012… · contents can be viewed and revisited again

2012 Handbook for Media Conversion & Transfer Services Our Contact Information: 800-325-9541 or 636-343-0178; or [email protected], or [email protected], or [email protected], or [email protected]

INTRODUCTION...............................................................................................................2

MARKETPLACE TECHNOLOGIES CREATE NEW OPPORTUNITIES .........................2

CINTREX AV SERVICE PRODUCT CATEGORIES ........................................................3

SUGGESTED RETAIL PRICE LIST.................................................................................4

HOW TO SELL CONVERSION SERVICES...................................................................10

CINTREX AV PROCESS FOR MEDIA CONVERSION & TRANSFER .........................14

SERVICE AGREEMENT BETWEEN CINTREX AV AND ITS RETAILERS..................15

PURPOSE OF AGREEMENT ............................................................................................................ 15 SERVICES........................................................................................................................................... 15 OUTSOURCING TO CINTREX.......................................................................................................... 15 ORDER FLOW PROCESS.................................................................................................................. 15 CINTREX RESPONSIBILITIES IN THE SERVICE DELIVERY PROCESS....................................... 18 DEALER RESPONSIBILITIES IN THE SERVICE DELIVERY PROCESS ........................................ 18 PRICING............................................................................................................................................. 19 PAYMENT TERMS ............................................................................................................................. 19 WARRANTY ........................................................................................................................................ 19 LIMITATION OF LIABILITY.............................................................................................................. 19 COPYRIGHT LIMITATION................................................................................................................ 19 CONFIDENTIALITY........................................................................................................................... 19 NON-EXCLUSIVITY: ......................................................................................................................... 20

MARKETING MATERIALS ............................................................................................21

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Introduction This Cintrex AV Handbook (July 2012) is a quick reference guide for sales, pricing and marketing information about our service products. It is intended for use by Cintrex resellers and dealers. More detailed information regarding product specific training, processes, and service support is available at our Cintrex AV partner website, http://partners.cintrexav.com. We collectively help our customers save and share their recorded memories found in film, video and audio tapes, audio records, photos, and slides. We do this by playing or scanning the old media on specialized machines, digitizing the content, and then transferring it to DVD, Blu-ray Disc or to other current digital formats so that the valuable contents can be viewed and revisited again. We offer the home consumer peace of mind, we modernize their memories, and make it easier to relive and remember times past, rediscover life long friendships. We can breathe life into corporate archives, helping companies “repurpose” their valuable media assets for new uses in marketing and sales campaigns, giving new value to old video and audio recordings. Transfer and conversion services have been around since the introduction of the VHS tape cassette. New technologies are now creating greater demand for conversion services, and new opportunities for the Cintrex retailer partners. This handbook contains the relevant information about our service products that can help you make the sale to your customers. We answer the “what you need to know”, and highlight the sellable features, competitive strengths, and benefits of our conversion services.

Marketplace technologies create new opportunities

Today the retail consumer and business client have numerous means to choose from to record, edit, post online, and share their own high resolution photos and high definition videos. Digital content is readied for viewing on social websites, on Internet connected HDTVs, and on handheld tablets and cell phones.

Because it is now much easier to view, listen, collect and share life’s experiences, and because older players are no longer repairable, customers want to modernize (digitize) their older recorded memories, reformat them for best play on multiple venues, and share them with friends and family. Plus, they also want to make sure that all their recorded videos and images (both past and present) are archived securely and readily accessible when needed in the future

Cintrex AV and its resellers help today’s customers by providing digital transfer and media conversion, archival services, custom editing, and permanent storage. An online storage option becomes available in the fall of 2012; giving customers an additional means to preserve and share their precious memories and irreplaceable recordings.

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Cintrex AV Service Product Categories

Transfer Services - Saving the important memories and irreplaceable content stored on older analog or digital media; examples are listed below. Content is reformatted and transferred to customer’s choice of optical disc or low or high resolution data file formats.

8mm & 16mm film

VHS & Camcorder Tapes

Professional Broadcast Tapes

35mm Slides

Photos

Negatives

Film Strips

Audio Recordings

Mini DVDs

Camcorder Hard-drives

Custom Videos Special Occasion Slideshows for Weddings, Birthdays, Graduations, etc. made

from customers’ photos and slides, accompanied with background music and onscreen titles

Video Resumes for Sports, College, and Job Search

Family Legacy Videos

Digital Yearbooks

Digital Preservation High definition scanning, digitization and information tagging of important video

and audio recordings.

Archival and Restoral services for content placement onto LTO-5 Tapes, Permanent M-DISC, and Blu-Ray Disc

Duplication Services for CD, DVD, and Blu-ray Disc

ONLINE Hosting (late Fall 2012) Web-based storage, viewing, and editing of family or company owned multimedia

content (videos, images, and audio recordings)

Secure access portal to upload (add) digital content, as well as, download (share) content to either private or public realm

D.I.Y. tools – edit low-res files, add content, add voice-over narratives, customize video presentations, manage file names and metadata, produce reports listing stored assets

E-store options for ordering professional video editing or reformatting of stored content, including DVD or Blu-ray Disc copies of stored videos and images, packaged and shipped per specification

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Suggested Retail Price List Wholesale net dealer pricing is 40% off suggested retail prices

Service Retail Price

Film Transfer Services of 8mm, Super 8mm, and 16mm film

The tran$fer rate for film conversion services is based upon a rate per film foot. The most common film reel sizes are 3 inches diameter (50 feet), 5 inches diameter (200 feet), and 7 inches diameter (400 feet). To figure out the correct transfer rate, add up the total film length, multiply by the transfer rate below, and then add in cost of optional services for the total retail price. Packaging of the DVD, Blu-ray Disc, or data DVD includes either black Amaray case with sleeve insert, or blue case (for Blu-ray), or clear soft poly jewel case, all having appropriate labeling and reseller logo on disc and paper sleeve insert.

Standard Definition Film Transfer to playable DVD $0.16/ft

Standard Definition Film Transfer to Data File formats (.mov, .avi, .mp4, or .wmv), placed on data DVD or other digital media

$0.16/ft

High Definition Film Transfer to Blu-ray Disc $0.22/ft

High Definition Film Transfer to Data File formats (.mov, .avi, .mp4, or .wmv), placed on data DVD or other digital media (hard-drives and jump-drives sold separately)

$0.22/ft

Extra Copies of DVD $10 ea

Extra Copies of Blu-ray Disc $15 ea

Second copy in Different Format - reformatting already digitized content for placement onto different media or into new data file format, pricing is per hour of digitized video content

$10 / hr

Set-up of Customer provided external hard-drive $25

Optional Digital Media - 16GB USB Memory Stick $50

Optional Digital Media - 1TB hard-drive (Western Digital Passport) includes formatting and setup

$175

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Onscreen titles $5 ea

Background Music $10

Film with Sound $10

Film Preparation Splices, applies only to 50ft 3 inch diameter reels

$1 ea

Repair Splices to Film $1 ea

Color correction, custom quotes available $100 / hr

Professional Voice-over narrative (call for custom quotes) $50 /

minute

Video Tape Transfer Services

Transfer services for all types of magnetic video tapes to DVD, or Blu-ray Disc, or Data File formats; this includes consumer, professional broadcast and PAL video tapes. Packaging of the DVD, Blu-ray Disc, or data DVD includes either black Amaray case with sleeve insert, or blue case (for Blu-ray), or clear soft poly jewel case, all having appropriate labeling and reseller logo on disc and paper sleeve insert. New - we offer transfer pricing on a per tape basis, or by the hour of video content.

Consumer Video Tapes to DVD or Data File Formats - includes VHS, BetaMax, Camcorder video tapes 8mm, Hi8, Digital, miniDV, HDV, MicroMV, and VHS-C

$33 ea

Professional broadcast video tapes to DVD or Data File Formats - includes DVCPRO tapes, BetaCam, BetaCam SP, DVCAM, and 3/4” U-Matic tapes

$40 ea

Video Tapes, all types, transferred to Blu-ray Disc, $40 ea

PAL Video Tapes transferred to DVD or Digital File Formats $55 ea

Open Reel ½ in Video Tapes, outsourced item, price per reel $120 ea

Additional video tapes onto the same DVD or Blu-ray Disc (DVDs can hold up to 2 hrs video content, Blu-ray Discs up to 9.5 hrs)

$10 ea

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Extra DVDs for VHS tapes longer than 2 hours $10 ea

Quantity Discounts, >10 tapes, applicable for 1 to 1 transfers to DVD or Blu-ray Disc or data file formats

15%

Quantity Discounts, >25 tapes, applicable for 1 to 1 transfers to DVD or Blu-ray Disc or data file formats

25%

OPTIONAL FLAT PRICING, based upon hours of content $16.50 /

hr

Extra Copies of DVD $10 ea

Extra Copies of Blu-ray Disc $15 ea

Second copy in Different Format - reformatting already digitized content for placement onto different media or into new data file format, pricing is per hour of digitized video content

$10 / hr

Repair video tapes (case or tape or bad tracking requiring extra labor)

$20

Onscreen titles $5 ea

Set-up of Customer provided external hard-drive $25

Optional digital media - 1TB hard-drive Western Digital Passport $175

Slides and Photos

Slides and Photos are digitized and placed upon CD, can also be put onto DVD as a Slideshow with on-screen titles, background music, and special animation effects. CDs packaged in clear poly jewel case, and DVDs in black Amaray case with sleeve insert.

Photos scanned at 600ppi, put on CD $0.25 ea

Photos scanned at 1200ppi, put on CD $0.65 ea

35mm Slides scanned at 3000ppi, put on CD $0.45 ea

Oversized slides (110mm), scanned at 1200ppi, put on CD $1.00 ea

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Negatives and Film Strips (per image) $1.00 ea

Images put in DVD Slideshow $0.20 ea

Extra Copies of DVD $10 ea

Onscreen titles $10 ea

Background Music $10 ea

Misc. Digital Transfers & Duplication Services

Transferring contents from one digital media to another, from camcorder hard-drives, SD cards, USB jump drives to DVD or Blu-ray Disc (BD) or Data File Formats (.mov, .avi, .mp4)

SD card, Camcorder Hard-drive, and USB Jumpdrive to playable DVD, pricing is per 2 hours of viewing content

$30 ea

SD card, Camcorder Hard-drive, and USB Jumpdrive to playable Blu-ray Disc, up to 9.5 hours per BD, pricing is per 2 hours of viewing content

$35 ea

SD card, Camcorder Hard-drive, and USB Jumpdrive to data file formats, put on data DVD, pricing is per 4.7GB of content

$40 ea

DVD Duplication Services - 25 or more $5 ea

Blu-ray Duplication Services - 25 or more $10 ea

Audio Transfers

LP Records to CD (33s/45s), basic tracking included (tracks labeled 1, 2, 3 etc.)

$45 ea

LP Records to CD (78s), basic tracking included (tracks labeled 1, 2, 3, etc.)

$60 ea

Audio Cassettes to CD, basic tracking included (tracks labeled 1, 2, 3 etc.) (60 or 90 minute tapes)

$45 ea

Audio Reel-to-Reel Tape to CD, price per minute runtime $0.65/min

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Minimum Audio Transfer Order, for each audio reel $45

Custom track labels or descriptions $5 ea

Custom audio sweetening, improving audio to sound better, removing background noise, removing hum, etc. (per item)

$20

Digital Archival Services

Digital Archival Services provides the transfer of existing digital content onto archive media, we also offer optional reformatting services as needed to suit customer specific needs.

M-DISC #1 - Backup copy of video DVD placed on archival, video mode M-DISC; works in Blu-ray Disc players and newer generation DVD players (after 2009).

$15 per disc

M-DISC #2 - Placement of data file formats of videos, images, and documents onto M-DISC archival data DVD with capacity of 4.7GB; pricing including reformatting content for optimal archive storage and text notes file of disc contents. M-DISC can store 4hrs .mp4 video, 30 minutes .mov or .avi video, up to 2,000 images, and 100,000 documents.

$15 per disc

BD50 - Backup copy of Data Files placed onto Dual Layer Blu-ray Disc (DLBD), holds up to 50GB of data, equivalent of 50 hours of movie files in .mp4 file format, or up to 6 hours of .mov files, or 25,000 photos.

$40 per disc

LTO-5 Tape Backup Service - Backup copy of Data Files onto LTO-5 Tape, holds up to 1.5TB of data, equivalent of up to 1,500 hours of movie files in .mp4 format, or 175 hours of .mov movie content, or 750,000 photos. Price is for transfer service only, tape media is extra.

$150 per 1.5TB of

Data

LTO-5 Tapes, both WORM and RW tapes $90 per

tape

Annual Storage Fee for Offsite Storage of backup copy (disc or tape) of customer content with one week turnaround for retrieval of content upon customer request.

$15 per Disc

$15 per LTO Tape

All orders backed up in storage network for 90 days for possible extra copies or additional editing

n/c

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Custom Video Services

Digital Yearbook - One year’s worth of content (videos, photos, documents, etc.) digitized, organized, and labeled, and placed on DVD or Blu-ray Disc, with backup copy of all project data files placed on archival M-DISC for long term preservation. Pricing represents a starting point with standard options. Customized extras available.

$499

Video Resume - Editing and organizing existing digital content for professional presentation (pricing is per minute of finished final content)

$100

Special Event Slideshow - for weddings, memorial services, graduations, birthdays, etc.; digitization and presentation of images with background music and onscreen titles (pricing includes onscreen titles and any choice of license-free or licensed music)

$1 per image

Custom Legacy Tribute Videos – this service includes interviews with customer to determine project goals, agreed upon scope of work, project timeline, milestone reviews, edit decision lists, onsite video recordings, ongoing video editing and draft reviews, and final cut. We can add special effects, voice narratives (or professional voice-overs), background music, supporting 3rd party video introductions, credits, etc......all to better tell your story with help from experienced videographers.

$100 / hour

Memory Notes Services– adding identifying information to video and image data files to help with long term preservation; custom quote required, rate is $100/hour; available editing inputs include onscreen titles, metadata text notes, voice narratives, embedded video or audio or text notes from third parties, closing credits, organization according to customer provided categories (years, special events, persons, face recognition, etc.), search engine software within final content for fast future retrieval, and appropriate disc and case labeling.

$100 / hour

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How to Sell Conversion Services Selling Transfer & Conversion Services is different from selling milk or scotch tape or T-shirts or gasoline. Not just any product will do. Our service products are not something the customer must have, but something the customer consciously chooses to purchase with discretionary funds. It’s an emotional purchase for most customers. This type of sale involves customers that have specific needs in mind, not unlike someone buying a high-end camera or watch, and the purchase will only be made after correct answers are given, and those specific needs are met. Most times, customers will shop around before making their selection. They’ll be very discerning. The top criteria for making the purchase involve quality product, customer service before and after the sale, peace of mind, desired features, optional extra’s, ongoing support, and the value gained for money spent. Why are customers looking at transfer & conversion services? What do customers want? What is their budget?

Customers are considering these service products because they want to save their past audio and video recordings, organize them, view or show them again, and share them with friends and family.

Customers want a service provider who understands that their audio and video memories are priceless, that these media collections from the past are some of the most valuable collections that people own.

Customers want good value for their money. Budget considerations – ask upfront about the customer’s budget range, what are they willing to spend for conversion of their valuable memories; many times they’ll spend more for a superior service. Knowing the budget range will help later on as you decide which added features to introduce for the customer’s benefit.

In this sales transaction, it is important that you are sincere, that you know your product and company, and you speak with conviction and belief that you have the best value and right product for the customer. The retailer or dealer salesperson will have several goals in mind when discussing Transfer & Conversion Services:

Meet customer needs with quality products, professional services, competitive prices

Ask proper questions of customer to better understand expectations

Look for ways to increase average value of each sale

Look for ways to create repeat business

Gain customer satisfaction to enhance store / dealer reputation

Continue good PR and good word-of-mouth advertising

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You provide customers peace of mind with conversion services. Increased customer satisfaction is gained when you outperform expectations.

Asking questions is very important in order to better serve your customer. Most times the customer will know less than the salesperson about transfer services. If the customer doesn’t know what to ask, then please consider asking the questions below as a way to start conversation and better understand customer needs.

Questions to ask:

1. What do you want done with your film or video tapes or photo’s or slides or audio tapes? Why are you making the transfer? What do you want to accomplish with this order? What is the special occasion?

2. Who is the transfer product for? Who needs extra copies?

3. What other tapes and film do you have to transfer? (ask for everything to increase sale value)

4. What type media do you want the transfer put onto?

5. How do you plan to show or listen to the transferred contents? What type media player or DVD or Blu-ray player do you use? What type TV or HDTV do you have?

6. What about data files, any interest in saving the contents as data files on a hard-drive?

7. What type of hard-drive will you use for the transfer? What type video editing program do you use? What data file types do you prefer? What type of computer do you use, Mac or Windows PC?

8. What do you have for a long term plan to keep and protect the contents on the new DVD or Blu-ray Disc or Hard-drive?

9. Where do you plan to store and keep the new media, so to protect its contents?

10. When do you need the order completed?

11. How should the DVD and DVD case sleeve labeled, with what titles?

12. What onscreen titles do you want within the transferred contents?

13. What special editing might you want done? What background music should we add to the movie film or DVD slideshow?

14. What additional narratives would you want to add to the new digital movies?

15. What special information would you like us to add to the order for future reference? Additional information onscreen or on the hard-drive makes the content more valuable in the future

16. What will you consider a good deal? What will you consider a good transfer?

17. What about high-definition transfer, have you considered this for your film and High Def video tapes?

18. Who else would be interested in purchasing this service?

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19. How did you learn about our conversion services?

20. May we have your referral?

21. What else can we improve upon to better your experience?

Once you have answers to the above questions, it becomes a matter of knowing your product, and then crafting or designing the best solution. Please read the reference information and briefs within this handbook to become more knowledgeable on the products, and never hesitate to call Cintrex on 800-325-9541 if you have questions.

Many times it is best to have an order form handy (see our section on filling out the order form) so that you can mark down or write the answers, and therefore have a ready summary information sheet for the customer to approve when you ask for the customer’s business.

Your summary or wrap-up to the customer Q & A interview process should incorporate the following information:

Summary of understanding of customer needs, including timeframe and final desired product; gaining customer acknowledgement along the way on each major point important to the customer. If a due date is not mentioned, please set the expectation of 3 weeks to 4 weeks for delivery. If necessary for sooner delivery, please note that on the sales order. Rush orders can be accommodated, but it is important that rush orders are the exception, not the rule.

Outline of what you will do to meet customer request; again gaining customer agreement on each major point in your proposal, meaning they agree that your service components or points address their need.

Answer customer questions, or if answers are not immediately available, please call Cintrex on 800-325-9541 for help.

Statement of benefits to the customer, and the advantages they gain doing business with your store for their particular order; let them know about the warranty that accompanies their order; gain customer agreement. Please see the competitive features or points about our different service offerings.

Completion of order form.

Closing the sale, asking for the order – if the customer has been nodding in agreement throughout the review process, if the needed features and budget parameters have been met, use assumptive closes such as “when would you like to pick up your finished product?” or “how many extra copies do you need?”. Ask for the order and close the sale.

If the customer does not agree to order approval, it becomes necessary to determine, via questions, what the customer objections are to the sale. As previously stated earlier, the top criteria for the customer in making this purchase involve need for quality product, customer service before and after the sale, peace of mind, desired features, optional extra’s, ongoing support, and the value gained for money spent. It may be

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necessary to review with the customer how your company addresses each of the criteria. However, at this point in the sale process, with the customer having already spent considerable time in review of their order with you, the objections are over price and affordability and value for money spent. Below are short statements that can help a salesperson help the customer overcome their own objections by appealing to the buyer’s emotions or debt to family:

“I understand your concern; this is a significant purchase. Oftentimes our customers tell us that the most important thing about this transaction is their resultant “peace of mind”, knowing that they have saved valuable family archives for later revisiting by their family and relatives. Yes, it’s an investment, a valuable investment that will be appreciated many times in the future.”

“I understand your concern; this is a significant purchase. Life is an adventure, a journey, and representative of many experiences, some of which you or your family have already recorded. With this purchase you are making sure that others can learn from where you were, and where you went, by saving and modernizing these memories, these recordings of you and/or your family’s? Yes, it’s an investment, a valuable investment that will be appreciated many times in the future.”

“I understand your concern; this is a significant purchase. These past film and video recordings are priceless memories, representative of precious past times. Modernizing them is smart investment because you help others remember or view times past, and rediscover past friendships and insights into your family. You are making sure that valuable memories are not lost.”

Ask again for the order. If you need additional pricing consideration from Cintrex on its wholesale prices in order to close a large order, please don’t hesitate to call us.

Establishment of next steps, including payment details, money down, etc.

With receipt of customer order, the fulfillment process begins. The sale is not complete. We must collectively do the right things with the customer’s older media so that the new transfer product is delivered on time, and exceeding customer expectations.

This handbook’s sections labeled “Service Agreement” and “Filling Out The Order Form” cover the order fulfillment process. Upfront work in organizing the customer’s old media and putting down as much possible information on the order form will better ensure a successful transfer & conversion services product.

Summary – Selling Transfer & Conversion Services requires preparation and attention to detail in order to gain the customer’s business. The customer is entrusting to the salesperson and retailer something of great value, and they want to know, want to hear that they are making the right decision, and the product that they receive will be the very best for the monies spent.

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Cintrex AV Process for Media Conversion & Transfer

The transfer steps and processes are very similar for film and video tape transfer, and for the scanning and transfer of photo’s and slides. Some of the initial ingestion tools may be different at the transfer stations because of the differing nature of specific media access, but once the digitized content is placed on the network, then the processes involve the same computer tools and data appliances, the same new access media and storage options, and the same business processes. The common steps in the process are:

1. Receipt of order and cataloging physical contents, including inspection of customer supplied contents for damage, and noting areas in need of repair

2. Cleaning, repairing, and prepping the physical media as needed to ensure smooth transfer and conversion

3. Assigning a sequence and order of transfer, so as to complete the job in as quick a professional manner as possible. Having a plan upfront saves time later on.

4. Playing and ingesting the captured content, using proper projectors and players (representative of the right era and technology) and collection points to capture the content, digitize and encode the content.

5. Placing captured content on our computer and storage network

6. Editing the Content, preparing content for Transfer, transcoding or creating correct file types to match requested output

7. Selection of proper new media, and transfer of captured, converted digital content to new media

8. Presentation and Packaging

9. Interim storage up to 90 days of customer content

10. Business Systems for order status, packing, tracking, updates, invoicing

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Service Agreement between Cintrex AV and its Retailers

PURPOSE OF AGREEMENT: Provide understanding of mutual expectations in the operation and services delivery by Cintrex Audio Visual (aka Cintrex) for its Dealer network comprised of retailers, resell partners, and sales agents (aka Dealers) who resell Cintrex service products to their respective end customers (aka Customers). SERVICES: Cintrex is a wholesale service bureau providing transfer services; moving valuable content in old film, video, slides and audio formats to the latest digital file formats resident on newer digital media such as DVD, Blu-ray Disc, and hard-drive. OUTSOURCING TO CINTREX: The Cintrex go-to-market model for transfer services is through its Dealers. Greater than 80% of Cintrex transfer sales come from the dealer network, the exception is the St. Louis regional area where Cintrex is based and receives local walk-in traffic. Cintrex has a 4,100 sq. ft. office / warehouse with eight (8) transfer stations for conversion, scanning, and computer editing services. Necessary spare parts are kept in inventory for maximum production uptime. Cintrex prefers to offer its services through Dealers because of the existing trust factor and positive perception that local Customers already have of the Dealers. Dealers are committed to delivering a quality product at a fair price, and have a strong commitment to ongoing customer satisfaction. Cintrex has been in business greater than 30 years and makes the same commitment to its Dealers. The existing Dealers have been a source for Cintrex’s best testimonials. Existing Dealers already sell transfer services, and outsource all or part of the necessary services work to Cintrex. For new Dealers, selling transfer services and outsourcing the necessary work to Cintrex can have the following advantages for new Dealers:

Low cost of entry to enhance existing product portfolio and increase sales revenues

Provide quality products generating much customer satisfaction

Gross profit margins of at least 40%

Order turnaround is 2 weeks on most orders; special restoration orders can take longer

Favorable payment terms, Cintrex invoices Dealers only after work is done, so no money asked for upfront

Cintrex stands behinds its Dealers, and is accommodating to Dealers’ needs when working with a customer

Money-back guarantee if the customer is ever unsatisfied with the service ORDER FLOW PROCESS: Most orders for Cintrex services come from Dealers, who have agreed to resell Cintrex services to their Customers; with the finished products

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being presented as a Cintrex brand product or as the Dealers’ own brand (with the service work outsourced to Cintrex). The entire order flow process, from start to finish, is shown below in abbreviated form. The purpose of the process is to deliver a quality product in the same manner 100% of the time. Cintrex warrants the finished product to be right, or Cintrex will make it right. Cintrex provides a guarantee that our conversion services will be the highest quality obtainable for the suggested MSRP, and if not, the Dealers’ net purchase price will be refunded if Customers can show a higher quality product. The order process:

Customers inquire about transfer services.

Dealers provide answers to Customers’ questions, sell the merits of their transfer process, differentiate the transfer product from the competition, ask for the order, and make the sale.

Dealers complete the entire order form correctly, including necessary due date, number of product copies, and detail the specific work to be performed for the Customers’ order. It is important that the Dealers retain one copy of the order form in case there are later questions from Cintrex.

Customers sign the order form, approving the limitation of liability statement; receive a copy of the order form.

Dealers place order contents (tapes, film, cassettes, photo’s, etc.) in appropriately sized bags and container box, and take excessive care to make sure contents are securely protected from the rigors of common freight carrier shipment. Dealers know that they are handling very valuable, one-of-a-kind, irreplaceable items; and go to great pains to make sure the container box survives shipment to Cintrex.

Shipping is provided at no charge by Cintrex using UPS Ground services. Dealers create their UPS shipping labels via the UPS portal on the Cintrex partners’ website, place the labels on their packages, and then either drop the package off at the nearest UPS store or dropbox, or hand the box over to their UPS driver. Cintrex dealers also have the option of using their own common carriers and then receiving shipping credits from Cintrex on later invoices.

Upon receipt into Cintrex, the container box’s order form and associated contents are catalogued and tracked through the Cintrex transfer process. The outside of the container box is marked/labeled with date of arrival into Cintrex, due date back to the Dealers, the respective dealer’s name and customer name, and any special instructions noted on the order form.

Each service order is worked on by experienced Cintrex technicians. The order form instructions are followed as written and marked by the Dealers. That is why it is very important to fully complete the order form with the customer at the start of the order process. If questions come up, the Cintrex technician will call the Dealers for clarification. Common questions come up over order of transfer (which items get transferred first), title spellings, table of contents format, music

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selection, how many copies, whether a need exists to combine contents onto fewer disc’s, file formats, and due dates.

Transfer services are available for the following products:

o 8mm, Super 8mm, Super 8mm with sound strips, and 16mm film, including 16mm with magnetic or optical soundtracks; all types film transfer available in either standard or high definition (for HDTV)

o Consumer magnetic tape formats – VHS, VHS-C, BetaMax, camcorder tapes such as 8mm, Hi8, Digital 8, MiniDV, and HDV

o Professional broadcast tape formats – ¾” U-matic, Betacam, Betacam SP/SX, DVCPRO, DVCAM, and 1” Open Reel

o SD cards, camcorder hard-drives, MiniDVD’s, etc.

o Audio records, reels, and cassettes

o Slides, 35mm negatives, photos, proofs, etc.

o Available transfer media – DVD, CD, Blu-ray Disc, and Hard-drive

The Cintrex product content is very good; customers regularly provide ready testimonials for what they receive back. It is a better experience for all if Cintrex knows upfront the expected options included in the order, so that we mutually succeed at delighting the customer.

When the order is finished, Cintrex packages together the old contents and media, the new media with the transferred contents, a Cintrex invoice and a packing slip listing container’s content. The box is shipped via UPS, at no cost to Dealers, and shipped in time to meet the requested due date. Shipping is always via UPS ground, unless the order is a rush order, and then extra shipping charges will be applied as necessary to meet due dates.

Each shipping package has a tracking number, and Cintrex is able to provide order status and shipping status as requested by Dealers.

Typical turn-around time is 2 weeks within Cintrex from receipt of order to shipment of an order. Dealers can make arrangements with Cintrex for shorter intervals as necessary. Rush orders may cost more for additional labor to meet necessary due dates.

Upon Dealers’ receipt of finished Customers’ orders, Cintrex asks the Dealers to perform a final inventory check and review of the transferred contents, making sure the product meets expectations. Again, if something is wrong Cintrex will work with the Dealers to make it right as soon as possible, and satisfy our mutual Customers.

Effective March 1, 2011, Cintrex keeps a backup copy of ALL transferred content in data storage for a period of 90 days. This is being done for a number of reasons: 1) protection against orders lost in possible misrouted return shipments, 2) later requests for more editing, 3) additional copies, and 4) answer questions about the finished order. After 90 days, the customer’s content is erased from our systems.

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An extended data storage option for customer media libraries, greater than 90 days, is available for an annual fee.

CINTREX RESPONSIBILITIES IN THE SERVICE DELIVERY PROCESS: Cintrex will provide the following services to its Dealers:

Training - to the Dealers’ salespeople to sell the product and to the lab technicians to understand the process, plus unlimited Q&A as necessary to help Dealers become competent in selling, ordering and supporting transfer services

Marketing Help & Materials – brochures (customized with your logo), posters, countertop stickers, order forms, unlimited Q&A

Secure website for Dealers as a repository for all the necessary information and guides to support the Dealers

Providing quality transfer product, plus taking care of valuable one-of-a-kind items and returning all original items in the same condition as received

Confidentiality – all Customer content is protected and not shared or distributed

Timely response to all Dealers inquiries

Timely response to problems and concerns brought up by Customers and Dealers; Cintrex assumes up front that it is at fault when problems happen and works to correct the problems to the Dealers’ and Customers’ benefit

Professionalism from Cintrex staff in all areas when working with Dealers

Timely shipment of product to meet commitment to Dealers and due dates for Customers; Cintrex pays for all shipping, or credits Dealers that ship into Cintrex with their existing preferred common carrier

Timely invoicing for work performed

Appropriate labeling of product and packages as asked for by Customers and Dealers

Monthly invoice statements if asked for by Dealers

DEALER RESPONSIBILITIES IN THE SERVICE DELIVERY PROCESS:

Professionalism in working with Cintrex, and in representing Cintrex products and services

Order Forms completed, and acceptance of the Limitation of Liability by Customers or Dealers

Arrangement of shipment of Customer orders to Cintrex

Timely payment to Cintrex for services per agreed upon terms of payment

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PRICING: Competitive wholesale rates are available to all Dealers. Cintrex will work with Dealers as necessary to win customer business in competitive situations. Wholesale purchase pricing should be agreed upon between Cintrex and its Dealers before any orders are placed upon Cintrex. Cintrex will only recommend competitive retail transfer rates to its Dealers; it is up to Dealers to determine final retail sales pricing.

PAYMENT TERMS: Payment is due after creation of a Cintrex invoice. Cintrex does not request money from Dealers until an order is completed. Typical terms are net 10 or net 30 with your good credit. Cintrex accepts AMEX, Discover, Visa, MasterCard, or your corporate check for payment. Please call Cintrex if alternative terms are desired.

WARRANTY: Cintrex warrants that the work done for the Dealers meets the specifications asked for on the order form provided by the Dealers. If the work is not done to the satisfaction of the Dealers and does not meet the specifications on the order form, Cintrex will correct its work at no cost to the Dealers. The transfer services product has a one year warranty.

LIMITATION OF LIABILITY: Cintrex does not lose or damage Dealers orders; however, there is a limitation of liability statement on our order forms that protects both Cintrex and the Dealers; it is important that customer acknowledges this statement with their signature; the statement reads: “When submitting film or other material, customer acknowledges and agrees that liability for any loss or damage to film or other materials during the processing service will be limited to the replacement cost of a non-exposed roll of film and/or a blank media of similar size. Except for such replacement, store shall not be liable for any other loss or damage, direct, consequential, or incidental, arising out of customer’s use of said service. The undersigned hereby warrants that the material being presented for copying is not to his/her knowledge protected by copyright, owned by another, or that if the material is protected, the undersigned has obtained the permission of the copyright owner to make copies of the material”

COPYRIGHT LIMITATION: Cintrex will transfer copyrighted film, video, or audio recordings ONLY when one of the following conditions are met: 1) when the customer is the actual copyright owner, or 2) if the customer has obtained written permission to do so from the copyright owner. Copyrights are granted by the U.S. Library of Congress to the producing or holding company which created the content in question. Copyright is not transferred to the buyer upon purchasing a commercial videotape or cassette or professionally-released movie from a retail store, for example. It is a violation of applicable copyright laws under Title 17 of the U.S. Code as well as the Digital Millennium Copyright Act of 1998 and anti-piracy laws for Cintrex Audio Visual to transfer materials to DVD or CD for you for which we do not own the copyright.

CONFIDENTIALITY: – 1. Customers’ content is protected and not shared or distributed by Cintrex; 2. Cintrex and its Dealers shall take reasonable precautions to preserve in strict confidence any confidential or proprietary information exchanged between them concerning their business, products, equipment or services of either party, including without limitation, trade secrets. Such reasonable precautions shall include exercising

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precautionary measures designed to preserve the secrecy of such information and to prevent its disclosure to third parties, except following prior consent of the other party, with such precautions being at least equivalent to those taken by each party with respect to its own confidential information

NON-EXCLUSIVITY: - Cintrex does not typically compete with Dealers for Customers’ business. Cintrex does not typically seek multiple Dealers within the same geography; nor does Cintrex typically grant geographic exclusivity to any Dealers.

Cintrex and Dealers cooperate together to deliver a quality transfer services product and to earn a profit for work performed. Cintrex appreciates your consideration of our company, and thanks its Dealers for doing business with Cintrex. Suggestions and comments about this document and doing business with Cintrex are always welcomed.

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Marketing Materials Cintrex AV has brochures, countertop stickers, posters, and order forms to help the reseller promote our services to walk-in store traffic. We also offer links to website content or landing pages to promote your services to potential online customers. Marketing supplies and web content are orderable off our partners’ website, http://partners.cintrexav.com. Countertop Sticker Posters

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Brochures

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Order Forms – Instructions on how to complete the triplicate order form are online at http://partners.cintrexav.com/news-training/completing-triplicate-order-form.htm.