2007 Ryko Annual Sales Meeting 2007 Ryko Annual Sales Meeting Reverse Marketing “Gasoline Discount...

2007 Ryko Annual Sales Meeting2007 Ryko Annual Sales Meeting

Reverse Marketing

“Gasoline Discount with

Car Wash Purchase”

2007 Ryko Annual Sales Meeting2007 Ryko Annual Sales Meeting

Reverse Marketing - Concept

• What is Reverse Marketing?

• A vehicle to compete with Big Box and Grocery Store gasoline discount programs

• Program Management – Electronic or Manual

• Value Driven Discounting – $0.10/gallon discount with $8.00 wash purchase– $0.05/gallon discount with $7.00 wash purchase– $0.02/gallon discount with $6.00 wash purchase

Reverse Marketing - Economics

Gasoline Sold/Month 100,000Car Washes Sold/Month 1,000Avg. Car Wash Revenue/Wash $7.20Total Car Wash Revenue 7,200

Discount/Gallon with any wash purchase $0.10Promotional Gasoline Growth 20,000Total Gasoline Sold/Month 120,000% of gasoline discounted/month 30%Average Gallons Sold/Customer 10Gasoliine Discount/Month $3,600Washes Sold through Promotion 3,600Average Revenue/Wash $7.20Car Wash Revenue/Month $25,920Less Gasoline Discount $3,600Net Car Wash Revenue/Month $22,320Car Wash Revenue Improvement 15,120

Prior to Reverse Marketing

Reverse Marketing

Electronic Example – 7 Eleven, Inc.

• Location – Plano, TX • P.O.S. – Gilbarco “Passport”• Promotion - $0.10/gallon discount with an $8.00 wash • Wash Prices - Express $6.00 & Premium $8.00

2007 Washes Sold Premium Washes Premium Wash Count Premium Revenue Total RevenueFeburary 827 52% 430 $3,440 $5,822

2007 Washes Sold Premium Washes Premium Wash Count Premium Revenue Total RevenueMarch 983 72% 708 $5,662 $7,314April 1041 78% 812 $6,496 $8,245

Prior to Reverse Marketing

Reverse Marketing

Point of Purchase Material – 7 Eleven, Inc.

Manual Example – Shell Marketer

• Location – Dallas, TX

• Promotion - $0.10/gallon discount with any wash purchase

• Wash Offering – Express $6.00 – Premium $8.00

Date Monthly Wash CountMarch-05 331April-05 366May-05 700June-05 547July-05 473August-05 715September-05 696

Average 547

Date Monthly Wash CountOctober-05 778November-05 1284December-05 1227January-06 1362February-06 1101March-06 1119April-06 971

Average 1,120

Reverse Marketing

Prior to Reverse Marketing

Point of Purchase Material – Shell Marketer

Reverse Marketing - Summary

• Increased Car Wash Profit

• Establishes Gasoline Purchasing Loyalty

• Incremental Gasoline Growth

• Enhanced Purchasing Experience

• Competitive Advantage