Differentiation Skills - winning with the highest price

1. Differentiation Skills - winning with the highest price

2. Agenda Sell the Basics - Differentiate! Bridging the Price Gap - Back to Basics ‘Your Price is too High’ Selling weight reduction options

3. Utilize a consultative selling approach to generate your value proposition Your success as a sales person is directly proportional to your ability to create a perception of VALUE

4. Specification Wabash Other Suppliers Advantage Suspension Hendrickson Intraax Neway NS-190, Holland CB-400, Reyco, etc Lightweight, ease of alignment, proven warranty, K-2 slider box, ease of parts availability, aftermarket support. $100.00 value Wheel Ends P-Spindle, with same inner and outer bearings. h N-spindle, with tapered spindle and smaller outer bearing is standard P-spindle provides better bearing lubrication, lowering operating temperatures $200.00 value Brake Linings Hendrickson Extended Service (Q-plus) brakes with premium linings Std. Standard linings Wabash provides longer brake wear, lower operating costs;$45.00 Value Coupler Plates Upper and lower plates are 5/16” thick Upper and lower plates are ¼” thick Stronger steel in this high stress area means better performance, lower maintenance costs; $45.00 Value Premium Tires Wabash is Standard on Goodyear or Michelin Some competitors are std. on Bridestone others on Yokohoma or Hancook. Premium tires have longer life, better fuel mileage and higher casing value. $125.00 Value Front Apron Plate Stainless Steel Painted carbon steel (enamel) Wabash gives your fleet a better appearance that won’t rust; $50.00 Value Selling the $500+ price gap can be done utilizing this form of selling aid

5. Specification Wabash Other Suppliers Advantage Roof Bows 24” is standard – Galvanized steel – ANTI-SNAG design. 24” on center is standard Wabash provides PREMIUM Anti-Snag roof bows to offer better protection of the roof and cargo. Value: $45.00 Side Rail Connection to Crossmembers 5/16” cadmium bolts (will not corrode) 5/16” rivets Bolts provide 2 ½ times the shear strength of rivets Value: $125.00 Floor material Oak floor FULL 1 3/8” thick is standard Some use Oak, and others use Maple; none are FULL 1 3/8” - all are nominal If they do not specify the floor as Oak, it surely will be maple Value: $200.00 Floor Rating 20,000 pound dynamic floor rating Some meet this rating Critical in your automotive application; Lights Recessed front corner marker means less damage by tree limbs Front markers mounted on corner radius Less maintenance costs due to damage on Wabash design Value: $45.00 Wiring harness Internal ground harness Some manufacturers have an internal ground wiring harness Internal ground will reduce your light failures, lowering operating costs; Value: $50.00 Front wall posts 6 post front wall, including structural corner post Some manufacturers have a six post front wall 6 posts are required in a high stress environment; Value: $95.00 Selling the $500+ price gap can be done utilizing this form of selling aid

6. Specification Wabash Other Suppliers Advantage Brake Chambers Long stroke Short stroke Wabash specification extends brake life, extending service intervals, reducing maintenance costs Value: $40.00 Rear Swing Doors Duraplate Plymetal Duraplate doors will not corrode or de-laminate, reducing maintenance dramatically Value: $125.00 Side wall rivet patterns and size 1/4” rivets 2” on center 3/16” rivets, 2” and 4” on center Wabash panel connection to side posts is stronger, lower maintenance; Value: $75.00 Bullhorns on rear bumper assembly Included None Bullhorns restrict horizontal member forward and aft movements, reducing damage and repair costs Value: $45.00 AAR Kingpin assembly AAR kingpin and coupler assembly AAR Cruciform kingpin - assembly is not AAR rated Wabash coupler assembly is the strongest in industry, reducing maintenance costs Value: 50.00 Internal ground wiring harness Included Most do not include and ground at the lights Internal ground reduces shorts in lights, reducing maintenance costs and fines Value: $75.00 Selling the $500+ price gap can be done utilizing this form of selling aid

7. Specification Wabash Other Suppliers Advantage Paint finish G2 Powder Coating baked on Wet coat sprayed Powder coat paint system ensure automotive quality paint system with full coverage (including inside bumper tubes) Value: $100.00 Wheel Seals Federal Mogul Various - Federal Mogul is standard with a 5 year warranty. Value: $25.00 Plywood lining (full or between log posts) Domestic 1/4” plywood Some use Luan or lesser grade 1/4” plywood Impact resistance of Luan is less than domestic plywood Value: $35.00 Nose liner Duraplate (optional) Plywood Duraplate liner serves as the nose liner and steel scuff liner; no need to add steel scuff with Duraplate Value: $125.00 Floor screws to crossmembers 3 5/16” screws per board per crossmember 2 / 3 floor screw pattern Wabash’s floor system is the strongest in the industry - high maintenance item and critical to trailer life; Value: $60.00 Selling the $500+ price gap can be done utilizing this form of selling aid

8. Agenda Sell the Basics - Differentiate! Bridging the Price Gap - Back to Basics ‘Your Price is too High’ Selling weight reduction options

9. When you add up the differences, on the base specifications alone, you can bridge the price gap Specification Value Hendrickson Suspension $100.00 P-spindle wheel ends $200.00 Long life Linings $ 45.00 5/16” Coupler Plates $ 45.00 Premium Tires $125.00 Stainless steel Apron Plate $ 50.00 Roof Bows 16” o/c in bay $ 45.00 Bolted side rail connection $125.00 Full 1 3/8” oak floor $200.00 Recessed front marker $ 45.00 Internal ground wiring harness $ 50.00 6 Front wall posts $ 95.00 Long Stroke chambers $ 40.00 Duraplate doors $125.00 Side wall rivets $ 75.00 Bullhorns $ 45.00 AAR kingpin assembly $ 50.00 Internal ground wiring $ 75.00 Powder coat paint system $100.00 Federal Mogul wheel seals $ 25.00 Domestic Plywood $ 35.00 Duraplate nose liner $125.00 Floor screw pattern $ 60.00 Total $1,880.00 Get the customer to agree to at least 1/2 this value and you’ve bridged the gap

10. But don’t stop there - tie it all together! • Review of business objectives and strategy • Identify needs (implied and stated) that the customer wants satisfied • Present your research and communications regarding • root cause issues that are contributing to the problem • options explored to resolve the issues • remember to ‘standardize the specification’ in the process • Present your solution • solutions are cemented to the needs • differentiate while presenting the solutions • Negotiations • sell the base specification differences • sell the engineering ‘built-in ‘that satisfies the customer’s application • sell the total cost of ownership of our products • sell the fit between Wabash and the customer’s business objectives • Close • set customer satisfaction objectives for the transaction • REFUSE TO LOSE

11. Agenda Sell the Basics - Differentiate! Bridging the Price Gap - Back to Basics ‘Your Price is too High’ Selling weight reduction options

12. Objection: ‘your price is too high’ • This is a common negotiation tactic by your customer. What your customer has just done is give you an objection. • The best way of preventing the objection, is to go through the consultative selling model previously described. • Regardless if you get the objection, you have to ‘funnel’ it properly • Don’t over-react to the objection • Clarify the objection - what is too high? Don’t automatically assume it is the purchase price. He/she could be referring to freight, an option, etc. • Compared to what? What trailer is he/she comparing it to? Perhaps it was to the last price you gave him/her last year • Ask how much higher you are - they just might tell you. • What other factors is he/she considering other than price? • Did you ‘standardize the specification’, explaining the benefits to the customer

13. If the objection is relating to another competitor’s proposal • Ask who the competitor is - that will tell you about the base specification your customer is comparing you to. • Confirm with your customer the EXACT specification you are quoting on • MAKE SURE YOU ARE ‘APPLES-TO-APPLES’ • if in doubt ASK FOR A COPY OF THEIR QUOTE so you can confirm the specifications for them - then create a chart showing the differences, including the VALUES from the previous charts • get commitment from the customer that he will give you credit for those values in your trailer price • Be confident - we are rarely $1,000 - $2,000 high on quotes • unless the following is present: • you are trying to match prices with a C-tier manufacturer • we are not ‘apples-to-apples’ • we have made a pricing error • we have made a specification error • we are comparing a Duraplate to a SA van or possibly a rattle van • it is a special or custom option that manufacturing has no efficient process to manufacture economically, compared to competitors • sudden market swings

14. Specification Differences to Consider - EXAMPLE SpecificationCapital Cost Monthly Payment Effect Roll up door $ 263.00 $5.06 Powder Coat $ 100.00 $1.92 Inside Width $ 145.00 $2.79 Door track protectors $ 75.00 $1.44 3 screws/board/cross member $ 75.00 $1.44 Front corner post with aluminum skin $ 50.00 $0.96 Aluminum upper corner protector $ 48.00 $0.92 Front scuff protection $ 33.00 $0.63 Recessed grab handle $ 35.00 $0.67 Aluminum roof protector $ 20.00 $0.38 Bolt on cross member connection $ 150.00 $2.89 Freight $ 485.00 $9.33 10% translucent roof $ 20.00 $0.38 Extra roof bows in bay area $ 20.00 $0.38 4 hole dock bumper $ 10.00 $0.19 Oak FULL 1 3/8” vs. nominal $ 45.00 $0.87 Long life (MA210) vs Standard life $ 45.00 $0.87 Tires - Goodyear vs Bridgestone $ 29.00 $0.56 Bumper - vertical uprights at corners $ 25.00 $0.48 Threshold plate has recessed fasteners $ 10.00 $0.19 Heavy duty dock bumpers vs. outboard mount $ 15.00 $0.29 Subtotal $1,599.00$30.76 Duraplate Pricing: $19,500.00 SSL Pricing: $18,000.00 Difference: ($1,500.00) Add: Duraplate resale advantage $ 1,000.00 Add: Spec differences $ 1,599.00 Net Duraplate Benefit: $ 1,099.00 PLUS Duraplate longer life, lower maintenance, etc. Note: Financing structure used is 5 year, full payout, payments in advance, nothing down, 6% interest factor = $19.24 per $1,000, or $.01924 factor

15. If you invested the time up-front on researching the customers needs, problems and our solutions, and have communicated and presented them properly, the close should go smoothly. • Create a presentation to your customer, presenting your solution: • Use a Powerpoint linking our solution to their business objectives • Differentiation charts showing our base specification differences • confirm with your customer HOW MUCH value he/she will give you • point out the differences between your base specifications and your competitor’s • use this to bridge the price gap • Present the Total Cost of Ownership model on the Duraplate, or simply some of the components of the presentation • Present the application specifications to suit his business (e.g. automotive, paper,etc.) by pointing out the engineering, design, components Wabash uses to ensure the trailer will perform the intended application • Direct all our value at the 5 value areas of total cost of ownership

16. Agenda Sell the Basics - Differentiate! Bridging the Price Gap - Back to Basics ‘Your Price is too High’ Selling weight reduction options

17. When weight becomes an issue • Most customers do not realize the choices that are available to take weight out of a trailer • You are most consultative when you present weight reduction options that will not have a negative impact on: • their freight application • their operations • their total cost of ownership • Take a consultative approach to providing weight reduction options • Use a table-approach to identify the options available, and rank them by price per pound • Present the table to the customer and have a consultative discussion relating to their application, business objectives, and total cost of ownership

18. This is an example of a table to take the customer through a weight reduction selection process Dry Van Base Weights* Model 53’ Length 48’ Length FreightPro 12,700 lbs. 11,950 lbs. DuraPlate 13,675 lbs. 12,875 lbs. DuraPlate HD 13,779 lbs. N/A DuraPlate LS 13,775 lbs. 13,025 lbs. Sheet & Post 13,500 lbs 12,759 lbs. This table was simply created in the Power Point Slide

19. This is an example of a table to take the customer through a weight reduction selection process This is the same information, however, it is an example of cutting and pasting data into the Power Point template.

20. This is an example of a table to take the customer through a weight reduction selection process

21. This is an example of a table to take the customer through a weight reduction selection process

22. This is an example of a table to take the customer through a weight reduction selection process

23. Weight Savings Options Option Weights Savings Cost $ per lbs Saved • 1 1/4" Aluminum floor IPO 1 3/8" Oak 752 lbs. $ 990.00 $ 1.32 • Aluminum outer floor boards IPO oak 188 lbs. $ 216.00 $ 1.15 • 1 1/8" Havco Composite floor IPO 1 3/8" oak 160 lbs. $ 596.00 $ 3.73 • Aluminum Crossmembers on 12" centers 297 lbs. $ 584.00 $ 1.97 • Aluminum roof bows IPO steel anti-snag 30 lbs. $ 270.00 $ 9.00 • .075" ETR Roof IPO .040" aluminum 39 lbs. $ 150.00 $ 3.85 • 1 1/4" aluminum side posts on 12 centers 189 lbs. $ 487.00 $ 2.58 • 12" corr aluminum side scuff IPO corr steel 99 lbs. $ 239.00 $ 2.41 • .060"x 12" Bulitex scuff IPO 12" corr steel 96 lbs. $ 95.00 $ 0.99 • Foam core swing doors IPO plymetal 122 lbs. $ 194.00 $ 1.59 (min 50 trailer order) Costs are not actual and listed only as a means to show a sample chart

24. Weight Savings Options Option Weights Savings Cost $ per lbs Saved • Duralite steel hub IPO steel 63 lbs. $ 181.00 $2.87 • Aluminum Hubs IPO standard steel 44 lbs. $ 216.00 $4.91 • X-30 Drums IPO standard drums 72 lbs. $ 190.00 $2.64 • Centrifuse Drums IPO standard 88 lbs. $ 215.00 $2.44 • Alum inner and outer rims IPO steel 240 lbs. $1,546.00 $6.44 • Alum outer and steel inner rims 120 lbs. $ 840.00 $7.00 • Accuride lightweight steel rims 88 lbs. $ 126.00 $1.43 • Wide Base Radials IPO Std Duals 432 lbs. $1,400.00 $3.24 Costs are not actual and listed only as a means to show a sample chart

25. Thank you for your attention!