Kenvo Manufacturing Product Guarantee Secure Ride Nitrogen Tire Program
To work in partnership with your dealership to provide and manage new profitmaking opportunities in every department. To introduce our highly-successful Secure Ride Nitrogen Product Guarantee To present a cost effective customer retention program that is profitable, pays for your N2 equipment while showing excellent consumer acceptance and value Kenvo Product Guarantee 2
Pro-Tech Seal Manufacturing Inc. is a premier name in automotive protection, supplying our dealer network with superior products and programs for over 20 years. Secure Ride is the Product Guarantee Program for Kenvo Equipment. We provide our customers with the finest dealer service and training in the country. Easy Online Administration: Online real-time warranty registration Online dealer inventory control Online claims processing Online product orders Online month-end dealer remittances Kenvo Product Guarantee 3
Nitrogen Tire Inflation Program Road Hazard Tire Program for F&I Road Hazard Tire Program for Service Drive Kenvo Product Guarantee 4
Inflating tires with nitrogen results in increased tire life, improved fuel economy, and greater occupant safety. Based on NHTSA* studies, tires inflated with 93-96% nitrogen retain optimal pressure 3 to 4 times longer than tires inflated with normal air. *National Highway Traffic Safety Administration Kenvo Product Guarantee 5
Filling tires with nitrogen is important, but even more important is removing the oxygen, water vapour, and other gasses. Oxygen: Corrodes aluminum & steel wheels Prematurely ages and weakens the tire walls Causes corrosive build-up that can clog valve stems Water vapour: Acts as a catalytic accelerant for rust and corrosion Causes greater fluctuations in operating pressures Can result in unsafe running temperatures Kenvo Product Guarantee 6
How You Can Save Your Customer Up To (and save North America billions of liters of fuel) Or More Kenvo Product Guarantee 7
Driving on underinflated tires is like driving your car through sand! Tires lose 1-2 psi every month. That s 6 psi low by the time you have your oil changed. The engine has to work harder, burning more fuel and adding wear to engine components. One Solution: Check your tire pressure every month. A Better Solution: Use nitrogen Kenvo Product Guarantee 8
Improper inflation is also dangerous. Almost all tire blowouts are caused by underinflated tires. The National Highway Traffic Safety Administration estimates that 660 fatalities and 33,000 injuries occur each year due to under inflated tires. 2 Inflating with nitrogen will improve handling, reduce catastrophic blowouts and save lives. In addition, you can expect improved TPMS performance. In new vehicles, owners are often plagued with flashing lights indicating that their tire pressure is low. Even with no additional maintenance, using nitrogen in these units can reduce the frequency these occurrences. 2 http://www.rma.org/newsroom/release.cfm?id=215 Kenvo Product Guarantee 9
Step 1 Install Nitrogen and Nitrogen Kits on all vehicles Nitrogen Install Kits creates awareness and increases program sale penetration at the business office on new and used vehicles. Nitrogen Install Kits remind customers of their warranty. 90% of customers return to your service department, providing both replacement tire sales and repairs plus alignment, balancing, and other service or product sales. Help your customer save up to $300 per year Basic N 2 Install Kit Valve Stem Caps 6 Nitrogen Program Decals 10 Get on the Green environmental movement! Kenvo Product Guarantee 10
Step 2 Build In 3 year / $1000 Aggregate Limit Road Hazard Program on every New and Used Vehicle sold Road Hazard Features and Benefits: Tire damage caused by Road Hazards Covers original or replacement tires Mounting, balancing, and installation Flat tire repairs (No pre-auth required if max. $40. 00 including tax) No deductible Covers all taxes Not pro-rated, covers 100% Unlimited kilometers (4/32) Product guarantee valid when tires inflated with nitrogen Kenvo Product Guarantee 11
Step 3 1. Business Office up sell to 4 or 5 year Coverage. 2. Service Drive sells Nitrogen inflation for $69.00. (Eg.) 3. Service Drive sells to 3, 4 or 5 year coverage. 4. Dealership receives a Manufacturer s rebate of $5.00 per contract sold to pay for equipment for the first 1500 contracts sold. When equipment is paid for a $5.00 credit will be applied to future N2 Kit purchases. Kenvo Product Guarantee 12
Dealer Profit Analysis USD Price Eg. $299 36 month Tire Guarantee Cost- $75 N2 Basic Kit Cost- $ 6 0.2 hour labour Cost- $20 Total Cost $101 Vehicle sales (New and Used) - 50 per month: Profit per vehicle ($299-$75-$6-$20 = $198) 75% penetration using Lot Pack (38 x $198) $7524 25% up sell to 4 or 5 year at $300 profit (12 x $300) $3600 Business Office Profit $11,124 1000 RO x 5% = 50 x ($69-$6-$20=$43) (N2 Only) $2150 1000 RO x 3% = 30 x $198 (N2 plus 3 yr. Guarantee) $5940 Service Drive Profit $8090 Total Dealership Monthly Profit $19,214 Annual Profit $230,568 Manufacturer s Rebate (500 contracts/yr x $5) $ 2,500 Annual Rebate (3 year term) Return on Investment 2 Weeks Kenvo Product Guarantee 13 780-940-3506 KEN FOWLER
Dealer Cost :Kenvo Product Guarantee Program Options Effective June15, 2015 All prices in USD Economy Program Road Hazard Passenger Vehicle Economy Program Surcharge Groups Add appropriate surcharges to Passenger Vehicle RUN FLAT Suggested Retail Warranty Car, Minivan, or SUV CAT D CAT E CATEGORY F Cost Max/ Tire** $300 Max LESS THAN 10 CONTRACTS PERMONTH All Vehicles All Run Flat Tires Term Dealer Cost* Dealer Cost Dealer Cost MSRP MSRP Lot-Pack 36 month $75 $409 $100 $15 $299 $599 48 month $96 $475 $150 $20 $399 $699 60 month $114 $576 $200 $25 $499 $799 Mandatory Surcharge: Vehicles with claims on tires where a surcharge is applicable and the surcharge has not been paid will either be limited to Passenger Vehicle Coverage or coverage may be declined. Vehicles and Tires or Wheels Not Eligible: Exotic Vehicles including but not limited to: Rolls Royce, Bentley, Ferrari, Lamborghini, Aston Martin, Porsche, BMW Z-8, Acura NSX, Prowler, Nissan GTR and Viper are not eligible. Commercial Use (Multi-Driver), Delivery, Emergency Use, ambulance, fire, police, courier, rental, taxi, limousine, racing etc., are not eligible. Tires greater than 22, valve stems and Tire Pressure Monitoring Systems (TPMS) or failures caused by valve stems of TPMS are not covered. Coverage applies only to OEM Vehicle Manufacturer supplied Tires. Aftermarket Tire coverage is limited to the same OEM Manufacturer supplied cost. Tires at the time of sale must have at least 6/32 of tread/ no weather checking to be eligible for coverage. Kenvo Product Guarantee 14
1. Train staff on nitrogen conversion. 2. Install nitrogen in all vehicles using service department or detail centre (recommend 0.2 hrs charge, hoist not required). 3. Install N 2 kit, marketing material, and valve caps to all new and used vehicles. 4. F&I adds retail price to sales worksheet and bill of sale. 5. Train the Dealer Admin, Service, and F&I personnel on the Online program functions. 6. Train the Accounting Department to ensure online remittance and claims procedures. 7. Supply and install signage, posters, and all marketing material, ensuring consumer awareness. 8. Identify the program start date. 9. Introduce the nitrogen program to the sales staff. Kenvo Product Guarantee 15
Time is Money: In a test conducted on a P245/50 R20 equipped vehicle, the N2G took 10:00 to inflate the 5 tires to 35 psi. The same vehicle was completed in 4:15 with the Kenvo 930. Larger ½ and ¾ ton truck tire application time to 80 psi is 2-3 times longer using the N2G system. Purity in both systems is accomplished only with a properly filtered air supply. Kenvo Product Guarantee 16
Equipment: Kenvo N 2-930 capable of filling cars in 6-10 minutes or pickup trucks in up to 15-20 minutes. Higher volume or custom wall mount units are available upon request. Purchase: (One year Equipment Warranty) Kenvo N 2-930.... $7,500. 00 Freight and Installation...No Charge 1 2 x 8 foot Tire Safe Banner for Service Drive.....No Charge 2 11 x 17 inch Posters for Business Office.No Charge 2 24 x 36 inch Posters for Business Office/Showroom Floor No Charge 2 Tire Standees for Showroom Floor or Service Drive...No Charge 196-Basic Install kits.included 200 Rack Cards Total Equipment Cost...$7,500. 00 USD Kenvo Product Guarantee 17
Our Commitment to Your Dealership F&I: Produce and maintain menus and Powerpoint selling tools. Assist in up-sell strategies for the N 2 program. Assist in Membership Program customer strategies. Review penetration ratios and develop correction plans. Review with the accounting department ensure remittance payment and claim workorders are current. Parts & Service: Ensure application of N 2 to all inventory. Assist service in submission of claims. Equipment testing to ensure proper nitrogen purity. Implement Service Drive Program. New tire sales strategy. Kenvo Product Guarantee 18
Tire Program Item 36-60 months, $1000 aggregate limit Coverage and Term Nitrogen and Install Kit must be installed for coverage. Product Requirement Any Authorized Secure Ride Repair Facility. Repairs Tires greater than 22, valve stems and Tire Pressure Monitoring Systems (TPMS) or failures caused by valve stems or TPMS are not covered. Time of sale 6/32 inch tread; no weather cracking. No claim will be paid where the tire tread indicator has become visible or there is 4/32 inch or less tread. Coverage applies only to OEM Vehicle Manufacturer supplied tires and rims. Aftermarket tire and rim coverage is limited to the same OEM Manufacturer supplied cost. Maximum 4 tires replaced. Repair mounting, balancing, installation, taxes. Tire repairs pre-authorized to maximum $40 including labor & taxes; Authorization required if any estimate is greater than $40, and pictures must be attached to the Claims File. Retail service tirerate, 30% mark-up on replacement tire. None. Vehicles with claims on tires where a surcharge is applicable and the surcharge has not been paid will either be limited to Basic Passenger Tire Coverage or coverage may be declined. Coverage Exceptions Eligibility for Sale of Warranty Eligibility for Claim Customizing Frequency Other Authorization Dealer Charges Deductible Surcharge Items Terms, Conditions and Limitations * A road hazard condition is defined as a circumstance on a public highway which should not exist there, such as pot holes, cracks, nails, glass, etc. * Damage caused by normal wear, off-road use, negligence, high speed spin out, vandalism, racing, fire, auto accident, curb impact, overloading, improper inflation alignment or balancing, misapplication, chain damage, manufacturer's defects, appearance alteration, impact with any object not defined as a road hazard, theft, chemical contaminants, dry rot, neglect or abuse is not covered by this guarantee. * Any accident caused by tire blow out or other tire condition is not the responsibility of this guarantee and is excluded. Please read your owner's manual and information on the sidewall of your tires for essential safety and maintenance information. * Pro-Tech Secure does not assume any liability other than to repair or replace the damaged tire. This guarantee does not cover factory seconds, blemishes or flaws. * Commercial Use (Multi-Driver), Delivery, Emergency Use, ambulance, fire, police, courier, rental, taxi, limousine, racing etc., are not eligible. * Exotic Vehicles including but not limited to: Rolls Royce, Bentley, Ferrari, Lamborghini, Aston Martin, Porsche, BMW Z-8, Acura NSX, Prowler, Nissan GTR and Viper are not eligible. Claims Approval Procedure Necessary for Payment 1. Complete Online Claims Form with all information fields filled in as requested. 2. Attach digital photograph of affected tire area and wheel for all estimates above $40. 3. When the claim has been approved with a PO#, in order to be paid you must attach an invoice to Pro-Tech Seal on the online claims form. Kenvo Product Guarantee 19
and Your Dealership Kenvo Product Guarantee 20
Kenvo Product Guarantee This Kit Contains $100,000. 00 What if You Could add it to Your Bottom Line? Kenvo Technology has what you need; the Secure Ride program by Pro-Tech Seal Contact us now to find out how: toll-free 888.467.4142 e-mail ken@kenvo.com Kenvo Product Guarantee 21