““Ancillary” Ancillary” OrOr

“Real” “Real” BenefitsBenefits

NAPEONAPEOSeptember 2004 September 2004

Presented By:Presented By: Troy JaklichTroy JaklichCreated By:Created By: Cristal ClarkCristal Clark

““We’ve Got Pet We’ve Got Pet Insurance!”Insurance!”

Americans alone own 143 million pets and will spend about $34 billion caring for them this year.

*Source August 20th, 2004 edition of Forbes magazine

How many of the pet owners work for your client companies?

Would you rather:A. Spend two hours of your life talking to a

car salesman?Or

B. Be drug over a cactus with your mouth on the tail pipe of a Greyhound bus?

OrC. Sandpaper an alligator in a phone booth?* Source Ron White

Over 10 million new cars are sold annually in the US

204 million Americans own cars

How many of them work for one of your client companies?

Founded in 1976Headquarters in Denver, Colorado4200 Employees86% of client companies in Colorado 55% of worksite employees in Colorado30% in Washington state 15% in 30 other states

Market to specific industry niches

Demographics play an important role when selecting supplemental benefits to add to your existing offerings. We survey our clients to find their supplemental needs. Constantly adding and evolving.

Look for programs with little or no cost for acquisition, implementation, and

administration for LMC and our

clients.

Programs need to fit our target and existing markets both geographically and economically.

Participating vendors will typically supply their own marketing materials.

LMC includes these materials in New Employee Packets.

Vendor gains access to a new audience at a much lower acquisition and marketing cost than through the normal advertising channels.

PEO gets to “piggyback” on vendor’s marketing efforts and gains credibility by allying themselves with a recognized brand.

LMC does not typically generate any direct revenue from these programs and relationships.Check with legal counsel on State laws regarding “referral” fees. We preach to client - “Attraction and Retention” of their employees…

But…

Benefits also attract and retain the desired external

relationships.

-CLIENTS-

It costs six times more to attract a new customer than it does to keep an old one.

At the client level, tangible evidence of lowering employee turnover

Adds value to client

Case Study: Property Management Company

Before LMC- turnover= 300%After LMC- turnover= 60%

Comprehensive, cost effective benefit plans generate referrals within our niche markets and has given LMC a 95% client retention ratio.

Generate higher levels of profit/WSE

Decreased client employee turnover, increases PEO profitability through lower internal cost of administration and State Unemployment Tax.

The “Real” BenefitsOf “Ancillary”

Products

NAPEO

September 2004Presented by:Troy Jaklich