Parts, the Good,Bad & the Ugly

1. Parts,theGood,Bad& theUgly Ronelle Ingram ITEX 2006 www.ronelleingram.com ronellei@msn.com 714.744.9032

2. Parts CanMAKEorBREAKthe PROFITABITYof yourcompany ronellei@msn.com www.ronelleingram.com

3. Throw Away Culture Profitability Culture Expectations Make it a Game Who Wins?? Manufacturer / Dealer ronellei@msn.com www.ronelleingram.com

4. What’s in it for ME • Who is ME? • Are parts priced? • No Charge / No Sign • Expectations ronellei@msn.com www.ronelleingram.com

5. Why Do We CARE?? • 7 to 1 ratio • Free money • Service Anti-Expenses • Revenge ronellei@msn.com www.ronelleingram.com

6. Joint Venture • Management • Techs • Shop • Accounts Payables • Management ronellei@msn.com www.ronelleingram.com

7. Inventory Control • Who is in control? • If you don’t care will they? • Instant expense • Monthly ride off • End of the year tax shelter • 5 year, last date of manufacturer ronellei@msn.com www.ronelleingram.com

8. Car Stock • Who is responsible? • What tech carries • Too little? Too much? • PM Kits / Borrowing parts • Missing parts • Lost / Broken / Stolen ronellei@msn.com www.ronelleingram.com

9. Obsolete • Constant Discipline • Frequent car inventories • Don’t trust your computer program • Don’t trust a human • End of life cycle • End of National account / lease/ big acct • Look at non-usage reports • Look at DUSTY parts ronellei@msn.com www.ronelleingram.com

10. Over Night Air • Is your inventories BEST FRIEND • When you should stock parts • Start up parts stock • Use PM Kits • The Show room (sold) • Lease returns • OTHER MANUFACTURE’S WARRANTY FIERY, Memory, Hard Drive, Surge Protector ronellei@msn.com www.ronelleingram.com

11. Manufactures Out source In house repair Timeliness Follow-up calls Reduced refunds Independents Ambassador (IL) (best of Mid West) Nation Wide Repair Service (East) High Tech (FL) Board Repair ronellei@msn.com www.ronelleingram.com

12. Lease Returns • Machines waiting for Lease Return • Buy a off lease machine • cheaper than the part • Print systems, laser units, PC Boards • Call a local dealer • Call your dealer rep • Call another dealer (for older parts) ronellei@msn.com www.ronelleingram.com

13. Use Old Parts • All the other parts are 5 years old • I am reuniting old friends • Maintenance agreement terms gives you: the right to use “any appropriate parts” • The right of ownership of old parts • Scrap old frames, not the boards, print systems, laser systems, good IU’s • Cost of labor vs Cost of Parts ronellei@msn.com www.ronelleingram.com

14. Bulletins/Mods/Updates • Someone must be in charge • Dispersement procedure • Follow-up • Archive / Remember • TrackWarrantees Aggressively ronellei@msn.com www.ronelleingram.com

15. Cost of the FREEPart • Modification Return Bulletin, Read Requirements, Count, Record, Cross Reference Serial #’s, Order replacement, Pay for the parts, Tell Techs, Follow-up, (do the mods), Recover old Parts, Store, Recount, Fill out Forms, Return parts (two shipments), Follow-up, Email or Phone, Wait for the Credit, Follow-up. You do the math ronellei@msn.com www.ronelleingram.com

16. The Labor Issue • Warranty Labor • Travel vs Cost of Part • Start in shop vs in Field • Customer Pays • Dealer Subsidizes / Profits ronellei@msn.com www.ronelleingram.com

17. Do the Numbers • Toshiba Model • Kyocera Experience • Manufacture Branches • How about you?? ronellei@msn.com www.ronelleingram.com

18. Most Expensive Part The part you never use ronellei@msn.com www.ronelleingram.com

19. It is up to YOU Perfection Procrastination Paralysis ronellei@msn.com www.ronelleingram.com