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Pricing Excellence FAQ Return to Table of Contents

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This document contains Pricing Excellence (aka Rebate Restructure) FAQs for Distributors and Home Office users.

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Jump to a specific topic using the table of contents below. Click the topic to jump to that section

Table of Contents Introduction ..............................................................................................................................................................1

About the new Rebate program .................................................................................................................................2

The Rebate Grid (visual) .............................................................................................................................................3

Working with the Rebate Grid ....................................................................................................................................4

Focus Numbers ..........................................................................................................................................................8

E12 ............................................................................................................................................................................9

Volume Tier ............................................................................................................................................................. 10

AIM ......................................................................................................................................................................... 10

CPR/OE .................................................................................................................................................................... 11

New Dealers ............................................................................................................................................................ 11

Linked Dealer Community (LDC) ............................................................................................................................... 13

Specialty/Non-Automotive products ........................................................................................................................ 15

Optima, PowerFast, PowerVolt ................................................................................................................................ 16

Cutover ................................................................................................................................................................... 17

Push to Jericho......................................................................................................................................................... 17

Zone Update Page: Updating Jericho Base Price Zone .................................................................................................. 17

Pricing Strategies Page: Pushing a Pricing Strategy to Jericho ...................................................................................... 17

Other FAQ Related to Pricing Excellence ................................................................................................................... 18

Introduction

In response to the overwhelming request for a better rebate process, a group of Distributors and Home Office folks

formed the Rebate Action Group in early 2012. The team met many times over the last two years, and a number of

possible options for a rebate restructure were extensively explored by the group. Their goals were clear:

Simplify enrollment and administration

Maintain the same amount of Home Office rebate dollar support

Allow more dealers to participate

Create flexibility to accommodate various market conditions while strengthening Interstate’s pricing

position


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The result is the new Rebate Restructure, and the key component is the Rebate Grid. The Grid expands rebate

support to both new and existing ILD dealers and is automatic, based on meeting both volume and pricing targets.

About the new Rebate program

1. Why do we “do” rebates at Interstate Batteries?

What we call rebates are commonly referred to as a Promotional Spend across most industries. This spending is

traditionally how a company would allocate dollars to encourage sales growth. The intent of rebates at

Interstate Batteries is to accomplish sales growth while preserving price equity in order to maximize profits for

Interstate Batteries and their Distributorships.

2. What are the advantages of the new Rebate Program?

The Rebate Action Group worked hard for many months, weighing many options for revising the current Rebate

programs. They have identified these items as benefits of the program:

New and existing dealers included

Price equity removes barrier to growth and supports relationship building

Enrollment no longer necessary

Consistent set of rules nationwide

More volume tiers create flexibility, and an opportunity for more revenue/profit

3. What is the Rebate Grid?

The Rebate Grid is a new approach for how Interstate Batteries will support incremental Independent Local

Dealer (ILD) growth. It is the culmination of the collaborative effort of the Rebate Action Group, a team made

up of Distributors and Home Office team members that came together to identify solutions to limitations of the

existing (Legacy) rebate system.

4. When will the Rebate Grid become available for use?

It is currently available. As a reminder, the Legacy rebates program ends October 27, 2014.

5. Will there be a transition time between the old and new Rebate Programs?

Yes, customers enrolled in Legacy rebates will continue to receive the current support until you cut them over to

the Grid. There will be a three month window to give you time to adjust pricing to account for the shift in rebate

support. At the end of that period, all rebate support will be based on Rebate Grid, and Legacy rebate support

will be discontinued. As a reminder, the Legacy program ends October 27, 2014.

6. What happens to customers on Legacy rebates?

Legacy rebates will continue through the three month overlap period. During this time, Distributors are

encouraged to actively transition those customers currently on Legacy rebates over to the Rebate Grid. Since

Interstate support is different on a SKU-by-SKU basis, Distributors will want to review customer profitability and adjust pricing as necessary. At the end of the overlapping time period, all customers will receive support

according to Rebate Grid guidelines, with rebates determined based on volume and price.


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7. Is this new rebate structure just a way for the Home Office to take pricing to Distributors? No.

COD pricing is not changing under the Grid rebate program. The intent of the rebate restructure program is to realign rebate support from the Home Office to Distributors to direct investment to growing unit volume. When

considering the parameters of the Grid, one constraint was constant: come up with a model that is projected to

keep the same level of rebate support for the same amount of volume, and when the units grow, rebate support will grow.

In fact, Home Office rebate support is actually projected to be higher because of the plan to support both legacy

and Grid rebates in parallel for three months. The purpose of the Grid rebate program is simply to set clearly

defined and enforced pricing guidelines from which distributors can set their own strategy. Any pricing action at the local level is intended to benefit the distributor in terms of greater gross profit or growth.

The Rebate Grid (visual)


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Working with the Rebate Grid

8. What are the unique features of the Grid?

The Grid is simply a target price and a rebate amount. An ILD dealer’s eligibility to receive rebate support is

based on their total annual new battery volume (as determined at the beginning of the Grid cycle) and the price

charged on an invoice. If the price charged is at or below the target price for the qualifying volume tier to the

right on the Grid, then Interstate will provide the rebate amount determined for the qualifying volume tier and

SKU.

Distributors can choose to charge more than the target price, to the left on the Grid, and gain the benefit of

additional revenue; however, Interstate support will now align to the new volume tier in which the dealer is

priced. This flexibility means that the Distributor can adjust their pricing up as the market will allow and not

necessarily lose all opportunity for rebate support. (*see graph below) Because rebate support is evaluated at

the transaction level, different part numbers can be discounted in different volume tiers and have a different

opportunity for rebate support.

9. I keep hearing that the Grid is “flexible.” What does that mean?

The Grid is flexible because it provides more options for a Distributor to take pricing to the market and still be

eligible for rebate support.

There are more volume tiers and more levels for discounts

Distributors don’t have to provide the deepest discount in order to receive some rebate support


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It is not necessary to price all SKUs at a Dealer in the same volume tier level; Distributors can price

individual parts and product lines within different volume tiers and can receive rebate support within

those tiers (assuming Dealer eligibility)

10. Is the level of Home Office support going down? (CANADIAN SPECIFIC)

No. Overall, the Home office is projected to support Canadian distributors a bit more than last year. Depending

on the mix of product and mix of dealers previously receiving rebate support, individual distributors may receive

more or less support.

11. Will the new Pricing Tool show Canadian dollars? (CANADIAN SPECIFIC)

Yes it will show Canadian dollars based on the conversion rate fixed at the beginning of the Grid. This rate will

be reviewed and potentially adjusted annually and/or as Grid updates are required. The fixed conversion rate

will be shown prominently in the new toolset.

12. Will the amount of rebate support vary because of currency conversion rate changes? (CANADIAN SPECIFIC)

The US dollar amount identified for hitting a volume and pricing target will remain fixed until the Grid is

reevaluated. This is similar to how the Legacy rebate worked. Because we are continuing to evaluate and pay

rebates in US dollars, support continues to be sensitive to currency fluctuations.

13. What if I want to charge a higher price than the customer’s volume tier target price? (sliding left on the Grid)

If a Distributor wants to charge a price higher than the lowest one that Interstate will support, slide left on the

Grid, the transaction may still be eligible for rebate support. The price will be evaluated against the Grid volume

tiers to determine into which tier the price falls. Interstate will provide the rebate support listed for that

volume tier and price combination. This is an excellent opportunity to optimize revenue if the market will

support it since the higher price generates more revenue overall, even though Interstate support is less.

For example: If you have a customer whose eligible 12 month sales period (E12) is 225, then their volume tier

would be the ‘200-299’ range. Now, imagine that you want to sell this customer an MTP-65. Interstate will

support discounting up to 12% of Standard Dealer for Interstate automotive in this volume tier.

You see that if Standard Dealer price is $108.95 and the dealer is charged $95.88 or less, IB will support the

discount with a rebate of $4.36. If the dealer is charged pricing in the 150-199 volume tier range, slide left one


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volume tier, price between $95.89 and $98.06, then IB will support the discount with a rebate of $3.63. In this

scenario, the Distributor would receive more revenue and gross profit even if there is less rebate support.

14. What if I want to charge a lower price than the customer's volume tier target price? (sliding right on the Grid)

The volume tier target price reflects the lowest price that Interstate will support with a rebate. If a Distributor

charges at or below the target price, slide right on the Grid, Interstate support will remain the same and be based on the dealer’s qualifying volume tier price. A customer’s qualifying volume tier indicates the deepest

discount in which IB will participate.

For example: In the above grid, the Distributor could charge any amount less than $95.88, ‘slide right’ and IB

will maintain support at $4.36.

15. Do all of the Distributor’s customers (dealers) qualify for a rebate?

Both new and existing ILD dealers are eligible for rebate support, including both truck and Will Call accounts. If

a customer is already receiving IB support from National Accounts (ILD jobber, for example) or is a generic

dealer (a place holder record in Jericho for running tickets through, such as ‘Front Door Taxable’), then they are

not eligible for rebate support.

ELIGIBLE: INELIGIBLE:

ILD: NAC:

Dealers

NAC DUAL

Warehouse

NACT (to include Jobber/WD

and All Battery Centers)

Generic Dealers (Front Door Sales to non-dealers)

Inter-Distributor Sales

16. How does a dealer qualify for a rebate?

In order to qualify for rebate support, a transaction with the dealer must be at or below pricing based on the

dealers established volume tier for that SKU.

17. Are all SKUs eligible for a rebate?

All SKUs listed in the standard Dealer Pricing lists are eligible for a rebate, except for the Lawn and Garden SKUs.

A complete list of eligible SKUs and their Grid groupings (Brand/Line/Chemistry for example) will be made

available to Distributors during rollout. Additionally, Distributors will have reporting available that indicates

which active SKUs in their system are not eligible (misspelled, obsolete or unmatched).

18. How will using the Grid change how I administer Rebates today?

Today, a Distributor can only receive rebate support on new accounts. In order to receive rebate support, a

Distributor must enroll the new dealer into one or more rebate programs, receive a focus number from

Interstate, update the dealer record in Jericho with the new focus number, and then upload/download to the

handheld. At this point, as long as transaction price is at or below target price for the enrolled rebate, Interstate

would pay out the rebate.

When the Rebate Grid is fully established, both existing and new ILD customers will receive rebates. It will no


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longer be necessary for the Distributor to enroll customers in order to receive rebate support. All eligible dealer

transactions will be reviewed against the Grid in order to determine what amount of rebate will be provided.

19. Is anything changing on the handhelds?

There are handheld updates required for Grid rebates. The standard process of upload/download is required so

that price and Dealer changes are in the handheld at the point that tickets are created.

20. How will we know that we are receiving our rebate payments?

Payments will happen as they do today, and reporting will still be in AIM. Because the majority of the ILD

dealers are now eligible to receive rebates, reconciliation will be less about “Am I enrolled, and did I get paid for

this dealer?” and more about “Am I priced appropriately and receiving the support for the target price?” Since

rebate support can change with target pricing on a transaction-by-transaction basis, evaluation of rebates will

need to happen on a per-invoice level. Because of the number of records involved (more dealers, more parts,

more tickets), higher level evaluation will likely be aggregated into reports. The exact way that this will be

accomplished is still being determined.

21. How will I receive Rebate payments? (CANADIAN SPECIFIC)

During the transition, Legacy rebates will continue to be credited on your GMS. Rebates generated by the Grid

will be paid via check US Dollars.

22. How will using the Grid change how I take pricing to my dealers?

Ultimately, you will choose how to price in your market based on multiple factors. The Rebate Grid represents

how Interstate will support and participate when the market requires discounting for volume. Because there is

no longer a barrier between existing and new, and rebate support is evaluated on a dealer transaction level, you

have more flexibility to respond to market expectations and provide consistent pricing to all of your accounts.

Some examples that may be useful for you to consider:

Customer A is one you've had for years but wasn't eligible for support because he is existing. You've

been reluctant to offer him discounted pricing, even though the volume is over 100 units, because of the

impact to margin. You now have an opportunity to provide a discounted price and receive support from

Interstate.

Prospect B is on the opposite corner from Customer A. Previously, if you landed the business, you'd be

able to offer them discounting and receive rebate support since it is a new dealer, but you've been

reluctant to give them a discount over Customer A. The Rebate Grid eliminates the barrier and allows

you to establish pricing for both that is easier to explain.

Customer C is one that has been on a rebate and has received discounted pricing. Unfortunately, the

volume hasn't materialized. The Rebate Grid provides you an opportunity to update the pricing more in-

line with the volume that the customer generates.

Customer D is one who is a strong seller and sells enough that they could potentially be bumped up a

volume tier (and therefore be eligible for an additional discount supported by Interstate). Go and have a

conversation with this customer and let her know that if she sells just a few more, you will be able to

give her a price break.


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23. Will loading the IB Standard Price Sheet to one of our price zones make using the tools easier?

Yes, using the IB Standard Price Sheet as a base makes the calculations easier and makes it clearer where the

price is, relative to the Grid recommendations.

24. Will there be a lower volume requirement for high dollar units like our AGM offerings?

No. The volume tiers are not established within product segments, but rather for all product segments. If you

have a customer who sells 225 flooded batteries, a single AGM battery can be sold at the 8% discount and

receive the rebate support for the 200-299 range.

25. Is there different pricing across different regions?

No. Not at this time. There are different prices in different countries, but a target price within a country remains

the same.

26. What is a Grid cycle?

A Grid cycle is a period of time where a particular Grid is in place. To encourage stability, the customer volume

tiers will be evaluated annually and all customers will be evaluated at the same time. The period between

evaluations is called the Grid cycle.

27. What is meant by "Legacy Rebate" or "Legacy Rebate Program"?

"Legacy Rebates" are the ones implemented by Interstate before the Rebate Grid. Some examples are

'Automotive 300+', 'Commercial 100+' and 'PowerVolt V-Levels Rebate'. CPR and OE rebates are also "Legacy

Rebates" but will not be replaced by Grid Rebate.

28. What will happen if there is a Standard Dealer price change in the middle of a Grid cycle?

If the Standard Dealer price changes in the middle of a Grid cycle, target prices to receive Grid support will

change at the same time as the official price change date. This will allow Distributors the additional opportunity

at the start of the new price sheet. The rebate amount will also be evaluated and move at the same time.

29. What if I find an error in my rebate payments?

If you have errors or need adjustments to rebate payments you have received, please note our plan is to batch

up the first few weeks so that we can organize and respond as efficiently as possible. Going forward, we will

process repayments/adjustments on a shorter periodic schedule.

Focus Numbers

30. Do I still need to enter focus numbers?

Because the Rebate Grid extends to all eligible ILD customers, enrollments (and focus numbers) are no longer

necessary. Focus numbers will still be necessary for supporting NAC customers. Once we’re on the Grid, you

don’t need to input a focus number. In fact, if you or your team enters a focus number for a Dealer after they

have been cutover it will automatically be removed. Applying a focus number now to any ILD dealer will not

enroll the dealer into the rebate.


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Verify that the Dealer Focus No. field is correct. Only NAC accounts should have focus numbers. If it is not blank

for an ILD Dealer, the Dealer will be flagged as a NAC account in the Home Office. The Dealer will not appear in

the Pricing Strategy Tool and you will not be paid rebates on sales.

31. What about when a NAC is terminated and the customer is now ILD?

Once a Dealer is established as a NAC account, it cannot be converted to ILD. Removing the focus number in

Jericho will no longer work. Instead, you must close the NAC account and create a new ILD account. For this

reason, you should make sure the Dealer Focus No. field for Dealer 0 is blank.

E12

32. What is E12?

The term 'E12' means 'Evaluated 12 months' and is the count of new battery sales at a point in time. Interstate

uses E12 instead of R12 (Rolling 12 months) to clearly indicate that this number doesn't change every month.

33. Will we receive notice when a dealer’s volume and price reach an eligibility level?

The Pricing Strategy tool provides information about what volume tier a customer is in for the current Grid

period and also provides monthly trending information about whether the customer is moving in or out of the

volume tier. A dealer’s volume-based eligibility is established at the beginning of the Grid period and will not

change until the next Grid period starts. Eligibility based on price and rebate support may change as often as

the price is changed.

34. When is the E12 going to be calculated?

The E12 value will be calculated annually using sales from May through April. The next official evaluation date is

set to go into effect in May, using sales from April to March.

35. Will Interstate send out a communication in advance of a new E12 calculation to advise of Dealers whose R12

is trending outside of their current volume tier?

Yes, a reminder communication will be sent out before the close of the E12 period. Please reference the “E12

trending” column in the Pricing Strategy tool > Dealer Pricing page for monthly trending activity.

36. How will we be told a Dealer won’t be making his sales goals?

The tools being developed will allow Distributors to quickly see a Dealers ‘trending’ status within their current

tier whenever it is needed. Sometime before the completion of the eligibility period (E12) communication will

also be sent so Distributors know that they should review their reports to look for dealers whose volume tier is

projected to change with the next Grid cycle.


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Volume Tier

37. What is a volume tier?

A volume tier defines the volume ranges for which a particular target price will be established. The volume tier

identifies the base discount and rebate amount in which Interstate will participate. A customer is said to be in a

volume tier if the E12 (Evaluated 12 month sales) is between the upper and lower volume amounts.

38. How will a customer volume tier be determined?

A customer’s volume tier will be determined based on new battery sales for a 12 month period, or Eligible 12

month period (E12). A customer’s tier will be evaluated and re-established annually. Customers that have less

than 12 months of history will be classified as ‘New’ until the next evaluation (after we have 12 months of

history).

39. How would we know if a dealer that we are expecting to be eligible has not fallen through the cracks?

Most ILD dealers are eligible for rebate support of some amount as long as their E12 is over 50+ units (75+ for

rebates on Automotive product). The only other reason that dealers are excluded is if they fit in the ‘Generic

dealer’ category or are Jobber ILD. In Market IQ, there will be a report that identifies which dealers are eligible

and which are ineligible.

40. Will I be able to see how a Dealer is doing within their volume tier?

Within the new pricing strategy tool, you will be able to see where a Dealer is trending against their qualifying

rebate tier. This is available at any time, and a best practice to consider may be to set a time monthly, quarterly,

and/or every 6 months to review your Dealers receiving support. This regular review, along with preparing your

RSMs with Dealer sales information, should allow you to maintain closer tabs on Dealer performance.

41. Are volume requirements going to be enforced?

Yes, volume requirements will be enforced in order to receive the appropriate rebate dollars.

42. What happens when a customer’s volume potential changes mid-Grid cycle, like when a competitor is

eliminated? Does the volume tier change?

Once a volume tier is established for a customer, that customer remains in that volume tier until the next

evaluation. This is true whether the volume changes for the better (eliminate a competitor rack) or for the

worse (new rack added).

AIM

43. How is AIM changing?

AIM Receivables will continue to show Subsidy Invoices and Tickets (NS). However there will be a new Invoice

Type for Volume Rebates (NR) that have processed through the Grid for enrolled dealers. AIM Receivables has

also been enhanced to group and sub-total transactions in different currencies. You will find a grouping by

Currency Code in the Invoice, Ticket and Payment Inquiry screens as well as the reports that support them.


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With the updated AIM and Grid Rebate process, we have a small process change where Rebate functionality in

Jericho is no longer applicable.

The Remittance Advice report in AIM shows detail by product line. You can use this data to create a cash

receipt in Jericho to offset the rebate payment.

If you do not already have a process for applying Grid Rebate subsidies, please see the attached job aid

for a process you can follow.

CPR/OE

Our plan has always been to support CPR and OE relatively unchanged in the new Rebate Engine. It will, but this

part of the system has not been completed yet. This functionality will be supported before the final cutover in

late October.

In the meantime, please leave CPR and OE Dealers on the Legacy system (that is, do not cut them over to the

Grid). We will let you know when the full functionality is available, and we will support seamless payments in the

interim.

If you have already made pricing decisions that include CPR customers and you therefore need to cut them over

to the Grid (or—if you have already cut CPR customers over to the Grid), you will receive the incremental

support in the “Other Remittance” section of your normal payment.

44. What happens to my CPR rebates?

The Rebate Grid is not intended to replace CPR rebates. All CPR rebates will be evaluated and adjusted so that total Interstate support is maintained. For example, if Customer A receives $3.00 in Legacy Rebate support and

$4.00 in CPR support, this is a total of $7.00 in Interstate support. If Grid Rebate support for the price/volume

combination is $2.50, then CPR will be adjusted by $0.50 to $4.50 to maintain the total support of $7.00. Target price and volume requirements still apply.

Additionally, some CPR rebates may be discontinued because they are no longer applicable (because of volume

or pricing). Distributors will be notified in advance prior to the actual change.

45. What happens to my OE Rebates?

The Rebate Grid is not intended to replace OE rebates. Currently, if an account participates in an OE rebate, then they are not eligible for any Legacy rebates. This will continue to be true with the Rebate Grid; that is, if an

account participates in an OE rebate, they will not be eligible for Grid Rebate support.

New Dealers

46. How do I set up/enroll a new dealer for a rebate?

New ILD dealers that meet eligibility requirements are automatically considered for rebate support. Rebate

calculations will be based on target price. Distributors are recommended to establish pricing that aligns with


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expected volume and Grid volume tiers. Rebate support will be recalculated based on actual volume after we

have sufficient history (a minimum of 12 month sales history based on set up date at annual Grid alignment) to

know actual volume.

47. How long does it takes for a new Dealer to move from Salesforce to Jericho?

After you change the Stage to Closed Won in Salesforce, Jericho is updated immediately, assuming your Jericho

server is powered on and you have the Jericho bridge installed.

48. How long does it take for new Dealer data to move from Jericho to the Pricing Strategy Tool?

Currently, it takes one or two days for the Dealer to appear in the Pricing Strategy Tool after you add the new

Dealer in Jericho. The number of days it takes depends on when you add the new Dealer in Jericho. If you add

the new Dealer before noon, there is a high probability that the Dealer will appear in the Pricing Strategy Tool

the next day.

In an enhancement coming soon, you will be able to click Refresh in the Pricing Strategy Tool and see the new

Dealer immediately. Watch for a communication when that functionality launches.

49. How long does it take for the new Dealer to be available in other Market IQ applications?

As always, Optics and Dynamic Maps update about two days after you run a ticket and complete the batch

upload and call for DODDs in Jericho.

50. What do I do if my Dealer is dormant?

If you have not inactivated the Dealer in Jericho, contact the Pricing team to request a volume tier assignment in

the Pricing Strategy Tool. Next, add the Dealer to a pricing strategy and push the strategy to Jericho.

If you have inactivated the account in Jericho, you must create a new account because inactive accounts in

Jericho cannot be reactivated. Remember, the process flows more smoothly if you create a new account in

Salesforce and let the data flow through to Jericho.

51. How do I give a new Dealer special pricing for a particular SKU?

Currently, if you want to give a new Dealer SKU-level pricing, it is best to set up the pricing in Jericho at first.

After sales appear in the Pricing Strategy Tool (the next calendar month), you can add the Dealer to a pricing

strategy and add Dealer-specific pricing at the SKU level.

In an enhancement coming soon, all SKUs will be available in the Pricing Strategy Tool for new Dealers so that

you can set up all pricing for new Dealers in the Pricing Strategy Tool from the outset. Please watch for a

communication when the functionality launches.

52. Should I add a new Dealer to a LDC?

No, you should not add a new Dealer to a Linked Dealer Community (LDC). Since the new Dealer has zero sales,

it will not benefit the LDC. New Dealers receive the best possible rebate support (2000+), so it’s not necessary to

add them to an LDC to get better rebate support. In fact, if you add a new Dealer to an LDC, you may risk

adversely affecting the LDC’s volume tier.

You can add the Dealer to an LDC after the Dealer’s E12 has been calculated. The new Dealer must have 12

months of sales history before the E12 can be calculated. Since the E12 is calculated once per year, you may

need to wait to add the Dealer to the LDC until the second year of sales is underway.


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Linked Dealer Community (LDC)

53. Will Distributors be able to link dealers?

Yes. The Grid rebate system will allow for Linked Dealer Communities, or LDCs. These are groups of customers

that are associated together so that their aggregate and outlet volume is used to determine the volume tier of

the LDC members. The two primary ways that this would be used is in the case of a Buying Group or when

multiple dealers have a single owner.

54. How does a Linked Dealer Community (LDC) get created?

Please see the job aid for complete steps of creating a Linked Dealer Community. LDCs are created and

maintained in Salesforce. Distributors create LDCs, add Dealers to them, and submit the LDC to the Home Office

for approval. After the LDC has been approved, the Home Office Pricing Team applies updates in the Pricing

Strategy Tool to reflect the correct volume tier and rebate potential for each Dealer in the LDC.

55. Can I create a Linked Dealer Community (LDC) with dealers outside of my Primary Area of Responsibility

(PAR)?

Once an LDC is created, it can include dealers from multiple PARs. Only the Distributor who is responsible for

the dealer (the dealer is in their PAR) can associate the dealer with an LDC.

56. Will we be able to see Dealers in a neighboring territory to find dealers for an LDC?

No; standard security for customer visibility applies. Only the Distributor who is responsible for the dealer (the

dealer is in their PAR) can associate the dealer with an LDC.

57. What about dealers with multiple contracts at the same locations? Are accounts combined at the same

location?

It is rare that there are multiple active ILD contracts at the same account. In these cases, each contract is

considered individually. Multiple contracts at the same location may be eligible to be grouped in an LDC so that

aggregate volume can be considered.

58. Can a National Account or Jobber customer be included in an LDC?

No. National Account customers cannot participate in an LDC. If an LDC contains a National Account customer it

will not be approved.

59. How are the volume tiers of an LDC (Linked Dealer Community) determined?

Volume tier evaluation for LDCs includes both the average outlet volume and also the aggregate volume. This is

similar to how National Account discounts are evaluated today.

Here is how it is calculated:

The total volume represented by all customers associated with the LDC is calculated (TOTAL VOLUME).

The TOTAL VOLUME will be divided by the qualifying dealers to determine the AVERAGE volume per

outlet. This will determine the base tier for all customers within the group.


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Use the guidelines below to modify the base tier.

If TOTAL VOLUME is less than 1000, then move up one tier from the base tier.

If TOTAL VOLUME is between 1000 and 2999, then move up two tiers from the base tier.

If TOTAL VOLUME is 3000 or greater then move up three tiers from the base tier.

For example:

E12

Customer 1 25

Customer 2 50

Customer 3 75

Customer 4 100

Customer 5 150

Customer 6 200

Customer 7 500

TOTAL VOLUME 1100

AVERAGE 157

Base Tier 150 – 199

Buying Group Adjustment +2

Final Tier 300 - 499

60. How does a new Dealer impact LDC?

You should not add a new Dealer to a Linked Dealer Community (LDC). Since the new Dealer has zero sales, it

will not benefit the LDC. New Dealers receive the best possible rebate support (2000+), so it’s not necessary to

add them to an LDC to get better rebate support. In fact, if you add a new Dealer to an LDC, you may risk

adversely affecting the LDC’s volume tier.

You can add the Dealer to an LDC after the Dealer’s E12 has been calculated. The new Dealer must have 12

months of sales history before the E12 can be calculated. Since the E12 is calculated once per year, you may

need to wait to add the Dealer to the LDC until the second year of sales is underway.

61. How do I tell which Dealers are in an LDC?

On the Dealer Pricing Page of the Pricing Strategy Tool, Dealers will have the following icon in the E12 column:

62. Does the new volume tier that is assigned to the LDC show up in the tool?

Yes.

63. How long does it take for the LDC I set up in Salesforce to show up in the Pricing Tool?

The current timeline follows.

The Home Office team approves on a weekly basis. For example, if you submit your LDC through

Salesforce on a Tuesday, the Home Office team will evaluate and approve by the end of the day (EOD)

that Friday.


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Approved LDCs are transitioned to the technical team (at Home Office) the following week, by

Wednesday.

Approved LDCs will load into the Pricing Strategy Tool by the following Monday.

Note: The process for adding LDCs into the PST is a manual one, so please be patient. If it takes longer than 12

business days for your LDC to show up in the PST, please contact External Support.

Specialty/Non-Automotive products

64. What do I need to do to get rebate support on both automotive and specialty batteries?

You do not have to do anything special. A Grid eligible customer will receive rebate support for all product lines

automatically

65. How do Specialty products (non-automotive) work in the new Rebate Program?

Lawn and Garden products will be seasonally discounted and will no longer be eligible for rebate support. The

other product lines will be eligible for rebate support in accordance with Rebate Grid guidelines.

66. Why is there a negative subsidy for Lawn and Garden products that now have promotional pricing?

To better support the Lawn and Garden product line, the Rebate Action Group determined that it would be most

effective to reduce the acquisition cost by allocating the rebate dollars. This reduced cost is applied to all

purchases of the specified items, some of which will be sold at NAC customers. We are applying negative

subsidies in these situation so that we can maintain NAC profitability and ensure that the rebate dollars are

appropriately allocated to ILD accounts.

67. Grid pricing for 3 Marine Parts: (contradiction from the July 2013 memo)

We sent out a memo sent out July 31st related to the price increase. In it, we were announcing that we had

modified some of the legacy rebate target prices so that they coincided with the [then] established Grid target

pricing. At that time, we adjusted the pricing *up* to align with Grid because it meant that distributors wouldn’t

have to offer further discount to get rebate support.

In this example:

The LDC is submitted the week of 10/6-10/10

The Home Office team reviews the LDC by 10/15

The approved LDC data transitions to the technical

team by 10/15

The LDC is live in the Pricing Strategy Tool by 10/20


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We didn’t move any prices down (increase discount) at the time because we wanted everyone who was eligible

and receiving legacy rebates to stay that way and not suddenly become ‘ineligible’ because the price they had

previously received was no longer sufficiently discounted.

On the attachment to the memo, we call out that those parts where the target price had changed and the

anticipated rebate amount. For those parts that didn’t change, we said ‘No Change’ in all of the columns. This

was not intended to suggest that the price wouldn’t be changing with Grid, only that we weren’t making

changes to legacy rebates with these parts.

The intent: The Grid is going to replace the target percent and rebate amounts for all Legacy rebates (except

CPR and OE). The target price will change and the rebate amount will change for the parts listed below.

24M-XHD

27M-XHD

SRM-27

Optima, PowerFast, PowerVolt

68. Will the PowerVolt line continue to be supported by rebates?

Yes, and it will follow the Rebate Grid guidelines.

69. Why are you supporting PowerVolt less under the Grid?

There are a couple of reasons that the estimated total for PowerVolt support is reduced under the Grid:

The Rebate Action Group determined that it was more beneficial to offer support to our name brand

(Interstate).

Rebate support for PowerVolt is provided to customers who are 50 units or more. Support currently

provided to customers less than 50 units will be discontinued.

Profitability on PowerVolt product is generally higher, so more dollars have been allocated to the

Interstate branded product.

70. PowerFast: why are the percentages the way they are, compared to the rest of the Grid?

The PowerFast brand rebate target percentages are calibrated towards this being an Opening Price Point brand

(OPP). In this case, we want to support deep discounting, especially for high volume customers. Interstate

participation is at 20% because the product acquisition cost has been reduced more, relative to standard dealer

price. 20% keeps the rebate support in line with how we are supporting it under the Legacy rebate program.

71. What is happening with Optima rebate program; will it still exist? How will this volume be accounted for in

the impact the Grid?

The Optima rebate programs are being replaced with the Grid. To account for the specific circumstances related


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to AGM, we have established a separate category called AGM, which will include Optima as well as the other

AGM products.

Cutover

72. What does “cutover” mean?

This is the process of taking a Dealer onto the new Grid and off of the Legacy rebate system. This process is

independent from pushing prices for a Dealer to Jericho using the Pricing Strategy Tool.

73. Do I have to cut over a Dealer to the new Grid before using the Pricing Strategy Tool to push pricing updates

to Jericho?

No. You can manage Dealer pricing in the PST without cutting a Dealer over. There is a risk of losing some rebate

support if you raise prices and effectively price too high to receive rebate support if they are still tied to the

legacy program.

Push to Jericho

ZONE UPDATE PAGE: UPDATING JERICHO BASE PRICE ZONE

74. What is “Push to Jericho” on the Zone Update page?

When you update the base price zone, you may select an effect date for that price zone to take effect, as well as

what zone it will update. In this case, Push to Jericho means that all of the pricing (percentage or dollar increases

or decreases) for each SKU you changed will upload to Jericho and become effective as of the effective date you

selected.

75. Does the Distributor still enter in the rules and price zones in Jericho?

Distributors will still be able to implement pricing rules in Jericho the way that they currently do, but the number

and combination of rules rule plans, price zones required to support the Grid fully is complex. The new Pricing

Strategy Tool continues to use the Jericho and handheld pricing architecture and will streamline the creation of

the multiple rules, zones and fixed pricing required to optimize strategies and leverage Grid opportunities. Once

leveraged, the tool will be the recommended way that you maintain pricing in Jericho.

PRICING STRATEGIES PAGE: PUSHING A PRICING STRATEGY TO JERICHO

76. What is “Push to Jericho” on the Pricing Strategies page?

On the Pricing Strategies page of the Pricing Strategy Tool, this function sends Dealer pricing updates and zone

changes to their Jericho record.

77. How do I know if I pushed a strategy to a Dealer?

Use the Dealer Maintenance functionality in Jericho to determine if a strategy was pushed to a Dealer. Select

the dealer, and in their Misc button the Rule Plan Description would read similar to: Strategy12213233.


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78. What is the effective date of my Pricing Strategy?

There is no effective date related to the strategy. Strategies are effective as soon as they’re pushed. Effective

dates are used to pull in future effective Base Jericho pricing to show how pricing would look at a future date

allowing for price sheet printing in advance of price changes and for strategy consideration.

79. What happens to my existing rules and rule plans after a strategy is pushed to Jericho?

Your rules and rule plans remain in Jericho and are not altered unless you make pricing changes or add a Dealer

to a new strategy. The Dealers associated with the pushed strategies are disassociated from their previous rules

and/or rule plans and a new rule plan is assigned to them that facilitates the pricing you established in the newly

assigned strategy.

80. If I make updates to a strategy, do those updates automatically flow through to Jericho?

No. Any time you update a strategy in the Pricing Strategy Tool, you should “Push to Jericho” to make sure those

updates are sent to Jericho. (Strategy updates include: adding a new Dealer to or removing a Dealer from a

strategy, updating the discount/increase %, or changing any override price at the Dealer or SKU level in a

strategy.)

Other FAQ Related to Pricing Excellence

81. Can I change rebate or sales price by SKU per dealer?

Rebate support will be based on pricing at, or below, target price by volume tier. Rebate support is evaluated at

the transaction level, which means that each SKU can receive rebate support independently of other SKUs on

the ticket.

82. What is a generic dealer, and will they qualify for rebate support with the Rebate Grid?

A generic dealer is a dealer record that is used for running tickets through, but doesn’t actually represent a

single customer or location. Some examples are ‘COUNTER SALES - TAXABLE’ or ‘CASH ACCOUNTS’. They can be

both truck or warehouse type accounts. The volume aggregated under these ‘dealers’ represents multiple

customers. Since rebates are intended to support discounted pricing based on volume for a single dealer or

LDC, generic dealers are not included in rebate support.

83. What happens to a Dealer’s pricing if a remove it from a pricing strategy? Do the prior rules I had for them

apply?

No. If you remove a Dealer from a pricing strategy they are already on, their pricing does not revert or change.

The only way pricing will change is if you reassign the Dealer to a new strategy and then push that strategy. This

will change the Dealer’s pricing to be in line with their new strategy.

84. Why do some parts have incorrect months in the Sub-Category column in the Zone Update page? (For

example, the MTP-65 has a sub-category of ’85 month’)

The values reflected in the sub-category tab are the same as what is in Jericho. When we implemented

Performance Warranty, we did not go back and change all of the sub-categories because those values were used

heavily in Jericho. The MTP-65 has a sub category code of ‘85’ which translates to ‘85 Month’ in the description.


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85. What is the fastest way to find a refined list of my Dealers?

Use the “Search” functionality to pick the column you wish to filter on, and then enter your search criteria. i.e.:

Search “volume tier” for Dealer’s that “include” “50 - 74”.

Note: Include a space on either side of the dash.

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