Mobil Oil / RYKOMobil Oil / RYKO

A little HistoryA little History

Mobil Has Been a RYKO Customer for YearsMobil Has Been a RYKO Customer for Years 1995 RYKO Was Formally “Un-approved”1995 RYKO Was Formally “Un-approved” 1996 RYKO Was Formally Approved Again!1996 RYKO Was Formally Approved Again! 1997 Mobil Corporately Purchased 6 Car 1997 Mobil Corporately Purchased 6 Car

Wash Systems From RYKOWash Systems From RYKO 1998 Mobil Corporately Purchased 10 Car 1998 Mobil Corporately Purchased 10 Car

Wash Systems From RYKOWash Systems From RYKO Many Wash Systems Were Purchased By Many Wash Systems Were Purchased By

Mobil Dealers and JobbersMobil Dealers and Jobbers

Mobil / RYKO 1998Mobil / RYKO 1998

First RFP March 1998 - Touch Free Only!First RFP March 1998 - Touch Free Only!• General InformationGeneral Information

– CompanyCompany– EquipmentEquipment– PricingPricing

– Wash Equipment Packages and MaintenanceWash Equipment Packages and Maintenance– All Locations - Company, Dealer, and JobberAll Locations - Company, Dealer, and Jobber– Three Suppliers to Two - ConsiderationThree Suppliers to Two - Consideration

– DistributionDistribution– Miscellaneous InformationMiscellaneous Information

First RFP RYKO ResponseFirst RFP RYKO Response

Provided all of the informationProvided all of the information Offered all of our current programsOffered all of our current programs

• Quantity Discount, Extended Protection Quantity Discount, Extended Protection etc.etc.

Offered to pass through Offered to pass through withwith corporate PO to Dealers and Jobberscorporate PO to Dealers and Jobbers

Guaranteed the lowest price to MobilGuaranteed the lowest price to Mobil

The Mobil MeetingThe Mobil MeetingApril 1998April 1998

Wayne Smith and Steve Davis Wayne Smith and Steve Davis Meet With Mobil and Review the Meet With Mobil and Review the Entire ProposalEntire Proposal• Listened to Our Explanations Listened to Our Explanations • Asked for Our Proposal for the Mobil Asked for Our Proposal for the Mobil

Convention Car Wash BayConvention Car Wash Bay

Mobil - NextMobil - Next

RYKO Was Now in Second Place and Ready for Phase IIRYKO Was Now in Second Place and Ready for Phase II

New RFP July 2, 1998New RFP July 2, 1998• Firm One Year Price on Two Wash Firm One Year Price on Two Wash

PackagesPackages• Include 12 Month Labor and 24 month Include 12 Month Labor and 24 month

Parts WarrantyParts Warranty• Outline Included TrainingOutline Included Training• Firm Cost Per Wash Maintenance ProposalFirm Cost Per Wash Maintenance Proposal• All to Be Passed Directly to All LocationsAll to Be Passed Directly to All Locations

Mobil #2 RFPMobil #2 RFP• Firm One Year Price on Two Wash PackagesFirm One Year Price on Two Wash Packages

– Offered National Account Pricing Through December 31, Offered National Account Pricing Through December 31,

19981998

• Include 12 Month Labor and 24 month Parts Warranty Include 12 Month Labor and 24 month Parts Warranty

– Offered Competitive Maintenance Program in cents per wash Offered Competitive Maintenance Program in cents per wash

as well as monthlyas well as monthly

• Outline Included TrainingOutline Included Training

• Firm Cost Per Wash Maintenance ProposalFirm Cost Per Wash Maintenance Proposal

– Offered Competitive Maintenance Program in cents per wash Offered Competitive Maintenance Program in cents per wash

as well as monthlyas well as monthly

• All to Be Passed Directly to All LocationsAll to Be Passed Directly to All Locations

We Are Now #3 and Your We Are Now #3 and Your Out!Out!

Late August Wayne was informed we had Late August Wayne was informed we had moved into the #3 spot and we would be moved into the #3 spot and we would be out!out!

Mobil Issues:Mobil Issues:• No Special Pricing OfferedNo Special Pricing Offered• Not Long Enough for the Price GuaranteeNot Long Enough for the Price Guarantee• Need to Pass Directly to Dealers and JobbersNeed to Pass Directly to Dealers and Jobbers• Warranty Was Not ExtendedWarranty Was Not Extended• No Trade in Dollars Offered As StandardNo Trade in Dollars Offered As Standard

RYKO RespondedRYKO Responded

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

and 18 Months Laborand 18 Months Labor• Guaranteed Trade in of $2000 - $5000Guaranteed Trade in of $2000 - $5000

Meeting in Las VegasMeeting in Las Vegas

RYKO Is Still #3RYKO Is Still #3 Asked Us to Deal With Their Asked Us to Deal With Their

Chosen Chemical SuppliersChosen Chemical Suppliers Lower Maintenance Price in FloridaLower Maintenance Price in Florida Lower Equipment PriceLower Equipment Price Larger Trade inLarger Trade in

Response to the Meeting Response to the Meeting in Las Vegasin Las Vegas

Asked Us to Deal With Their Chosen Asked Us to Deal With Their Chosen Chemical SuppliersChemical Suppliers• We AgreedWe Agreed

Lower Maintenance Price in FloridaLower Maintenance Price in Florida• Re-QuotedRe-Quoted

Lower Equipment PriceLower Equipment Price• DeclinedDeclined

Larger Trade inLarger Trade in• DeclinedDeclined

Mobil Approved Three Mobil Approved Three SuppliersSuppliers

Mobil Said it Would be Two...Mobil Said it Would be Two... We Are Again an Approved Car We Are Again an Approved Car

Wash Supplier to MobilWash Supplier to Mobil We Are Awaiting the ContractWe Are Awaiting the Contract

• Mobil is Sending it to the Other Mobil is Sending it to the Other Suppliers FirstSuppliers First

Our Deal to MobilOur Deal to Mobil

$2000 - $5000 Guaranteed Trade-In$2000 - $5000 Guaranteed Trade-In Free Back-Lit Custom ImageFree Back-Lit Custom Image Six Month Labor and Eighteen Months Six Month Labor and Eighteen Months

Parts WarrantyParts Warranty Pass Through to Pass Through to AllAll Locations Locations Volume Rebate of 3% - 7%Volume Rebate of 3% - 7% Extended Protection ProgramExtended Protection Program Work With Their Chosen Chemical Work With Their Chosen Chemical

SuppliersSuppliers

Pluses / MinusesPluses / Minuses

PlusesPluses

• Significant Significant

BusinessBusiness

• Coat-tail Other’s Coat-tail Other’s

Car Wash BusinessCar Wash Business

• Prevents Our Prevents Our

Competitors Form Competitors Form

Getting All of ItGetting All of It

MinusesMinuses• Costs Between $6000 Costs Between $6000

- $10,012 Per Sale - - $10,012 Per Sale - Plus the Value of the Plus the Value of the Extended Warranty Extended Warranty and the Extended and the Extended Protection ProgramProtection Program

• Distributor Margins Distributor Margins Reduced by up 4.4%Reduced by up 4.4%

• Costs More Than Our Costs More Than Our Best ProgramsBest Programs

• ““Most Favored Most Favored Nations”Nations”

Most Importantly!Most Importantly!

““Most Favored Nations”Most Favored Nations”• Phillips, Amoco, Shell/ Texaco/Star and Phillips, Amoco, Shell/ Texaco/Star and

OthersOthers• Requires Best Offer of PricingRequires Best Offer of Pricing• Amoco Has Their Own Negotiating Amoco Has Their Own Negotiating

ComingComing Truly Could change the way were Truly Could change the way were

doing business.doing business.