KONICA MINOLTA Confidential KONICA MINOLTA Partner Program July 2005 New and Enhanced.

KONICA MINOLTA Confidential

KONICA MINOLTA Partner Program

July 2005

New and Enhanced


Agenda

Partner Reseller Program Enhancements

Platinum Program

Review of Overall Reseller Program

Submit your questions online during the webinar using this button at the top of your screen

Partner Reseller Program Enhancements


Key Enhancements

Increase Profits from Printer Sales

– Rebates increased at every printer volume milestone

Make it Easier to Do Business

– Eliminated need to claim rebates

– Doubled time period to qualify for rebates to smooth out volume spikes

– Standardized rebate calculation with Estimated Street price

– Monthly attainment report will be issued from KMPS for those who achieve $5k+ in printer sales

Reward and Recognize the Highest Levels of Performance

– Platinum Program enhanced with full suite of benefits


Increased Printer Rebates at Every Level New Incentive scheme

Half year Hardware

Purchases

Incentive onHardware

Incentive onConsumables

Buy 40k or more 10% 4%



** Purchase of PP1350W, 2300W, 2400W are applied towards purchase goal, but are not eligible for the incentive

Buy 20k or more 8%

Buy 10k or more 6%Buy less than $10k 3%

Current Incentive schemeQuarterly Hardware

Purchases

Quarterly Consumables

4%

3%

2%

Purchases

Buy 20k or more

Buy 10k or more

Buy less than $10k

* Incentive on Consumables will be driven by Printer hardware purchases

*** Resellers who claimed Q1 ’05 rebate under current program will have their Q1 rebate subtracted from their 1 st Half rebate check


Easier to Do Business

Rebate amounts will be calculated and checks cut automatically– No need to claim rebates

Measurement will be based on 6 month purchases: Apr-Sep & Oct-Mar– Lengthen qualification period to qualify for rebates to smooth out volume spikes

Purchase amount will be based on Purchased Qty x Street price– Standardized formula for all purchases through authorized sources

Monthly attainment reports distributed for $5K+ resellers– Enables easy tracking of progress towards goals

All other elements of Partner Program remain the same–Spiff, Try & Buy, Demo,


Rebate Calculation Example

Apr 1 Jul 1 Sep 30

Q1 Printer Hardware Purchases - $25K Q2 Printer Hardware Purchases - $25K

Rebate Claimed Q1 05 (Old) - $2K Rebate Calculated 1H 05 (New) - $5K

- Rebate Claimed Q1 05 (Old) $2K

Rebate Check Issued 1H 05 $3K

One time transition to new program in 1H 05

Q1 Q2

Platinum Reseller Program


Platinum Program Qualification

Program will be offered based upon approved business plan

– Potential and Commitment to grow business with KMPS

– Value added Reseller

– No focus on On-line sales

– Preferably have store front with Demo space

– Preferably have sales people on the street

$40k Hardware purchase required in previous Half year

– Reseller must continue to purchase a minimum of $40K in Hardware every half year to maintain Platinum status

Addendum needs to be Signed by Reseller and KMPS VP Marketing


Platinum Program Benefit

Assigned Account Executive Platinum Discount (No Back end rebate but up front discount)

– Direct Platinum Discount

– Platinum Discount through Authorized Distributor

Back end incentive on Growth target– $50k HW purchase over Half year period: 2% of HW purchase

– $100k HW purchase over Half year period: 5% of HW purchase

One Custom Flyer available every quarter (upon request) Direct mail program initiated by KMPS for those who have

demo space with KMPS demo unit MDF for executing joint marketing campaign Plaque & Logo recognizing status Status identified on “Where to buy” listing

Konica Minolta Partner Reseller Program


Program Objective

“Our goal is to allow our partners to make more

money selling KONICA MINOLTA printers than

other brands, while offering unparalleled

support in sales, service, and marketing.”


Program HighlightsPROFIT

■Industry-leading, upfront margins Yes

■Aggressive back-end incentives Up to 10%

■ SPIFF rewards Up to $75

■ Essential Rewards debit card Yes

RESOURCES

■ Award-winning partner web site Yes

■ FREE product literature & samples Yes

■ Online ‘Where to Buy’ listing Yes

■ Dedicated field & inside sales reps Yes

■ Direct technical support line Yes

■ World-class communication Yes

PROGRAMS

■ Leasing program Yes

■ Demonstration equipment program Yes

■ Try & Buy 30-day product evaluation Yes

PRODUCTS

■ Award-winning, profit-yielding products Yes


Program Foundation

The KONICA MINOLTA Partner Program received VARBusiness magazine’s 5-Star award for the breadth & depth it provides to our partners– March 2005


PROFIT

“With the KONICA MINOLTA Partner Program

you’ll immediately begin tallying rewards with

our volume incentives, product SPIFFs, and

competitive margins.”


SPIFFs Rewards

SPIFFs valid 7/1 – 9/30/05 and payable in U.S. dollars

magicolor 7300

$75$75

magicolor 3300

$50$50

PagePro 9100

$25$25

Get a SPIFF on the sales of any Extended Warranty Plan on

• magicolor 7300 • magicolor 3300 • PagePro 9100

$20$20

magicolor 5430

$25$25

magicolor 5440

$50$50

magicolor 5450

$60$60


Essential Rewards Card

Fastest, most flexible way to receive and spend rewards

SPIFFs paid on a convenient debit card

Partners claim & track SPIFFs conveniently online — no paperwork, no hassles!

“The KONICA MINOLTA Essential Rewards card — the convenient, online way to claim and receive SPIFF rewards.”


$2,324.25

$319.90$75.00

$479.85

Profit before Reserves

$2,719.15

$479.85

Profit Potential: an example

magicolor 7300

Mfg. Est. Street: $3,199.00Reseller cost (direct): $2,719.15Upfront profit = $479.85

Upfront profit $479.8510% backend incentive $319.90SPIFF reward $75.00Total profit = $874.75

Sell supplies, accessories, & service options to build your profit even more!

15% profit15% profit

27.3% profit27.3% profit

Gross Profit before Incentives

Gross Profit after Incentives


RESOURCES

“All the tools you need the to make the sale,

make more money, and satisfy your customer

are at your fingertips.”


Convenient Partner Portal

Only registered partners have access to the Partner portal. It’s the place to get detailed information, order literature, & access tools to close the sale.


Marketing Materials Online

Easy to navigate, the site has program information, product data, pricing, & so much more!


Order Literature Online

Partners can order spec sheets & print samples —absolutely FREE!


Online ‘Where to Buy’ Listing

Registered Partners are listed on the KONICA MINOLTA ‘Where to Buy’ locator


Partner Product Pages

Feature KONICA MINOLTA products on your Web with Product Pages that include:• up-to-date product info• data sheets for download• manufacturer list of supplies• no links back to KONICA MINOLTA site


Dedicated Field & Inside Representation

Dedicated Field Team:

–Joint customer visits available

–Support major sales opportunities

–System’s Engineer services (including on-site training) available

–Help you satisfy customers while reaching maximum profit potential

Inside Sales Rep:–Your primary KONICA MINOLTA point of contact

–Answer your questions about products, programs, and resources

–Provide order status and follow-up


Special Partner Technical Support

Partners receive special handling in telephone technical support

Dedicated line to “Level 3” specialists 7:00AM until 7:00PM (Central)

Web, e-mail support available 24/7


Informative Communication

Registered Partners are informed of new programs, promotions, and events via:• face-to-face field representation• inside rep telephone communication• online Webinars• mail correspondence• corporate-generated email


Demand Generation

Consumers are driven to buy through:• e-mails featuring special promotions

& incentives

• national advertising in publications such as PC World, PC Magazine, & Inc. Magazine

• Customizable flyers for consumer mailings

• ‘Where to Buy’ web listing


Broad Purchasing Channels

Partners can buy direct from KONICA MINOLTA or use any of these top-ranked distribution partners

United States: All Products

Canada: All Products

United States: Consumables

Canada: Consumables


PROGRAMS

“KONICA MINOLTA offers innovative sales

programs for special situations.”


Leasing Program

Leasing is an easy way for your customers to enjoy the benefits of new systems without expensing capital budgets

Leasing provides your customers with a manageable, low monthly payment

KONICA MINOLTA’s partnership with CITICAPITAL provides you with leasing programs that fit your customers’ needs

24 to 60 month lease terms available

Printers, supplies, accessories, and service plans can be included in the lease


Demonstration Equipment Program

Receive discounted pricing on select printers when they’re used for demonstration purposes

– Demonstrate KONICA MINOLTA printers on your showroom floor

– Demo printers offered at a special, discounted price

– Ask your field or inside sales representative for details


Try-it & Buy-it Program

Offers your customers a 30-day test before final decision is made to purchase

– KONICA MINOLTA ships unit to VAR’s location or drop ships to customer site

– VAR issues P.O. number and installs printer

– Customer has 30 days to test drive the printer

– Try It & Buy It program available to all registered VAR Partners

– magicolor 5430 DL, magicolor 5440 DL, magicolor 5450, magicolor 3300 EN/DN, magicolor 7300 EN, and PagePro 9100 N printers qualify

“Once a KONICA MINOLTA printer is placed, it stays!.”


Test Drive Program

Let us print your customers’ files

–Submit your customers’ custom print files for output on any KONICA MINOLTA laser printer

–Prove that KONICA MINOLTA offers the best solution


Product Award Publication Date

magicolor 2400W Editors' Choice PC Magazine January 2005

Pick of the Year Buyers Lab 2005

Recommended Buyers Lab 2005

magicolor 2430 DL Next Big Thing CNET January 2005

Pick of the Year Buyers Lab 2005

Highly Recommended Buyers Lab 2005

magicolor 2350 Pick of the Year Buyers Lab 2004


magicolor 5430 DL Top 10 PC World February 2005

magicolor 3300 Recommended Buyers Lab 2004

Recommended Bertl 2003

magicolor 7300 Pick of the Year Buyers Lab 2004

Bertl's Best Bertl June 2004


Recommended Bertl 2003

Award-Winning Color Printers


KONICA MINOLTA’s 5-Star Program

Make more money right away with high upfront margins, back-end incentives, and SPIFFs

Use the vast number of available resources to learn about and sell KONICA MINOLTA products

Count on our programs, like Test Drive and Try It & Buy It, to prove the KONICA MINOLTA solution

Sell the award-winning laser printers that are value-leaders in their class

Register on-line atprinter.konicaminolta.com/reseller


Thank You

Thank you for your attention!

SAVE THE DATENext webinar: August 16

How to Use Konica MinoltaTotal Cost of Ownership Tools

KONICA MINOLTA Confidential KONICA MINOLTA Partner Program July 2005 New and Enhanced.

Documents

Transcript of KONICA MINOLTA Confidential KONICA MINOLTA Partner Program July 2005 New and Enhanced.