Distribution Strategy Script Intl

Attract Capital

Channel Control

Profitable Dealers

Succession Planning

New / Emerging Markets

Attracting investment capital to the dealer network WANTED - Business partners to share financial risks Sustainable distribution channels Get product support closer to the customer Market pricing – especially with new global competitors Deliverable brand value – attract dealers / customers Improve profitability of dealers Competitive Finance Programs – Wholesale / Retail

Profitable dealers sustain delivery systems and grow market share!

2003 Script International Inc.

What’s Going Wrong ?

Service Sales

Parts

Aggressive Rental Companies

2003 Script International Inc.

Rental Sales Parts • New Machines Only• Good Margins 15-25% • Weak Financing Plans • Product Support not well established• Difficult to source used machines • Sales Margins for used machines are better 18-35%

• Usually every market has some pent up demand that will handsomely reward the market leader •Concept generally not widely known / accepted• Excellent Gross Profit 45-55% • Typical weak factory Support for fleet financing • Product offering limited to dealership brands

• Margins good 25-40% • Virtually no machine population • Although profitable no real opportunity for years to come.

• Margins good 45-55%• Product Support usually lags behind sales development maybe 6 -12 months • Although profitable - service opportunities are weak due to virtually no machine population • Start-up dealers can work on competitive machines, the only problem is sourcing competitive parts and being able to make a reasonable margin

Service

Rental Fleets have high impact• Immediate Cash Flow • Overall contribution to dealer profitability • Positioning for future used machine sales • Positioning with emerging contractors for future sales activities• New brand / product introduction – low risk to end users

Corporate Profits

Market Share

Customer Satisfaction

Product Support

Retail Financing

Wholesale Financing

Warranty

Product Quality

Brand Awareness

Dealer Profitability

2001 Script International Inc.

Dealers are usually averse to inventory that is not floor planned. Rental Fleets don’t just happen…it requires taking calculated RISK.

Used Machine Sales

Rental Purchase

New Machine Sales

Long Term Rental

End UserShort Term Rental

TIME

FIN

AN

CIA

L

RIS

K

Dealer

Customers are usually accustomed to taking all the financial RISK. The market really opens up when others begin to share their RISKS of owning and operating the equipment.

Rental is a proven method in penetrating emerging markets …make it part of your corporate strategy!

Waiting for the market to mature is actually high risk.Developing a corporate strategy without real experience and guidance is even higher risk.

Consider some guidance from real experts who can propose / evaluate a proven market strategy that is sustainable.

 Company established in 1996 Highly entrepreneurial leaders in the equipment

industry with average experience 25 + years International work / completed projects in (30)

countries Clients include major OEM’s and their dealer

organizations, privately owned start-up businesses, trade associations.

Project milestone – assisted CAT dealers in South America to open 72 rental locations in 48 months.

Provided assistance to CAT dealers in Europe during due diligence work on acquisitions of CRAMO / Hewden Stewart

Other clients include Bobcat, Terex, ARA, AED, Komatsu

Unique Solutions – What separates our consulting services from the

others? Ability to move quickly

Ability to provide experienced ground personnel (implementation)

Background and experience from a business owners perspective

Background and experience from the customers perspective

Extensive industry background not limited to one individuals background, but rather collaborative best practices approach to solutions

Proven track record with network development / dealer training programs

RESULTS!

For more information contact: Larry Kaye(904) 838-3242

[email protected]