Conveyor Sales

1. 2007 Ryko Annual Sales Meeting Conveyor Sales The Next Wave!

2. Winning the Conveyor Sale • Identifying the Opportunity • Using AIDVNC • Understand Business Goals • Know the Business models • Evaluating the site • Square peg in a round Hole • Know the market • Financial modeling and budgeting • Small is good! • Closing the door!

3. Identifying the Opportunity • What is a Prospect? • Understanding the prospects goals! • Know the basics of Real Estate Investing • When is a site, a conveyor site? • Know the physics of touch and time!

4. AIDVNC • Address • Interview • Demonstrate • Validate • Negotiate • Close

5. Understand the Business Goals • To Be Profitable • Match revenue to investment • Create an Exit plan • Maintain accurate financial reports • Continue to drive Revenue to meet Appreciated values • Create Wealth Remember! Your customer is in the real estate business! The “right car wash model” will achieve maximum valuation for their site!

6. Know the Business Models • Full Service Model • Exterior Model • Express Exterior • Flex Service Model Mission: “Clean Cars Quickly and safely, in a clean safe pleasant environment”

7. Express Exterior Car Wash

8. Square Peg in a Round Hole • Every Site is site specific • Our competitors sell what they know • Our role is to provide Site specific solutions • “Highest and Best Use” • Fiduciary Responsibility

9. Know the Market • Know your market • Know trends, pricing, competition • Know the existing operators • Know local performance • Have historical information available

10. Evaluating the Site • Traffic • Capture Rates • Washing days per year • Demographics • Competition • SWOT

11. Tunnel/Conveyor Financial Model Impulse Driven “A” Sites  Traffic Dependent • Capture Rate (0.5-1.5% of 24 hour traffic) = ________ Ex: 30,000 cars per day (cpd) @ 1% = 300 cpd • Number of washing days per year (wdy) = ________ • Estimated cpy: _____cpd x _____wdy = ________ • Local Market Price for Wash (avg per car) = $ ________ • Estimated Revenue per Yr. (rev/car x cpy) = $ ________ • Estimated Variable Cost per Yr. (gross x _____) = $ ________ • Estimated Fixed Costs per Car (taxes, insurance, advertising, legal) • Estimated Mortgage Cost: 4Min 20% required = $________Cash 4Financing 80% @ ___% over ____ yrs = $_________

12. Financial Modeling • CR X 24 hr Traffic = Estimated CPD • CPD X WDY = CPY • CPY X $ = Annual Gross • Estimated peak CPD / Op Hr = CPH • CPH = Est. Bldg Length • L X W = Sq Ft • Sq Ft X $350 per Sq FT = Budget + Ground • Ground cost + $25 sq ft

13. Financial Modeling Assume That the financials of an existing Wash are the following, (the value of land, Bldg, Equip is $2,000,000 Gross Sales $1,000,000 Labor & Mng 400,000 Supplies & Util 170,000 Ins,Adv,Tx, Mnt credit card 150,000 Principle and interest 160,000 (or rent) Net before taxes 120,000 1. Return on cash 120K/400K = 30% 2. Estimated value based upon EBITDA = 7X 120K= $840,000 + assets 3. Value of the real estate based upon 8% cap rate of rent = $2,000,000 4. Value of the business + assets approximately $2,800,000 5. Normal business EBITDA can be estimated @ 10-20% of gross

14. Small is Good! • Any body can clean in 120 Feet! But not every body can clean in 50 Feet! • Why “smaller” can be better? • 1. Smaller properties = more opportunity • 2. Smaller buildings use less space • 3. Smaller washes open up more doors • 4. Smaller systems offer the advantage of being unattended • 5. Smaller washes offer better risk management • 6. Smaller foot print on high traffic offers the chance of dual tunnels! • 7. There are more opportunities for multiple sales • 8. No body is better at cleaning in compact areas than Ryko! • Our Competition isn’t there!

15. The Next Wave!

16. The Next Wave!

17. The Next Wave!

18. The Next Wave!

19. The Next Wave!

20. The Next Wave!

21. The Next Wave! • Conveyor site 25K CPD/1% Capture • 250 CPD @ 250 WDY = 62,500 CPY • The Solution and Investment: • Dual 60 Tunnels with Equipment/Retail • 2 @ 900 sq’ (bldg & Equip) @ $350 Sq’=$630,00 • 1 Eq/Retail 800 sq’ @ $300 sq’ = $240,000 • Land; 20,000 sq’ @ $25 = $500,000 • Soft costs = $130,000 • Total = $1,500,000

22. The Next Wave! Financial Opportunity • 250 CPD X 250 WDY 62,500 CPY • 62,500 X $8 per car $500,000 • Less 30% Variable $150,000 Ins,Tx,Credit Cd $ 75,000 Misc $ 50,000 NOI $225,000 Amortization debt ($1,500,000-$300,000) $1,200,000 @8%/20 yr =$120,000 yr Net after debt reduction = $105,000 Return on Cash ($105K/300K) =35%

23. The Next Wave! By Comparison a 120 CPH tunnel; 120 cph =120’ x30’= 3600 sq’ @ $350 per sq’ = 1,260,000 Land @ $25 per sq’= 500,000 Total Investment $1,760,000 • Conventional tunnel is $270,000 more exp. • Conventional op exp greater • Conventional has less flexability • Dual is unique • Dual can opperate 24/7 unattended!

24. Closing the door! • Use your sales tools -AIDVNC • Reference lists • National service organizations • Team Members • History- over 400 tunnels • Ryko isn’t a new comer • Earnest MONEY agreements • Be first- prospect • Use 25 questions • WEB site • Call the Calvary!

25. 2007 Ryko Annual Sales Meeting Thanks, Good luck and good selling! Catch the Wave!