PartsWatch® and AutoEase® are registered trademarks of icarz, inc. © Copyright icarz, inc. 2004...

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PartsWatch® and AutoEase® are registered trademarks of icarz, inc. © Copyright icarz, inc. 2004 all rights reserved.

Sales – Non-Automotive


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Agenda

• Summary of progress to date• Hardgoods market

– Sales & marketing strategy– Account review– Pipeline projections– Other opportunities

• Other markets• Product considerations• SWOT


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Summary to Date

• Goal: Close major accounts in both existing and in new markets

• Automotive aftermarket– CTC– CSK– Autopart International

• Other prospects ‘worked’– Sullivan Tire– FW Webb– Crescent Electric– Oxford Hardware


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• Knowledgeable sources for information and referrals– Retailers & supply houses– Buying groups– Warehouse distributors– Manufacturers– Professional organizations/Consultants– Industry analysts/Press– Partners/alliances– Tradeshows and markets– Research – industry, trade sources, company

• Competitors

Summary to Date


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• New markets – where else can we sell

– Lawn & Garden– Office Supplies– Marine – Aircraft maintenance– Industrial & MRO– Tire & Service– Tradespeople

– Plumbing– Electrical– Lighting– Refrigeration– HVAC/Mechanical– Hardware– Lumber

Summary to Date


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• $330 mil total software opportunity• Store count 30,000• System usage

– 33% Activant– 33% Misc. systems– 33% No System

Hardgoods - why I am enthused1. Size of market


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Hardgoods - why I am enthused

• Currently available PartsWatch functionality• Distribution model similarities to aftermarket• Catalog driven – catalogs exist now• Retail and commercial• Similar market requirements

2. System fit


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• Disruption in the market– 3 major Coops ceasing their systems –

TruTrac, CS/2000, Pace– Activant required upgrade

• Fragmented Market– No viable alternative to Activant– 30 plus small players

Hardgoods - why I am enthused3. Market opportunity is now


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• Indicators– TruServ looking– W/D’s interest– Stores reaction– Ace rolling out ASP

• Activant– Only dominant player– Price gouging and wide-spread

dissatisfaction– OS upgrade required 25%– Ace standardizes, ‘Only game in town’

Hardgoods - why I am enthused3. Market opportunity is now


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• They ‘get’ the ASP model – Using internet– Efficient operations– Pricing

• Market size• Profitable• Big Box competition• Leveraged go-to-market• Manufacturers needs• Distributors needs• ROI sales process suitable

Hardgoods - why I am enthused4.Opportunity – launch point for other markets


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Major Account Review

• TruServ - $2+ billion coop, 6,200 stores• Completed

• 2 demonstrations• Understand the value potential of ASP• Store visits

• Planned• Gap analysis• Hands on review• Feature review with corporate management• Feature review with member advisory council• Customization and integration requirements

• Required• Gap answers & plan• Support during review• Warehouse integration understanding• Customized demonstration• Key store, distribution and manufacturer processes


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Major Account Review

• Emery-Waterhouse• Hardgoods W/D competing with coops, 1,000 hardware

and LBM stores in Northeast• Engaged to close beta sites, store prospects, sourcing

solution for W/D• Ownership and executive team presentation Dec/10• Market attendance Jan/14-16• Considering new initiative

• Distribution America• $3 billion national buying group• 20 W/D members, 135 key hardgoods & LBM

manufacturers• Demonstration Dec/15


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Major Account Review• Group CBF(http://groupcbf.com)

• Hardgoods consultants to coops, stores, manufacturers• Vast hardgoods and system experience (Activant, others)• Detailed TruServ knowledge – data, systems, & organization• Extensive contact network• Hardgoods manufacturer relationships – drop ship and special

orders• Complementary offerings

• Autopart International• 55 store northeast aftermarket chain• Leading finalist• Significant ROI and example of Powerbase sales process• Accelerating the deal


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Hardgoods Market Revenue2005 Projections

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

License Fees - 125 316 1,433 Recurring Fees - 22 20 140 Consulting Fees - 35 250 363

Total - 182 586 1,936

Full Year 2,704

($’000)


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Hardgoods Market Revenue2005 -2007 Projections

($’000) 2005 2006 2007

License Fees 1,874 1,265 4,844 Recurring Fees 182 1,038 4,975 Consulting Fees 648 225 850

Total 2,704 2,528 10,669


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Pipeline & Forecast

Title Opportunity Status Expected Close Projected Total

Autopart International POS Demo 3/31/2005 $500,000TruServ POS System Pilot Demo 7/15/2005 $500,000TruServ POS Systm Rollout In Discussion 11/31/2005 $1,250,000Emery-Waterhouse Pilot Identified Decision Makers 5/30/2005 $100,000Emery Sourcing Roll Out Qualified 10/30/2005 $400,000Sullivan Tire - PW POS Identified Decision Makers 8/30/2005 $500,000Beta - Farr TrueValue In Discussion 1/15/2005 $5,000Beta - Florham Park(Ace) Qualified 2/27/2005 $5,000Beta 1 - Emery Qualified 1/30/2005 $5,000Beta 2 - Emery Qualified 2/27/2005 $5,000Beta 1 - Group CBF Qualified 1/30/2005 $5,000Beta 2 - Group CBF Qualified 2/27/2005 $5,000

$3,280,000


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Hardgoods IndustryMarket Development/Pipeline Timeline

ID Task Name2004 2005 2006

Sep JanMayDec Mar JulFebJan Dec MayApr MarOct NovJun FebAug Apr

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12

14

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I.D. Product Fit - High level detail

Sign Beta(s)

Implement Beta Site(s)

Product customization

Integrated Sales & Marketing Program

Penetrate leveraged selling partners

Go to Market with selling partners

Partner based revenue (stores)

Partner revenue (W/D’s)

Direct store revenue

Penetrate large chains

Close large chains

1 Product & Beta’s

7 Leveraged sales via partners

13 Medium & large chains

Jun

- Product & Services

- Revenue

- Sales & MarketingKey -


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Hardgoods – Additional Opportunities• Warehouse/Distributors

• Do it Best• Ace

• Buying Groups• Distribution America• LMC

• Larger Chains• Orgil• Aubuchon

• Complementary to installed POS systems• Sourcing• W/D links• Manufacturing links – ordering, drop ship, SmartLink

• Manufacturers• National Hardware• Benjamin Moore• Hillman Industries


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Beyond Hardgoods• Closely related

• MRO/Industrial• Plumbing• Electrical• HVAC/Mechanical• Refrigeration

• Related products• W/D specific product• e-Commerce• Tradesman On-line


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Product Considerations• Immediate

• Credit card processing• Cataloging• Nomenclature• Distribution communication &

integration• Material conversion (LBM)

• Longer term• RF• W/D functionality• e-Commerce• Rental capability (TruServ)• Tradesman On-Line


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SWOT• Strengths

• ASP flexibility & business benefits• Established organization• Largely developed system• Closeness of fit

• Weaknesses• No proof points• Detailed industry knowledge• Limited industry credibility

• Opportunities• Hardgoods market dynamics as stated earlier• Significant opportunity beyond POS within hardgoods• Launch point for other industries (including new products)

• Threats• We don’t know what we don’t know• Activant protects their position• Lack of delivery causing bad reputation

PartsWatch® and AutoEase® are registered trademarks of icarz, inc. © Copyright icarz, inc. 2004...

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