Marketing Guide Eclipse Powered System

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1 The following document is a marketing guide, explaining the positioning and 4 P s of marketing Product, Price, Place and Promotion for Spacesaver s new Eclipse Powered System. Eclipse is the easiest to use, most cost-effective, and most flexible* powered highdensity mobile storage system on the market today. Reliability and safety come standard. * Flexible: (versatile, customizable, scalable, modular, expandable, or configurable) Your mobile system can be customized to do exactly what you need it to do. What you buy today can be expanded upon in the future; meeting your needs today and tomorrow. When developing the Eclipse Powered System, it was important to understand the needs of the end-user as well as the sales and installation teams. Independent research was conducted in order to gain the most credible and valuable information. The results of this research are summarized here. External Drivers: Our extensive research found that customers value the following features and benefits when looking at mobile storage systems, regardless of market: Primary Customer Drivers Reliability/Quality Safety Ease of Use Secondary Customer Drivers Productivity Security Asset Protection While reliability, ease of use and safety are true across all core markets, the following are market-specific drivers related to Eclipse : Business: Productivity, efficiency, and ergonomics Government: Productivity, flexibility and security Healthcare: Productivity, efficiency, ergonomics and security Justice: Productivity, flexibility and security Library/Education: Efficiency, simplicity and flexibility Museum: Controlled movement, no vibration and flexibility 2006 Spacesaver Corporation SC-0602 (rev. 11/06) Page 1

2 Internal Drivers: Throughout the development of the Eclipse Powered System, the following were important features that helped to drive the product design: Menu-based configurability/expandability State-of-the-art technology o Fewer moving parts o Mistake-proof connections o No-touch circuit boards, reduced warranty activity o Specifiable/intellectual property Ease of installation & service Code compliance Price competitiveness Product Powered mobile systems provide the greatest space density. They can be completely programmable and automatically open and close, adjust aisle widths, and protect users with several safety features. Moving with the push of a button, they can be up to 81 ft (24.7 m) long standard, with longer carriages available. They provide the greatest flexibility and productivity, as well as the highest level of safety and item security. These systems also allow companies to meet accessibility requirements mandated by the Americans with Disabilities Act (ADA). Powered systems offer a range of features and benefits: Energy-saving aisle lighting o Illuminates only the occupied aisle, o Lights turn off automatically after a predetermined period of inactivity; Safety sensors o Passive/Automatically activated; Keypad control o Code-access, o Enhanced security; and Building management interface o Ability to be tied into a building s fire alarm and security system Spacesaver Corporation SC-0602 (rev. 11/06) Page 2

3 There are features associated with the Eclipse Powered System that directly address the internal and external drivers previously discussed. These features include: Light-immune Photo Sweep Addresses: reliability safety ease of installation & service state-of-theart technology Programmable, non-contact distance sensors Addresses: reliability ease of installation & service state-of-the-art technology (fewer moving parts) Plug-n-Play installation/connections Addresses: reliability ease of installation & service state-of-the-art technology (fewer parts) No-touch electronics Addresses: reliability quality Redesigned sorter unit assembly Addresses: ease of installation & service state-of-the art technology (fewer parts) Automatic brake option Addresses: safety state-of-the-art technology (patentable, specifiable) code compliance security price-competitive (vs. costly structural retrofits) Redesigned, more price-competitive Zero Force Sensor (ZFS ) safety system (will eliminate need for AisleGuard ) Addresses: safety productivity price-competitiveness Automatic Battery Back-up & redesigned power override unit Addresses: reliability ease of use (in the event of power outages) productivity Auto Move Interface Addresses: ease of use productivity code compliance asset protection Building Interface Module Addresses: code compliance security asset protection 2006 Spacesaver Corporation SC-0602 (rev. 11/06) Page 3

4 Price The core unit is priced at 12-14% above a mechanical assist system (with shelving), making it a cost-effective solution for many customers. In addition to the base price, the following are also important in the pricing of the system: Future upgradeability/modularity what you buy today can be expanded in the future. With all features available on one powered system, there are no restrictions as to which system uses which option. In addition, by upgrading the technology used in our powered system, we can now provide the flexibility to upgrade a current Eclipse Powered System with a feature introduced at a later time. More gradual & acceptable price jumps to obtain programmable options, etc. o We can offer improved functionality and reliability for about the same price as our current Power Assist system. o We can supply programmable options (such as System Fire Park) for about 13% less than the past. This makes code compliance more affordable to customers. o Customers can now purchase the best safety system in the industry (ZFS) at a price about 11% less than in the past. This makes automatic, passive safety more affordable. Example: Mobile System: Single Entry Dual Flange Guidance B-Rail Low Profile Floor Standard Ramp 2 12 Platforms 6 24 Carriages HPLF Panels List Price $55,000 $50,000 $45,000 $40,000 $35,000 $30,000 $25,000 Eclipse Pricing Comparisons - 21 ft. Long, Mobile Only Mechanical Assist Base Powered Systems Powered With Programmable Options 34% Over MA 19% Over MA 30% Over 22% Over MA MA 13% Price Reduction Current List Eclipse List Powered With ZFS 11% Price Reduction $20,000 $15,000 $10,000 $5,000 $0 Mechanical Assist MA w/mech. Sweep Power Assist w/mech. Sweep Eclipse w/photo Sweep Power Pro w/photo Sweep PE w/fire Park Eclipse w/fire Park PE w/zfs Eclipse w/zfs Model & Configuration 2006 Spacesaver Corporation SC-0602 (rev. 11/06) Page 4

5 Place The Eclipse Powered System will be taken to market through you, Spacesaver s Area Contractor network. How does this product fit into your overall product mix? Lead with this powerful solution and differentiate yourself from the competition. Competition Comparing the Eclipse Powered System to competitive systems is like comparing day and night. With that in mind, when you compare the features available on this powered system to those of the competitors, there are clear differences. Many of our features are unique, patented, and/or unlikely to be available by a majority of the competition. This section briefly explains some of the features available for the Eclipse Powered System that can give you a specifiable advantage over the competition. Please look over the Eclipse Powered System accessory price list (found in this launch packet) for a full listing of features and options available. Guidance When we talk about guidance, Dual Flange is available everywhere. When you get into the Center Flange, and especially Roller Guide, there are few, if any that offer these features. Pricing on these different guidance options is now so close that it is easier than ever to give your customers a choice. Motors The addition of the 1/15 hp motor on smaller systems allows you to connect more carriages to one dedicated circuit than ever before. We can now connect up to 15 carriages without needing an additional 20 amp. circuit. Drive Previously unavailable on powered systems, our exclusive LS line shaft drive provides greater alignment and reliability than ever before. With patent-pending features, the competition doesn t come close to its ease of movement, installation and service. Our patented Multiple Synchro drive system drives both sides of the carriage, maintaining carriage alignment and allows for uneven carriage loads. In addition, it allows the ability to go to greater carriage lengths than our competition (which is typically limited to 45 long carriages). Safety Options We ve redesigned our patented ZFS (Zero Force Sensor )! With new circuit boards, it s smaller, faster and more powerful than ever. The direction-sensing quads are now located in the ZFS sticks, significantly reducing wiring and installation time. As always, this is a feature unlike any other in the industry. No one comes close to the safety, flexibility, efficiency, productivity and reliability of this feature Spacesaver Corporation SC-0602 (rev. 11/06) Page 5

6 Wiring and Power Options Spacesaver now offers the ability to plug the Eclipse Powered System into a wall outlet. With this UL-listed (C-UL US) feature, a 10-foot cord (from the disconnect box) is used to plug the system into a dedicated 20-amp, three-prong outlet. Installation time is reduced. Check your local building codes for compliance. Few competitors can provide the flexibility and ease of installation that the Plug-in-the Wall option creates. Programmable Options While a number of competitors are able to now perform programmable options with their powered systems, none are able to duplicate all the options that the Spacesaver Auto Move Interface option currently offers. You can provide all of these functions at one price! Others charge more for less. In addition to the Auto Move Interface, the Eclipse Powered System has an optional Building Interface Module that allows your customer to connect their mobile system to Fire alarm system Building management system Dedicated switch. This option enables the system to initiate an auto move when it receives an input, greatly improving the safety, security and reliability of a mobile system and the protection of the materials stored when interfaced with the building system(s). Power-Outage Options The Eclipse Powered System now offers an Automatic Battery Backup system when power goes out. The backup system automatically switches the powered mobile system to battery power if AC power is lost. It provides for full system function, including the safeties. The mobile system can operate for approximately 60 accesses on one charge. When AC power resumes, the Automatic Battery Backup system recharges itself. This feature includes the Plug-in-the-Wall feature, and provides another level of reliability and ease of use for your customer. Security Options An exclusive patent-pending Automatic Brake is available. This feature is added to the carriage motor and engages when the carriage is stopped, preventing a person from physically pushing a carriage to gain aisle access. The brake releases when the carriage is moving. In addition, the brake may be used as an anti-drift mechanism to compensate for floor deflection Spacesaver Corporation SC-0602 (rev. 11/06) Page 6

7 Promotion The primary targets for Eclipse are our 5 core markets: Business, Government/Justice, Healthcare, Library/Education and Museums. Spacesaver Corporation (SSC) will use the following tactics to promote the Eclipse Powered System at the national level: At the Challenge of Champions Meeting in February 2006, an Eclipse system will be displayed. Training will be completed at the Champion s meeting, in the field by the Regional Business Managers, and through Webinars, hosted by Chris Batterman. All documents in this launch booklet can be found on SpaceNET in the new product section. New and updated TechData sheets are available through SpaceNET in PDF format and in print via the Spacesaver store. A new Eclipse brochure and updated Product Overview brochure is available through SpaceNet in PDF format and in print via the Spacesaver Store. Our web site, will be updated with this product. Case studies will be developed from installations of the Eclipse Powered System. A video/cd is being created to further educate customers on powered systems. This will be available on the Spacesaver Store. Our advertising and public relations focus for 2006 will be powered systems (see example of a new ad in this launch packet). An Eclipse Powered System release will be ed to targeted media to hit March issues (see example in this launch packet). Webinars for trade editors will be conducted in March. Our national trade show products and booth displays will promote the new powered system and available options. An owner s manual will ship out with each Eclipse Powered System. As always, design assistance for regional marketing programs for your territory is available via the Internet at (Spacesaver s Marketing Support Center). There is also a link on SpaceNET s homepage to this site Spacesaver Corporation SC-0602 (rev. 11/06) Page 7

8 Selling Suggestions The following are selling suggestions to help you sell the Eclipse Powered System: Ask the right questions! The discovery process is all about asking questions in order to better understand the customer s needs. Uncover their pain, then help to ease their pain. When you are asking questions, LISTEN to the answers. Questions to ask should include: 1) What are you storing? 2) How frequently do you access your materials? 3) Who accesses the system (the public or limited staff members)? 4) How many people access the media? 5) What do they typically carry as they access the media? 6) What, on average, is the cost of an employee? 7) What is the average age of your worker(s)? 8) What are your growth plans? How will your growth impact your personnel count in this area? 9) What kind of worker s compensation issues do you foresee? 10) What special requirements does your storage facility/room have? Reinforce the information! By compiling the information (through Configura) into the Productivity Spreadsheet (found in this launch packet), you can visually show your customer the difference between a Mechanical Assist system and a Powered System. They can see exactly how much weight their employees are being asked to move in a year. They can see just how much money can be saved each year by purchasing a powered system (if the data supports this). They can see just how much more efficient a powered system is compared to a mechanical assist system. Have a conversation with your client showing them the information this spreadsheet can be very helpful in getting other players in the company to promote the purchase of the powered system Spacesaver Corporation SC-0602 (rev. 11/06) Page 8

9 Handle the objections head on! We have been and will continue to get the same objections to buying a powered solution. OBJECTION #1: Powered mobile solutions are too expensive! Response: Ask your customer the following questions: Compared to what? What s important to you? How about a progressive purchase or leasing option? What type of a return on your investment do you look for? OBJECTION #2: I ve heard the powered system can actually close on someone when they are in the aisle! Response: With a powered system, you actually have more control. The human factor is eliminated. In fact, Spacesaver has a wide variety of safety options available to fit your specific need. The Eclipse Powered System has been designed with fail-safe technology. It is also C-UL-US system listed. OBJECTION #3: I can t program my VCR, much less your powered system! Response: No problem, our installers actually program the system for you. OBJECTION #4: It s just easier to crank! Response: Actually, the powered system has a simple and reliable control head. The controls are as simple as getting up and down in an elevator. In all of the above situations, it is important to calmly explain the benefits and features that go along with a powered system. The Eclipse Powered System provides you with the ability to easily answer these objections and provide the perfect solution for your client Spacesaver Corporation SC-0602 (rev. 11/06) Page 9