Vac Shop Reference Guide

VAC SHOP
REFERENCE
GUIDE
TABLE OF CONTENTS
GENERAL INTRODUCTION vii
I. BOOKKEEPING & ACCOUNTING 1-22
Introduction
Sales Invoices 2-4
Sales Invoice-Exhibit A 4
Profit & Loss Statement 5-14
Forecasting 6
Managing 7
Compensation 10
Profit & Loss-Exhibit B 13
Management Report-Exhibit C 14
Cash Receipts 15-19
Cash Receipts Journal 17
Cash Receipts-Exhibit 0 18
Daily Close-Out Tape-Exhibit E 19
Computers 20-22
What A Computer Should Do 21
II. INVENTORY 23-44
Introduction 23
Purchase Orders:Written or Verbal 24-32
The Purchase Order Form-Exhibit A 25
The Purchase Order Process-Exhibit B 26
The Purchase Order Exhibit-Exhibit C 30
The Receiving Order Exhibit-Exhibit 0 31
The Purchase Order Flow Chart-Exhibit E 32
Inventory Control Sheet 33-35
Inventory Control Sheet Exhibit-Exhibit F 36
Parts Catalog 37-44
Parts Catalog 38
Choosing A Supplier 41
Stocking Genuine vs. Replacement Parts 42
Pricing of Parts 42
Commercial Accounts and the Parts Catalog 43
Parts Catalog Insert
III. MARKETING 45-67
Introduction 45
Success and Survival 46
Competition - The Pie Chart 47
Market Potential 49
Customer Demographics 50
The Physical Plant - Store Displays 52-55
The Work Area 54
What Lines to Carry 56-59
Pricing 58
Expansion 60
Local Associations 64
IV. SALES 68-87
Introduction 68
Phone Quoting 69
Demonstrating 72
ii
The Psychology of Selling 75-85
Why Won't A Customer Buy 77
Preventing Lost Sales 78
Sales Presentations 79
Customer Objections 81
Overcoming Objections 82
Asking for the Sale 84
Prejudging 84
Motivation 85
SKU's - Selling Up 86
V. SERVICE 88·101
Introduction 88
Service
89-91
Labor Rates
89
Using An Effective Service Ticket 92
Selling Off Repairs Into New Machines 96
Service Ticket Exhibit-Exhibit A 101
VI. ADVERTISING 102-155
Introduction 102
Developing A More Effective Advertising Budget 103-106
Measuring Advertising Effectiveness 105
In Store Advertising
107-112
Stickers
107
Handle Tags
108
Painted Windows
110
Business Card
112
Co-op Advertising
113-116
Co-op Types
115
Multi-List Advertising
116
iii
Yellow Pages 117
Developing More Effective Newspaper Ads 118-132
General Information 119
What Can Newspaper Rep Provide 119
Multi Newspaper Markets 120
Ad size & Placement 120
Frequency and Reach 121
Screens, Reverses & Color 121
Common Mistakes 122
Ad Dates 122
8 Elements 123
Types of Ads 126
Submitting Ads to Newspaper 132
Insertion Order 133
Tracking Promotions 135
Vendor Support Program 136
Direct Mail 142-148
Previous Customer 143
New Customer 144
Four Page Flyer 146
Coupons 147
Trade-In Sales 149
Broadcast 151-155
Television 153
Glossary of Terms 154
VII. COMMERCIAL 156-208
Introduction 156
General Information 157
iv
What Constitutes A Commercial Account 159-162
Commercial Accounts Products 159
Suppliers of Commercial Products 160
Sales Techniques 163
Product Demonstration 168
Commercial Division Staff 169-178
Training Outline 170
Employees 176
Profit Margins 179
Credit or C.O.D. 180-181
Accounts Receivable 181
Lease Agreement 182-190
What Is A Lease Agreement 182
Who Benefits From A Lease 182
What Products To Lease 183
Charges For Lease 184
Who To Lease To 185
Presenting the Lease 185
Lease Agreement Explanation 187
Exhibits 191-210
Customer Needs Analysis-Exhibit A 191
Weekly Planner-Exhibit B 192
Customer Activity-Exhibit C 193
Monthly Activity-Exhibit D 194
New Account Application-Exhibit E 195
Vacuum Leasing Letter- Exhibit F 196
Advantages of Leasing-Exhibit G 197
Lease Proposal-Exhibit H 198
Lease Agreement-Exhibit I 199
Schedule A 207
Lease Guarantee-Exhibit J 208
VIII. EXTENDED SERVICE AGREEMENT 211-228
Introduction 211
What Is An ESA 212
Variations & Types 213-215
ESA Advantages 214
Costs of ESA 215
How To Sell ESA 216-218
The Insurance Policy Approach 216
The Excellent Savings Approach 218
Completing the ESA 218
Filing the ESA 219
Point of Sale Material 221
Multi-Store Operations 222
Exhibits 223-228
Exhibit A 223
Exhibit B 224
Exhibit C 225
Point of Sale Poster-Exhibit 0 226
Multi-Store Credits-Exhibit E 227
Labor Rate-Exhibit F 228
vi
GENERAL INTRODUCTION
The beginning of the independent vacuum dealer started with the door-to
door salesman opening up retail establishments due to changes in distribution
patterns of the manufacturer and his seeing a real need for a service of this
type.
The market and distribution patterns are continuing to change radically with
a new breed of discounters and premium houses and with direct competition
from distributors and manufacturers.
The vac shop owner is now competing with some of the largest, most highly
trained and professional sales and marketing companies in the country. To
survive the vac shop owner must also become a professional well trained
salesman. We advocate that the vac shop owner should continually strive to
"become a more proficient salesperson through training seminars, reading of
books, listening to motivational tapes and taking a more professional approach
to his operations. It's something which will not come easy.
Gone are the days of easy sales and profits. The independent dealer of the
future must become more aggressive in his marketplace, merchandising his
store and the products and services the consumer wants at competitive prices.
This book was written to assist the independent vacuum dealer in the day to
day operation of his business, by providing him with tested and proven
information gathered from successful vac shops across the country, accountants
and attorneys. Included in this book are management and sales tools, a parts
catalog and varying types of ads. All of these items are designed to be removed
from the book, duplicated and used in the operation of your store.
This book addresses eight major areas of a vac shop's operation and how
each plays an important role in running an effective operation. These eight
areas provide a broad overview of a large and complicated process in the
overall operation of a stor.e.
Throughout this book, the focus in all eight areas, has been to assist you in
increasing your sales without increasing your expenses.
I.
BOOKKEEPING
&
ACCOUNTING
Bookkeeping & Accounting
INTRODUCTION
The first area to begin with when professionalizing your business starts with
your bookkeeping and accounting systems. Without knowing where you've
been you will have no road map to lead you to where you want to go.
Some people in business assume profit is a divine right, but it

must be carefully planned and worked for.
Three elements that exist in most successful businesses, whether small or

large, are capital, knowledge of the business and a business plan.
The need for an effective accounting system is paramount for any business
success. Our attempt here is to provide information that can assist you and your
accountant or bookkeeper construct an effective bookkeeping system desinged
specifically for this business.
The main focus of this section is on using your bookkeeping system as a

forecasting and management tool.
-1
SALES INVOICES
Using a sales invoice like the one enclosed (Exhibit A) offers many
advantages to the small retailer. Primarily it allows you to get all the pertinent
information from the customer regarding the sale as well as necessary make
and model information of the equipment. This type of invoice is an. excellent
reminder tool for your sales staff for add on sales items.
These invoices coine in a booklet form with 50, two part invoices per book.
On the cover of the book is a space to enter ,starting and ending invoice
numbers and dates the invoices were written. The two parts include the
customer copy and store file copy (which remains in the booklet). If used and
stored properly, these invoices can be retrieved the following year and mailers
can be sent to these customers regarding seNice specials, etc.
The invoices can be used for any transaction. Cash (also Mastercard, Visa,
American Express or Discovery Cards), C.O.D., charge, on account payments,
merchandise returned and paid out boxes make it easy to determine the nature
of the transaction at a later date. For commercial customers there is a space in
the top left corner to write in their purchase order number.
The empty box to the right of the transaction boxes can be used to source
your customer showing the advertising medium which brought them into your
store. Don't forget that previous and referred customers are also part of your
sourcing.
With the proper sales invoice your job as a manager will become easier.
You will have the necessary information on the invoices to do preferred
customer sales, phone or mail solicitation, or commercial accounts mailings.
Inventory control will become easier now with the make, model and even serial
number information on the invoice. Invoices can be printed to include any add
-2
on sales items you wish to appear in addition to or in place of those shown

(invoices normally come blank, you need to add your own items).
This particular invoice form comes from New England Business Systems
(NEBS) in Groton, Mass., 01471. Their phone number is 1-800-225-6380. This
invoice system is called the Super Sales Book number 55-2. It is printed on
NCR paper and depending on how many you buy, the number of items you add
and the extent of your store information will generally cost around $335 for a
thousand invoices (20 books of 50). Many local printing companies also have
the ability to print these forms.
This book system of invoices offers a better filing system and a more
professional, simplified and comprehensive method of writing invoices.
-3
EXHIBIT A
SALES INVOICE
YOUR NAME
ADDRESS
PHONE #
Attachments
Warranty Package 1#
Paper Bags
Belts
.,I- -7 . ~ -''''' '1

• _ . c.. .'.L
-4
PROFIT & LOSS STATEMENT
As boring and intimidating as they sometimes seem, your Profit and Loss
Statement (P&L) is the most important part of your business. It will show you
areas where you can duplicate your efforts, when you're successful and where
not to duplicate when you're not as successful.
Most small businesses produce a P&L, also known as an Income Statement,

once a year. This statement is usually a cash P&L rather than an accrual P&L.
This annual computation is helpful only in completing your tax return and
establishing the value of your business. If constructed properly it can be an
effective forecasting and management tool as well as assist you in developing a
fair compensation package for your employees.
If you plan. on accomplishing these goals you need to produce your P&L
statement monthly. It must be constructed as an accrual P&L, one which
measures the actual sales for the month minus the actual expenses and cost of
goods sold.
The construction of the P&L resembles the P&L enclosed (Exhibit B). It lists
all areas of income separately, for example new machine sales and labor. This
information is obtained directly from your daily cash receipts (see Cash
Registers).
The cost of goods section is the actual cost involved in your sales. The
machine cost of goods is derived by adding your beginning monthly inventory
dollars to your purchase dollars and subtracting from that the ending monthly
inventory dollars. This yields the cost of goods in new machines that went out
the door that month. Too often, if the cost of goods is taken from sales tickets it
may not reflect shrinkage due to receiving errors or lost merchandise.
Machines should be physically inventoried every month.
-5
Normally, parts are not inventoried on a monthly basis due to the high costs
associated with counting them. It is assumed that parts purchased that month
are for replacement purposes, therefore cost of goods parts is total invoices for
that accounting period relating to parts.
Expenses must also be documented in the month they were incurred; eg;
advertising or additional payroll.
If you ran a $5,000 advertising campaign in April (which increased April's

sales), but did not list the advertising expenses until May when the invoice was
paid, the April sales would be exceptionally high with low advertising costs.
. May expenses would be high w}th inappropriate sales. There would be no way
to effectively measure your advertising or proiits. It also. would not be realistic
making it difficult to forecast sales, measure results and develop compensation.
This illustrates why it is important to document expenses in the month they were
incurred.
FORECASTING
The primary goal of a business is to increase sales every year. In order to

accomplish this feat you must begin by duplicating last year's figures and then
build on them. In order for the business to grow it's important to understand
where you've been (with regards to the previous year) so you can make valid
decisions and assumptions when making your projections. The more detailed
the breakdown of gross sales, cost of goods and operating expenses the easier
it will become to project next months or next years budgets.
You begin projecting your budgets by constructing them on a monthly basis.

This is done by using the appropriate figures from that month last year. The
gross sales and expenses are derived by using last years information. Multiply
the actual sales figures by the increases you wish to achieve based on inflation,
market growth and market penetration. The expenses should be increased
proportional to the increases from previous years (s~e P&L Forecasting
-6
column). The cost of goods sold should be calculated based on the previous
three months sales figures average to allow for improvements or declines in
overall market and merchandising strategies as well as selling techniques and
competitive environment.
This projected P&L statement should become your guideline and be readily
available to compare against your actual sales. This will allow you a better
picture of what to expect and an outline to follow to develop incentive packages,
anticipate profits and project purchases.
Another advantage of constructing your projected P&L on a monthly basis is

that of an ordering guideline.. By anticipating parts and machine purchases in
dollar volume based on that month from last ye,ar, you can gauge your inventory
levels, assisting you in inventory control and preventing overbuying.
Forecasting sales and gross profits will also aid in preparing papers for bank
loans and establishing the value of your business.
Forecasting sales and expenses can be greatly assisted by

departmentalizing and constructing your projected P&L similar to the one
enclosed (see P&L Forecasting column).
MANAGING OFF A P&L
Let's start by understanding the importance of departmentalizing gross sales

and cost of goods fjgures. You should understand how each department
contributes to your total Gross Profit picture. It's much easier to derive a more
accurate figure when it's broken down into smaller elements.
The amount of gross profit is of more concern to you than gross sales. A
sales budget should be a means to assist you in hitting your gross profit budget.
By focusing your attention to the gross profit budgets needed on a weekly basis
-7
more so than on gross sales figures you will know where you are in relationship
to your projected figure.
The enclosed management report (Exhibit C) and subsequent discussion

will assist you in this.
The management report herein measures gross profit (by department or

category) on a weekly basis. It provides a cash receipts journal and a tracking
system of new machines sold, as well. This will indicate which models are
moving, helping you to better track your inventory turns.
The daily functions of this report will allow you to document by department
the total gross sales. These daily figures are obtained from an automated cash
register (see Cash Register section). This means that at any time during the
month, you will be able to measure the daily and weekly sales progress.
Once you learn your approximate cost of goods sold per week (we have put
some percentages in and will discuss them later), you will see where your
profits stand before expenses. Add the four weekly gross profit totals together
for a monthly total. Subtract from this total your monthly fixed expenses. This
will give you an approximate accrual P&L on the last day of the month without
waiting for your accountant's report.
You may think another report is the last thing you need. But to carry out the
planning and work needed to increase your shops profitability, it is one of the
first things you need.
Let's look at the management report. As mentioned earlier the dollar

amounts and quantities are obtained from the daily cash register's close out
tape. The machine sold section is obtained from sales invoices and indicates
the model and quantities sold each day. The cost of goods sold (COGS)
column is the actual cost of each unit.
We have included certain percentage figures in the COGS row. These

figures are based on observations and calculations of many vac shops across
the country.
-8
Many vac shops work on a 3 to 1 mark up or 67% gross profit on parts. The
COGS percentage used is 33% based on this analysis.
Service labor is treated at no cost because it is already projected in

expenses.
, Used machine percentage is an arbitrary figure of 30%. This figure may be

relatively high, but it will give you an idea of some expense based on parts used
or trade in value.
Machine accessories include items like hand vacs, brooms, attachment sets
and other low profit items. These are generally sold at 33% gross profit or
COGS at 67%. This grouping is used so as not to lower the new machine sales
average.
A gross profit of 50% should be set as an overall goal. It is not uncommon

for the independent vacuum dealer to operate on this percentage, in fact, it
could be the standard of the industry. A percentage of 36% grt>ss profit on new
machines can be maintained with high sales. A percentage of 66% gross profit
on parts should be a constant and have no bearing on gross sales whether high
or low.
To determine the actual percentage of profit on parts, subtract your total

parts purchases from your gross sales of parts and divide that quantity by gross
sales ((Gross sales - COGS) + Gross sales = gross percent of profit). If that
calculated figure is less than 66% gross profit or a 3 to 1 mark up overall you
can generally assume one of the following; you increased your inventory, you
sold at the wrong prices, your gave product away or you lost product. This
percentage figure is important because it helps bring to light problem areas.
If the percentage is higher you more than likely depleted your basic
inventory levels.
One control you can readily implement is a written retail pricing guide similar
to -the one enclosed in the Inventory section (Parts Catalog). This will
-9
standardize your pricing and depending on your parts supplier generally yield
an overall 67% gross profit.
Your open to buy on parts for next month should be based on your gross
sales from the previous year for that month. By keeping track of both purchases
and sales it can keep your parts purchases in line.
It's important to know the percent of gross profit on new machines and look
at it on a monthly basis. Often times we are misled into thinking our
percentages are higher because of a few select sales of 50% or more.
Remember, the $59 sales also count in the overall profit picture. A common
practice among vac shops is to mark down the Gross profit on every new
machine sale invoic~ at the end of the day. This keeps you aware of the smaller
percentage sales as well as the larger ones.
A wise man once said "Some people in business simply assume that profit is
a divine right. But it must be carefully planned and worked for".
COMPENSATION
There are numerous ways to compensate an employee for his work. The
most common is an hourly wage. Other options would include commission,
percentage of gross sales or gross profit, spiffs on select units or combinations
of the above.
Problems can arise in other areas of your business when you pay a
salesman on a hourly rate and spiff him on select units. There is no incentive
for him to sell other units or to increase repair or counter sales.
Commission may not be the best alternative either because areas not
related directly to sales will suffer, such as store appearance and maintenance
or paperwork.
- 10
Most salespeople are motivated by incentives, not fixed wages. To be able

to earn as you produce and receive compensation based on your overall
abilities as a salesman is a rewarding feeling.
When dealing with one manager or program that combines a fixed hourly
wage and a percentage of the net profit after owner's draw (based on a sale
proprietorship) offers security and incentive to the employee and reduces your
risk as an owner when the bottom line is not there. This program ties wages to
productivity.
The Profit and Loss or Income Statement (Exhibit B) lists the income and
expenses of a store for a given period on an accrual basis, that is, as they are
incurred. In order for your employee to see the validity of this program and to
realize the figures are obtainable he must be included when setting up the
program.
By involving him as a businessman in the development of this program it

becomes more viable. If he's managing the store he'd better know what he is
managing to allow him to make decisions more effectively and with more
information.
By projecting your monthly budget based on last year's business and last
year's expenses you have the beginning to establish compensation based on
results which were obtained from last year.
One of the few controls you have as an owner in business is payroll

expense. If the profits or bottom line are there you can afford to pay more. If the
profits are down you need to adjust your payroll accordingly.
One way to accomplish this is to base 80% of your employee's projected

salary on a fixed hourly wage. (For this discussion we will consider a total
projected salary of $2,000). The other 20% would come from the net bottom
line. In slow months if the net bottom line isn't there his commission would be
less. In better months the employee would share in the additional profits. There
would be no additional expense to you since you've already recovered your
operating expenses and earnings you've projected for yourself.
- 11
If you decide to pay less in the base salary consider paying a higher
commission percentage, again, providing an incentive for the employee to
produce in all revenue generating areas. Also, show the employee how cutting
back in controllable areas such as utilities and store expenses he can receive
additional income as well. These expenses affect the bottom line in either a
positive or negative way.
Before paying additional payroll to your employee you should require he

produce at least the same net profit as that month from the year before. If he
produces over that net profit figure the percentage he shares in should be
greater. His incentive does not actually begin until that point. To a certain
extent, his share should be greater simply because you have, again, recouped
your expensed. paid his salary and have taken your draw. The additional profit
is the icing on the cake. Why not share it if the employee helped generate it?
Just compensation for services performed is always a difficult situation. By

approaching it in this manner (based on the income statement) with the
employee directly involved, both you and the employee will understand when
fair is fair.
- 12
EXHIBIT B
PROFIT & LOSS STATEMENT
RATIO: INCOME THIS MONTH BUDGET NEXT

MONTH
OR NEXT YEAR
0/0 •
INCOME
SALES PARTS 2,044.38 10.6
MACHINE SALES 12,743.94 66.2
REPAIR LABOR 901.24 4.7
WARRAN1Y SALES 820.00 4.3
SERVICE PARTS 1,038.23 5.4
USED MACHINE SALES 1,149.85 5.9
ACCESSORY SALES 865.26 4.5
WHOLESALEINO TAX SALES 0.00 -0
RETURNS & ALLOWANCES 314 61 (-1.6)
NET SALES $19,248.29 100%
COST OF GOODS SOLD
PARTS PURCHASES 1,090.62

PURCHASES ACCESSORIES 438.14
MACHINE PURCHASES 7,384.53
FREIGHT IN ~
TOTAL COST OF GOODS SOLD 58,95210 465%
GROSS PROFIT $10,296.19 53.5%
EXPENSES
ADVERTISING 1,600.00 8.3

WAGES 1,600.00 8.3
PAYROLL TAXES(15%) 240.00 1.2
GROUP INSURANCE 236.30 1.2
OFFICE SUPPLIES 18.47 .1
POSTAGE 55.00 .3
LEGAL & ACCOUNTING 50.00 .3
UTILITIES 152.79 .8
TELEPHONE 177.93 .9
TRAVEL & ENTERTAINMENT 0.00 -0
EQUIPMENT LEASE EXPENSE 23.32 .1
BANKCARD DISCOUNTS 161.35 .8
OUTSIDE SERVICES 0.00 -0
RENT EXPENSE 2,026.50 10.5
PROPER1Y TAX EXPENSE 0.00 -0
REPAIRS & MAINTENANCE 264.91 1.2
BANK CHARGES 0.00 -0
AUTO EXPENSE 106.74 .5
LICENSE & OTHER TAXES 0.00 -0
STORE SUPPLIES 21.88 .1
DUES & SUBSCRIPTIONS 8.80 -0
TOTAL EXPENSES $6,743.99 35%

NET INCOME:
BEFORE OWNER'S DRAW $3,552.20
OWNER'S DRAW 5200000
COMMISSION - 20%· $1,552.20 '" 310.44
·Percentage of Gross Sales
- 13
) ) )
~TURE MANAGER'S REPORT
STORE'
--------------
FROM DATE; TO ------ 19
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APPROX.
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ACCUM. GROSS t : :«< PREV REPORTS MONTH TO DATE Qo
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CQ
CASH RECEIPTS
To establish an effective record keeping system that can also function as a

forecasting and management tool you must begin with an automated cash
register. This cash register is one which has the capabilities to departmentalize
daily sales, one that simplifies and speeds up individual transactions. collects
needed data for your P&L statement and provides you with a read out of your
total daily business.
The daily read out (also called a Z tape) will provide you with a complete
summary of the days activity. This summary includes:
Daily Gross Sales

Departmental Dollar Amounts
Departmental Number of Units Sold
Sales Tax Collected
Charges on Account (Accounts Receivable)
Payments on Account (Accounts Receivable)
Paid Outs
Bank Deposit Total
When the information provided by the Z tape is used to produce a

departmentalized Cash Receipts Journal (Exhibit D), it gives you not only
information necessary for your accountant, but also a wealth of information for
management. The Z tape is also used to fill out the managers report as
described in the Profit and Loss section under Managing Qff a P&L.
This register can gather more information, eliminate the need for invoices on
parts, can tally the total number of customers who purchased something that
day, and make you look more professional to the customer.
The main function that you want the cash register to provide you though, is
the daily breakdown by department of your gross sales. Let's look at each
department.
- 15
Retail Parts and Service Parts:
These two areas refer to parts that are sold over the counter and parts that
are used on a repair. It is important to separate these two categories from each
other for several reasons. 1) By separating service parts you can get a more
accurate reading of the average repair ticket. When you compare the service
parts to the number of labor rings you can determine the average dollar parts
per repair. This would be impossible if counter parts were added in. 2) If you
have a problem hitting projected parts sales, by separating you can quickly
determine the area that needs to be improved, either more step-up selling on
parts for the repair or more add on sales at the counter.
New Machine Sales and Used Machine Sales:
These are separate from each other to give you a more accurate reading of
your new machine sales average. By subtracting out used machines and
putting them into their own category you can readily see if you are duplicating
last years business in new machines. By separating these two you can forecast
•
the number of units to purchase for a given period. Through the monthly (or
weekly) managers report you can determine if you need to increase the number
of units sold or increase the average unit selling price to increase last years
business.
Another important feature of this separation is with multiple locations or

salespeople. In managing through averages you can base each individuals
performance against the overall average to see how he compares.
Repair Labor:
This department will give you an average dollar for repair.
Accessories:
This department is broken out of machine sales so as not to lower the new
machirle average. This category includes hand vacs, electric brooms,
- 16
attachment sets and other low cost, low profit items (generally anything sold
under $59).
An automated cash register, in most markets, will average about $500. Also
available in some markets is a lease agreement on these units usually in the
$30-40 per month price range. Either way the registers are not overly
expensive, especially when you consider the wealth of information they can
produce to assist you in evaluating and managing your business more
effectively and professionally.
CASH RECEIPTS JOURNAL
This Cash Receipts Journal is the entry of the daily close out tapes (Z tapes,
Exhibit E) of your automated cash register. They are entered either daily or
monthly, which ever you prefer.
This manual cash receipts journal will look like the one in Exhibit D..
Essentially, this journal is a little more sophisticated than the Managers Report
discussed in the P&L section under Managing With a P&L. This journal
includes bank deposit information as well as charged on account information. It
details daily, weekly and monthly sales by department and by the day.
From this journal come your averages such as machine sales and repair
labor.
This report can be done manually or on a computer. If done on the computer

the averages and totals can be programmed into the report simplifying and
expediating your job.
- 17
) )
Cu~. ReceiPts keport NiJ'.1'lif< iYS:'
IIW.. ltlENI SALES DiAf;GEL T<£ClI \'(11 PAW ~, KEY CllLeilER tIl I£W KEY RITAIf< fill 1lACH1tt: KE¥ SEf<JICf KEY USE" til MeNI'" ,E,· ~!s::.. O~"AATri' .. !
!If,IE IOIH:. IAI ~ ACCIlJN; l»i ACCIlJNI OJI IfPOSIl QlII PARIS gl: IlACHII£S gl:. LABOO gl4 WIlhf<llNlIES QI~ PARIS gl6 ~ACIlIt.ES Ql7 ACCESSCJAIES gl~ I(; IAI 'OTolL
14&.42
3~J. ob
9,94
li .(li 9~.
.011
9j
.00
.(1lJ
.00
.(1(1
158.
271.~.a:
'0 ~
15
29.42
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119.0('
1:'9.((,
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.00
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8~. ~.,
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71;,B\ 19.se .(l(, .(~, .1.'\1,1 754.4: 6 181.~ 376.01.1 43,90 8,:,.(':' :0.9~ ni, 10,(1(' ,(1(, 7:l,.1
~ n~.~·) 4.61 .(1' .(1':, ,(Ill HUE I~ 57.5(1 .0(' b~. ~I) .(". ::.~" 'I,' .J' J:;.Q•.
1Q?47 ~i .~8 .1.'" .\,$:, ,(I" 848.'~ 4 31.12 b9i'.¥. 3i.q,) • (r,: 3".35 •i." ,'I(' 7'i7,4:
441.1.54 :'''.5~ .'}.' ,(1(: .(, ~ :~" \10 2l' 51.54 :'Cli.(h.: V .1)1) .()(. .(,,:1 4,1.\' I'),l.l:. ,t)· HI.',~.':'
!CIA;. 2"..au: I~:.,· . ~3. Q: .1.1\1 .(IV ~M~.. q(r ac' 39:.9; 1<::.0\' 1<' :'~.&. 5(, 8".1"(1 :0 I~,', Q•• ,(. 71'.\', ~.k:.;:~
~c;.so ::.~: ,0"" .\~' .\": ~:-. S~ I~ 3Y.8~ .lA' .(l,) .t,·:' .\.. , (" ?,~."t.
:,1 :C,.:i ~.::., ,til, ,'.I II. Q .. It ~e.- "'I .(),J .\1, "", ~.t" :
1I 34~. 9) lUi I. ,t· :~:.&: :' 55,~E 199.(10) ~I.~ 4(I.v( 2:', ~':' 0 ,("" .(~, ;, .. ::, ;~. o
I: 4bl.?:. .ttl.1 .l)", .0:' ~1:·.4E 8 23,~ ~~.O(, .O~, .(1\1 .(1\, 0 .:): 401.~
»
13 :AI.:l !1. Qj .(11' .(': .I)t., 5;5.1~ 8 I~. )9 448.0i' 24, 9~ 4~,.(I(l I:. ~.:. ,OC, I' 5~:'~~
en
101~
14 ~)~.e~
1~!.4:
~:.::'
12(1.5:· ,j".
• ~),.J
• (iiI
,Utl
.(11,1
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2072.1('
II 2Ii
'II!
81.8\
:!5S,b7
1'10.0\'
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)1.9,)
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,O~I
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J
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1~~I.C
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1< m,4:, 2:.2; ,~" ,\1(1 • (It.' 35l.7(, 33.n 2'1".1)1) 0 ,0<' ,()(, 0 .l\(' ,t>:, ,(1(1 0 r. 3~2. 4: :D
m
o m
17 :lU: Iu,e ,(",I .tKI .lli.' 249,(1(, 'n 101.02 89.0\' I 14. q~ .C(' I 9.9:' .0', IO.0(J 0 .(" m.9:
18 \BUf.; :\lHI .(It.l ,/)(' .(1) 511.1<; 10 52.95 :S~2.8(l 1 29.95 .00 3 78.1~ 0 .c.:. •(':' Q ,00 484.(:~
X
m.1l" 198.C 89,59
m ::x:
-
19 ~.5: .00 .00 .0\' 14 288.(') 3 91.75 .(l(, 2 3.~5 0 .l)(l .C>i 0 .(0\1 472.8\
......
(Xl
20
21
lOT At.
(ib.7(1
70(0.90
,70\.92
~,ClI
SU.98
Ib9.11
.00
.00
.(l(.
.00
.00
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.()(I
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442.t.l
811.91
2871.13
,I
19
9~
bB.OO
b~,. be
4(>'1.37
3
10
m.(l('
34b.(o(>
1613.8(;
I
0
b
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.00
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.()()
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0
II
b 9\.~
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0
5
5
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18.~
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311, '15
0
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.0<1
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Ilb.1(
7b l.9)
'
21(II.Q:
"tJ CD
-f
n ~~ IU3 .(\(, .0(, .(1(1 732,81 II 2O.b8 55<'.00 12.90 .00 75.'/(' 0 .\'1(, ,('(I bEU.
en -f
.0"
~ , ~I.M 2&.lb :30.8; ":J(, .«, 32~" 21 t~ 127.23 179.00 III.b~ .00 114.0< (, .()(; .0\; .(00) 531.91 C C
~
H
~SU I<.~ .C>(, .(\(, .00 4(i:.. 1~ Ib 71.8(, 129.00 132.85 .00 52.as (I .00 • (h) .00 330.51) O
190),0" 11.87 .0< .00 m.8) 17 :A. 39 0 .00 .00 22. 7~ ,00 .c'" 1'/(,.(19
C tn
27
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9").QI
.00 .00 1977.~?, 14
I 12.'15 3 WJ.oo
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28
IOTAL
185B.~
3b~.9b
118.18
216.n 2j:z,B'i 93.91 .()(I 3732.71 8()
123.e:;
m.~
7
13
139'1.00
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b
20
91.75
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.0<'
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30
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55. ()I)
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30 934.04 ~7.2?, .(}:.' .00 .00 991.27 13 b9.M 751.00 .00 80,0<' .00 .(l.'; 3~. 9~ .(I(J 931.114 r (t)
(t)
1:)
S'
CQ
TOIIO. 9}\,1\4 5;.:l .(1<, .00 ,('(J 991.27 13 69,09 751.00 .o~) 8(,,((1 .(0(> .(V' 33.~ IX' 9~;.(,1
Ro
IIEPAf<Ir(NI SALES CHilflIH RICE l'IEe PAIII 8I1NI C!WIER NE~ T<£PHlk SE"'J!C! US(O 1'\1:-1., Dt?";'-U"itST
IOIAL l~l or: A::a.": 01. I£:Wtd u.,1 IIEF'D,1i QlI PAA1S g,? IlACHINi5 0':. LAW< Oil IlAl'f:;;~mS CII~ f'AF'IS O'b t\iC.Hr~C::, t"7 A:::£5Sj~!£S a't I( 'I;' TO;AL :b
()
I1l»iIH 1183'·.22 71;.77 :m.&: 9~.91 ,l).l 1~~,10\.10 3~~ 1~24,~ 41 77b7.80 39 879.10 24(,.(1(, 50 blS.12 b3Q. ~ 12 11;.90 .00 I183J. ,2 ()
o
IHIS Slo<, AVfRAGE PfiICE f'£R SALE 4.32 IIl'Ub 22.~4 40,(1(1 12,7(' 71.0: 12.3l c:
AC(ESSUi':IES S'l.lI PeR vAClU\ .29 WAkf<ANIIES SOLO f'£f< VACl.llI .15 AVfko.GE I PEf< REP.Ii; 38.8)
....:::s
AVERAGE I PA/iIS f'£R REP;;IR Ib.29 S'
CQ
EXHIBIT E
Z TAPES
I
------------------------------------
_.-._-
1
_.
DAILY CASH R£J'ST 04/06/88 3:09PM
222#6876 A ;
(!hpJ,) STORE. I DAT£ 4- b 19 c:f.F i. VOID C

nOOOl ~Zl:f:
i fO.C
(CA) CASH
•
9P,C-4 VI) HGR C
fO.C
• 3S7 ,:iff"
(DlJJ CJEXS
Z1 1051
G13 , VD··TRN (
fO.O
(am BANKCARDS
• 3;;.4. 75 $()()()0523265.241
18.00Q!
RFND
$O.C
c
1CH3J 0fAR6E
• 9/ .:1.f 01*
R PART $49.501
VD (H)
$0.(
\ (
mAL CASH • CHARli£S • fst./ .d:} O~
6.11~1
2.00&11 RF (H) (
••••••••••••••••••• RVACS $449.851 fO.(
••••••••••••••••••• 55.~i
NDSAlE 1
VP CNT
fD9.~
(
&ROSS SM.£S. 03* 5.00Qi
RLAB $104.301
CUSTI1R 14
SM.£S TAl • t.I t/- •5"R 12.88'-[
NETIl $854.'::
04* 1.0001
TOTAL. P5"4i-. ;13 WARR. $40.00!

CASH po
r
4.94;;; . $103.t
05: 9.00Q!
REtEIVEJ 01 ACtlJUIIT (RnAI (PUIS) mAl + • ;2 5"..99 SRV/PT $67.00! A It
B.28:'i $B09.t
TOTAL rOlf THE 'A'.~ P7'7 .cJ3 06* 1.00Q: B (
tI.VACS $59.00: $0.(

••••••••••••••••••• 0 (
••••••••••••••••••• 7.~,i
07t 2.00Q! fO.(
CHAISE • 9/ .3b OCCESS $40.001 E
$D.(
(
4.94~:
PAID lIlT (PO) • S .w
.
t.t."tPID <
TL~ $809.65 ! J.
(USSJ mAL DEKTIDIIS <s qb ,~) $5.(

I 'I' , " II , , lilt' I , IIII • , , I , IIII IIIII t , , "'l , II , .. , t , I , II , , , I ., , , IIII , , I (-)1 (}Qi mRiA 1
$0.00 . $25.(
• £ PIS I T A" 1111. T (dltl.!ilLIf!.1 • II 7t'c;).. .B.1 U OQ CA/CHK
fO.(
(
""""11"""111""11"""'1111"""11'1'111""1111"""""'" • $0.00;
NET! $809.65 r
VS Hie '
naST $665.35 $324.7,
Nrn<l $44.58 CHARGE "
NET2 $854.23 $91.:::

WHSLE (
~ 00 fO.C
$0.00 D£CK 4
(-)F'lU OQ $359.4
SISIATURE = $0.00 UCID $9~.t
FURIIOOl 118:1 'iI., ~' ". :~.
- 19
COMPUTERS
In every situation, the first consideration to be made prior to purchasing a

computer is to determine what the computer can do for you on both a short term
and long term basis. Without the proper planning many people either overbuy
or underbuy systems which can never be used to their fullest potential. A
computer can be a costly capital investment and possibly a total loss if not
carefully planned for.
In most cases a vac shop does not need a computer. Most vac shops will
find that a well designed mantJal system will.be just as effective and far less
costly to operate.
There are however, many shops which have large gross sales, a large
number of receivable accounts and multiple locations that may consider the
implementation of a computer.
Before considering a computer all manual systems should be operational at

least four months in advance. These manual systems will be the same systems
the computer prints out and are assembled the same way for both manual and
computer operation. These manual systems should be maintained at least
three months after the implementation of the computer to serve as a back up
and checks and balances. It is extremely important for the operator and
manager to know where the information came from and how it was calculated to
properly understand the numbers generated.
Computers are costly not only from a dollar point of view, but also from a
time point of view in learning how to operate them.
Before purchasing, investigate not only the hardware but also the software
available for the system. Be sure that repairs on the system can be done locally
and in a timely manner. When purchasing consider insurance on the software
- 20
programs in case of accidental erasure. With regards to the software, be sure

that someone will be available to answer your questions when you get started.
The purchase of the hardware and software is the easy part. The hard part
is the programming of the computer to provide the information you want. This
can be costly, lengthy and very frustrating.
If you are still considering the purchase of a computer consider leasing time
on a computer first. Some cities have stores which lease time on many different
brands of computers. They allow you to use their software to set your systems
up and in most cases have qualified assistance to help you in learning how the
computer and programs work. These places also sell many of the systems they
lease time on and can provide you with greatly needed assistance after your
purchase (usually for a fee). By starting out this way you can bypass some of
the annoyances of purchasing the computer before knowing how it works.
Starting in this manner will allow you to have the programs and layouts up and
running once you do make your purchase.
WHAT A COMPUTER SHOULD DO
Some of the reports a computer should generate are a Cash Receipts

Journal, Profit and Loss Statement, an Accounts Payable and Accounts
Receivable as well as combining both the Accounts Payable and Accounts
Receivable into a General Ledger and Balance Sheet. The Accounts
Receivable package should generate statements, mailing labels and provide
aging reports. The Accounts Payable package might have in it the capability of
writing checks.
The computer should also be able to generate a mailing list to further utilize
your previous customer base. Be sure that the systems you install can print
mailing labels.
- 21
II.
INVENTORY
Inventory
INTRODUCTION
One of the basic areas of concern in any business is inventory. There are
many related aspects to inventory including purchasing, tracking, stocking,
pricing and other physical controls which need to be addressed.
In this section we discuss three topics in depth. The purchase order system
designed to aid in your control of inventory. From making sure you are
receiving the product you ordered at the prices you ordered them at, to
providing an accounting function from which to pay invoices.
An inventory control sheet to assist you in knowing immediate stock

availability in your store on a particular piece of equipment. This form will also
assist you in an accounting function by providing an actual cost of goods sold at
any given time.
A parts catalog that covers the basic parts selection common to most vac
shops. This catalog helps you maintain the percentage of profit needed for
everyday operation, consistency in pricing and credibility with your customers.
When combined, these three areas help form a purchasing philosophy to

assist in the decision making process when purchasing equipment and
supplies.
- 23
Inventory
PURCHASE ORDERS: WRITTEN OR

VERBAL?
In order to effectively operate your business, a purchase order system is a

prerequisite. With a purchase order (P.O.) system you are able to keep track of
who the order was given to, the quantities that were ordered, back orders,
correct pricing, payment terms and freight costs. This is not to say you cannot
operate without one. However, you can be much more efficient and rely less on
your memory and the integrity of the salesperson if you were to use a P.O.
system.
A P.O. number should be issued with every vendor order that you place.
This allows you to keep track of the items that have not been received and aids
you in preventing a reorder of that same item. It also aids you in accurate
billing, since it is much easier to match invoices with a P.O. that has been
prepared properly with all of the necessary information than to try and mentally
verify quantities and costs. This P.O., if signed by the salesperson, will help
insure that you pay only the amount that you agreed upon at the time of the
sale. Some companies will honor verbal prices on small items such as parts,
but the manufacturers of vacuums need something in writing in order to verify
your claim.
A P.O. should be in four parts: one to a numerical file, one for accounts
payable, and two for receiving. The two copies that go to receiving will help you
record what you actually receive. If you receive everything in one shipment you
can send both copies with the packing slip to accounts payable. However, if
some units were back ordered, you would send one copy up to accounts
payable with the correct amount received while the other copy would stay in
receiving until the rest of the shipment was delivered. The accounts payable
copy should be matched up with the two receiving copies and the invoice, and
all information should be reviewed .
• 24 •
Inventory
While you are probably following these steps without a written form already,
a P.O. from and system will eliminate communication errors and allow you to
help your business be more profitable.
THE PURCHASE ORDER FORM
To follow this detailed description of the purchase order (P.O.), see Exhibit A.
Item 1 contains your store name and address, the vendor's name and
address, and where you want the merchandise shipped
Item 2 contains the date of the order and, if necessary, the date that delivery
is required.
Item 3 contains who requested the product. For instance, if a hotel ordered
20 vacuums and you needed to place a special order with the vendor, this will
inform the bookkeeper why the oreer was placed. In the job number box, write
down the salesman's name who took the order.
Item 4 should list who you want to ship the product, if you are given a
choice.
Item 5 will let you know whether you must pay for the freight C.O.D. or if it is
prepaid by the vendor.
Item 6 contains the terms of payment for the merchandise on the P.O., i.e.
net 30/60/90 days, 2 percent/1 0 days/net 30, etc.
Item 7 lists the actual order. It includes the quantity, description, unit price
and extended price. At the bottom of the P.O., compile a grand total.
Item 8 is the signature of the person who authorized the purchase and, if
possible, the salesman's signature.
• 25 •
Inventory
This P.O. form only contains 9 lines. Be aware that there are many forms
available. This happens to be the one chosen for this discussion.
THE PURCHASE ORDER PROCESS
An effective way to keep track of your P.O.'s and vendor invoices is to set up
a three tier stacking basket. The top basket would be labeled "Orders Not
Received". This basket would contain the received P.O.'s with all supporting
paperwork. attached, that is, packing list and freight bill. The third basket would
be labeled "Invoices". This basket contains the vendor invoice waiting to be
matched with the information in the "Order Received" basket.
The P.O. form that is recommended contains four parts. Please reference
Exhibit C to follow the flow chart and this process.
STEP 1 - PREPARE P.O.
The order is originally written on a separate piece of paper, that is, if you are
placing a parts order you may keep a spare order sheet from the supplier near
the repair bench, and as a part is needed write it down on this paper. The
reason for this is that you can make corrections and write with greasy hands
because you are not going to file it, but it ultimately must be transferred to a P.O.
form.
STEP 2 - PURCHASE ORDER (P.O.)
In this step you must fill out the P.O. as completely as you can.
STEP 3 - BY P.O. NUMBER
The top copy of the P.O. is the original and after the P.O. is completed this
copy goes into a numerical file in your office.
- 26
Inventory
STEP 4 & 5 - TO RECEIVING/TO ACCOUNTS PAYABLE
Parts 3 and 4 are receiving copies and should go to your receiving file. Part
2 should go to accounts payable to the specific vendor file.
STEP 6 - RECEIVING GOODS
In this step the merchandise is received. In the case of vacuums (or large
ticket items), before the order is unloaded from the truck the P.O. should be
pulled from the file and matched up to the packing slip. It is here that large and
costly mistakes can be caught. When the shipment arrived, the quantity of each
item received must be written down in the columns entitled "Quantity Received".
Note Exhibit B. This is to verify that what was actually received coincides with
what was ordered and what the packing slip says. This column should also list
the units that were back ordered.
You must also complete the columns for: the day the order arrived, who
received and verified the order, and if the order was received complete or
partial.
The column listed "Carrier" should state the freight information that comes off
the trucking company's bill of lading. This information can come in handy if
there is a discrepancy regarding weight, total pieces received or freight
charges.
"Remarks" includes information such as if damages were incurred on any

piece, etc.
After the receiving copies have been filled out completely, they should go to
your accounts payable file if the order was complete. If the order was partial,
send the top copy of your receiving order along with the freight bill and packing
list to your accounts payable file and then you should refile the fourth copy back
into the receiving file. When the remainder of the order arrives, date the line
that shows the back ordered item, initial the line and send it to your accounts
payable file along with the freight bill and packing list.
- 27
Inventory
Now return to Exhibit C to continue the flow chart process.
STEP 7 - VENDOR INVOICE
When the vendor's invoice arrives, it should go directly to your accounts

payable file for that particular vendor.
STEP 8 - DOCUMENT REVIEW
Review the vendor's invoice for quantities, pricing, extensions and compare
against your original P.O. and receiving P.O.'s. This will verify that what was
ordered and received is what you were billed for.
STEP 9 - ORDER SATISFACTORY
In this step you decide whether the invoice is to be paid as stated or whether
there are discrepancies which need to be addressed.
STEP 10 - EXCEPTION PROCEDURES
If there are discrepancies, they need to be resolved as quickly as possible

so that the bill does not remain in question. Contact the party or parties
responsible and clear up the problem.
STEP 11 - AUTHORIZATION PROCEDURES
If everything on the invoice coincides with your P.O. and supporting

documentation, than the person authorizing the invoices to be paid should okay
the invoice for payment, attach all copies together (Step 12) and insert the
paperwork in that month's payables. (Step 13).
- 28
Inventory
As you can see, many steps are required to actually order, receive, verify
and pay an invoice. Naturally, these steps are already being taken by you even
if you are not using a P.O. system. However, to become more proficient and
eliminate errors, a good P.O. system is necessary to help your business grow to
the point where someone else can assist you.
. 29 .
Inventory
EXHIBIT A
PURCHASE ORDER FORM
YOUR STORE NAME

Show this Purchase Order
ADDRESS Number on all correspondence, f\Q.
CITY, ST, ZIP 'invoices, shipping papers and
packages.
DATE OF ORDER DELNERY REQUIRED BY
( 2)
TO REQNO. JOB NO.

( 1 ) VENDOR'S ADDRESS (3)
SHIP TO
(IF DIFFERENT)
' ./
SHIP VIA
(4 )
IF.O.B. POINT
I~) I I
ca.L TAX EXEMPT
DYEsDf'O
TAX EXEMPT NO TERMS
( 6 )
OlY. ORDERED
OlY. RECBVED STOCK NOJOESCRIPTlON UNIT PRICE TOTAL
1
2 (7 )
(TOTAL) $
9
1. Please send copies of your invoice.
2. Order is to be entered in accordance with ( 8 )
prices, delivery and specifications shown above.
3. Notify us immediately if you are unable to ship ORIGINAL Authorized by
as specified.
• 30 •
Inventory
EXHIBIT B
RECEIVING REPORT
YOUR STORE NAME

Show this Purchase Order
ADDRESS
Number on all correspondence, 1\ Q.
CITY, ST, ZIP invoices, shipping papers and
packages.
DA1£ a= Cf10ER DElNERY REQUIRED BY
TO FEQNO. JOB NO.
SHIP TO
,~----------/
SHIP VIA
I F.O.B. POINT I
ppo ICOlL ITAX EXEMPT TAX EXEMPT NO TERMS
(4) 0 YES 0 NJ - - - - - - P.==:o~=:o~""",,,,,,,,,"",,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.:-;o:wi

I-rQ~TY"':":',": O~R:":': D~E: :(R":v: E :=D:"R+I ': ~:'~:":")R:..:.::EC:::::EN::..::.::E::D::.-+
:'" . : ST~OC~.:.;K~NO~: JO~E: .s: .: c: .R.: ,: .PTlON. .:. :~!. . {;il'\1.11Itillllil~lljill
I-+--------.,..--------+------------------------{~~~~.~{~.~"l: ~~~. .'_"~{~~{~'!-~\,.t":~{...,,~{...~~{...~~J~~~{~~~·~;,~~ ....;,~~·~~~.~{~~.
1-2+ + + -t:~~~%~;~~~~ ~i~~1~~~@~~~~~~~~~~~~;~~;~
~~{,.~·~~~{;,~t~~{~t.~~{~~~::..;,'..~::.~{~::;.'.-~~~::.$~::..;t~{~::..~~::..$:
3
8 .~.•;,\...);,~ ....;~'j§.:;.~ ..;,t.~~.I;.'t~);,\•.•;..... I...~..;.\•.•;.",....;...~.•:..'t~ .•;.'l••I;.\...;,'"

f .......
f-9-+--------+--------+------------------------c~ljI$II~iIlllj~jII~I~'ijI~IIimljj1~jI~
Authorized by
DA1£ RECEIVED FREIGHT CHARGES I FREIGHTBUNO I NO OF PACKAGES

I~GfT I CARRIER
~
110 PARTIAL RECEIVED BY I REMARKS
1/ D~~' ~
\
\ RECEIVING COpy
Date
""Check Appropriate Box Your Signature Additional Info Freight Info
• 31
PURCHASING DEPARTMENT
Inventory
(1)
(3)
SJ§7
1----'7
Purch...
Order
(POI
(2) 2
(4)
(5)
(6)
(7)
VendOf
InVOICe
To Accounts Plylble (13)

Vendor
InvoIce
- 32
Inventory
INVENTORY CONTROL SHEET
As valuable as your inventory is your time. Inventory can be replaced, time

cannot. In an effort to keep an ever watchful eye on your inventory, in a timely
manner, an inventory control sheet will perform that function.
The basis of an inventory control sheet is to track the number of units of a

particular model that are in your store at any given time. And if need be, to
provide you with an actual cost of goods sold for the month.
An inventory control sh.eet, when used correctly, is an accurate way to

account for the daily, physical inventory by model number, without counting the
inventory 30 times per month. (This does not replace an end-of-month
inventory, which should be performed religiously.)
The included form can be duplicated and product line divisions can be
added to suit your own store needs. Be certain to list each identifiable model
separately. It is easier to track a particular item than one unknown item from a
group. That is, don't list all electric brooms under one heading. Use a specific
model number for each. If you are short one unit at months end physical
inventory, it will be easier to track the potential loss and minimize the actual loss
if one occurred by knowing which unit you are missing.
Here is how the system works. For convenience sake list all products of a
particular line together. All Hoovers under Hoover, Eureka under Eureka, etc.
To make things easier list the model numbers in ascending order or in grouping
orders. That is, all uprights in a group, canisters in another group etc. Do this
for lines in which you carry more than a couple units. After each model list the
actual cost, from the invoice. (Some dealers include freight, warehousing and
handling charges in this cost. Technically these cost factors are handled
separately on a Profit and Loss statement.)
- 33 •
Inventory
Column A lists the beginning inventory for the month of that item. This
column should contain the exact same numbers as column 0 from the previous
month (ending inventory).
Column B, purchases, are all units received the month for that particular
item. This could even be merchandise transferred from another of your stores.
Column C, sold, lists sales transactions recorded on a daily basis of that

line item. This would include customer sales, sales to another vac shop or
transfers between your own stores. Every time a piece of inventory leaves your
store, for any reason, an invoice should be generated to keep track of where the
unit went. Conversely, every time you receive a piece of inventory it should be
accompanied by a receiving copy or invoice to be entered on a daily basis in
column B (purchases). The easiest way to track sales on a daily basis is to use
tally marks in the column. At the end of the month count the tally marks and
write the number in at the end of the column.
By adding the beginning inventory to the purchases and subtracting from

this the quantity sold, (A+B-C=D), you can determine the ending inventory or on
hand inventory on a daily basis, without physically counting each product. You
may be thinking that the inventory control sheet and the month end physical
inventory are duplicate procedures. In actuality they provide a check and
balance system to keep track of your most valuable assets, your inventory.
The advantages of this sheet are threefold. Number one, it allow you to
keep track of all your inventory at any given moment.
Number two, it will aid you in placing future orders. You can look at last
month's purchases (B) and sales (C) columns to see at a glance what quantities
moved in any particular area.
Number three, this may aid you as a management tool in showing your sales
staff what areas they need to concentrate on or in setting sa'les quotas on given
products.
. 34 .
Inventory
For stores that keep their product inventory on a computer this form will
r---- r.
serve as a check and balance to the computer printout.
EXAMPLE:
A B C 0
MODEL COST BEGINNING +PURCHASES -SOLD =ENDING
INVENTORY INVENTORY
Hoover 123 50.00 6 a 1111 (4) 2
Hoover 456 70.00 10 3 III (3) 10
Eureka 789 50.00 6 a 1m (5) 1
Eureka 1011 70.00 10 3 I (1) 12
Pan 678 70.00 2 a I (1) 1
Pan 910 80.00 1 3 II (2) 2
- 35
Inventory
EXHIBIT F
INVENTORY CONTROL SHEET
A 8 C D
MODEL COST BEGINNING + PURCHASES SOLD = ENDING
INVENTORY INVENTORY
HOOVER 123 $50 7 3 IIII 6
• 36 •
Inventory
PARTS CONTROL
In today's business climate it is important for a dealer to increase his liquidity

and minimize his obsolete inventory. A minimum/maximum inventory system
keeps the inventory in stock that you need and restricts the inventory you don't.
A trend in industry is to maximize the number of turns and minimize dollars in

inventory freeing up capital. More and more companies are relying on just-in
time inventory control,. This inventory control process has been used by many
of us all along and we weren't even aware of it. It involves having inventory
arrive when it is needed and not sitting on a shelf waiting to be used. With
many of our suppliers being a day or so away our inventory dollars can be
utilized more intelligently. Liquid capital and minimal dead inventory are two of
the main advantages of this business principle.
So often dealers get caught in the "SPECIAL" trap that they go overboard in
their purchase and make it harder to purchase the product they need when they
need it. It's always nice to get the lowest possible price, but at the same time it's
not what you pay for the product that's important. It's the difference between
what you pay for it and what you sell it for and how many times you sell it that's
important. It doesn't do any good to buy something at half price if you can't sell
it or sell it quick enough to generate a reasonable profit.
We've seen many independent vac shops who make larger than normal
purchases to impress the people they're buying from. We know of one dealer
who didn't really need any product, but placed a substantial order so his
salesman could win a prize. Don't let incentives or personal feelings dictate
normal inventory levels.
Occasionally overbuying comes from ordering the same item every week.
Dealers become lazy and over buy the item so they don't have to order it again
next week. This stems from not having the needed basic inventory controls.
Become a large company in your mind and purchase more professionally and
sophisticated.
- 37
Inventory
Become more familiar with your inventory turns, order more frequently and
adjust your retail pricing to reflect your actual costs. When you overbuy, unless
it's something you really do turn alot of, you don't effectively save. The
additional profits are tied up in slow moving inventory.
If you're taking advantage of a parts special today our research shows that
the company will usually put it on special again in a couple of months. Either
that, or another distributor will have the same item on special next month at the
same price. This is an extremely competitive environment.. ..only buy what you
need.
The specials offered by manufacturers and distributors can often times be a

loading program, leader items or closeouts and generally appear to benefit the
manufacturer or distributor rather than the independent vac shop. On the
surface it may appear you are benefiting, but you still must sell the product in a
given time period to realize any additional profits.
Remember, when purchasing, don't look a gift horse in the mouth, but, at the
same time, remember what happened with the gift horse of TROY.
PARTS CATALOG
The parts catalog can be an extremely useful tool in the everyday operation
of your store. This catalog can assist you when pricing parts to ensure that you
are maintaining the profit percentages necessary for your business. The
catalog allows you to maintain consistent pricing to all customers. The catalog
also adds credibility to your pricing when used in front of the customer so they
don't think you pulled the price off the top of your head.
- 38
Inventory
The following parts catalog is the beginning for you to implement an effective
catalog in your store. All you need do is remove the catalog pages from this
book and place them into a binder. Fill in the price you sell the part for under
the retail column. If you find it convenient, add the replacement part number of
the vendor you are ordering from and a maximum and minimum quantity of the
part you feel you should have on hand. (Some of the genuine part numbers
have been changed since this catalog was printed, when found, make the
appropriate number changes.)
This catalog contains approximately 420 items of the most common parts
many vac shops sell. You will notice that Hoover and Eureka constitute the
majority of the parts with Kirby, Oreck and Royal filling up the remainder.
Obviously, this may not be the case in your market, but this catalog will serve as
an excellent base on which to build your own store's parts catalog.
As we mentioned, this catalog contains only 400 or so items. Do you realize

that 60-70 percent of your total parts business is probably done with just 72
items? That's only 18 percent of the total parts in stock!! These 72 items
represent the paper bag and belt sales made everyday. This is the area which
requires the bulk of your stocking dollars and an area which you will need to
keep at higher inventory levels.
The next area of concern is what we call counter parts. These are the items
customers may buy to repair the machine themselves. These items consist of
outer bag assemblies, brush strips and brushrolls, fans, cleaning attachments,
cords, etc. Very seldom do you ever have a customer come in asking for an
armature, unless they are a commercial account. These items represent about
20 percent of your parts sales and about 25 percent of your total stocking parts,
around 110 items. The stocking level of these items can be smaller than the
levels of your bags and belts.
- 39
Inventory
The remaining 10 to 20 percent of your parts sales are done in repair parts.
These 240 or so items represent bearings, wheels, motor brushes, motors,
armatures, etc. These items are the parts that you use when repairing the
customer's machine. In many cases the customer is willing to wait 2 to 3 days to
get their repair, so many of the parts can be kept at minimum levels. The basic
parts, like agitator bearings and motor brushes, would be stocked heavier
because of the continual use on many repairs. On the other hand an armature
for a Hoover convertible many only be used once a month so that inventory
level would be kept low.
Establishing maximum and minimum parts levels is very important. This

quantity level serves as ~ buying control function preventing you from getting
carried away when ordering. Nobody knows your store like you do. There are
some items which you may sell consistently that other stores do not.
Consequently, you will stock the items which move for you. When demand for
an item is low, your stock level on that part should be low or non-existent (0). As
a general rule of thumb on minimum inventory levels, if you sell one a month
stock two.
If you find an item moving rather quickly, then you should order more of that
item. It is recommended that on lower cost items, such as belts, you increase
the quantity ordered and not order as often. On the more expensive items it is
recommended to order the item more often rather than increasing the quantity
ordered. This keeps your inventory dollars in the quickest moving, less
expensive items that are usually not prone to market fluctuations. That is, it is
economically smarter to be sitting on 500 belts at $ .17 each than 15 motors at
$25 each.
Base the maximum quantity of a part on the quantity you sell in a two week
period. The two week period is used so you're not ordering the same part every
week. If, in that two week period you sell 4 of the item, a general rule of thumb
would be to stock 50 percent more than you sell. That means you would stock 6
of that item.
. 40 .
Inventory
A major consideration when establishing minimum/maximum levels in

inventory is that once the level is established maintain these levels until
consumer demand changes. To track any item efficiently, without a computer,
use an index card. Keep the index card in the box with the part. Whenever you
place an order for that part, write the date and quantity on the card. Over a few
months you will be able to determine whether to increase or decrease the
quantities of that item stocked.
By maintaining a minimum/maximum inventory system at a glance anyone

can place a parts order by bringing the quantity levels up to the desired
maximum levels.
CHOOSING A SUPPLIER
In evaluating a supplier there are several key factors to consider; fill rate
(depth), selection (width), delivery time and cost. In this system of inventory
control, a supplier who can fill the basic inventory needs (420 items) on a
consistent basis (95% fill rate) and in a timely manner (one to two days delivery)
are the primary considerations. Selection of multiple line products and
competitive pricing are also important. You will notice that cost is the last item
that should be considered. The reason for this is that the cost is passed on to
the customer. Parts are not usually shopped by the customer. Very rarely do
you receive a call asking what you sell a set of motor brushes for. Selection is
important more so from a repair aspect and for special order parts. As
mentioned earlier, most repair customers are more than willing to wait three
days or more for their repair. This is generally ample time to order any part not
usually stocked. Also, by ordering parts in this manner, you allow the supplier
to perform the function he is supposed to perform, that of a warehouse.
- 41
Inventory
STOCKING GENUINE vs. REPLACEMENT PARTS
A good case can be made either way regarding the use of genuine or
replacement parts. Many vac shops stock only genuine parts - others stock a
combination of both genuine and replacement parts. The problem lies in
determining the good replacement from the bad. One way would be to
purchase the replacement part and install it on a customers' repair. If the
customer doesn't bring the part back and complain then the part must have
been Okay. Right?? Wrong!!
Business is hard enough to get and maintain without sacrificing your

reputation when using inferior replacement parts. This isn't to say there are not
any good replacement parts. There are many. When considering replacement
parts ask another vac shop if he has had any experience with the part or ask
you supplier if he has had any complaints on the part. Generally, the supplier
will tell you if he has had many complaints. He doesn't want problems either.
•
Don't get caught in a price war between replacement and genuine parts
because as the old saying goes, "You get what you pay for". And in many cases
the difference in costs can be minimal.
If you are offering quality in your service, deliver it!!!
PRICING OF PARTS
The suggested list price on parts is established by the manufacturer so he

has a base from which to discount when selling to wholesalers (either vac
shops or suppliers). This price, when taken into consideration by the vac shop,
is a totally inaccurate selling price. There is no way that a vac shop today, with
his overhead and expenses can sell parts at suggested list.
- 42
Inventory
The average vac shop needs to work on a slightly higher margin of profit on
parts. The average vac shop marks his parts up 3 times and works on 67
percent gross profit.
Some smaller cost items, like belts and gaskets and fans, will receive larger
mark ups while more expensive parts like motors and electric hoses will receive
smaller mark ups. When averaged together these prices will yield 67 to 70
percent gross profit.
Bear in mind that very few people will actually shop parts. You will receive
calls on bags and belts and on these items you will want to be priced
competitively.
COMMERCIAL ACCOUNTS AND THE PARTS CATALOG
For those stores which do business with commercial accounts the catalog
you put together will change a little from the stores that don't.
The first change will be in the quantity levels of stock. Certain items like
brushstrips, brushrolls, dump bags, fans, etc., will need to be kept higher to
supply your accounts. Again, use the index card system to assist you in
establishing proper quantity levels.
Another area to change will be in the pricing structure. It is recommended

that from the retail prices you establish give a percentage discount to your
commercial accounts. If you mark your parts up 3 times by offering a 30 percent
discount to your accounts you can still maintain 50 to 55 percent gross profit on
the parts you sell.
The final page of the enclosed parts catalog should be used as a quick
reference for your commercial accounts. This sheet lists the most common and
popular Eureka and Hoover parts. Take the time to fill in the appropriate prices
( including the discount) that you will be charging for these parts. This sheet will
- 43
Inventory
save time for you later when calculating commercial prices. Also, if you copy
the page onto your letterhead it becomes a standardized pricing guide you can
give your customers for future reference.
- 44
PARTS
CATALOG
ABBREVIATIONS
REPLACEMENT GEN GENERAL R RIGHT

ADJ ADJUSTMENT GRD GUARD RCPT RECEPTACLE
AGlT AGITATOR GRN GREEN R3 REGINA
ARM ARMATURE GRV GROOVE RX REXAIR
ASSY ASSEMBLY GSK GASKET RY ROYAL
BCKT BRACKET HDL HANDLE SCR SCREW

BEL BELLOWS HLDR HOLDER SHFT SHAFT
BGE BEIGE HO HOOVER SM SMALL
BJ BOJACK HRTG HERITAGE SPC SPACER
BLDR BLEEDER HSE HOSE SPD SPEED
BR BRUSH HSG HOUSING SPG SPRING
BRG BEARING SPIR SPIRALOCK
BRL BRUSHROLL INC INCLUDE SQ SQUARE
BRN BROWN INS INSERT SS STRAIGHT SUCTION
BSE BASE STD STANDARD
BTM BOTTOM KB KIRBY STR STRIP
BTN BUTTON KN KENMORE STRT STRAIGHT
BUMP BUMPER SUN SUNBEAM
L LEFT SV SHOPVAC
LM LAMB SWT SWITCH
CAN CANISTER LWR LOWER
CINN CINNAMON
CLB CELEBRITY M MALE TRAD TRADITION
CLSC CLASSIC MM MIGHTY MITE TRAN TRANSM ISSION
CO COMPACT MTL METAL
COM COMUTATOR MTR MOTOR
COMM COMMERCIAL VG VIBRA-GROOMER
COMP COMPLETE
CONN CONNECTOR
CONQ CONQUEST NK NECK WI WITH
CONY CONVERSION NOZ NOZZLE WIO WITHOUT
CPT CONCEPT NS NEW STYLE '1'13 WING
CRBN CARBON WH WHIRLPOOL
CVT CONVERTIBLE WHL WHEEL
OEM ORIG EQUIP MFG WHT WHITE
OK ORECK
DBL DOUBLE OS OLD STYLE
OM DIAL-A-MATIC
PAN PANASONIC
EA EACH PO POWER DRIVE
EL ELECTRO-LUX PKG PACKAGE
ELEC ELECTRIC PLST PLASTIC
EU EUREKA PLT PLATE
PR PAIR
F FEMALE PTP PORTA-POWER
FLT FLAT PUL PULLEY
FK FORK
FQ FILTER QUEEN
FRT FRONT QUAL QUALITY
FT FOOT
FURN FURNITURE
~.
QUICK REFERENCE PARTS
ORDER # PART # DESCRIPTION RETAIL MAXIMIN
ARMATURES AND FIELDS
EU 21336-1 EU 2000 ARMATURE 36.95

EU 21336-4 EU 6.5 AMP ARMATURE OS 36.95
EU 26094 EU 1400 ARMATURE 25.50
HO 44768004 HO CVT ARMATURE 27.00
ATTACHMENTS
FA CARPET TOOL 9.49

FA BARE FLOOR TOOL 7.29
FA FURNITURE TOOL 3.10
FA DUST BRUSH 3.10
FA CREVICE TOOL 2.10
EL COMBO DUST/FURN-BEIGE· 4.19
EU 13491A-1 EU CARPET TOOL PLST NK NS 9.39
EU 34691-6 EU FURNITURE TOOL 4.19
EU 45947-6 EU DUST BRUSH 5.19
EU 23713A-7 EU CREVICE TOOL 3.10
EU 26002-3 EU BARE FLOOR W/O HOLE 10.95
EU 26002-1 EU BARE FLOOR W/HOLE 10.95
HO 48475051 HO CARPET TOOL 13.59
HO 43414072 HO BARE FLOOR BRUSH 11.49
HO 43414015 HO ALL PU RPOSE BRUSH 7.29
HO 43414060 HO DUST BRUSH 6.25
HO 43414058 HO FURNITURE TOOL 4.19
HO 38617020 HO CREVICE TOOL 3.10
BAGS AND BAG ASSEMLIES
CO CLOTH DUMP BAG· 6.95

EU VINYL BAG ASSY-BEIGE· 16.88
EU CLOTH DUMP BAG COMp· 19.50
EU MULTI FILTER-ALMOND· 27.50
EU 13711 EU MM BAG ASSY 15.95
HO 161997 HO PTP CLOTH BAG 8.95
HO 43678082 HO TYPE ASSY 24.95
HO TYPE C SHROUD-WIDE· 11.95
HO 334 CLOTH BAG W/POCKET· 13.95
KB CONV BAG ASSY-REO· 19.95
KB CONV BAG ASSY-BROWN· 19.95
KB CLOSED TOP DUMP-RED· 19.95
KB CLOSED TOP OUMP-BRN· 19.95
RY 2060640 RY CLOTH DUMP BAG 32.50
RY CLOTH DUMP BAG· 18.89
RY 3060642 RY CLOTH ZIP BAG ASSEMBLY 32.50
RY CLOTH ZIP BAG ASSEMBLY· 19.89
• 1 • * • REPLACEMENT PART
BAG HARDWARE
EU 52309 EU BAG SUPPORT WITUBE NS 6.95

EU 52261 EU BAG SUPPORT OS 3.95
EU COMM CONV RING" 7.95
HO 38673009 HO TYPE A BELLOWS 4.10
HO 38657004 HO TYPE A DIRTTUBE 4.10
HO 11064 HO CVT BELLOWS 3.95
HO 41424011 HO CVT BAG RING 3.95
KB 3 SLOT BAG RING" 5.95
KB 3 SLOT BAG RING GASKET" 1.05
BEARINGS
EL 30 BEARING" (39 KDD)

7.29
EL 30 COM BRG" (37 KDD)
7.29
608ZZ BEARING" (38 KDD)
7.29
EU 53114 EU VGI BRG
5.97
HO 12978 HO AGIT BRG OS-EA
2.25
HO 43267002 HO AGIT BRG NS-EA
2.25
KB 516 FAN END"
9.39
KB OMEGA FAN END BEARING"
9.39
KB COM END BEARING"
9.39
PANAGITBRG
7.29
RX COM END BRG-88011
11.95
RX FAN END BRG-88502
14.95
BRUSH INSERT STRIPS
EU 52140 EU VGI BR INS STR-12" PR 6.95

EU VGI BR INS STR-12" PR" 6.95
EU 52264 EU VGI BR INS STR-16" PR 8.95
EU 52278 EU VGI PN BR INS STR-PR 6.95
EU 52282-3 EU VGII BR INS STR-12"-PR 5.95
EU VGII BR INS STR-12"-PR" 5.95
EU 52246 EU VGII BR INS STR-16"-PR 7.74
EU 52988-1 EU EXPRESS BR INS STR-PR 6.95
HO 86679&80
HO 29 HORESEHAIR BR INS-PR 8.95
HO 33451&2
HO 63 SR INS STR-PR 8.95
HO REV HELIX BR INS STR-PR" 4.95
HO 48445015
HO CPT BR INS STR-EA 2.50
HO CPT BR INS STR-PR 4.95
HO STD HELIX SR INS STR-PR 4.95
HO 48445017
HO as PN BR INS STR-EA 2.50
KN SR INS STR" 4.95
- 2 - * - REPLACEMENT PART
BRUSHROLLS
EL3 ROWBRL* 15.95

EU WOOD BRL sa END* 16.95
EU 25812 EUVGII BRL sa END 23.90
EU 37558-1 EU WOOD BRL HEX END 16.95
EU 25763-1 EU VGII BRL HEX END 23.90
EU 49081 EU PN WOOD BRL-SMALL 23.90
Fa 103/4" BRL* 15.95
Fa 123/4" BRL* 15.95
HO 41435005 HO CVT AGITATOR 24.95
HO 48414003 HO CVT AGIT W/DOUBLE BR 31.50
KB 513/D80 ALL BRISTLE BRL* 19.95
KB CLse ALL BRISTLE BRL* 19.95
OK 016-1180 OK 8300 BRL 27.95
. RY 2059721 RY BRL CURVED HD 18.95
RY 2080221 RY ALL BRISTLE BRL 21.95
BULBS & PLUGS
STD TWO POLE BAYONET BULB 1.10
HO 27313101 HO LIGHT BULB NS 1.59

KB SINGLE BULB LIGHT POLE* 1.69
RY 880629 RY TAPERED BAYONET BULB 3.10
STD PLUG-MALE 2.05
STD PLUG-FEMALE 2.05
3-WIRE PLUG-MALE 3.66
CARBON BRUSHES
EU 25172A-1 EU 1400 CRBN BR-EA 1.95

EU 30478 EU 2000 CRBN BR-EA 2.95
EU 26055 EU 6.5 AMP CRBN BR NS-EA 2.95
HO 167681 HO CPT & ClB CRBN BR-EA 1.95
HO 47318020 HO CVT CRBN BR-EA 1.95
HO 12031 HO DM CRBN BR-EA 1.95
KA 118067 KB 516/80 CRBN BR-EA 1.95
KA 118076 KB ClSC & NEW CRBN BR-EA 1.95
LM 33308 LAMB CRBN & HlDR SHT WING 3.95
LM 33256 LAMB CRBN & HLDR LONG WING 4.50
LM 33309 LAMB CRBN & HlDR SMOOTH 3.95

OK 010-1171 OK CRBN BR-EA 3.00
RY 000324 RY UPR CRBN BR-EA 1.95
ORDER # PART # DESCRIPTION RETAIL MAX/MIN
CORDS
FA 30' CORD
8.35
FA 50' 3-WIRE CORD
22.50
EU 30' HANDLE CORD*
9.75
HO 30' CORD*
8.35
HO 46383195 HOCPTCORD
9.95
HO 31969 HO CORD PROTECTOR
2.95
HO 30' 3-WIRE CORD-BLACK*
11.85
KB 32' CORD-BLUE*
9.95
KB 32' CORD-BROWN*
9.95
KB 32' CORD-RED*
9.95
FANS
EU 12988-1 EU 1400 LEXAN FAN 9.95

EU 12988 EU 2000 LEXAN FAN 9.95
EU FA METAL FAN* 12.95
HO 38755010 HO CVT LEXAN FAN 12.95
HO 38755003 HO CPT FAN 9.95
KA 1190789 KB 516/H RTG LEXAN FAN 12.95
KB 516/BRTG METAL FAN* 14.95
LM 31120 LAMB 5/16" FAN 9.95
OK A01-012 OK 4000 FAN 15.95
OK 014-3404 OK 8300/5000 FAN 15.95
RY 608004 RY LARGE HOLE FAN 14.95
RY 053004 RY SMALL HOLE FAN 14.95
FILTERS
CO DOME FILTER* 4.95

EU H&S MTR PAPER FILT (8)* 1.39
EU 26197 EU MM FILTER 1.05
EU 34679 EU FLAT FOAM FILTER 1.39
Fa 350787A Fa BAT FILTER 6.95
Fa 350450 Fa SECOND FILTER DISC .25
HO 12122 HO OM FILTER 1.95
LAMB FILTER ASSY 2.95
SV PLEATED 7" FILTER 7.95
HANDLES
OK 896-0273 OK 8300 TOP HDL 28.00

OK 016-9546 OK 8300 TUBE ASSY 16.95
HOSE CUFFS
1 1/4" TO 1 1/2" OPENING 2.05

EL MACHINE END CUFF* 2.05
STD 1 1/4" HOSE CUFF 2.05
TAPERED HOSE CUFF 2.05
1 1/2" TO 1 1/4" OPENING 2.05
1 1/2" HOSE CU FF 3.10
HO 13770
HO OM SHORT HOSE CUFF 2.05
HO 32288001
HO UPPER ATIACH CUFF 1.95
HO 170353
HO CLB MACHINE HOSE END 2.95
HO 12593
HO OM MACHINE HOSE END 2.95
HO 12704
HO OUTER HOSE COL WIO TIT 1.05
H012615
HO OUTER HOSE COL WITIT 1.05
RX HOSE CUFF 2.05
HOSES
SPIR HOSE/FT 1 1/4" 1.83

SPIR HOSE/FT 1 1/2" 2.45
EU 13655-7
EU ELEC STRAIGHT END HOSE 43.95
EU ELEC STRAIGHT END HOSE*36.95
EU 13655-2
EU ELEC HOSE W/BUTION 43.29
EU ELEC HOSE W/BUTION* 36.95
EU 13217-3
EU ELEC HOSE ELBOW END 91" 52.95
EU ELEC HOSE ELBOW END* 38.95
HO 161928
HO VINYL HOSE 12.95
HO 43433011
HO CLB PN ELECTRIC HOSE 43.50
HO 43433032
HO SPIRIT HOSE 43.50
MOTORS
EU 12605-4
EU 1400 SERIES UPPER MTR 49.00
EU 11073-90
EU 6.5 AMP - COMM 69.95

EU 13356-4
EU 6.5 AMP - NS 64.50
EU 13356-5
EU 5.5 AMP - NS 64.50
EU PN MOTOR* 27.50
HO PN MOTOR OS* 27.95
HO 43177006
HO PN MOTOR NS 44.95
LM 11630900
LAMB 1 STAGE 1 SPEED MTR 44.95
LM 11631101
LAMB 2 STAGE 1 SPEED MTR 74.95
OK 017-0116
OK 8300 MOTOR 64.95
OK 017-0119
OK 100C/200S MOTOR 69.95
SCRUBBER ACCESSORIES
FA LAMBSWOOL PADS-PR 6.95

FA FELT PADS-PR 4.95
SCRUBBER ACCESSORIES
FA SCRUB PADS-PR 4.95

FA STEEL WOOL PADS-PR 4.95
HO 19619
HO 4143 SCRUB BRUSH-EA 6.95
HO 48436008
HO 5019 SCRUB BRUSH-EA 7.50
HO 48437005
HO 4143 SHAMPOO BRUSH-EA 7.50
HO 15636
HO 5019 SHAMPOO BRUSH-EA 4.95
HO 18360
HO LAMBSWOOL PADS-PR 6.95
HO 18361
HO FELT PADS-PR 4.95
HO 18362
HO LIGHT CLEANING PADS-PR 4.95
HO 18996
HO STEEL WOOL PADS-PR 6.95
RG 900322
RG SHAMPOO BRUSHES-PR 18.36
RG 900320
RG All PURPOSE BRUSH-PR 18.36
SWITCHES
8 AMP TOGGLE SWT 4.97
PUSH BUnON SWT 4.97
EU 35220B
EU 2 SPD ROCKER HOOD SWT 5.95
EU 34825A
EU 2 SPD ROCKER HOOD SWT 5.95
EU 36052-1
EU 1 SPD HDL ROCKER SWT 7.95
EU 36056-3
EU 2 SPD HDL ROCKER SWT 7.95
HO CVT TOGGLE SWT OS'" 5.95
HO 28177004
HO CVT SWT SLIDE NS 3.95
HO 28179006
HO CPT 2 SPEED SWT 3.95
HO 12971
HO ClB/PTP SWT OS 5.95
HO 28177006
HO PTP lONG POST SWT NS 3.95
HO 28179013
HO POWER SURGE SWT
KB 080 CLASSIC ON/OFF SWT'" 9.95
KB OMEGA ON/OFF SWT-BROWN"'9.95
KB ClSC ON/OFF SWT-RED'"

9.95
KB 516 1 SPD SAF-T SWT'"
8.95
KB D50/CLASSIC SAF-T SWT'"
9.95
KA 134380
KB OMEGA SAF-T SWITCH
9.95
OK 010-8823
OK 8300 SWT
6.95
WANDS
FA PLASTIC WAND 1.95
FA METAL WAND 3.65
EU 23387A
EU CURVED WAND W/O BTN 4.95
EU 12808
EU CURVED WAND W/BTN 5.95
EU 23511-5
EU CURVED WAND END W/BlDR 5.95
HO 43453037
HO PLASTIC WAND 20" 5.25
HO 43453008
HO PN WAND LONG 20" 8.95
HO 434530Q5
HO PN WAND SHORT 17" 8.95
WANDS
HO 43466042
HO HOSE END PLASTIC 3.95
KB STRAIGHT WAND* 4.95
KB CURVED WAND* 4.95
BELTS
CLARK 500 V-BELT* 6.95

EL PN NARROW BELT* 2.95
EL PN WIDE BELT* 3.95
EU UPR-ALL MODEL BELT* 1.00
EU CAN PN MODEL BELT*
1.50
EU 210 UPR FLAT BELT*
1.50
FQ PN BELT*
1.50
GE U4 UPR BELT*
1.50
HO 49258 HO UPR BELT
1.00
HO 38528008 HO CPT BR DRIVE BELT
1.50
HO LARK & BAG BELT*
1.00
H0160147 HO PO BELT
1.50
HO 12471 HO OM BR DRIVE BELT
1.50
HO 38528009 HO CLB PN BELT OS
1.50
HO 38528011 HO CLB & SPIRIT PN NS
1.50
HO 38528013 HO CONQ NYLON V BELT
4.95
HO 38528507 HO SOVEREIGN BELT
1.50
KN 2 FAN UP BELT-USE GE U4
1.50
KN US UP BELT-USE EU 210
1.50
KB UPR BELT*
1.50
OK A03-030 OK 4000 BELT
1.50
OK 4000 BELT*
1.50
OK 010-0604 OK 8300/5000 BELT
1.50
OK 8300/5000 BELT*
1.50
P-200 PAN FLAT/LONG UPR BELT*
1.50
P-245 PAN 6000 SERIES (1 FLT/1 RND)
4.25
P-100 PAN CAN BELT*
1.50
RG ALL BROOM POWER HEADS*
1.50
RX OS-USE EU PN BELT
1.50
RX PN BELT NS*
1.50
RY 043260 RY UPR AND CAN BELT
1.50
RY UPR AND CAN BELT*
1.50
RY 501 & 503 BELT* 1.00
PAPER BAGS
HO 4010001A HO TYPE A PAPER BAGS (3) 3.45

HO TYPE A PAPER BAGS (3)* 2.50
HO 4010093B HO TYPE B PAPER BAGS (3) 3.45
HO 4010003C HO TYPE C PAPER BAGS (4) 2.25
ORDER # PART # DESCRIPTION RETAIL MAX/MIN
PAPER BAGS
HO TYPE C PAPER BAGS (4)* 1.20

HO 40100050
HO TYPE 0 PAPER BAGS (4) 2.25
HO TYPE 0 PAPER BAGS (4)* 1.20
HO 4010002E
HO TYPE E PAPER BAGS (3) 2.25
HO 4010007F
HO TYPE F PAPER BAGS (3) 2.25
HO 4010008G
HO TYPE G PAPER BAGS (3) 2.25
HO 4010009H
HO TYPE H PAPER BAGS (3) 3.99
HO 401001 OJ
HO TYPE J PAPER BAGS (4) 2.25
HO 4010028K
HO TYPE K PAPER BAGS (3) 3.75
HO 4010030L
HO TYPE L PAPER BAGS (3) 3.99
HO 4010037M
HO TYPE M PAPER BAGS (3) 3.99
HO 4010038N
HO TYPE N PAPER BAGS (3) 3.25
HO 40100460
HO TYPE 0 PAPER BAGS (3) 3.25
HO 40'10013W
HO TYPE W PAPER BAGS (4) 8.50
EU 52238
EU TYPE A PAPER BAGS (4) 4.09
EU TYPE B PAPER BAGS (3) 3.99
EU 52318
EU TYPE C PAPER BAGS (3) 3.25
EU 52220
EU TYPE 0 PAPER BAGS (4) 3.89
EU TYPE 0 PAPER BAGS (4)* 2.20
EU 52223
EU TYPE E&R PAPER BAGS (3) 3.89
EU TYPE E&R PAPER BAGS (3)* 2.50
EU 52320
EU TYPE F&G PAPER BAGS (3) 3.25
EU TYPE F&G PAPER BAGS (3)* 2.50
EU 52323
EU TYPE H PAPER BAGS (3) 2.59
EU 52234
EU TYPE J PAPER BAGS (4) 4.69
EU 44282-1
EU TYPE K PAPER BAGS (4) 6.25
EU 52242
EU TYPE L PAPER BAGS (4) 6.79
EU 52005-1
EU TYPE M PAPER BAGS (4) 6.99
EU 52045-1
EU 52326
EU TYPE S PAPER BAGS (3) 4.29
EU 52358
EU TYPE V PAPER BAGS (3) 3.99
EU 52332
EU TYPE W PAPER BAGS (3) 3.00
EU 52339
EU TYPE Z PAPER BAGS (3) 3.99
EU 52230
OK 2001-1
OK 4000 PAPER BAG (1) 1.25
OK 2001-25
OK 4000 PAPER BAGS (25) 25.00
OK 5001-1
OK 8300/5000 PAPER BAGS (1) 1.25
OK 5001-25
OK 8300/5000 PAPER BAGS-25 25.00
OK XL85-12
OK XL85 PAPER BAGS (12) 8.95
OK BF2175-12
OK 2175 PAPER BAGS (12) 8.00
OK T960-10
OK PT57 PAPER BAGS (10) 9.95
OK MV24
OK BB180 PAPER BAGS (12) 4.50
K-E 19067903
KB STYLE I PAPER BAGS 4.79
KB STYLE I PAPER BAGS* 2.95
KB 19068103
KB STYLE II PAPER BAGS 4.79
PAPER BAGS
KB STYLE II PAPER BAGS* 2.95

KB 19068403 KB STYLE III PAPER BAGS 4.79
KB STYLE III PAPER BAGS* 2.95
RY 080147 RY UPR PAPER BAGS (4) 3.95
RY 040147 RY PONY CAN PAPER BAGS (4) 3.50
FQ GRA50047 FQ FILTER CONES (12) 9.95
CO PAPER BAGS (12)* 7.95
EL QUAD-FILTER BAGS (12)* 7.95
EL 30 CAN PAPER BAGS* 2.95
EL UPR BAGS (6)* 9.25
RG CAN BAGS* 2.95
RG UPR BAGS* 2.95
SILVER KING FILTERS (24)* 3.95
SHETLAND-LEWYT SPEED-SAK* 1.95
SHETLAND-LEWYT 800 BROOM* 1.95
SV VACUUM BAGS 1.95
P-937 PAN UPR BAGS 2.95
PAN UPR BAGS* 2.95
P-932 PAN CAN PAPER BAGS (3) 2.95
PAN CAN PAPER BAGS (3)* 2.95
KN 5011 PAPER BAGS* 2.95
OK 4000 KN 5024 BAGS 1.25
SUN 630 PAPER BAGS* 2.95
SUN CHLNGER PAPER BAGS* 2.95
AIRWAY SANITIZER* 4.95
GE U4-U5 PAPER BAGS* 2.95
GE U8 UPRIGHT HARD CASE* 2.95
GE MV-1 USE EU W BAGS 3.00
FAIRFAX FILTERS* 2.95
FAIRFAX PAPER BAGS* 2.95
EUREKA UPRIGHTS
EU 25922-1 EU BOnOM PLATE DEEP DISH 8.95

EU 31923A EU LOWER MTR BRG PLTASSY 15.25
EU 35991A EU 1400 LWR BRG PLATE ASSY 13.95
EU 1400 TOP MOTOR BRG* 7.95
EU 42875 EU LOWER MOTOR BRG 9.25
EU LOWER MOTOR BRG* 8.25
EU 40999D EU SHORT BELT PULLEY 2.59
EU 30517 EU MOTOR GASKET 1.05
EU 52390-1 EU HDL SKT ASSY-CHROME 14.95
EU 52363-2 EU HDL SOCKET ASSY-WHITE 14.95
EUREKA UPRIGHTS
EU 36968 EU BAG SUPPORT GASKET 1.05

EU 10180M10 EU STD UPR FURN GUARD-WIDE 8.15
EU 36999-3 EU NARROW FURNITURE GUARD 3.95
EU 35858-1 EU REAR WHEEL NS 1.95
EU REAR WHEEL OS· 1.95
EU 24834A-1 EU HDL RELEASE NS 3.95
EU 12601-8 EU 2042 LENS 4.85
EU 12600-14 EU 2070-1458 LENS 5.95
EU 13433-9 EU 1428-5070 LENS 3.95
EU 12562-1 EU SIX POSITION KNOB 1.95
EU 24882A-1 EU FOUR POSITION KNOB 2.50
EU 25942 EU VGII ENDCAP BALL BRG 1.95
EU 26057A EU 686 BRL ENDCAP 2.25
EU 53066 EU RUBBER CAP COVER .69
EU 26058A EU VGI HEX BRL ENDCAP 2.25
EU 25759 EU VGII BRL ENDCAP BUSHING 2.25
EU 26243 EU 2720 ROUND BRL ENCAP NS 1.95
EU CLOTH BAG CLAMP ONLY· 4.95
EU 47722 EU BAG SPRING INC 1.95
EU 138331 EU CORD HOOKS.,LOWER CORD 1.95
EU 138201 EU CORD HOOKS-UPPER CORD 1.95
EU 25377-3 EU CORD HOOKS-LOWER W/GRV 2.25
EU 25378-3 EU CORD HOOKS-UPPER W/GRV 2.25
EU 13154-1 EU COMM CORD HOOKS-LOWER 2.95
EU 13153-1 EU COMM CORD HOOKS-UPPER 2.95
EU 36964-1 EU CORD HOOKS-SWIVEL 2.95
EU 52360 EU PO CABLE ASSEMBLY 9.95
EUREKA CANISTERS AND POWERTEAMS
EU 25435B EU BOnOM PLATE PN CLAMP 11.95

EU 25406 EU PN WOOD AGIT BRG 3.95
EU 25950 EU VGII PN AGIT BEARING NS 4.55
EU CAN BAG SEAL GASKET* 2.95
EU 25167-1 EU PN SHORT HOSE 3.95
EU 36769-5 EU PN HDL SOCKET NS 4.95
EU 25014-2 EU CAN FIN-SMALL 1.95
EU 12940 EU STRT MACHINE HOSE END 4.71
EU 45132 EU INNER SLEEVE 1.38
HOOVER STANDARD UPRIGHTS
HO 42934002 HO CVT TOP MOTOR BRG 6.95

HO 19829 HO CVT BOTTOM MOTOR BRG 7.95
HO 43267006 HO CVT 8MM BOTTOM BRG NS 7.95
HO 42246008 HO CVT BTM PLT-METAL BASE 12.95
• 10 • • • REPLACEMENT PART
HOOVER STANDARD UPRIGHTS
HO 42246038 HO CVT BTM PLT-PLSTC BASE 12.95

HO 41416030 HO CVT HANDLE BAIL 10.95
HO 35064 HO CVT HANDLE BAIL W/SWT 10.95
HO 43147066 HO CVT HANDLE RELEASE 2.95
HO 161514 HO CVT HEIGHT ADJ CAM 2.95
HO 161511 HO CVT HEIGHT ADJ LEVER 2.95
HO 33141015 HO CVT AXLE GROOVE SHFT NS 2.95
HO 12985 HO CVT THREAD GUARD 1.95
HO 49180 HO CVTTHREAD GUARD W/SPG 1.95
HO 35463002 HO CVT HANDLE RET PLATE 1.05
HO 34350 HO CVT EARLY MODEL VALVE 1.95
HO 12230 HO CVT RUBBER HDL GRIP 2.95
HO 34484 HO CVT FEMALE HDL PIGTAIL 2.95
HO 23296 HO CVT MALE HDL PIGTAIL 2.95
HO 38532009 HO·CVT MOTOR PULLEY 1.98
HO CVT BUMP STOCK WHT/FT* .79
HO 1060 LENS* 2.95
HO 38521041 HO CVT REAR WHEEL 1.89
HOOVER COMMERCIAL
HO 41416010 HO COMM 7045 BAIL W/SWITCH 12.95

HO 41416037. HO COMM 1069 HANDLE BAIL 12.95
HO 41424025 HO COMM BAG CLAMP 4.95
HOOVER DIAL-A-MATIC AND CONCEPT
HO 12059 HO OM COM END BRG 13.50

HO 12038 HO OM FAN END BRG 9.95
HO 42193004 HO CPT COM END BRG 8.95
HO 43588001 HO CPT FAN END BRG 13.95
HO 43431058 HO OM HOSE 4.95
HO 12090 HO OM MOTOR MOUNT-LEFT 2.25
HO 12089 HO OM MOTOR MOUNT-RIGHT 2.25
HO 38537002 HO CPT AGIT BRG HLDR PUL 2.95
HO 41435018 HO CPT AGIT ENDCAP 1.95
HO 41435021 HO CPT AGIT ENDCAP FLAT 1.95
HO 32175011 HO CPT MOTOR MOUNT-RIGHT 2.25
HO 32162003 HO CPT MOTOR MOUNT-LEFT 2.25
HO 38511002 HO CPT PIVOT BRG 1.95
HOOVER CANISTERS AND POWERTEAMS
HO 43461002 HO 3201 NOZ NK ASSY-BEIGE 8.95

HO 43482026 HO 3217 NOZ NK ASSY-BEIGE 4.95
HO 43468013 HO PN NECK OS 5.95
HOOVER CANISTERS AND POWERTEAMS
HO 43431016
HO PN HOSE-SHORT 2.95
HOOVER FLOOR SCRUBBERS
HO 164689
HO SHAMPOO TANK REPAIR KIT 8.95
KIRBY
KB 505/80 REAR & FRT WHL*

1.98
KB 516 UP BRG PLT ASSY*
9.39
KB 1CB FRONT WHEEL-BROWN*
1.98
KB 1CB HDL GRIP-BROWN*
10.45
KB 154870
KB 1CR RUG PLATE GASKET
2.57
KB 1CRJ1 B REAR WHEEL-BRN*
1.89
KB 186182
"_. KB SANI-EMPTOR FELT GASKET .99
KB 2CB FRONT WHEEL-RED* 1.98

KB 2CB HANDLE GRIP-RED* 10.45
KB 2CB REAR WHEEL-RED* 1.98
KB TRAD FRONT WHEEL-BLUE* 1.98
ORECK
OK 014-2663
OK 8300/5000 CONN ASSY
15.95
OK 013-2503
OK 8300/5000 COLLAR
2.25
OK 014-4828
OK 8300/5000 FAN HOUSING
24.50
OK 013-6977
OK 8300/5000 INTAKE PIVOT
12.00
OK 014-4829
OK MOTOR BRG & HSG
15.95
ROYAL
RY 285704
RY HANDLE FORK (EXCEPT 153)14.80
RY 259316
RY LOWER CORD HOOK 2.1 0
RY 259315
RY UPPER CORD HOOK 2.10
RY 004723
RY HANDLE FORK SPRING 2.10
RY 028574
RY REAR FORK & SHAFT ASSY 6.15
RY 285007
RY STANDARD REAR WHEEL 2.39
RY 285705
RY STANDARD FRONT WHEEL 3.69
RY 880705
RY DELUXE FRONT WHEEL 5.20
RY 080169
RY ADJUST-O-RITE 10.50
RY 608261
RY DRIVE SHAFT PULLEY-LRG 4.15
RY 285261
RY DRIVE SHAFT PULLEY-SM 4.15
RY 285270
RY BOTTOM PLATE 7.29
RY 024961
RY NOZ ADJ SCREW 4.79
RY 9149801
RY BALL BEARING PLATE KIT 17.19
RY 016307
RY LG SHFT SLV BRG (602) 15.19
RY 080207
RY LG SHFT SLV BRG (880) 15.19
ROYAL
RY 088007 RY METAL BALL BEARING PLT 17.19

RY 013107 RY SM SHAFT SLV BRG (801) 17.19
RY 060307 RY SM SHAFT SLV BRG (153) 17.19
RY 8013142 RY HANDLE GRIP-BLUE 2.10
BIN DRAWER PARTS
ORDER # PART # DESCRIPTION RETAIL
HOOVER
HO 385 HO HANDLE NUT AND BOLT .69

HO 215 HO AGITATOR FELT WASHER .25
H021345111 HO AGITATOR THRUST WASHER .25
HO 17207 HO REAR WHEEL LOCK RING .25
HO 12987 HO AGITATOR TRIANGLE CUP .25
HO 12988 HO CORD RETAINER OS .25
HO 13704 HO HANDLE LOCK WASHER .25
HO 18676 HO FIGURE 8 CORD RETAINER .25
HO 31148004 HO REAR WHL PLST SPC .25
HO 31162004 HO HEAT INSULATING WASHER .25
HO 160356 HO LARGE WIRE CONNECTOR .25
HO 13730 HO CPT REAR WHEEL LOCK RING .25
HO 27666702 HO WIRE CONNECTOR-SMALL .25
HO 34253011 HO CORD RETAINER-FLAT NS .25
HO 48982 HO HANDLE BAIL LOCK RING .25
EUREKA
EU 36874-2 EU PLASTIC HANDLE SNAP PIN .25

EU 45503 EU FOOT PEDAL RELEASE SPRG .69
EU 48336 EU PN AXLE BEARING OS .25
EU 49017 EU FIBER FAN WASHER .25
EU 5112631 EU METAL FAN WASHER .25
EU 55505 EU PN AXLE BEARING NS .25
EW 35106CC EU SCREW BAG TO BASE .25
EU 48868 EU HGT ADJ KNOB-SHLDR SCR .69
EU 47853 EU HOOD SPRING .69
EU 368901 EU PO NEUTRAL LOCK BUDON .25
EU 25988-2 EU HDL TUBE CONN-PLST 1.25
EU 49726 EU PO HDL CENTERING SPG .69
EW-3121014C EU BASE SCREW LONG-MOTOR .25
EW-3121 OT1 OC EU BASE SCREW SHORT-MOTOR .25
EU 37034 EU COMM ADPTR RETAINER SPG .39
EU HANDLE NUT AND BOLT* .69
ORECK
OK 014-1131 OK CORD WRAP BRACKET 2.70

OK 015-0456 OK CORNER BRUSHES 4.45
OK 013-2455 OK HANDLE CORD CLIP .95
OK 880-7014 OK CORD CLIP SCREW .25
OK 010-8418 OK BAG RETAINER SPRING 1.95
OK 880-6134 OK BAG RETAINER RIVET 1.95
OK 013-6980 OK SWITCH PLATE .95
OK 013-7360 OK CORD RETAINER (BASE) .75
• 1 •
BIN DRAWER PARTS
ORDER # PART # DESCRIPTION RETAIL
ORECK
OK 010-7713 OK INTAKE PIVOT FELT SEAL 1.50

OK 010-8423 OK BAG RETAINER SPRING .69
OK 880-5037 OK MOTOR NUT .69
OK 010-9605 OK MOTOR FELT WASHER .75
OK 010-9609 OK MOTOR METAL WASHER .50
OK 015-6983 OK BRUSH ROLL BEARING 6.90
OK 015-7728 OK BRUSHROLL BRG FELT SEAL .69
OK 010-7727 OK BRL BRG RUBBER SEAL 1.95
OK 010-8425 OK SPRING DETENT .95
OK 010-2942 OK SWITCH COVER 3.50
OK 880-7027 OK BASE PLATE SCREW .30
OK 010-7716 OK MOTOR SEAL-FOAM .79
ROYAL
RY 175053 RY CUP WSH STAND SHAFT OS .25

RY 065028 RYOILERCAP .49
RY 602053 RY THRUST STAMPING .25
RY 003011 RY FIBER THRUST WSH-COM END .25
RY 080103 RY CARBON BRUSH SCREW CAP 1.39
RY 005138 RY WHEEL WASHER .25
RY 801711A RY WHL RETAINER CAP-ALL MDLS .25 •
RY 003008 RY REAR WHEEL SPRING 1.05
KIRBY
KA 137067 KB HANDLE FORK SPRING 1.29

KA 1156 KB REAR BEARING FINGER SPG .39
KA 137073 KB 1CB & UP HDL FORK SPG 1.29
KA 137273 KB 1CB HDL FK SPG BUSHING 1.99
KA 136373 KB 1CB & UP HDL FK BUSH CLIP .39
KA 137556 KB 1CB & UP HDL FK SPG YOKE 1.29
KA 137879 KB 516 & UP HANDLE FK PIN 1.95
KA 134756 KB MTR HSG-FAN HSG RND SCR .25
KA135169 KB MTR HSG-FAN HSG FLT SCR .25
KA 122068 KB 1CR & UP NOZ SEAL O-RING 1.59
KA 110973 KB SWITCH LEAD WIRE W/CLIP 1.59
FITALL
WIRE NUTS-SMALL .25

WIRE NUTS-LARGE .25
3-WIRE CORD STRAIN RELEASE .29
2-WIRE CORD STRAIN RELEASE .29
·2·
III.
MARKETING
Marketing
INTRODUCTION
Industry figures indicate the independent vacuum dealer represents 9% of

all vacuums sold. In order to improve on this and increase your share it's
important that you understand how big your overall market is, who your
customer is and who your competition is. These factors play an important role
in your marketing strategy to develop an overall image in your marketplace and
capture your share.
Independent dealers have a tendency to throw up walls around themselves

and isolate themselves from the market. Because of this they never fully
understand or know, (they assume they do) what the customer wants. And
because of these walls, they don't realize how large an industry they are in or
realize the value of promotions that aggressively seek to bring the business into
their store.
Another important aspect of marketing is to carry the products the customer

is looking for. Many vac shops don't carry both of the major manufacturers.
This is important with recommendations and referrals from friends or family. It's
hard to overcome the objection of a referral when you don't carry the product.
Through the establishing of legitimate profitable steps within these lines, it
makes your job easier to offer alternative selections within each line.
- 45
Marketing
SUCCESS & SURVIVAL
What seems to be in store for the vac shop is to become an aggressive

merchandiser that has full representation. We believe that the old vac shop that
does not come of age will become extinct within a short period of time. This is to
say that the vac shop who has been content to sit back and wait for the business
to come to him may wake up one day and find himself out of work. Increasing
competition from various areas are depleting the vac shop's customer. New
and inexpensive units are replacing many repairs.
The store image goes further than just physical appearance and it's not just
a low price which determines your image. The image of the vac shop as the
specialist in the industry is a hard one to portray if you don't carry the product
and service the customer requires.
How does a customer perceive your store? One way to determine this is to
simply walk out the front door, turn around and take a good look at the front of
the store through the windows. The consumer will perceive your store in much
the same manner. Is it bright, cleaned and attractive or is it a dark, dreary
dungeon.? This perspective can greatly enhance or detract from your chances
of closing a sale.
The communication of this image to the consumer consists of store appeal,

proper model and price selection that the consumer wants and professional
service to assist the consumer in making a buying decision.
By aggressively marketing your store image you can begin to retrieve some
of the lost sales and get back on the road to survival.
- 46
Marketing
COMPETITION - THE PIE CHART
Below is a pie chart showing the approximate percentages particular groups

constitute regarding new machine sales.
26%
FURNITURE SEARS. PENNEYS.
STCfl.ES WARDS
18%
DISCOJNTEFIS
2 YEAR AVERAGE. 1985-1986; HOUSEWARES MAGAZINE
As you can see vac shops represent just 9% of the total machine sales
across the United States.
Who is our competition? Based on this chart it should be indicated by who

represents the larger percentage of the business. That is, the people who
represent the other 91 % of the industry.
If you want to increase your business and market share these people are the
prime candidates to pursue to accomplish your goal.
Sadly, but factually however, the independent dealer has perceived

themselves as their primary competition. This has led to price cutting on top
- 47
Marketing
line exclusive models and protected models which have traditionally offered vac
shops excellent percentages of profit. It's the vac shops who haye destroyed
the profits for each other on these profitable lines. No one else carries many of
these units bu~ vac shops.
Continually vac shops point the finger at the major manufacturers and
accuse them of destroying our markets, when the vac shops themselves are the
most guilty of this destruction.
To improve this situation it's important to realize that the independent

vacuum dealer should not be its own competition. Why pursue a small 9%
market when a huge 91 % opportunity exists for the taking? By realizing who
your competition is, it can -assist you in targeting your advertising and product
and model selection to pursue that 91 % opportunity.
If you take the price away from the mass merchandiser they have nothing left
to offer. If you offer the same product at the same price with service why would
the customer go anywhere else?
By looking at all the independent vacuum dealers together as one, they

would represent one of the largest retailers of vacuums. This is the avenue of
thought the industry must pursue.
Through working together in a more professional and businesslike approach

vac shops can immediately begin to recapture their fair share.
. 48 .
Marketing
MARKET POTENTIAL
In order to effectively improve on your market share it is first important to

understand how large your individual market is. By following this simple and
basic formula you may better understand the potential your market can
generate.
STEP 1 - Determine number of households in your market
Population + 2.7 people per household = Households
STEP 2 - Approximate number of cleaners sold per year in your market =

Number of households X 10%
STEP 3 - Multiply Step 2 X $213 (average selling price of new cleaner in

1987) = Dollar volume in your market
STEP 4 - Multiply Step 3 X 20% to = Accessory sales (hand vacs, floors

polishers, electric brooms)
STEP 5 - Indicators show parts, labor and used machine sales all =
Step 3 dollar for dollar
STEP 6 - Add Step 3, Step 4 and Step 5 for your total dollar Market
potential
This is a simple calculation and does not take into account income levels,
population density or other determining variables. It does, however, give you
an overview as to your markets potential.
Now that you have a potential, set a goal as to the portion of that dollar
amount you want to achieve.
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Marketing
CUSTOMER DEMOGRAPHICS
You can spend many dollars in varied advertising medias. You can make
up ads that you feel will appeal to everyone and run advertising programs on a
regular basis. But are you reaching the people you need to reach? Are you
really advertising wisely or are you throwing money away? Who is your
customer???
STATISTICS show that the primary buying market consists of women ages
24-44 with household . .incomes of $24,000 +. The secondary market consists of
.
women ages 35-54 with household incomes of $35,000 +. By finding
advertising medias which reach these people your' advertising dollars become
more effective.
Are you aware that 85-95% of your total business comes from a 5 mile
metropolitan radius? This will vary somewhat by local markets. By knowing
what the population consists of in your 5 mile radius you will know more
accurately how to reach these people.
A customer profile can be obtained which lists many important demographic

statistics on the population around your store. In this report you can get
statistics of population, households, number of people 'per household,
homeowners or renters, average income, average education level, occupation
breakdown and many other vital statistics to assist you in reaching your targeted
audience. This report will list the information for a 1 mile radius, a 3 mile radius
and a 10 mile radius. It will show you how concentrated the population is
around your store and how other vital statistics, such as income, increase or
decrease as you get further away. This is the same information stores like K
Mart, Dillards and shopping mall developers use when assessing a store
location.
If you are considering opening another store this information is extremely

vital in analyzing a locations' possibility of success or failure. The report will
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Marketing
give you most of the information you will need to make a sound business
decision on the stores location.
This report can be obtained through a company called National Decision

Systems. The report costs $50.00 with a $40.00 initial set-up fee. If you are
interested call 619-942-7000. Whether you get this report or not is up to you.
However, one thing you should do is to get a base data map of the streets and
zip codes for a 10 mile radius around your store. These can be obtained free
through any direct mail or zone advertising agency. With this map do a 3 month
plot of sales and services. Use one color pin on the map to represent sales and
another color pin to represent services. For the next three months plot, as close
as possible, the exact location of each of these customers. By the end of the
three month period you shoul~ be able to determine what areas need to be
targeted for reinforced advertising, whether through zone print advertising or
through direct mail. An aerial map would help determine how densely
populated the area around your store is so you do not waste advertising dollars
in a particular zone.
You may be saying "This is ridiculous! Why would I spend money to know
who my customer is?" The only thing we can say to this is "It's your business."
Whether it grows or not is solely up to you. By better knowing who the
customer in your area is the better you will know what to sell and how to
advertise it. If you, as vac shop owners don't become more aggressive and
businesslike and start taking sales back from the department stores and
discounters, you may become one of their customers.
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Marketing
THE PHYSICAL PLANT - STORE DISPLAYS
So often vac shops spend big dollars for store frontage and then don't take
advantage of it. They leave one of the biggest sales tools they have empty - the
windows. With high visibility stores window displays, painted windows (see In
Store Advertising - Painted Windows), banners, etc., are a prerequisite to a
successful store.
The store front is the first thing your customer sees, so what they see through
the windows is very important. Consumers generally consider the independent
vac shop owner as a specialist and an expert. This perception needs to be
fulfilled in the consumer's mind when they walk through the door. Impressive
displays, a comfortable and friendly atmosphere and a neat orderly showroom
will enforce this perception.
How many times have you visited another vac shop and had to step over
boxes and repairs to get to the counter. The successful vac shop uses his
showroom as a stage - a platform to perform. His store is structured in a manner
condusive to step-up selling and displays models and prices competitive in his
marketplace.
Draw attention to the models you want to sell by positioning them on the
floor in the center of the showroom. Other models can be positioned up off the
floor on shelves so as not to distract the customer from the featured model. An
effective way to display assorted models is to use varying sizes of modulars (the
larger sizes on casters). Modulars can be arranged and rearranged around the
store without having to be built anew. Cover the modular with the same color
carpet as on the floor to add a uniform look.
Another effective display would be a stack display. The stack display

creates an image of volume purchases which signifies to the customer a lower
price. Stacks can be readily changed to accomodate the inventory levels on
hand. This will give the store a new look each time the stack is changed. Stack
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Marketing
displays will assist you in your sales because they tell you what you have in
stock before you sell it and make the unit more accessible when you do sell it.
From an inventory point of view, stack displays assist in ordering and counting,
thereby telling you when it's time to reorder or time to sell that unit. Many boxes
have catchy point of sale material on the sides which make nice displays as
well as act as silent salesmen.
The color and lighting of your store is also important. Walls that are dirty and
cluttered and bare lightbulbs detract from your store image. If your're selling
machines to do cleaning chores your store must be clean as well.
The color scheme of the store should be comforting and soothing rather than
bright and bold. The customer must feel relaxed. The carpet should be of
uniform color and preferably the same· tDroughout with small throw rugs of
various heights. There should be an area of bare floor to demonstrate on as
well. Trying to recreate the customers home conditions will enhance your
opportunity to close the sale.
Many successful vac shops have a demonstration area set up away from the
hustle and bustle of the store activity to demonstrate top of the line cleaners.
This area has a small couch, table, lamp, etc., to again duplicate the living
environment of a home.
The sales counter needs to be placed as far back in the showroom area as
possible. The customer must walk through the whole store to get to the counter
to buy their bags, belts, etc. Strategically, place featured units in the center of
the walkway, so the customer cannot make a straight line approach to the
counter. This will ensure that they see these products rather than walk straight
through the store with blinders on, so to speak.
The walls are an excellent place to display product or create illussions.

Rather than displaying bags and belts on a turn style rack on the sales floor,
(taking up valuable display area), use pegboard painted with a high gloss white
paint. This will show off the bags more readily and allow you to stock a wider
selection of bags and belts and with more depth on the wall.
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Marketing
The illusion part can come in the form of mirrors. Mirrors will create an
illusion of a larger store and brighten the store considerably. Displaying several
machines in front of the mirrors will appear to double your inventory, again,
creating a larger image.
A clean, neat, organized store will assist you in your step-up selling
techniques as well as create a better buying atmosphere for the customer.
Utilization of every square foot of floor and wall space will also make for a more
efficient store operation.
THE PHYSICAL PLANT - WORK AREA
The psychology of selling goes beyond the front of the store. If the total
working area is a shambles and in disarray it is hard for an individual to get "up"
for a customer when he has to go back into the dungeon when he is finished.
With a neat and organized work area it psychologically makes it easier on the
• salesman to wait on customers.
It is effective to break down the work area into four sections. The vacuum
repair storage area, parts storage area, desk and repair bench.
The vacuum repair storage area often gets messy when you are repairing 20
- 30 machines a week and it takes people several weeks to pick up the finished
repair. To organize this area, build a tee-wall with a shelf 4' high. This tee-wall
stands along an area in the back or center of your shop (depending on how
long your store is). It is constructed of 2 X 4's and particle board and will store
72 repairs on one side and unfinished repairs and trade-ins on the other. The
tee-wall has a 16' X 14" shelf 4 feet above the floor built along a wall. Out from
this wall at the center (8 feet in), build an 8' x 8' frame of 2 x 4's with a shelf on
either side, 4 feet above the floor. Between the floor space and shelves you will
be able to store at least 36 machines on each side.
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Marketing
To organize your parts storage, build 8 foot sections of shelves out of particle
board. Space the shelves at one foot intervals going up from the floor. This will
give you 5 - 8 foot shelves to store parts on plus a shelf at the top to stock
overflow parts.
On the shelves use bin boxes which come in sizes of 2" to 12". On the front
of the bin box put the part number, description and the quantity you want to
stock. This helps speed your order placing process by not having to look up
part numbers on all items.
For those items that you ordered in on special and won't fit in the bin box,
use the top shelf. Somehow put a mark on the bin box to remind yourself that
there are more of that item in stock so you do not order it again. Also, label the
box on the top shelf with its contents. You may even want to make bin boxes for
used parts in either sections such as Hoover bags, Kirby handles, Eureka
motors or just by brand, like Hoover Convertible parts, etc.
Another area which is very important to a well organized shop if you do not
have an office area is a desk. The desk is used for paper work only. It is not
another repair bench or a storage shelf. The desk should be placed
somewhere near the center of the store either behind the parts wall or up front,
behind the counter. The desk should be as clean and clutter free as possible. It
is much easier to concentrate when working off a clean desk. Use the drawers
for filing invoices and bills, purchase orders, etc. that you have for the year. At
the end of the year pull them out and start fresh with the next year.
The most important area to keep neat and clean is your repair bench. This
area is a big money maker for most shops and should be as well organized as
possible to speed up the repair process.
The repair bench should be located as close to the front as possible for one
man stores. This saves walking time when customers come in. The bench
should also be close to the repair parts, again, to keep your chasing time to a
minimum. To keep repairing as fatigue free as possible build the bench at a
comfortable work heighth. Make it deep enough to hold larger units (24") and
long enough to accommodate two repairs. Be sure to have a good light source
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Marketing
over the bench so you can see what you are doing. On the wall over the bench
install pegboard to hold your tools and check equipment. In the corner of the
bench put a shelf unit to hold spray cans, drills and bits, solder irons, etc. For
the common small items such as bearings, bulbs, carbon brushes and the like,
use a multi-drawer parts cabinet with each drawer labeled with its contents.
These parts cabinets keep the items clean and close by. Use another parts
cabinet to hold the many and varied convenience parts like washers, nuts and
bolts, clips, etc. that each manufacturer makes.
All of these things go a long way in making your attitude more sales
oriented. By keeping all areas of the store neat, clean and orderly, less time is
required in straightening and more time is spent in other more productive areas.
In the psychology of selling there are two very important aspects, the
environment and the individual. If you change your working environment to a
clean and orderly one you will be over half way there. Not only will your
customer feel more at ease in your store, but you will also feel more comfortable
knowing that things are in their place. And if you feel more comfortable you
have already started working on the second aspect which is yourself, the
individual.
WHAT LINES TO CARRY
In order for the independent vacuum dealer to position himself as a

specialist he needs to stock units the customer is looking for. This is not to say
these are the units he sells. A standard rule of thumb in any market should be, if
the customer asks about it, you should stock it. Stocking means to have at least
one for show and one to go, unless it's a unit you feel comfortable in selling.
Your stocking needs to be dictated by the manufacturers who are aggressive

in your marketplace. Whatever manufacturer is advertising and making
impressions on particular products are the manufacturers and product you need
to stock.
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Marketing
It's fairly obvious to most dealers that first and foremost they need to stock
the two major brands of Hoover and Eureka. Statistics show that these two
companies combined sell between 70 - 80% of all vacuums. For sake of
argument and not to offend either of these companies, let's just say they each
represent 35% of all vacuums sold. If you are not carrying one or the other of
these brands you conceivably are missing the opportunity to appeal to that 35%
group. That is, for personal reasons you may elect not to carry one line. To you
the line may be no good. But, if a customer calls you for a product in that line,
how do you intend to get them into your store to sell another product? You can't
bad mouth the product on the phone because the customer is interested in that
manufacturer's line. Personal feelings must be put aside in business. The
customer's desires are-foremq~t t~ your business. By not carrying that line you
will have little to no opportunity to sell that customer.
The two major lines are considered your traffic line and both companies offer
select step up models from which the dealer can make profit.. In addition to the
traffic line you need one, possibly two, specialty lines. It's very difficult to
aggressively sell more than two specialty lines effectively because you begin to
confuse both yourself and the customer with too many selections. In addition to
carrying more than two specialty lines you begin to lose clout with one or more
manufacturers because of sales being spread out and becoming insignificant to
them. You also may lose support of the sales rep, manufacturer's co-op dollars
(if any), sales leads and some exc!usitivity.
In selecting your specialty lines consider whether the manufacturer is doing

anything to bring new customers into your store. Also consider if the sales rep
can be of assistance to you in demonstration techniques, sales aids, point of
sale material and other forms of support such as advertising, exclusitivity,
product information, etc.
Once you've selected your specialty lines you need to develop advertising to
sell these units. This is where the sales rep will be of most assistance to you.
Besides the usual upright and powerteam selections consider carrying other
types of cleaners. An excellent opportunity exists in most markets to sell floor
• 57 •
Marketing
polishers. These units are not commonly available which will assist you in
maintaining attractive profit because of limited distribution. The floor polisher,
when used in your advertising, will also make your ads different from the
competition.
Hand vacuums, quick brooms and non-electric carpet sweepers all add to the
specialized image the vac shop is attempting to portray. Commercial
equipment which is compatable with the domestic customer is another example
of variety. And with 9 million units sold yearly, rechargeable units make for an
ideal selection.
If you have the capital to invest you may consider stocking one or more of
the door-to-door vacuums in your marketplace. Again, the philosophy here is to
have the product in your store that the customer is calling about.
Through all your stocking of different manufacturers and products within their
lines, 5 items will probably constitute 80% of all the vacuums sold in your store.
It's in these units that the bulk of your inventory dollars needs to be spent.
PRICING
The pricing of products in your store must be competitive in the marketplace.

Most successful vac shops and the vac shops of the future will carry the
products the consumer wants at a price more competitive than the competition.
This philosophy will get more customers into your store allowing you the
opportunity to sell more top of the line cleaners with better percentages of profit.
The compromise here, however, is that you will sell a certain amount of 10
20% profit items in order to sell 40 - 50% plus items. The shops who are doing
this are averaging 35% profit on new machine sales with significantly larger
dollar volume.
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Marketing
Your pricing must be competitive not only in the newspaper, but on your
sales floor everyday as well. One of your strengths in developing a business
that will continue to come back to you is not to sell products significantly above
market conditions even though we're all capable of doing so. More than likely
when the customer finds out they paid more than they should have you have
lost them forever.
On top of the line cleaners your pnclng must remain constant to all
customers in like situations. That is, to all customers who buy your top of the
line cleaner without a trade, for instance, the price should be identical. It is not
ethically proper to sell the same unit to another customer under the same
conditions at a different price. Being consistent to every customer can be used
as an effective sales tool and in the-handling of objections (see Sale - When the
Customer Says No).
Pricing on bags and belts must also be competitive. With many grocery and
discount stores selling bags and belts the need to be in line with their prices is
important. We talk of customers not usually shopping for parts purchases, but
on a common replacement item such as the bags and belts it's a different
situation.
Most successful vac shops are selling genuine products at a competitive

price which keeps the customer coming back. They come back because they
are satisfied with the product, service and price you provide.
The key to getting the customer into your store and to keep them coming
back is price.
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Marketing
EXPANSION
With regards to expansion it is recommended not to do it. At least not until

you've developed a proper business plan and laid the ground work for what it
will cost in operating expenses, advertising promotions, inventory start up, etc.
A wise man once said "There are three very important factors needed to go into
business. 1. Knowledge, 2. A business plan and 3. Capital. Without anyone
of the three the odds for failure escalate rapidly."
Consider this. Many of the more successful multiple operations of the past
decade are either struggling in business, have sold their business, are going
out of business or are out of business. For the most part multiple store
operations seem to have another thing in common and that is one main store
doing the bulk of the sales and making money with the outlying stores
syphoning the money out. There are a number of reasons for this including
improper management, under capitalization, overlapping markets and most
importantly, employees. The only real guarantee of opening another store is
increasing your expenses and liabilities with no guarantees of increasing your
sales.
There are successful multi-store operations around the country and we're
not saying that your wouldn't be successful opening another store. What we are
saying is that before you put your name on another multi-year lease you can't
get out of be aware that priority should be given to expansion of existing store
operations. It is much easier to expand current operations because you have
hands on control of supervision. It's easier to maintain because you don't have
duplication of inventories and leasehold improvements. And it's easier to adjust
to overall market fluctuations because operating expenses are tied to sales as
in wages and personnel.
. 60 .
Marketing
If your mind is really set on opening another store do a few things first. One,
develop a comprehensive business plan listing projected operating expenses
for the first two years, a break even analysis for the volume the store must do
just to meet expenses, a six month advertising budget and ad schedule,
leasehold improvements required including carpets, sign, product, parts, etc., a
projected cash flow analysis and the capital to back it up for six months.
Second, do a zip code analysis on your sales and service tickets to determine
how much business is coming to your store from the area of the projected store.
Generally, in order to help the store be a success you have to go to a

distinctively different market, which in some cases means a different city. When
this happens distance between you and the store becomes a problem in areas
like management and shipping of parts and machines. Be certain the individual
who will operate the store is extremely friendly in order to create customer good
will and is qualified to sell up off of repairs, parts and machines.
We mentioned that you need to plan a six month ad schedule. This is·
extremely important to get the new store up and running as quickly as possible.
Multiple store locations makes your advertising dollars more effective and
reduces the budget per store since it is split between them. If you don't plan on
advertising why open the store. Without advertising how will people know
where you are? You can't depend on Yellow Pages alone to bring in
customers.
When opening a new store you need to open in an area with an advertising
medium that can be cost effective and reach the majority of your customers
(preferably newspaper) and strive to locate in a higher income area. The
smaller population markets seem to be the easiest and most profitable areas to
expand in. Newspaper rates are usually lower and coverage more complete.
In opening a new location the site location is the most important decision on
the success of the store.
Find out where the population is. Generally, the population has moved from
the central city locations to the newer, more affluent suburbs. This is where the
• 61 •
Marketing
shopping trends are going as well. Locate your store in the higher income area
in the shopping pattern.
This brings up the different types of retail outlets available.
The one that doesn't seem to work well is a store located in a major mall. It's
difficult to make this location effective because you can't utilize the repair
department efficiently to make profits or to sell off into new machines. People
are self-conscious about dragging a repair through the mall to be repaired. In
addition some people just can't carry their units in or out.
A mall operation forbids you, financially speaking, from maintaining an

advertising program because your rents are ~o high. Theoretically, the mall is a
major draw unto itself and generates the traffic through convenience, variety
and selection. Remember that vac shops are a destination business and
customers don't use vac shops until they need them. Aggressive advertising
programs are much preferred over high fixed operating expenses, especially in
slow times.
A more feasible approach would be to look at the other three forms of retail
outlets.
The most desirable, in most people's minds, would be to own your own free
standing building which becomes an investment as well. It's difficult to find this
form of building in the newer suburban markets that would be cost effective.
You can easily tie your capital up in Real Estate and have nothing left for
inventory.
The third form of retail outlet is one located in a small strip center. The small
strip center usually contains less then seven retailers with no major tenant.
These centers generally have low operating expenses and should be your
second choice for a location.
Some premium things to consider in a strip center are street visibility and
convenient parking. With the transportation of repairs it is vitally important for
the customer to be able to park immediately in front of your door.
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Marketing
The prime choice location would be a community strip center. One which
services a 5 mile radius, that would be well known, have a major tenant and
other service businesses like a dry cleaners, beauty salon, etc. The rents in
these locations are usually higher than the smaller strip center, but still allow
plenty of flexibility to promote aggressively.
Before signing a lease some areas you need to be aware of are:
- Have an attorney review the lease
- Negotiate properly - almost anything can be negotiable
- The percentage of common area maintenance (CAM) in the center is

based on actual footage, not occupied space
- Sign a shorter term lease with options rather than a longer lease
- If possible don't sign a percentage lease
- Build in sales figures that are obtainable, but if not met in first or second
year can void the lease
- Ask about any major improvements that may be assessed against you
(parking lot repaving, facade replacement, landscaping, etc.)
- Ask for free rents (some up to 6 months) and leasehold improvements
Before opening another store consider your costs, then double it. This is
usually closer to the actual costs.
• 63 •
Marketing
LOCAL ASSOCIATIONS
Things are going to happen once THIS industry bans together and unites for
a common goal. John Hammond, a motivational speaker, says "There's no
elevator to success, you have to take it one step at a time."
The first step is to start forming local associations that can break down the
walls between dealers and manufacturers. The advantages of working together
creates opportunities which are unlimited, whether it be increasing sales or
decreasing operating expenses.
Local associations can be the backbone of all your efforts to reverse the
current market trends regarding the independent vacuum dealer and begin
change.
What is a local· association?
First of all, an association is not a group making demands on

manufacturers or suppliers.
The dictionary says an association is "an organized group of people who

share a common goal, activity or purpose." Form your local association around
this definition and identify each common goal, activity and purpose as it effects
your market.
A number of associations exist in the United States and new ones are being
formed at a rapid pace.
What Can an Association Accomplish?
An association can accomplish the uniting of our common goals in part

by forming efficient and aggressive advertising campaigns that will get
customers into your stores. With an association you can decrease your costs of
goods by sharing discounts that you receive and by pu~chasing together on
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Marketing
certain product lines. An association can also become a vital dealer structure
which will elicit manufacturer participation rather than demand it. An
association can help in lowering health insurance rates with a group discount.
How Can You Get Involved?
You can get involved by either participating in an existing association or by

getting an association started in your local market.
What is a Local Market?
A local market is one that shares a common advertising media. There can be
multiple local markets in one city, but there should only be one association per
city so as not to confuse the consumer or Ol,lr objectives.
How Do You Get an Association Started?
The easiest part is to get started. The hardest part is to keep it running. One
or---.
individual has to take the initiative to set up the meeting, contact local
manufacturer reps for support in attending and sharing the cost of the first
meeting, contacting local dealers and sending out invitations to attend. The
opportunity and attitude exists now with the independent vacuum dealer to
make it work.
The first meeting should be a "get acquainted" type of atmosphere not

only with the dealers, but also with the manufacturers and distributors.
Discussions should revolve around common goals, common problems and
common interest.
The next step is to form committees to keep the association operating.

Our research and experience has indicated that the success of the association
does not lie with a formal structure. In a formal structure three or four individuals
do the majority of the work. Only through participation and communication of
all members will the association succeed.
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Marketing
Committees need to be formed with all members participating in one or

more committees. If a dealer does not want to participate on a committee he
should not be in the association. We suggest that the first committee be an
administrative committee. These people are responsible for running the
meetings, setting the time, date, location and content of the meetings, informing
dealers of meetings and programs, collecting dues, record keeping and
checkbook functions and implementation of programs of the other committees.
The second committee is a creative or new idea committee. This

committee is responsible for getting manufacturers to attend meetings,
providing outside speakers, developing ideas to reduce owner operating costs,
lowering business expenses, (as in insurance, etc.), and setting up buying
groups to standardize and reduce printing costs, inventory costs, etc.
The third committee is the advertising committee. This committee is

responsible for ad promotions, dates and product. They develop and place the
ads as well as plan a one year advertising schedule. They are also responsible
to notify and advise each participator of upcoming ads with product selection
and price. •
There should be one individual in charge of each committee.
The following meetings should be to layout a one year budget in

advertising encompassing a local print budget and Yellow Page advertising. It
is important to establish this print budget for the basis of obtaining co-op.
Analyze which companies your association is currently doing business

with and anticipate which companies you will be doing business with next year.
These are the companies you should be seeking support from as they are the
companies you will be supporting. You can ask for the manufacturer's
commitment if you show them your program and the plans your association has
committed to. Get these manufacturers and suppliers to attend and support
your meeting.
A Yellow Page listing is important under the trade name you select. This ad
will identify the local members as well as reduce each members bud~fet in the
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Marketing
Yellow Pages. Now rather than seeing who can have the largest Yellow Page
ad let's see who can have the most practical one based on size and content.
- 67 .
IV.
SALES
Sales
INTRODUCTION
You can increase your business by being more efficient with your customers
and utilizing the sales tools available to you. It all starts with the telephone call
and continues from the demonstration through the closing of the sale.
The sale process can flow easier and be more effective when presented in
an orderly and professional manner.
This section is a broad overview of sales highlighting specific areas. It would

be highly recommended that you seek professional approaches and selling
techniques through local seminars and organizations or through professional
sales books.
. 68 .
Sales
PHONE QUOTING
Successful vacuum shops around the country get customers in their stores
through either advertising or phone calls. Advertising is an expensive gamble
that mayor may not payoff. The telephone costs very little and when handled
properly can be a tremendous money making tool. Statistics show the average
phone call coming into vac stores is worth $30-$35. The number of phone calls
received, is an excellent indicator of what the days business might be.
The general philosophy among some vac shops has been to not carry the
heavily advertised non-profit models, although these are the units most heavily
phone shopped. This presents a problem when confronted with phone calls
regarding price and model selection. The common response by the vac shop
when questioned about the heavily advertised units is that they "Don't carry low.
quality products.." In actuality what they mean is they don't carry the units they
can't make money on.
Successful vac shops not only answer the phone caller with a resounding
"Yes! We carry it!", but they also quote it at or below the lowest advertised price
in town. This is a sure way to get the customer into the store. Once the
customer is in the store the successful vac shop is prepared to sell the unit, but
very seldom does after "qualifying the needs" of the customer. The successful
vac shops never try to sell off the item in question on the phone. In order for the
customer to come in they need to feel comfortable with the person on the phone
and comfortable with the idea that they can buy the unit from you and save
money. They do not need to be confused by the salesperson trying to switch
them before they get into the store.
Another technique of phone quoting is to get off the phone as quickly as

possible. The longer you are on the phone with the prospective customer
answering questions, the more likely you are to say something the customer
does not want to hear.
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Sales
Phone quoting should be limited to the most heavily advertised units in the
marketplace and not the profit lines like Royal, Riccar, Miele, Oreck, Blue Line
Sanitaire, etc. When confronted with calls on these units, quote suggested
retail only and guarantee the customer that if they come into your store they will
get the lowest price in town.
Occasionally you will receive a call regarding a product line you may not
carry. By questioning the caller as to why they are interested in that particular
unit you can direct them to a product in the lines you do carry. Never kill the unit
they called on, but talk about the additional features and benefits your product
will offer them.
Another phone technique that works very well on a product you do not stock
is to answer "Yes, we have that product available to us for only $$ and would be
very happy to order it for you." The customer usually responds "Oh, you don't
have it is stock?" The reply should be "No mam, we don't, however it only take
3 to 5 days to get it in. By not stocking it, we can offer you a considerable
savings over everyone else. If you come in and put down a deposit we will be
happy to put it on order for you." This response usually gets the customer in the
store where you either sell the unit they asked for or qualify their needs for
another product.
With multiple store locations it is very common for a customer to cross-shop

your stores to see if the prices are the same. Occasionally, they will shop your
other stores after being presented with a demonstration of a product you have
an exclusive on or even after purchasing a unit. When a customer calls on one
of these units your response should be "Where did you see that unit?" The
customer will either confess they saw it at one of the other stores or their friend
has one. The only price quoted, if at all, should be suggested retail or the
established price of your stores, or reply that you don't quote prices on that
particular unit, but you do guarantee the lowest possible price.
To be successful on the phone you must shop your competition frequently to

know their prices. By competition we do not mean other vac shops, but the
mass merchandisers, discount houses and department stores which carry the
popularly advertised units. By knowing what their pri~es are you can stay at or
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Sales
below the lowest of them on those particular units. When handled properly the
customer's call to you should be their last.
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Sales
DEMONSTRATIONS
With the ever changing trends of our industry where the consumer buying
habits are shifting to the premium houses and mass merchandisers, it's
becoming a necessity for the independent vacuum dealer to increase his
average vacuum sale in order to maintain the type of gross profit necessary to
stay in business.
A vac shop owner is a door to door salesman in a retail operation. An

observation of door to door salesmen and successful vac shop owners reveals
that they have one key ingredient in common; they have a solid demonstration.
They use every sales tool and demonstration technique when presenting a
machine to the customer. In order to sell any unit which makes you substantial
profit you should be prepared to do the same.
Get your dog and pony show in gear to show the value of your unit and
create the desire of the customer to buy your unit. The only pressure the
customer should feel to purchase your unit is the pressure they put on
themselves to buy.
A demonstration is mandatory to every customer in order to increase your

business. These customers can be broken down into four categories:
1) Bag and Belt Customers
2) Walk-in Customer for a New Machine
3) Promotion Customer
4) Repair Customer
The bag and belt customer is someone who is in need of a part for their old
vacuum. When a customer asks for 'a' package of bags or 'a' belt, ask them if
they will allow you a couple of minutes of their time to demonstrate a particular
. 72 .
Sales
vacuum. In exchange for their time you will give them that package of bags or
belt free.
We all know that sales of anything is essentially a numbers or percentage

game. That is, for every X number of demonstrations you will sell Y number of
machines. So the secret is to demonstrate more to sell more.
Selling a new vacuum to any customer is one of perceived value. If your

customer can perceive the value of purchasing a new vacuum, versus
continuing to use their old one, they will buy.
The customer who walks in for a new vacuum is an individual who has had
prior experience with your store, a referred customer, or came to you because of
convenience. By demonstrating the top oj t~.e line cleaner first, after qualifying
their particular needs, you will increase your opportunities of selling the top of
the line cleaner or at worst the not so top of the line cleaner.
The third type of customer is the promotional or ad customer. The vac

shop's customer is not only the high-end or mid-range customer, but also the
low-end promotional customer. You need to appeal to all customers to get them
into your store and demonstrate the value of the top-line cleaners. When
promoting, you don't effectively promote high-end products to sell ....you
promote the low-end to sell the high-end. With your ability to advertise
aggressively, that is to advertise and promote products at price points below
market conditions, and your ability to demonstrate and service what you sell,
you offer many advantages for the consumer to come to you to purchase their
next vacuum.
The fourth type of customer is the one which offers you the best opportunity
to demonstrate and sell top-of-the-line cleaners.....the repair customer. This
area is covered in more depth in the Service Section under Selling Off a Repair
Into a New Machine.
Demonstrate often and demonstrate well should become your sales

slogan. The more you demonstrate the greater number of potential sales you
can generate.
• 73 •
Sales
Even if the customer is not able to purchase the unit you demonstrated at
that time, when they are in the market for a top-line cleaner, providing you
presented yourself and your store properly, they should come back to see you
first.
. 74 .
Sales
THE PSYCHOLOGY OF SELLING
One of the best ways to become a better salesperson is to read books

regarding sales. Two authors who not only have been very successful
salespersons, but also write easy to read and understand books are Zig Ziglar
and Og Mandino. Many of your have probably heard of these two men as well
as other fine authors. By reading their books and implementing their ideas,
suggestions and techniques you can become a more successful salesperson.
Throughout this section we will be referring to one of Zig Ziglar's books

Secrets of Closing a Sale, Fleming H. Revell Co., Old Tappan, New Jersey,
1984. This book is available from most major book stores and costs
approximately $17.95 in hardcover from. In this book Mr. Ziglar discusses
hundreds of closing situations, dealing with objections and one on one contacts
that can readily be adapted to any business involving selling.
There are four characteristics of a good salesperson, the first of which is

enthusiasm. Enthusiasm is easy enough to turn on when a customer comes in,
but do not over do it.
The second characteristic of a good salesperson is friendliness.

Friendliness should be genuine and not put on. "Begin by introducing yourself
and trying to get the other person's name. Using their name during your sales
presentation will make them feel more comfortable.
Non-offensive mannerisms is the third characteristic of a good salesperson.

This characteristic refers to personal hygiene and personal habits. Through
your personal appearance people will make the following ten snap decisions
regarding you.
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Sales
Your: 1) Economic Level

2) Educational Level
3) Trustworthiness
4) Social Position
5) Level of Sophistication
6) Economic Heritage
7) Social Heritage
8) Educational Heritage
9) Moral Character
10) Success
Each of these areas can be positively influenced by you if you dress neatly
and are well groomed.
Finally, we have product knowledge. This is the least important aspect of a

successful salesperson. The reason for this is that lack of product knowledge
can be overcome by the first three aspects and through trust. Granted you could
not go out and sell an item without knowing its general characteristics, but
specific details can be addressed at a later time or maybe not at all. We know of
one salesperson who did not know a Kirby from a Royal when he first started,
but was a top producer because he became friendly with the customer. Once
this relationship was established the customer usually bought what their "friend"
recommended.
We mentioned trust as being an important factor. In selling as in life you

need to trust in the person you are dealing with. People do not buy based on
what you tell them or what you show them. They buy based on the trust of what
you told them.
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Sales
WHY WON'T A CUSTOMER BUY?
There are five basic reasons why a customer will not buy.
1) No Need
2) No Money
3) No Hurry
4) No Desire
5) No Trust
The customer will generally give you a reason like "My wife is the one who
uses it. I'll bring her in.", or "I have to talk it over with my husband." You will
occasionally even get someone who "Is just Looking." But, if you can show and
tell the customer until the price of the item equals the value of the item in their
mind. it will make their decision making process easier.
Everything in sales revolves around persuasion. When a prospect says no

the odds are 100 to 1 that they will not change their minds. It's up to the
salesperson not to change the customer's mind, but to help them make a new
decision based on new information. For instance, if I said I had an item to sell
for a thousand dollars you may say no. If I said it was two years old you may still
say no. If I said it was a 1986 Pontiac Trans Am you may say yes. At no time
did you change your mind. You just made a new decision based on new
information.
The way to persuade a customer is not by telling them more, but by asking
questions and listening to the answers. Learn to ask specific questions which
will steer the customer to the right machine. Listen to their answers so you don't
sell them a machine which is completely wrong for their needs, even though
you make a larger percent of profit. By asking questions you will find out where
the customers needs are and then you can strengthen your presentation around
that need.
• 77 •
Sales
An excellent tool for a good salesperson is a cassette recorder. Tape your

sales pitch on a particular item. Try it different ways using different voice
inflections and pauses. Keep practicing this until you feel comfortable and
natural with the presentation with your customer. After the sale play the
recording back and listen for too much talk on your part, unrelated comments,
too many "ah"s, "you know"s, "umm"s etc., and voice waivering in lengthy
presentations. From this recording write out your sales presentation as you
actually made it. Then edit it down.
By following the next six steps your sales pitch will become more easy
flowing and natural.
1) Record Your Pitch
2) Listen to Your Pitch
3) Question Your Pitch ("Would I buy from me?")
4) Write the Pitch Out
5) Edit the Pitch
6) Practice Your Pitch
PREVENTING LOST SALES
One of the major concerns of all retailers, not just vac shops, is lost sales or
walks. A walk occurs when the customer has either not been assisted to their
satisfaction, as in not being waited on or has thought the value of the product
did not equal the cost, as in quality or personal taste. As a retailer of vacuum
cleaners and associated products our concern with walks is something we feel
needs to be addressed.
Where do you go when you have done everything right in your presentation
and the customer says no? How do you save the sale?
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Sales
SALES PRESENTATION
Let's review the beginning of your presentation. The customer walks in, you
welcome them to your store, introduce yourself and ask their name. Why do
This? It is much easier to carry on a conversation with someone when you
know their name and they know yours. By getting on a first name basis with the
customer you begin to break down the walls that separate the customer and
you. When the customers introduce themselves, use their name as frequently
as possible so you don't forget it. To help the customer remember your name
wear a name tag.
After the greeting. begin by asking questions. The purpose for asking
questions is to direct the customer to the machine that meets their needs. There
are five main questions that need to be asked of the customer before presenting
them a product. This helps reinforce in the customers' mind that you are trying
to direct them to the one machine best suited for them.
The first question to ask is whether the machine is for commercial,

household or apartment use. This question will direct you to the right area and
it also allows you to categorize the customer. That is, you would show a
commercial account a commercial vac, a renter either a mid-range or used vac
and a home owner a high-end vac. Let's pursue the questions, for now, based
on an answer from the customer of household use.
The second question would revolve around the house size, number of
rooms and type of carpet. This questioning helps to determine the brushroll
action required and the type of cleaning power required.
The third question is whether they have any hard floor surfaces to clean or
require the use of attachments. This question will direct you to a cleaner with
bare floor capabilities or good attachment power.
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Sales
The fourth question to ask is the type of traffic they have in the house,
specifically children or pets. This question helps decide whether to go to a
powerteam or an upright with a bypass motor system.
The final question to ask is what the customer is using now and what they
like or dislike about the machine. If the customer says they have a powerteam
and hate dragging it around the house but like the attachment cleaning ability,
you would show them an upright with good attachment power or a combination
package of an upright and portable cleaner.
It only takes a few minutes to ask these questions, but by asking them you
establish yourself as a professional, which helps the customer develop trust in
you. Many dealers have found that failing to ask anyone of these questions
greatly increases the risk of walking the customer.
If the customer had said they used the machine commercially to the first
question your approach changes but you still would ask questions.
The second question to them would be regarding the type of cleaning

operation, whether it is for a store, office, maid service or janitorial use. This
helps determine the bag system, brushroll and motor design.
The third question to help determine what machine to show them is how
large an area it is used for and how long the machine is to be used.
The fourth question to ask is who is using the machine, the customer or a
minimum wage employee.
The final question is asked to determine if there are any problem areas.
For instance, are they vacuuming up any large articles, using it outside or to
pick up water.
The validity of asking questions is obvious. By doing so you automatically

put the customer at ease. They will feel much more comfortable with you
because you are addressing their areas of concern and getting them involved
int the p"resentatioo.
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Sales
If the customer had said they lived in an apartment the questions would be
the same as a homeowner and directed at the type of cleaning they want to do
and how long they plan on living in the apartment. The response the customer
gives will direct you to a unit to suit their needs. If the customer says they only
vacuum once a month you could go to a used vac. For the customer who just
wants to get by you could go to a low to mid-range or used vac. For the
customer who anticipates moving into a house shortly, go to a mid to upper mid
range vac. Do not prejudge the apartment customer. Their needs may justify a
high-end vac. By asking questions you will be better able to assess their needs.
Now the questions are over and the customer says, "I want to see model
XYZ". You may feel you are stuck selling a highly advertised unit. Your
response is "t0a'am, by a~king tt.18se questions we are better able to sell you a
machine that meets your needs. Although that is a fine vacuum, and there are
many fine vacuums available, one thing you want to remember is that you are
buying clean floors, not just a vacuum".
CUSTOMER OBJECTIONS
What do you do when the customer says no? Some vac shops would give
the customer a business card with the model and price on it so the next vac
shop can close the sale. Did you ever wonder why profit lines are prostituted
amongst vac shops? Generally, it is because another vac shop could not close
the sale and the customer started calling dealers for a better price. As an
alternative, when you give a business card, write only a vague description of the
unit. That is, if you have demonstrated a Sanitaire 644, write only the word
Sanitaire on the card with the price. This makes it a little harder for the
customer to shop the unit on the phone.
The four usual negative responses given by the customer when you ask for
the sale are, "I want to think it over", "This is the first place I've looked", "I'm just
shopping", and "I want to bring in my husband (or wife)".
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Sales
The first three responses are usually price related. Let's face it, you don't
just decide to go into a vac shop and look around like you would for a pair of
shoes. When the customer comes in they are prepared to buy a vacuum and it
is up to you to close the sale, thus taking them out of the market.
For the customer who says, "I want to think about it" or "This is the first place I
looked" or "I'm just shopping", counter with the question, "Wouldn't you agree
that this is the vacuum which meets your needs?" If the customer says yes then
continue with the question, "If I could show you that this machine could not be
purchased for less anywhere in town and guarantee it there would be no need
to shop anywhere else, would there?" When the customer responds say, "We
have a price guarantee which states that if you find this machine priced lower
we will refund the difference." Again, ask for the sale and close.
OVERCOMING OBJECTIONS
If the customer states that the vacuum you recommended does not meet
their needs, you had better begin over again and find out what the customer
does need and what he didn't like about the unit you just showed them.
For those customers who have price as an objection there is a way to come
down in price without losing face. For instance you can tell the customer that if
they do not need to have the attachments now, you can deduct the attachment
cost from the price. If this is still too high tell the customer that if they take a floor
model they can save an additional dollar amount. Explain that you need to turn
your inventory and keep floor models fresh and that the unit was used for a few
demonstrations and still carries the full manufacturers warranty. If the price is
still too high offer to take a trade-in. And if the price is still too high go to another
unit with comparable features and benefits.
As an example, let us use the Panasonic 6225 at a retail price of $329 with
attachments. Your first drop in price is $30 for the tools, bringing the sales price
to $299. Your second drop is for a floor model lowering the sales price another
$25 to $275. The third drop is to give a trade-in allowance of $15, lowering the
sales price to $260. Your final alternative is to go to a 6215 and start over.
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Sales
By lowering the sales price in this manner you give your store and yourself
credibility and stand a better opportunity of making the sale. By arbitrarily
dropping the price the customer begins to wonder how much money you are
making and how much lower you will go.
A common happening in a vac shop is the customer trying to negotiate the

price by saying something to the effect of "What's your best price?" or "What
kind of deal can you make me?" One way to address this situation would be to
explain to the customer that your price is not negotiable unless value is
deducted from the machine as in the example above. In addition it wouldn't be
fair to that customer if your sold the unit for even less money to the next
customer.
This isn't to say you won't meet any legitimate offer or that you don't
guarantee the lowest price. You're just informing the customer that as a matter
of principle the price is the same to everyone.
The fourth objectio(l of wanting the husband or wife to see the vacuum is
either a legitimate excuse or a smart shopper. This objection is a hard one to
overcome. Your response should be "No problem. Take the machine home
and let your wife )or husband) see it. You don't have to pay for it now. All I
need is a Visa or Mastercard number to secure it." If the machine was
presented properly the husband or wife becomes your best salesperson.
Mentioning to the customer that you take trade-ins can also lead to an
objection. The customer may not have the machine with them giving them an
excuse not to buy right then. Your response should be that you usually allow
$15 for a running upright. Tell them you will take the trade-in value off the
purchase price and they can bring in the trade at their convenience .
. 83 .
Sales
ASKING FOR THE SALE
The hardest part of sales is not making the presentation. It is asking for the
sale or knowing when to close. Very often fear prevents us from asking for the
sale. Where is it written that you can't ask for the sale in the first minute?
Believe it or not the customer usually has decided yes or no on an item by this
time. If the customer says not give them the same information. For instance,
"Did I mention that this machine comes with the attachments?" We all know that
people only hear half of what you tell them and only process half of that. By
putting information in the form of a question you get the customer involved. It is
a little known fact that the first person to speak after you ask for the sale is
usually the owner of the merchandise.
There are several other good reasons to ask for the sale. There may be a
cost increase due next month, additional time may be required to bring in
another product, limited quantities are available and finally, the customer may
go somewhere else to buy. If the customer has taken the time to stop in your
shop, unless they truly are just walking by, then they are in the market to buy. It
is your job to take them off the market. ASK FOR THE SALE.
PREJUDGING
Another area where people in sales go wrong is in prejudging. Never

assume by the appearance of an individual or the vehicle they drive that they
can afford to spend only $65. Some people put no personal value in clothing or
cars and are considered eccentric. On the other hand some people put all their
values in clothing and cars and can afford nothing but the $65 machine.
Treat all customers as buyers. They have money to spend so never

underestimate the customer. Start at the best and work down. It's easier than
starting at the bottom and working up. Never assume it will be a small sale.
How many times have successful salespeople sold machines to bag and belt
customers? Always treat the customer as a base on which to build your
business.
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Sales
MOTIVATION
An aspect that aids tremendously in the Psychology of Selling is motivation.

Motivation is an emotion that is not permanent and must constantly be renewed.
If you are an owner or sales manager motivate your salespeople in the manner
which is most effective for them - either monetarily or emotionally. Some people
actually prefer a pat on the back occasionally for a job well done. Naturally you
could not afford a bonus for every sale, but an occasional something extra at
pay day will sure motivate most people.
Self motivation can be achieved by making that difficult sale, by customer

satisfaction with your service, by customer compliments and by the bottom line
at months end.
This discussion by no means touches all bases in the Psychology of selling,

but we hope it has helped you to better understand yourself as a salesperson
and the customers reasons for not buying .
. 85 .
Sales
SKU'S - SELLING UP
An aggressive dealer needs a back up line to sell up to in order to make a

profit from his advertising. This back up line must be within the advertised line
to make effective and sensible steps. The biggest problem to this is the large
number of models that need to be stocked. Through limiting the overall number
of models in stock you can free up your dollars, cause less confusion for the
customer and yourself and make the step-up process much easier.
Step-up selling within the model is an alternative to the multiple price line
steps of $79-$89-$119, etc. Through step-up selling within the model you can
accomplish much the same results as selling up within the line. The
advantages of selling up within the model are less inventory commitment and
giving you an exclusive unit which can't be shopped.
An area of concern for the independent vacuum dealer has been the low
end unit. Traditionally the step from the $59 vacuum is to a quality used
machine. A new machine step generally nets $15 -20 profit. Many vac shops
don't feel comfortable with the current steps available and are not content with
the small profit available in those steps. Other dealers don't feel they can
effectively step out of the sale item without losing the sale so they don't promote
the low-end cleaners.
Choosing a model in the same area of wholesale cost as the $59 model, but
offering a few more features and benefits over the low end like a headlight and
4 heigth adjustments, will allow you a more natural step. When choosing a
model try to select a unit that is not highly distributed or promoted.
By choosing the proper model, you step up within the model by adding a
multi-filter bag system and/or double brushroll. You can now offer the customer
significantly different features and benefits depending on their needs and
budget effectively creating the different step up units at different prices. (It is not
recommended to alter cord lengths due to UL ratings and manufacturer
- 86
Sales
warranties). What you are doing is adding features and benefits to an existing
model that offers an excellent value to the customer....one which they know they
can't compare because you've told them of the changes you are adding, which
allows you to make up to 40% gross profit on a sale item.
Repeat and referral business is very important. By selling a unit at a higher

price than in the marketplace, you stand to lose that customer forever. A
common rule of thumb is that for every vacuum sold, the customer will generally
sell two more if they are satisfied. You will have a greater opportunity to sell
additional units when you sell a unit not readily available at the competition .
. 87 .
v.
SERVICE
Service
INTRODUCTION
This section is totally devoted to service because it's one of the greatest
areas to increase your business at no additional expense.
This is done in two areas:

1) Selling the repair more effectively and keeping the customer happy.
2) Increasing business up to 100% by selling out of repairs into new machines.
This is a total program and you can't do one without the other.
Handling the repair customer more effectively is just one of the topics in this
section. This not only assists you in developing a better image with your
customer, but it can add greater profits to your business as well.
One of the biggest misconceptions of the independent vacuum dealer

industry is that the repair department is where the bulk of the profits are. The
independent vacuum dealer cannot survive or continue to thrive with this type of
philosophy. Although it's true that substantial profits can be made off repairs,
the repair business will gradually diminish due to cheaper and cheaper new
product introductions.
Although it may sound like a difficult task to step out of the repair into a new
machine, when done in a logical manner it will make sense to you and to the
customer.
- 88 •
Service
SERVICE
The repair department in most stores is generally considered to be the most

profitable and an effective way to sell new machines. The fastest way to
increase your business lies in the area of service. By making more efficient
usage of your repair customer, that is, step up selling on parts, you can
immediately increase both the average vacuum repair and gross profit on each
unit. By just cleaning and lubricating the machine you offer little real value to
the customer, except possibly extending the longevity of the motor. By offering
double brushrolls or multi-filter bag systems, etc. you now offer the customer a
definite advantage (value) in the service of their machine.
Let's look at another area which may be adjusted to increase your average
repair ticket. Th.e following list is an average of the labor and some parts
charges from across the country. By comparing your charges with the industry if
you are significantly lower you may consider raising your rates gradually to the
average.
LABOR RATES
VACS BELTS
AVERAGE GENUINE PARTS
AVERAGE
Standard Uprights $20.33 Panasonic 5510 $1.32

(Hoover, Eureka, Royal, Greck Kirby 1.12
Electro-Hygiene) Eureka Upright 1.10
Deluxe Uprights 25.98 Hoover Concept brushdrive 1.40
Hoover Dial-a-matics & Hoover Convertible 1.09
(Concepts,Eureka Self
Propelled,Kirbys,Panasonics)
Sticks 16.30 FANS
(Hoover, Eureka, Regina)
Shampooers 22.91 Eureka Lexan 8.31
(Hoover,Eureka,Regina) Hoover Lexan 8.17
Standard Straight Suction 19.91
(Hoover,Eureka,Regina,G.E. )
- 89
Service
AVERAGE GENUINE PARTS

AVERAGE
Deluxe Canisters 23.39 BAG ASSEMBLY

(Only)
Rainbow Rexaire 35.41 Eureka Vinyl 16.46
Power Teams 28.91 Hoover Type A 18.66
(Hoover, Eureka)
Deluxe Power Teams 31.72
(Filter Queen,Compact,
Electro-Lux,Kenmore, Royal) BRUSH ROLL
Power Head 12.16
(Only)
Commercial Uprights 30.36 Kirby Classic 14.75
(Clarke,Advance,Hoover Eureka Wood Hex 14.96
Concept) Filter Queen Long 16.05
SEW BRUSH STRIPS
Minimum Labor Rate 18.90 Hoover Reverse Helix 5.04

Sewing Machine 50.57 Eureka VGII 5.82
(Complete Repair)
Sewing Machines 15.86
(Tension Only)
BAGS
Eureka Type F & G 2.93 Hoover Type A 3.07
You may be comfortable with the rates you are charging, no matter how you
compare to the national averages. A very practicle way to determine if your
labor charges are in line with your expenses is to determine what it actually
costs you to service a vacuum. The first consideration, of course, is the labor
involved. Remember, not only do you have the actual hourly rate, but there are
other associated costs such as, matching benefits, FICA, withholding taxes,
workman's compensation, benefits such aS,health insurance, life insurance,
dental insurance, sick days and paid vacation.
In addition to this, what percentage of the overall store area does your repair
department represent? Take into account the areas where the repairs sit while
• 90 •
Service
waiting to be repaired and to be picked up. Figure in also, the area for parts
storage and the actual work area. In many cases this total area could exceed
50% of the total square footage of the store. Whatever the percentage, multiply
this figure times the normal operating expenses of rent, utilities and insurance,
plus add the full amount of the Yellow Page bill to the total. Add the associated
labor figure to this percentage total. Now divide this amount by the average
monthly number of repairs and you have the labor charge you need to break
even on services. This little exercise is an excellent opportunity to give you a
better perspective of what your business is all about. One basic requirement of
business is that any area of operation must pay for itself or you need to get rid of
it or adjust it accordingly.
On a whole, don't think you need to be competitive with your domestic labor
rates if you are providing a fair service and offer a good value to your customer.
Most repairs come from previous, referral, Yellow Pages and walk by customers
so they know who you are and they come in because you are convenient. If
they are happy with someone else you won't see them anyway. If the repair
customer is handled professionally and treated fairly there should be no reason
for them to compare your service and shop your rates. By and large most repair
customers come from a 5 mile radius around your store.
The commercial repair customer must be treated differently than the

domestic customer. Generally, many people aggressively seek the commercial
repair business. In this area you may consider becoming competitively priced
with the competition based on the services provided. If, however, you feel
based on the full service you provide you can't adjust your pricing then don't.
You don't need to do services to keep busy and not make money. If you can
adjust the service you provide to meet the price, then it becomes worthwhile to
you and profitable at the same time.
• 91 •
Service
USING AN EFFECTIVE SERVICE TICKET
One way to immediately become more effective with your service customer
is to use an effective service ticket.
Through many years of trial and error and several thousand repairs, there is
much to be said regarding the use of an effective service ticket. It can increase
your repair, eliminate problems and help sell new machines.
The service ticket shown at the end of this section, Exhibit A, is a two part,
numbered invoi~e using NCR (no carbon required) paper with a hard second
copy. It can increase your repair, eliminate problems and help sell new
machines. This ticket gives both you and the customer an accurate accounting
of the work performed and the parts used.
The hard copy is broken into three sections. A hard copy for your records, a
numbered tag to be hung on the repair and a claim check with the store name,
phone number and ticket number. On this receipt you can circle the day you tell
the customer the repair will be finished as well as write the make, model and
serial number for machine verification in case of confusion.
This ticket, since it is numbered, will also serve as a cash receipt eliminating
the need to write another sales ticket. This ticket is designed to eliminate
problems and serve as a sales tool.
To start with, you eliminate many problems by obtaining all the information
the first time. By getting the customer's name, address, city, zip code and phone
number, you will know who to contact and what number to call. With this
information you also have the start of an effective mailing list. Who better to mail
'specials' to than a customer who is aware of your services and store? The
hard copy of the repair ticket can be filed monthly. With this file you can
accomplish two main objectives. First, you can mail a birthday card informing
your customer that it is time to service their machine again. Second, should the
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Service
customer return at a future date without their receipt, you can quickly check
through the month they last brought in the machine for the copy. Since the copy
is hard it will be easier to file and is less likely to be damaged as are paper
copies.
By obtaining the make, model and serial number from the unit you will
eliminate any confusion when the customer picks up the repair or if the handle
tag falls off or is misplaced. With this repair ticket you now have three ways to
identify the customer's machine. 1) Name and address, 2) make and model
and 3) ticket number.
By using the date promised block you can assist your service department in
prioritizing their work.
If the unit is under warranty, by filling in the date of original purchase and
checking the appropriate box, (either warranty or contract), you can become
more efficient when returning the warranty parts.
Two areas for comments are provided on this ticket. The section on top is
used to report any specific customer complaint. The second section, near the
bottom, is reserved for mechanic comments.
This ticket is designed to start at the top of the machine and work down in a
logical manner. It is designed to assist the salesman in checking the most
common problem areas. This ticket is designed to primarily assist the
salesman in increasing the average repair ticket sale. Through step up selling
on parts, that is, going from an 18' cord to a 30' cord, a vinyl bag to a multi-filter
bag, a two brush agitator to a four brush agitator, etc., you can not only increase
your repair ticket averages, but you can also give the customer a valid option in
considering a new machine with those options and more already on it.
With the salesman selling the repair at the counter this frees your service
department from having to call the customer with an estimate. Also, with the
salesman selling the repair at the counter, you can get the customer involved in
the estimate and show them why a four brush agitator will clean better on their
- 93
Service
carpet versus the two brush agitator, etc. The customer can physically see and
feel the items you are trying to sell rather than imagine them over the phone.
Keep your repair ticket next to your sales counter and handy to retrieve
when needed. In your service area set up a four stage processing center for
your tickets. The first stage is labeled, "Work To Do". The second stage is
labeled "Estimates To Be Called". (This stage may be necessary for units that
come in not running or units that had more wrong with them than noted by the
salesman). The third stage is labeled "Waiting On Parts". The fourth stage is
labeled "Finished Repairs". With this four stage processing center all your
service tickets will have a place to be put and not float around the shop or
become jumbled in a big pile.
Additional information such as who completed the repair and when can also
be useful in shops with more than one mechanic.
A place for the customer's signature is provided. This can be used on

charge and warranty repairs to show who picked the unit up and what price (if
any) there was on the repair.
By utilizing a service ticket like this you will eliminate most potential
problems as well as increase your average repair ticket sale and your new
machine sales off of repairs.
Many shops have found the first step of selling repairs more effectively is to
do the estimate at the counter. The key to selling add on or step up parts is to
demonstrate the value of buying them in person. This way you are not selling
price, but value. Many vac shops prefer to call the customer with the estimate
and many are effective at doing this. The most effective, however, can increase
their average repair ticket 25% by doing the estimate at the counter.
The reason for this is that it is much easier to sell one on one or eye to eye
than it is over the phone. It is easier for the customer to understand why they
need the part you're describing when they can physically see and touch it. You
establish yourself as the expert because you can show them why their machine
. 94 .
Service
does not clean efficiently. By showing the customer the part and letting them
see why they need it you establish trust as well.
- 95
Service
SELLING OFF REPAIRS INTO NEW

MACHINES
The successful vac shops all have a few common denominators - one being
converting repairs into new machine sales. This can be your greatest area of
improvement because it allows you to increase your sales without increasing
your expenses.
Not only is your income limited by a repair, but so are the hours you have to
sell other vacuums because you are busy repairing. To turn a repair into a vac
sale you must establish a rapport with the customer when you take in the repair.
This will allow you to recommend options for the customer. Based on the
objections the customer has regarding the old vacuum, when presented with
the opportunity to purchase a new vacuum, many will.
The biggest key to selling up on repairs is to ask questions. Likewise, the

biggest key to selling new machines off of repairs is to ask questions. By selling
a higher repair ticket you create a better value for the customer to purchase a
new machine. Many vac shops are able to convert a good percentage of their
repairs into new machine sales (some as high as 30%). If you are doing 100
repairs per month and convert 30% of these into new machines, consider the
effects it will have on your overall store operation!
The vac shop's most effective and efficient way of selling new machines is to
sellout of repairs. This is not only highly profitable, but also less competitive
and requires little to no advertising expense.
For every one new vacuum sold there are six repairs done. Since vac shops
are the only people who do repairs they have a ready made market. In a repair
you are only making a machine work to the best of its ability with worn parts.
The average vacuum will last nine years so when you sell a new machine off of
an older repair you are actually doing the customer a favor.
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Service
Let's compare some averages and advantages regarding repairs and new
machine sales.
Don't be fooled by what you think is your average vac repair....probably $80.
With as needed repairs, over the counter repairs and full service repairs, it is
quite likely that the average is closer to $34.
Taking into account the national averages of labor charges the average
labor charge, including as necessary repairs, is close to $17. The average
retail parts used is also $17. If you consider labor at no cost for the sake of
argument here and if you work on a 66% gross profit margin on your parts the
total cost of goods on each average repair is $5.78.
Gross Cost
Parts $17.00 $5.78
Labor $17.00 $-0
$34.00 $5.78 = $28.22
The total gross profit on the average repair is $28.22.
Let's look at some other considerations.
New Vac Sale Repair
How long does it take? 15 minutes 45 minutes

How much co-op do you generate? 5 - 10% -0
How much gross profit? $50 + $28.22 Average
How many problems will you have? Minimal Endless?
How many items do you need to stock? Product Only 400 Parts
(Minimum)
How many add on sales? Hand Vacs Bags, Belts
Attachments, etc.
It's important to establish a procedure to follow then the customer comes in

with a machine for repair. By making these steps standard, it will become easy
to duplicate each time and to train others.
- 97
Service
Step One is the greeting.
Smile, be friendly and courteous. Ask the customer's name and begin filling
out the repair ticket. This will allow you a natural opportunity to introduce
yourself as well as to personalize your conversation. As we discussed earlier in
the Use of an Effective Service Ticket it's important to fill out the ticket
completely.
Step Two is to ask for specific problems with the repair.
Questionning the customer as to particular problems will allow the mechanic

to perform the service more effectively as well as allow you to be better
prepared later when offering the customer the option of a new machine
purchase.
By listing these problems on the ticket, you have begun to build a

relationship and some feelings of commitment on the part of the customer. By
taking the time to detail these complaints, you illustrate your professionalism
and interest in serving your customer properly.
Step Three is to check the machine over thoroughly using the service
ticket as a guide.
Remember, it is important to sell the repair properly even if you feel the
customer will eventually see the value in purchasing a new vacuum. It is much
easier to sell the repair visually and in person, rather than over the phone at a
later time.
Explain the problem and show the solution. For example, not only point out
the worn brushes but show the customer what a new set of brushes looks like
and what benefits they will provide. This will help to eliminate objections over
the extent of the repair and its cost. Be sure to inspect the rest of the vacuum at
this time. This is the time to make recommendations for step up parts sales
such as double brushrolls and multi-filter bag systems.
. 98 .
Service
Step Four is pricing the repair.
By using a pricing catalog to retrieve your prices you will establish additional
trust by the customer versus pricing the parts from memory. This eliminates any
suspicion by the customer that you are pulling prices out of the air.
To complete the estimate tell the customer that you would like to figure an
additional 5 - 10% to allow for any small parts you may have missed during the
counter estimate.
Step Five is the demonstration of another vacuum.
Based on the customer's answers to questions you had regarding the

vacuums overall performance-and the customer's satisfactiqn with the machine,
demonstrate a new vacuum.
The features they would like on a new vacuum are primary considerations
when going to a particular unit to demonstrate. In most cases you need to go to
something significantly different from what they have for the customer to see the
value in purchasing a new machine.
At any time during this five step process should the customer lead off with
the opportunity to see a new machine the successful vac shops will immediately
show the customer something to solve their specific problem.
You would be surprised at the number of people who bring in their repair
that have done some preliminary shopping for a new machine. The machines
they have priced are the ones most heavily advertised. When you go to show
the customer a new machine have those particular units handle tagged with
competitive prices. This way you can point out that your prices are as low as the
competition giving your store more value.
Even if you don't successfully sell new machines off of this procedure (you're
sure to sell a few just because some customers are fed up with what they have)
by using step up selling techniques on the parts you'll immediately increase
your average repair ticket and gross profit. And by asking questions and taking
- 99
Service
a professional approach to your customer's problems, when they are ready to

purchase a new machine the customer will remember you .
- 100
Service
EXHIBIT A
SERVICE TICKET
YOUR STORE NAME
LOGO
ADDRESS & TELEPHONE NUMBER
0""£ ..
' <.--------------------------;
-:;.-,;00;;;....... N~ 15960
04 TE PAOWtSlO
i "oaEl,.HQ : SERIAl ....0 DArE OF QRIGWAl.. IHSr ...u .... TK)N
-YRQU8\.E
I
Rii."POn;.OiT,..-,;O--.L..--------~----------+----------
: CAS""'
WARRAHt'V .. _ CHARGE
=-~ CONTRACT COD
QTY DESCRIPTION AMOUNT
Hendle - 8'" - Cord
Swflc:tl - PlUV
88\1: Shroud - Dump - Support
8",." Roll - 8 ••rtnv•• 8",."..
MoIOf' • Fan· 8aartnv: Uppe" Lowa,
Armalura - C.,bon 8",.,...
8ulb
TOT AL "'A TERIALS

Sanrlca: Completa 0 tECHNICAL
Aa Nee. . . .,., 0 SERVICE 11"-1£ ( J 5"0P ( 1 "0""
o ~l.~V~~ OR 0 ~~~~ai CALL :
-------~--+----:--
TRADE-IN VALUE I
"C""c"'..:;:N""c"-;,.:;:N,--------...,,,.,,,i7,~:"'~:;:N""'_,.,.~'''EOc-------------.-~ .__ . ~---
TAX I
~vliE' _.------ ----- - - - - ----------+----;--
_ _ _ _ _ _ _ _ _ _ _ _ _ _TOTA~
Signature aOo.,.. constItutes accegtance 0' aco..,. "",ork as 0.,n9 c:"J""L __ 1 . ~..
,ahstaclory - and Inal eQuloment nas Deen len In good condltron 1. lJlfIl4. Jt)IU'
,(O·.....I<:IA,..
0_ TE PROMISEe'
IDENTlF1CAT10N TAG
f
I
/ N2 15960
CLAIM CHECK "'0 ...ERO..... NOISE DELIVERED WITHOUT f).tIS CHECK NOT RESPONSl8LE
FOR' lOSS BY FIRE .... NO T"'EFT OR FOR GOODS lEFT OvER JO 0 ... .,5
MTWTHFS YOUR STORE NAME

TELEPHONE NUMBER
N2 15960
- 101
VI.
ADVERTISING
Advertising
INTRODUCTION
Advertising is one of the single highest expenses incurred in business. It is

the single most important element for a growing business. Often times
advertising is a gamble. The aim of this section is to be scientific with the
information and try to remove some of the gamble from the advertising to make
it more of a sure thing as well as increase its efficiency.
There are many conditions that play an important part in developing a more
effective budget. We cannot address your local market. but have highlighted
the general areas proven to be successful in this industry.
This is a broad overview of a large and important part of any long term retail
business.
The goal of any Advertising program is to get customers into

your store.
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Advertising
DEVELOPING A MORE EFFECTIVE

ADVERTISING BUDGET
It is much more difficult for a vac shop to come up with an advertising budget
than a mass merchandiser. You must be more creative to allow you the steps
needed to make the percentages of profit for you to stay in business. Also, you
need to be more frugal with the dollars you do spend. The smaller the budget
the more difficult it is to make it effective.
Industry figures indicate that an advertising budget should not exceed 5% of

gross sales. We believe that figure, as it relates to out industry, is low. If your
business is doing $20,000 per month, 5% of that figure is $1,000. That's
enough to cover a Yellow Page program with little left for anything else. In this
industry you have the advantage of being able to work on an overall higher
percentage of gross profit than the standard 5% rule of thumb was designed for.
At this point we could argue merchandising philosophies that can be conflicting
with this thinking, but on a whole most successful vac shops work on 40-60%
gross profit and can afford a larger percentage of advertising dollars.
"How much money should I spend on advertising and what is an effective

ad?" are two common questions. We think all advertising expenditures should
support itself and cost nothing. Each advertising expenditure must be judged
on its own ability to recover its cost. In other words, if you spend $1,000 of your
money (not co-op allocations ...your dollars), the advertisement should produce
a minimum of $1 ,000 gross profit.
You can go one step further by analyzing the content of your newspaper ad.
For example, if you are advertising an $89 product that costs you $61, your total
gross profit per unit would be $28. Divide the total cost of the advertising
campaign (for example $1,000) by your gross profit on that unit to see how
many units you must move to break even:
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Advertising
$1,000 (cost of advertising)

Divided by 28 (gross grofit/unit)
Equals 36 units
You would need to sell a minimum of 36 units to break even on the ad. Do
you think you can? If not, don't run the ad!!
If you have a strong sales staff that can sell up to a high gross profit unit, you
can base your calculations on sales ability. That is, if you think they can convert
50% of the sales to a step up unit with a $50 gross profit, then you would need
to sell 10 units at $50 profit plus 18 units at $28 gross profit:
(10 units x $50)
Plus (18 units x $28)
Equals $1,004
No matter what your specific situation, the point is to recover the total cost of
the advertising campaign and then some. This is the key to avoiding costly
mistakes.
It is important that we look at the different types of advertising available and

explain the elements that have proven successful in this industry. We begin by
classifying all advertising in two distinct categories. One is institutional
advertising and the other is price and item advertising.
Institutional advertising, in our opinion, should be eliminated from the

independent businessman's thinking process. This type of advertising is
generic in nature and lends itself towards image developing. That is, with
institutional advertising you rarely, if ever, initiate an immediate buying decision
on the consumer's part. With institutional advertising you create an impression,
but never seem to tie down the sale and in most cases never will.
Remember that institutional advertising is designed to make impressions,

not sales. Impressions are to be made by the manufacturers regarding their
product, not the retailer. If you pursue solely that approach you may not be here
next year to enjoy those impressions.
• t04 •
Advertising
The second type of advertising is price and item. This type of advertising is a
much more aggressive program designed around a price and urgency on the
consumer's part to come in and purchase now.
The most effective ad, as we will see later, is one which combines both
institutional and price and item advertising. This ad would stress the
competitive price points as well as develop your store image of a "super store"
offering a wide selection, service and points relative to our industry.
So, how much should advertising cost? Nothing!! Advertising doesn't

cost....it pays.
MEASURING ADVERTISING EFFECTIVENESS
Why should I spend $900 a month on the Yellow pages when they don't
work? The newspaper ads aren't pulling. My radio advertising isn't paying off
at all. I wonder where that customer came from?
Are these questions and statements you feel yourself making every month
regarding your advertising dollars? By sourcing your customers over a period
of time you will be better prepared to spend your advertising dollars more
effectively.
Every customer should be questioned as to how they knew of your store.

The answer can be in several different categories including TV, radio,
newspaper(s), direct mail, Yellow Pages, previous customer recommendation,
billboard or sign out front. After you find out the medium obtain more
information. If it was TV or radio ask if they remember the show, time or station.
If it was the newspaper find out which one if you advertise in several
overlapping papers. If it was the phone book ask which directory. If it was a
billboard ask the location. Write down the information you receive but do not
badger the customer. If they don't know or remember just put down the general
category.
• 105 •
Advertising
Mark off an area on your sales and service tickets to put this information. Be
consistent and ask everyone, even bag and belt customers.
Use a tally sheet to keep track of each category with the specific information
on the invoices. The tally sheet should have the general headings and the
invoices have the specific information such as TV-ABC-Thurs-AM.
Over a three month interval the information can be correlated to determine

which advertising medium is the most cost effective to you.
Areas you will want to be very concerned with and which do not cost you a
cent to advertise are previous customers and recommendations. These two
areas should constitute a relatively large portion- of your customers. If not, you
more than likely are losing customers and will nee-d to take immediate
corrective action.
If you get in the habit of sourcing every customer do not stop. By sourcing
you can see trends develop and move your advertising around to take
advantage of these shifts. You may notice that your newspaper ads are pulling
better this year than in the same month last year and adjust your ad size
accordingly.
It's important to know not only the media which generated the sale, but how
much gross profit was generated off that media. Let's face it, we're not
concerned with the revenues generated by gross sales, although cash flow is
important. We're concerned with the bottom line. Gross sales becomes
unnecessary information as it doesn't necessarily indicate that any gross profit
was made. Don't get caught in an event which generated good gross sales but
lousy gross profit unless you planned it that way.
• 106 •
Advertising
IN STORE ADVERTISING
In store advertising is the base on which to build your advertising foundation.

In store advertising should be a consistent, ongoing program. It is low cost, long
lasting and the most efficient advertising you can do.
In store advertising consists of four areas: stickers, handle tags, windows

and business cards. Combined these four areas represent a very small cost,
yet they can yield significant results when done thoughtfully and carefully. In
store advertising i~ where your advertising expenditure begins.
STICKERS
The first form of in store advertising is a sticker. This is a subtle form of

advertising that almost all vac shops use. Most vac shops use stickers on
packages of bags, repairs and new and used machines. The sticker is used as
a reference should the customer have any questions or problems with their
purchases and as a reminder of where they made their purchase.
What makes a good sticker? Obviously your store name and phone number
and possibly even your address. The address isn't as important as it can
sometimes crowd up the ticker. The sticker content should contain your store
name in big bold letters with your phone number below that. Be sure that the
store name is in bold enough type so it can be easily read on the machine from
a standing position. If your store has a slogan, catchy phrase or message to
relay, use the third line with a smaller type. The important information is your
name and phone number. Don't turn the sticker into a gaudy message board.
The color can be a problem when the sticker deters from the looks of the
machine. A white background with'red lettering seems to be one of the boldest
neutral color combinations.
• 107 •
Advertising
Sticker placement is also important. The ideal position on an upright is on

the rear of the hood and backwards so the customer can read the sticker while
using the machine. On a canister position the sticker near the on-off button
where the customer will see it when turning the machine on and off. Also apply
a sticker to the power nozzle, again backwards, so the customer can read it
while operating the machine.
If your sticker is an attractive addition to the machine it will act as a constant

visual reminder to your customer of where to go when they need something.
You.. spend so much money advertising to get customers into your

stores....stickers are a·useful tool in keeping your store's name in front of the
customer.
HANDLE TAGS
The second form of in store advertising is the use of handle tags. How
effective a tool are handle tags? Do you think they are a help or a hinderance?
Do they add to or detract from your showroom floor? There are three schools of
thought on handle tags. First is not to use them at all, second is to use them
only on selected units and third is to use them on every unit.
Let's consider the first thought of not using handle tags at all. Let's say you
walked into a store to make a purchase and didn't see any items priced. As a
consumer you would be rather hesitant to buy from a shop like this unless you
were very familiar with the pricing of their products in the marketplace. Handle
tags add credibility to your store. They can keep a customer in your store while
you are busy with another customer. Handle tags also act as silent salesmen
for the bag and belt customers considering a new machine purchase down the
road. However, the only way for handle tags to be an effective tool is if the
prices are at or below the lowest advertised price in your marketplace. For
instance, if the Hoover Concept is heavily advertised in your market at $189 you
• 108 •
Advertising
wouldn't want to handle tag your floor model at $199. This defeats the purpose
of the handle tag. Tag your floor model either at the same $189 or do as the
successful vac shops do and tag it at a lower price. The biggest difference
between the mass merchandisers and a vac shop is the ability of the vac shop
to "sell" the customer in his store. After you take the price away from the mass
merchandisers what do they have left?
In order for handle tags to work they don't necessarily have to have a price
on them. You can put "Best Buy According to Consumer Report" on those units
or "Ask For Our Price", or "Super Sale Special" or any catchy phrase that will
cause the customer to ask about a unit you want to sell.
The second school of thought is to handle tag only selected items. These
items are the most heavily advertised. The Eureka E.S.P., the self propelled
units, the $59 uprights and a few selected units of your choice. By tagging only
selected items you still allow yourself flexibility on some items.
Consider handle tagging used machines as well. Many dealers who have
started tagging used or rebuilt vacuums report making additional profits
immediately. This is due to feature and benefit pricing as well as pricing the
rebuilt immediately after rebuilding based on what parts went into the unit. So
often when a rebuilt is finished another salesperson may sell the unit not
realizing what parts were involved. By pricing the unit before it gets on the
sales floor, mistakes are eliminated and higher profits are obtained. Also, by
tagging rebuilts you control the pricing .... not your sales staff or customer.
A handle tag takes away the idea that the price is negotiable. Handle
tagging also gets across the impression of a low price point and low price
image. If the $59 machine is in your store and not tagged what good is it? Too
often dealers will have the unit in their store but are afraid to draw attention to it
for fear of having to sell it.
The third school of thought is to tag every unit in the store. By tagging every
unit you can control your sales staff and give the customer more reason to do
business with your store. The customer can see the sale price of each unit and
- 109
Advertising
when offering a trade in they can see the value you are giving them for their
trade.
A disadvantage, according to some dealers, of handle tagging units is that it

takes flexibility away from the profit structure based on the philosophy of selling
at what the market will bear. That is, to sell the unit to one customer at a higher
price than to another customer because they didn't try to beat you down on the
price.
Handle tags, when used properly, are very effective in keeping the
customer in the store when you are busy and in bringing the customer back to
your store when they are in the market to buy.
PAINTED WINDOWS
The third form of in store advertising is painted windows. This is one of our
most effective and most overlooked form of advertising.
A painted window ads color and pizzaz to an otherwise lifeless piece of

glass. It reinforces a sale campaign you have in effect, sends messages to
potential customers and is inexpensive to do.
A painted window is basically a billboard in front of your store which draws

attention to your location. It's message can be changed as frequently as you
wish and can contain institutional as well as customized ads. As another form
of advertising it is designed to get customers into your store and stimulate walk
in traffic to purchase.
A painted window can use a variety of themes, but the criteria of layout will
remain the same. That is, use a save or price story, use big bold .Ietters that can
be seen from a distance and use colors like red, white and yellow.
- 110
Advertising
Some of the themes you may want to use are "Trade-In Sale, Save up to
$100", "Hoover or Eureka, $59 and up", "Buy One Vac, Get One Free on
Selected Models", "Used Vacs, from $29", "Storewide Clearance Sale",
anniversaries and seasonal events. Another theme, "Free Bags, Free Belts with
Purchase", will help stimulate extended warranty package sales. One theme to
stay away from is service specials. You will be giving away profits. Use this
theme in print media with coupons.
Most areas have professional window painters who will paint your windows
for $25-35 depending on how involved you want to get. Have a picture of a
vacuum on your window so if people can't see the message they will at least
see the vacuum. Also, be sure to tie the window in with whatever sales
promotion you have running. This will reinforce your other media advertising.
Remember a well done painted window will appeal to every customer. Its
I
appeal will bring additional customers into your store as well as act as a sales
tool for those customers coming in to purchase bags and belts.
Two excellent window themes are "Free Bags, Free Belts with Purchase"
and "Hoover or Eureka $45". The "Free Bags" theme will stimulate extended
service interest.
The "Hoover or Eureka $45" theme (See following display) can be one of
the most effective painted windows your do.
HO@VER
EU~EKA
$45
- 111
Advertising
The $45 price point will bring in customers who normally would not know
your store is there to see what is available for $45. When customers inquire
about the $45 vacuum, you can begin by showing a rebuilt cleaner.
We recommend the vacuum on your window be as large as possible,

painted in red with a whit outline. The letters should be white with a red outline
and the second "0" in Hoover and the "R" in Eureka should be painted yellow
with a red outline so as to read "Hoover or Eureka, $45". The price should be
in yellow with a red outline.
Once your window is done get your rebuilts ready. This window really
works!
BUSINESS CARD
The fourth kind of in store advertising includes your business card. The
criteria of a well designed business card is one which is not cluttered with
unnecessary verbage and logos. A well designed business card should
prominently display your store name, complete address with zip code and
phone number with area code. It should also contain your name. If you are the
owner it should say so. Keep the card clean and professional.
The reason you want the card to contain the zip code and area code is to
allow prospective customers and professional acquaintances the opportunity to
reach you from anywhere in the country.
A good idea might be to use the back side of the card with a catchy phrase, a
coupon offer or a map.
- 112
Advertising
co-op ADVERTISING
Co-op adve0ising, literally meaning co-operative advertising agreement, is a

way for the independent retailer to reduce his monthly advertising costs.
Needing to make advertising dollars go further and work longer the
independent retailer looks to the manufacturer to assist him. Through your store
taking advantage of manufacturer co-op dollars you can make your advertising
budget more effective and take advertising dollars away from other retailers in
your market, increasing your market share with more impressions.
An effective co-op advertising program starts with your planning the

promotion by date, product selection, pricing and ad size. Rather than
destroying the highly visible manufacturer lines and products in your market on
your own, work with the manufacturer to develop an effective ad. Be creative
with model selection in your ad and include the proper step up items in the
manufacturer's line to make the percentages needed to run a program of this
type. This gives you more control over the advertising. These co-op dollars are
just as much yours as the manufacturer's and more so.
Traditionally, in order to satisfy the manufacturer you need to run products

and price points which are common to the market. By being more creative with
your ad you won't alienate the manufacturer.
With an ad similar to the one shown on the following page, you can create a
low price image. By not really publishing the price you don't alienate the
manufacturer or other dealers in the market. When you receive customer phone
calls, and you will receive phone calls with this ad, quote your below market
pricing making your advertising dollars more efficient.
• 113 •
Advertising
Another way to be more creative is to use products some stores (mass

merchandisers) don't have as shown.in the ad in the section entitled Types of
Ads, Ad Size Placement..
The commercial vacuum shown offers a higher percentage of profit and

appeals to the quality conscious customer. The customer has nothing to
compare the unit to in the domestic line offered at other retailers. It is a unit that
is not seen every day in an ad and makes your advertising unique and different.
The commercial vacuum will offer legitimate steps within the advertised line
allowing you to make the needed percentages of profit. The commercial
vacuum is available in most manufacturer's lines.
Also, by advertising a commercial vacuum you may stimulate some

commercial calls for the vacuum providing you with a new account.
• 114 •
Advertising
co-op TYPES
There are two types of co-op. The first type is the one most retailers are
familiar with, credit invoices. With this type of co-op once the necessary
information, like proof of performance and invoices, has been processed by the
manufacturer, a credit invoice is issued to the retailer to be deducted from his
balance due.
The second type of co-op advertising and the largest percentage of co-op
available, is in the form of free goods. Occasionally, these are the only source
of co-op funds available.
Again, be creative with these programs because the manufacturers have

more flexibility with these "Free Good" programs than with traditional credit co
op.
Vac shops have more versatility and flexibility to utilize the free goods
offered making these programs more productive to us. Mass merchandisers on
the other hand have large problems associated with free goods due to tracking
of goods, net down pricing, and product allocation.
One disadvantage of co-op advertising is payment. It can take quite a long

time to receive the credits due you. Rather than waiting for regular monthly
billing by your media, request demand billing. With this billing process, on the
day of the ad, your media will provide you with the necessary proof of
performance and invoicing which will allow you to submit your claim
immediately.
• 115 •
Advertising
MULTI-LIST ADVERTISING
Generally, most multi-list advertising is co-op in nature. These are good

supplemental programs for your normal advertising expenditures and help fill in
weeks and generate sales when you are not aggressively merchandising.
Plan around these promotions to make your advertising more effective by

fitting it in around your blank weeks.
As in other co-op ads it is up to you to make the ad more effective by

inputting particular product and price points.
Another form of multi-list advertising is to work with other shops in your

market that are geographically separated. That is, not closer than 5 miles in
radius to each other. This ad doesn't require the use of the manufacturer's co
op dollars. Since there are multiple dealers it will reduce your advertising
expense and allow your dollars to go farther.
• 116 .
Advertising
YELLOW PAGES
Although Yellow Page advertising is a prerequisite in most businesses, to

what extent is debatable. By talking with the Yellow Page sales rep, if you
don't advertise in every book and every listing you will be losing business to
your competition.
The commitment you make to any advertising media is one which must pay
for itself. The experiences in most markets are that the Yellow Pages is one
which rarely, if ever, does. Naturally, the actual market conditions and the
degree of competition and advertising in your area will dictate your spending
and effectiveness.
It is not uncommon to hear of vac shops spending $1,000 per month in

assorted Yellow Page books and listings. If we go back to developing a budget
and work backwards, that $1,000 cost of Yellow Page advertising should yield
$20,000 per month in total sales based on the 5% rule of thumb.
$20,000 (total sales)
Times _~5:"";%l<...(advertising
percentage)
Equals $1,000 (advertising dollars available)
Very few shops, if any, can say they do the amount of business needed to
make money from Yellow Page advertising. Those that do business off Yellow
Pages generally find a good deal of that business to be in services. The reason
for this is that people are unsure as to where to take their machines for service.
Do this little test. Think of all the stores that sell vacuums in your market.
How many are department stores, discount houses or membership clubs? How
many of these companies advertise in the Yellow Pages under vacuum cleaner
sales?
- 117
Advertising
A valid question arises.... How do you advertise efficiently and effectively in

the Yellow Pages? The answer to that is to go to smaller display ads, minimize
the number of listings you are under and drop the bold type from your line
listings. These three changes can save a considerable amount of money.
Research has shown that the ad size is not as important as one would think.
If nothing else, consider using an in column display listing anywhere from 1/2"
to 1" in size. A 1/4 page ad can be just as effective as a 1/2 page ad. Research
also suggests that the front position isn't always as effective as once thought.
The reason is when people open the Yellow Pages, generally, they pass the
category they are looking for and leaf backwards through the pages until they
find the category. A well designed ad positioned in the appropriate category
will draw responses regardless of overbearing size of position.
The content of your Yellow Page ad is most important. It should

prominently display your store name, logo, address and phone number, as well
as a map with your location visibly identified. Include store hours, number of
years in business, products and services available. Also important is a name
listing of products you sell and service rather than a company logo of each
brand. This doesn't clutter your ad.
Remember, Yellow Page advertising is institutional. It's biggest

disadvantage is that it is not aggressive and relies on people going to it rather
than it going to the people. It does not draw immediate response and is a long
term investment. Any reduction you make in this media should be channeled
into an aggressive advertising campaign and not construed as additional profit.
One caution to be made is with high visibility store locations. The visibility of
the store will pay for the impressions allowing your Yellow Page ad size to be
reduced to a minimum.
- 118
Advertising
DEVELOPING MORE EFFECTIVE

NEWSPAPER ADVERTISING
GENERAL INFORMATION
Before getting into actual newspaper ads, layouts, etc. there is a certain
amount of understanding of the print media which must be presented first.
Newspaper ads are, by far, the most efficient and effective broad based
media manner to get your message to the consumer because of its broad reach
and relatively low cost per person. Using this medium as prudently as possible
and understanding the workings of an ad will greatly increase the overall
success you will have.
WHAT CAN THE NEWSPAPER REPRESENTATIVE

PROVIDE?
The newspaper rep can greatly assist you in many areas. He can inform you
of upcoming promotions and specials. He can offer discounts on special
sections (like a Home Improvement section) which may fit into your advertising
program. He can assist you in reaching non-subscribers to the newspaper
through mailings the paper does to these people. He can help you with an ad
size that tends to get better placement. And more importantly, when you let your
rep know what you want and expect from him and the paper, he will be better
prepared to come to you with programs you can use and not waste anyone's
time.
- 119 .
Advertising
MULTIPLE NEWSPAPER MARKETS
In markets with multiple newspapers you should request, from each paper,
figures on area of dominant influence (ADI). These figures will show you which
paper is more widely read in a particular area. If the newspapers are competing
they will provide you with this information and also inform you if the papers are
reaching the same customer..
Two other areas your newspaper can assist you in at no charge are layout
and customer demographics. As long as you provide the paper with the proper
copy and ad slicks they will work up the ad for you at no charge. The
demographics of your market are important to identify where your customer is
and how to reach them.
AD SIZE AND PLACEMENT
Ad sizes and placement are another area of importance. Never run a full
page ad. A 5 column by 18" ad will produce the same results (based on a 6 col.
x 20" page) with a 30% savings on the ad. Be very careful about making even
this large an advertising commitment. Experience shows that too many factors
can adversely affect the outcome of this size ad. Weather conditions, national
disasters and public catastrophes can negatively effect the overall outcome of
an ad. A recommendation would be to run two 30" ads on different days to
reduce the risks and increase the chances of twice as many impressions by the
two ads. Just because an ad is twice the size does not mean it is twice as
effective.
It is recommended not to run ads over 30" in size. There is a point of

diminishing returns that ads over that size generally become prohibitive in cost
and don't produce the needed result~ to justify their expense in our industry.
• 120 •
Advertising
For the beginning dealer who is experimenting with newspaper advertising, it

would be advisable to run smaller ads to minimize your risks.
FREQUENCY AND REACH
Frequency and reach are also very important factors. By running smaller
ads more often you will have a better opportunity of the consumer seeing your
company name and competitive pricing. This is not to say to run very small ads.
The ad must be of significant enough size so as not to be lost on the page. A
newspaper page is des~gned around a pyramid structure. The larger ads are
placed on the page first and smaller ads are placed around the larger ad.
Watching the larger size ads and designing your ad to fit from the top of the
large ad to the top of the page will increase your chances of receiving prime
placement. Prime placement consists of the top right corner on the right page.
This is the spot most people's eyes go to first when reading the paper. Often
times ad sizes like a 2 x 4", 3 x 6", 4 x 7" etc. will receive the better placement.
As stated before, ad size does not guarantee success, but ad placement will.
When placing an ad always request first news. This is the section read by
the most people. Statistics show that the further you get back by section in the
paper the less the readership. You may have 60% readership of the first news
down to 18% readership of the sports news.
SCREENING, REVERSES AND COLOR
To increase the effectiveness of your newspaper ad consider screening and

reverses. These will dress an ad up and usually produce better results. Your
newspaper can provide these for you at a moderate cost.
• 121 •
Advertising
For special promotions or occasions consider the use of color in your ad.
Color can increase the effectiveness of your ad by 50-80% on larger
promotions. Check with your sales rep as to costs and colors.
COMMON MISTAKES
Some common mistakes in newspaper advertising are:
- Running non-competitive prices

- Running themes which are too cute
- Running institutional rather than price and item advertising
- Running in zones
Zones are the neighborhood sections of the paper. Generally, these zone
sections are done once a week and the information in the section is old news.
The section is usually in the back of the paper decreasing its' readership further.
Some dealers do not feel they can cost effectively advertise in the main
paper and run in what they consider a local media. This makes the zone
sections attractive to them. Check with your rep as to the content and
placement of the zone section. It may not be cost effective based on that
information.
Don't try to say in words that you offer low prices, best selection and service.
Do it in the ad content of overall low pricing. People seldom read the copy of
your ad, but they do notice the price and item points you are making.
AD DATES
When to run your ads is another area of importance. In markets over 30,000
people run an ad once a week. In smaller markets of 30,000 people or less run
an ad once every other week. Run your ads on the same day as your major
• 122 •
Advertising
competition with lower prices and better selection (multiple lines). By going
head to head with them, your smaller ad, with lower prices, you will have
greater impact. Traditionally, Saturday morning is an excellent day to run an
ad. If you plan to run ads smaller than 18" in size consider Monday and
Tuesday papers which are smaller and have less adds increasing your chance
for position and visibility, but have generally the same readership.
When not to run can save money on non productive ads. Do not run ads on
a consistent basis on days you are not open (e.g. Sunday) when there is no one
there to answer phone calls. There is nothing more frustrating for a customer
than to see a product that they want to purchase now, call or stop by the
advertisers store and find the store closed. Do not run a holiday ad, unless they
are traditional cleaning days like Thanksgiving and Christmas. People usually
go out of town on holidays decreasing the effectiveness of your ad. Do not run
ads on food days unless that is the day your competition runs their promotions.
Readership usually goes up on this day, but largely due to the food section .
•
8 ELEMENTS
In order to develop a more effective newspaper ad the general information is

very important. The information provided there gives you a better idea of the
size, frequency, placement and dates of the ad. This section discusses the
actual layout or elements of your ad. If you miss one important ingredient you
dramatically reduce the success of your ad.
The eight elements of a newspaper ad are headline, variety, deadline, store

logo, store information (location, phone number), pricing, features and benefits
and construction.
HEADLINE - Successful vac shops have found that themes featured around
sales events are the best. Don't get too creative with a theme and get drawn
away from the traditional words that work like SALE, SAVE, CLEA F!A NCE,
CLOSE-OUTS, etc.. The harder sell the theme the better. Experience has
- 123
Advertising
shown that promotions which center around giveaways like trips, jewelry, etc.,
are, on the whole, very ineffective. On the other hand giveaways tied to the
vacuum like bags, attachments, second vacuum free etc., work quite well.
When constructing your theme you could use a bold type style and reversed
letters (white letters on a black background). Look at the theme and ask
yourself "Does the headline give the customer a reason to continue reading the
advertisement? Does it state a theme, urgency and savings?"
VARIETY· Use as many products and services as you provide and that will fit
into the ad without cluttering it up. Show variety of price; from $59-259 and
variety of services; trade ins accepted, tune-up specials, bags and belts, etc.
Show a variety of manufacturers all highly visible (most aggressively
advertised) in your market. Promote the products which are also highly visible
in your market like powerteams, brooms, powerdrives, canisters, etc. And very
important, include a product in the ad which has gross profit built into it. When a
customer comes in and says they want to see the product in the ad you' can go
directly to that product. This makes it easier 10 sell an ad item with gross profit
and to show another ad item to the customer.
To make your ad more effective and less cluttered use sales offers like
'YOUR CHOICE, HOOVER OR EUREKA UPRIGHT $59!' This allows an
alternative of choice, provides selection, utilizes ad space and enhances your
ad.
DEADLINE· The longer you give the customer to respond the less likely they
are to respond. Use a 6 hour sale, a one day sale or some deadline less than a
week long. This will not limit your sales potential, but merely increase it. Be
sure to list store hours for the sales dates.
STORE LOGO· If your store logo is not prominently displayed the customer
could go to another shop to buy. Plus, you are not getting the benefit of
company awareness which will help secure future business.
• 124 •
Advertising
STORE INFORMATION· By listing all store addresses and phone numbers

you will make it easier for the customer to respond. The less work the customer
must do to find your store, the more likely they will be to visit. Many dealers are
also including a map with major cross streets showing the store location.
PRICING· Not only is it important to have the highly visible products in your
ad, but it is also important to have pricing that is better than the competition.
Remember, newspaper advertising is a price and item medium. Featuring price
prominently with a save story is the most effective.
FEATURES AND BENEFITS· Although you will not have room to list them
all, it is important to list the main features and benefits of the advertised product.
It is up to the manufacturer to promote terminology such as quadra-flex. triple
filter etc. Be sure to tie in with these main selling features. This will aid the
consumer in their buying decision.
CONSTRUCTION· It is important to feature at-least one prominent vac cut to

draw attention to the ad. One picture is worth a 1,000 words. The overall
•
construction of the ad should be in block form.
The ad size should be as wide as it is long. That is, a square ad or an ad which

is wider versus longer is preferred. The overall heigth of 5 to 7 inches and
should not exceed 4 columns width in most papers.
Every ad you run should have a service or tune-up special in it. This will bring
in additional customers and can act as a sales tool for new machine sales
(discussed in depth in the Repair Section). Also, manufacturers don't generally
mind having service in a co-op ad.
• 125 •
Advertising
TYPES OF ADS
CENSORED AD
As the saying goes, "curiosity killed the cat." The censored ad creates a
sense of mystery...."How much money will I save" and this mystery adds to the
success of this ad. Generally it is not a good idea to make the customer work
too hard to purchase your product, which covering up the price does. However,
in this case the customer can see enough of a competitive price to know they
will get a good deal. Once they are in the store the censored items should be
priced below market pricing to give the overall impression of low pricing.
By no means should prices be quoted over the phone with this ad. In order
to answer customers who insist on a price assure them of the lowest available
price and guarantee it. Tell them you can not quote a price because it may
upset the manufacturers in the ad and that you could possibly lose lines of co
•
operation with them.
The model selection in your ad may vary somewhat, (depending on your

market), but should be geared around the most popular items advertised. The
model mix in the ad shown on the following page seems to be the most
common.
Don't expect to receive any co-op advertising on this ad because of the

mUltiple lines advertised. This should not deter you from running the ad
because multiple lines generally attract more attention than a single line.
This ad should not be run more than two times per year so as not to lose it's
impact.
• 126 •
Advertising
CONCEPT ONE I ; i\
POWER DRIVE ;' i
l'I'j ::!'
This Hoover makes L 1'
cleaning just about r \
effortless. ',\
'" . - - /~
..
[CENSORED] ::d
...,~
Most powerful Eureka

made. Quality at a low
price.
\~. 8 LB. VACUUM

~; - ' , A lightweight vacuum
. designed for commer
. cial use.
,
;;.-
.~ . ~·""~-D
-~? @ENSORED
.!'£- - .... ~
• 127 •
Advertising
LIQUIDATION SALE
This ad is a classic example of all the key elements that are important in your
advertising (see 8 Element of an Aa). .
The heading of this ad can range from 'Liquidation Sale', 'Clearance Sale',
to 'Inventory Reduction Sale'. Don't forget to have urgency with this ad by
adding a short expiration period.
This ad is the ultimate in demonstrating to the cons:.Jmer the services,

selection and competitive pricing your store has to offer. Throw the whole store
into the ad!
The full selection of manufacturers products, repairs, rebuilts and all services
you offer make this a powerful ad. Included in this ad wOuld be some profit units
ie; Eureka or Hoover commercial vacuums. These are the units which are not
heavily shopped that can assist you in selling at higher percentages of profit.
This ad should not be run more than two times a year and when run it should
be a major promotion.
The content of this ad demonstrates how the ad should look. The products
and prices provided are for demonstration purposes. It's up to you to fill in the
content.
• 128 •
Advertising
YOUR THEME
we're overstocked and we have to reduce our Inventory

so save NOW wttn the absotute lowest pr1celevert
EUREKA EUREKA REBUILT

UPRIGHT SELF VACUUMS
ONLY PROPELLED·
• Excellent
$63 $159
• Headll<lht
selection
• Warranties
AS LOW AS.••
• Powerful
~ Edge
•Cleaning
SAVE $3S
SAVE
$90
Motor
$29
EUREKA HOKY WHIRLPOOL EUREKA HOOVER
ESP CARPET UPRICHT ULTRA CONCEPT
TWO
SWEEPER
ONLY AT
COST ... $229
STCOSTI ·$149 $99 i
19 SAVES60 ,P',
ORECKl EUREKA HOO'=d~w KIRBY EUREKA
SAVE COMMERCIA CNUSTEI • Headlight CANISTER
ALL STEEL
• 1 Yr. warrantY
• Industrial • Rebuilt $59
• SAVE S90 SAVE 540
$169
SAVE S50
EUREKA
~
HOOVER
DELUXE CONCEPT
CANISTER ONE
• UQnCWetQn( • 1nOU'SO"M
~r"Arm
• luctonnotet"
$139 ~~~ $219

'OtOf"l
~
-~
4 Horseoower
SAVE
$150
$169
WITH
POWER
DRIVE
SAve
$100
I
HOOVER HOOVER
OUICK-UP DEMENSION SHAMPOOER
$2&9111__ $64
Z
Great on
~~~~
~$ SAVE
!:. $25
SAVE S20 ===
---=- ~~~~
p;;-,
YOUR NAME
ADDRESS
PHONE # - 129
Advertising
AD SIZE PLACEMENT
It's a constant struggle with the newspapers to get better placement of ads.
These two sizes, Ad A, 4 columns X 6", Ad B, 3 column X 3", should receive top
right placement on the page. (The ads have been reduce here to fit the page).
Because Ad B is 1/2 the size of Ad A, it can be run twice as often as Ad A for the
same costs.
Ad A contains a commercial vacuum. The commercial vacuum allows you

an ad item which can be sold and offers you a legitimate profit and the customer
a higher quality vacuum. Customers who come in for this particular product are
generally quality conscious customers looking for a quality machine.
The content of Ad B is important in that it shows representative product lines

and pri~es. Customers want to know what products you carry and by using
multiple lines in your advertising you become more effective. Thi::; makes the ad
more efficient than using co-op because you can run the ads at your prices and
savings story. Some companies may still co-op their portion of the ad with other
product lines included. Check with your local reps for stipulations.
- 130
Advertising
SUMMER SPECIALS
SAVE UP TO 5100 OFF THRU SATURDAY
HOOVER OREeK
8 LB. r
~~~~~ or EUREKA
UPRIGHT COMMERCIAL·
UPRIGHT
COMMERCIAL FULL SIZE
SAve UPRIGHT
WITH
ATIACHMENTS $100 SAVE , I
SAVE
$79 11-0_ _
• - HOTELS
'80
DESIGHED FOR
.
\_7_·iii.-+-~_~~_LS_C::!J_··_·-·....
,
$
58 i
130 i
EUREKA HOOVER i :I
SELF· COMMERCIAL
PROPELLED,
FREE CANISTER
TOOLS
l
$109
$148:Jji
, . ~~
v: ~~
.~J ~b& 1.:_-_.1
YOUR NAME
ADDRESS
PHONE #
Ad A
~~:~~:::. CLEARANCE SALE!
,I EUREKA PANASONIC I.' Drcck XL 200S

"Best Buy"
9.
\ ',', AlOT OF VACUUM FOR NO 1 RATED BRAND.
, i\ THE PRICE-RETAIL S99.95 I RETAIL $189.95 . -: RATING IN 1987 CONSUMERS
\~ 55· 95 S9095~ .
~
? WEIGHSOHlYSlSS.SAVE
s· ii~~~e T~::;~
:; ,:-., S12 Un
YOUR NAME & ADDRESS ~~
HERE
Ad B
• 131 •
Advertising
SUBMITTING ADS TO THE NEWSPAPER
When submitting ads to the newspaper (or any print medium) you will
eliminate confusion and misprints if you follow a few procedures.
Always submit your ad in its actual size and on ad mats provided by the
newspaper. The copy of your ad (wording) should be either typed or very
legibly printed.
A cut or ad slick of each product you want displayed should be provided with
the ad. These cuts may be obtained free of charge from the manufacturer.
Be sure to include the insertion order (see Insertion Order) with your ad
layout along with any specific instructions such as reverses, type, size, colors,
screening, etc..
And finally, plan your ad in advance so you can receive a proof. By

checking through the proof thoroughly you can eliminate errors that otherwise
could have gotten through.
• 132 •
Advertising
INSERTION ORDER
One of the biggest problems that occurs when dealing with people is
understanding. Communication with the spoken word can easily be
misinterpreted or misspoken.
This can also be the case when dealing with advertisers. Minimizing errors
and tracking promotion dates and co-op dollars can create a nightmare when
you do alot of advertising. The use of an insertion order (like the one shown
here) will greatly reduce the number of. possible errors which can occur.
An insertion order is a blueprint to the advertising media indicating the

product, size, costs and dates of the ad to be run. When submitted to the
advertiser along with the ad layout. errors are reduced to almost zero. This
insertion order, when signed by the advertising rep. will help you obtain credits
when errors occur on the media's behalf.
The insertion order will also serve as a record of the advertising dollars you
spend. It will assist you in submitting claims for co-op and in paying invoices to
advertisers. This order will standardize your paperwork so you can attach co-op
authorization forms, media bills and promotion reports to it for future reference.
This will aid you later in measuring advertising effectiveness and next year ad
planning.
This form will also become co-op authorization when signed by your sales
rep upon agreement of advertising.
The insertion order form should consist of three parts done in NCR (no
carbon required) paper. The first part goes into your files when filled out entirely
and signed by the proper individuals.
The second part is given to the manufacturers rep when signed for co-op
authorization.
• 133 .
Advertising
The third part is submitted to the advertising media with the necessary layout
work.
Keeping errors to a minimum is a necessity.
INSERTION ORDER
Date: _
MEDIA
I Product _
TO:
COMMERCIAL COpy :..-: CAMERA READY ART =:
L TAPE u
LENGTHiSPACE SCHEDULE DATE(S) TOTAL
Charge S per TOTAL _
Agency Commission on Gross Net Cost _
Ad Key _
Co-Op ..:..-
SPECIAL INSTRUCTIONS:
SEND:
INVOICES 0 AFFIDAVITS ;:: TEAR SHEETS =
TO THIS AGENCY. IF NOT RECEIVED AS ABOVE BY THE

SECOND DAY OF THE ,"'IONTH FOLLOWING SCHEDULE
IT MAY BE NECESSARY FOR US TO WITHHOLD PAYMENT
FOR 30 DAYS.
Schedules contrary to the above are at Medla-s risk.
By _
- 134
Advertising
TRACKING PROMOTIONS
Keeping track of promotions and planning future promotions can be both

time consuming and confusing.
There is a yearly calendar available from most local newspaper reps entitled
"The 19_ Newspaper Advertising Plan Book". This book is published yearly by
the Newspaper Advertising Bureau, Inc. This book is free to advertisers and
contains lots of useful information.
By utilizing this calendar you can plan future promotions, track what weeks
certain ads are running, co-ordinate your advertising mix and keep track of co
op dollars spent. By having all advertising information in one book it will be
easier to reference at any time.
• 135 .
Advertising
VENDOR SUPPORT PROGRAM
When spending advertising dollars, whether yours or the manufacturers,

they should be budgeted well in advance. This enables you to control your
dollars to work within a budget as well as making your dollars more effective.
The smaller the budget you have to work with the harder you have to work to
make it effective.
This means that with smaller budgets it is often more difficult to get the rates
and times that are the most desirable. With print media the larger your budget
and the larger your column commitment the lower your rates. However, we've
talked before about the size of the ad not being as important as placement and
frequency and consistency being equally important.
In broadcast medias, a small budget yields fewer spots and less desirable
times. This, however, can be used to your advantage when running ROS (Run
of the station), where they place your spots in any time spot they have open.
This could be at 1:00 a.m. or 9:30 p.m. You gamble on a few spots hitting in
prime time viewing making your smaller budgeted dollars many times more
effective.
Planning well in advance can assist you with selecting premium dates with
both the manufacturers and the advertising mediums. These premium dates
are the more desirable holidays as well as pay day weeks. By planning your ad
dates with the manufacturer as far in advance as possible you may be able to
"Iock-up" a particular week you want to run your promotion. One thing to keep
in mind is that many national promotions are planned with major retailers a year
in advance and some companies may not be able to run that week with you
because of that national promotion.
By committing to broadcast medias a few months in advance you can

purchase avails (spots available) at a considerably lower cost than waiting to
buy the same spot a week or so in advance. For example, if you know you want
to run a promotion on pay day in the middle of the month, three months away,
• 136
Advertising
by committing to those spots now you may pay $100 per spot (an arbitrary
figure). By selecting those days 10 days prior to that time you reduce your
chances of having those spots available, and since many advertisers will be
competing for those same time periods, the law of supply and demand takes
over and boosts the price to a much higher figure. conceivably 5 to 10 times
higher.
By planning print ads in advance you will gain the extra lead time needed to
obtain "proofs" of the ad you want to run and be able to correct any mistakes
much easier. In some instances you may receive priority placement by
committing to the ad date in advance.
The other advantage of budgeting and planning ads in advance is that you
are able to plan your machine purchases around these time periods, allowing
the inventory to arrive in time for the promotion.
Who knows your business better than you? No one. Who should be
proposing ad dates, themes, products and pricing? You! Do you? Most
dealers are content to allow the manufacturer's rep to handle these advertising
programs. Not that they don't do a reasonable job, many do very well.
However, it is not the manufacturers responsibility to provide you with the most
effective way to spend your advertising dollars, it's yours!
A new trend nationally with progressive retailing operations is to pursue co

op advertising in a more aggressive manner.
By approaching the manufacturer(s) with a large quantity purchase and

focusing their promotions around a main event or theme these retailers yield
more manufacturer support in advertising and other areas. By using these extra
co-op dollars they can increase market awareness of the product and of their
store.
These types of programs are called Vendor Support Programs (VSP). A

VSP is a well thought out and planned promotion, tying in all manufacturers,
whom you support, into one main event. This event can last one week or one
month depending on manufacturer commitment. This promotion becomes a
- 137 .
Advertising
total media blitz using both print and local broadcast medias. The advertising
commitments of the manufacturer are additional dollars above the normal co-op
percentage normally received. You are making purchases over and above your
normal buying patterns in order to guarantee the success of this promotion, it's
only fair that the manufacturer provide additional advertising dollars to assist
you in this promotion.
Your success in the presentation of this concept to the manufacturer(s) lies

in an effective plan that makes sense to both you and the manufacturer(s). You
can organize your thoughts and present your package to the manufacturer(s) in
the form of a brochure, thus making your presentation cleaner, more effective
and more professional.
The following information is the criteria of the brochure. This particular

format can also be effective in proposing your normal advertising expenditures
for a one year period in the same manner.
Be creative with these guidelines.
(YOUR STORE NAME)

AND THE TOTAL MARKETING APPROACH
Imagine (Your Store Name) initiating the most comprehen

sive, carefully planned total retail marlleting approadl with these two
goals in mind:
THIS WEEK
INCREASING SALES:
YOUR PRODUCT
EXPANDING MARKET SHARE
IS ON SALE AT
This will be accomplished by having the leading floorcare retailer in on
f the fastest growing retail marllets using a proven advertising strategy t
(YOUR STORE NAME) sell your merchandise.
(Your Store Name) intends to tap the full potential of the
(Your) marllet with this blockbuster promotion. We intend to feature our
best selling items in the most media-intensive program we have ever
staged. Our plan is well conceived and will be highly organized so that
we will readl and re-readl every possible adult in our lucrative marllet
place.
We intend to sell more of your products than ever before

ith a multi-media saturation advertising effort tied to visible and effective
in-store merchandising. We hope you can participate in our ·pilot
program·, as this strategy will become a regular part of our effort to
increase our dominant share of the Phoenix marllet
(PAGE 2) (PAGE 3)
• 138 •
Advertising
TOTAL MARKETING APPROACH PROGRAM
An 800 Gross Rating Point television Right will reach virtually all adults in
the (Your Area) ADI, 720,000 of the n5,000 TV-HH's and average of 15 (Explain Your Marketplace)
times each. Add to this the weekday drculation of (Your Newspaper) of
360,00 of these same homes 6 times each.
19S MARKEr.FACTSINoTHE(YOUR'"AREA)' AOJ
. As the leading Roorcare establishment, using TV, we can offer spot
nClng that IS below the going rate. These rates alone make this packag
an ex~lIent advertising buy. Our Total Marketing Program is a separate EFFECTIVE BUYING INCOME $._--
and dIstinct program, having no relationship with any accruaJ or co-op
program now in effect. TOTAL RETAIL SALES $---
TOTAL HOUSEHOLDS $---
TOTAL TV HOUSEHOLDS $---

(Your Store Name) media buying advantages save money.
POPULATION $---
(Your Store Name) market knowledge, put to use in media selection
elivers more impact
Vendor gains the endorsement of (Your Store Name) who has a major
resence in the market
Vendor gets prominent presentation in TV spot. -'
Vendor's message radiates throughout the market to all customers,

roviding ·ripple· benefits through all retail outlets carrying vendor's
roduct
The entire event is co-funded by (Your Store Name).
The overall program will broaden producrs share-of-mind and share-of·
marl<at in the (Your) area
(PAGE 5)
(PAGE 4)
~~========================~ PLANA
A SPECIAL PARTNERSHIP· Your participation will encompass one week of a two week multi media
saturation campaign. Your involvement will be featured as follows:
Po COMPREHENSIVE MARKETING STRATEGY

TV (2 Stations) 200 GRP's 50 - 30 Second Spots
As part of our agreement, (Your Co. Name) will feature your marchandi (Approx.)
with:
(LOCAL NEWSPAPER YOUR USING) 39 Units

.Expert media planning and placement
YOUR COST
.Significant inventory commitment
TV MEDIA $10,000
.Dramatic visual merchandising and signage

TV PRODUCTION & DUBS -0
.Special point-of-purchase sale tags

IN-SHOWROOM MERCHANDISING & SIGNAGE -0
.Special employee attention and training

SALES TRAINING -0
Custom produced commerdaJs NEWSPAPER -0
An unmatched opportunity for plus business-yours and oursl $10,000
1988 will mark the most ambitious marketing efforts in our history. We In summary your 200 GRP participation will reach a total of 650.000
invite you and urge you to join in a special partnership which will deliver viewing households a total of 4.1 times each. Add to this the weekday
solid results now and conb'ibute significantly to our long-range develop circulation of the (Your Local Paper) of 360.000 of these same homes.
ment of market share. Your participation in this special marketing Your cost will be a small portion of our $ multi-media saturation
program is in addition to your regular co-op adwrtising dollars and does campaign.
not replace them; just as our support is in addition to normal levels for
mardlandising your product. We would like you to share in our remark· AGREEMENT
able grow1tl and grow together as a team.
We agree to partidpate in (Your Store·s) T.M.A. Program at a cost of
$10,000.
VENDOR DATE
(PAGE 6) (YOUR STORE)
Advertising
The cover page should depict an upward moving bar chart signifying an
increase in that vendors product. Your company name and logo appear on the
top.
Page two reads "this week your product is on sale at (your store name)".
Whether you use a one week or one month promotion, that vendor's product
will be the feature product that week.
Page three details the objective of your campaign.
Page four explains the foundation of the program and the added benefits to
the vendor of participating.
Page five lists the market facts and figures of your marketplace.
Page six details the comprehensive marketing strategy with that vendor as
your partner.
Page seven is the advertising commitment detailing what the vendor will
receive for his advertising support. This includes the number of TV and/or radio
spots and the number of newspaper inches. The impressions stated will
depend on the participation of the vendor and can be reduced in an alternative
plan to yield a commitment from the vendor.
You will need to contact the radio and TV station(s) and the print media
sales reps to assist you in determining the number of spots, costs, viewing
households, gross rating points (GRP), newspaper circulation, total households,
population and other pertinent information.
In some larger markets local broadcast companies may already have an

advertising support program similar to this. Contact them for their participation.
• 140 •
Advertising
This VSP requires additional work on your part to make it succeed, but the
rewards are both longlasting and fulfilling, not to mention profitable to you and
supporting vendors.
- 141
Advertising
DIRECT MAIL
After spending thousands of dollars in various advertising medias month in

and month out, don't you just love it when a customer, who lives one block
away, walks into your store and says, '" didn't know you were here". After being
in the same location for umpteen years and spending all that money on
advertising those comments have a tendency to irritate you and cause you to
wonder how effective advertising is.
One mistake commonly made is to advertise in a broad based media which

reaches people in a wide geographical area. The fact remains, and research
shows, that in most markets the majority of the vac shop's customers come from
a 5 mile radius around their store. By appealing to your "neighborhood" with a
wide selection, comparable prices, servicing what you sell and being nearby,
the customer shouldn't go anywhere else.
Direct mail is a cost effective way to get that message to your "targeted"
group.
Advertising is an expensive, yet necessary, proposition. In a well balanced

advertising campaign direct mail should be included. In most cases, direct mail
works very well. Direct mail is also a form of advertising which, if it doesn't work,
won't put you out of business because of its' cost.
Direct mail customers can be broken into two distinct categories. The first is
your previous customer and the second is a new customer.
In a small retail business an asset we possess is our ability to build personal

customer relationshipS. In order to be successful we must build these
relationships. We also need to do whatever the other successful businesses do
- and then some.
- 142
Advertising
PREVIOUS CUSTOMER
A direct mail program to your previous customers is one way to do the then
some. Your previous customer is the most logical person to recontact. This
contact is the most cost effective because the customer knows who you are,
where you are, what your store has to offer and may even like you. Direct mail
helps maintain these needed customer contacts.
The objectives of direct mail to your previous customer are threefold. It first
helps to maintain and solidify your contact. Second, it seeks to get the customer
back into the store to purchase additional products. Third, it can be a thank you
for previous business. How many businesses recontact the customer and
follow-up with a thank you or an inquiry of satisfaction?
The heart of this direct mail program is to obtain as many names and
addresses from your customers as possible. This information can be obtained
from the two obvious sources of repair and sales invoices. Another option
would be to fill out cash tickets with every sale or a point of sale cash register
which will collect this information and file it for you.
The content of the direct mail to your previous customer should be one
containing service. For the repair and new machine sales customers a contact
on the one year anniversary of the service or purchase will remind them that it is
time for their machine's yearly check-up. This contact can be in the form of a
birthday card (see copy of card on page 145A). This card is printed on a bright
yellow postcard stock and should be 5 1/2" x 8 1/2" in size. The back side of the
card should be hand signed by you with an expiration date to add urgency for
the customer to bring the machine in. Also, by offering a discount on either the
labor or parts or both you will be offering the customer a savings for taking
advantage of the card now. We all have idle time during the day where we can
sign and stamp these cards and not add any cost in labor for this program. You
will want to check with the post office regarding a bulk mail permit which will
• 143 •
Advertising
decrease your mailing costs if you can meet the postal requirements of quantity,
sizing, sorting, etc.
The other previous customer mailings will consist of special sales, incentives
and offers. These will be mailed to all your customers informing them of your
sales event. These mailings should also contain a service offer in addition to
the products.
If you can plan out in advance three promotions in addition to your birthday
card and have the cards preprinted at one time, your printing costs should
remain relatively low (around $50/1,000). The reason for four promotions is the
stock used in printing (11" x 17") will hold four cards (5 1/2" x 8 1/2"). Since
printing costs generally decrease substantially for every 1,000, it is more
economical for you to print 4 themes of 1,000 rather than 1 card of 250 (4 x 250
= 1,000).
NEW CUSTOMER
The second type of direct mail contact is a new customer. The objective of
reaching this new customer is to inform them of your store's location, the
product and services you provide and the low prices you offer.
When trying to reach the new customer it is strongly recommended not to

exceed a 5 mile radius from your store. In most markets, that is where the
majority of your customers come from. In addition, direct mail is not cost
effective when used as a broad based medium in larger geographical areas.
When you do direct mail, in any form, to specific areas around your store, it
may be prudent to distribute to these areas on a piecemeal basis. That is, do
not send direct mail to everyone at once. Spread it out over a period of a few
weeks. The reason is that if the mailer is very effective a steady stream of
customers coming in over a months period is generally preferred to a large rush
of customers in a week. Many shops are not equipped to handle a rush of
. 144 .
Advertising
customers. You limit your opportunities of step up sales when several

customers are waiting. A steady stream of customers allows you to spend a
little more time with each customer developing trust, friendship and knowledge.
The content of this mailer should appeal to both old and new customers.
The message you will want to convey in this mailer is that you are a super store
of vacuums. The objective is to tell the customer what you are all about. You
offer multiple brand names, multiple products like hand vacs, brooms, etc. and
varied services such as repair, parts, accessories, used vacuums, scissors
sharpening etc.. With this message in mind, why would the customer go
anywhere else?
Direct mail must be an ongoing program. This does not mean that you need
to continue it every week of the year, but that a customer must receive from
three to six mailings before they respond (if they are in the market at all).
Generally, the first mailing serves as an introduction. If there is no immediate
need of the products offered the card is thrown out. The second mailing may
create a few new calls from the customer for additional information. The
subsequent mailings will reinforce your store image (remember the customer
may never have heard of your store prior to the first mailing) and generate
familiarity. A short interval between the first and second mailing is
recommended and once a month for the subsequent mailings.
Distributing the direct mail is an important decision. There are direct mail
houses in most markets which can provide you with mailings to specific areas.
These mailings can be done on either a mailbox delivery or a door knob or
driveway delivery. Generally, it has been found that the mailbox delivery is the.
most effective. The lowest price for delivery is not always the best. These
services may not have adequate delivery or readership. Consider a national
house when deciding who you select.
• 145 •
Advertising
VACUUM TUNE-UP
MAKE THAT OLD VACUUM WORK LIKE NEW!
OREeK HOOVER J
ER
CONCEPT ONE ,
Commercial
Vacuum
Weighs Only
8 Lbs. ;Oi 7S
f~
$19 9
SAVE
L..--G_UARANT_EED
~OWEST PRICE
WHIRLPOOL
r--=--t-')'
--.J
S100 2 MOTOR
CANISTER
SAVE ,~
$100~.
r--~--------,
7,~.
~Q~-:.t"
. " "
BAGS .:\
YOUR NAME ON SALE ,~~, .
ADDRESS
PHONE # any pkg. of bags
55~ HOOVER &; EUREKA

When you buy IIrst COMMERCIAL
pkg. at regular price J UPRIGHT
L
------------ UP
TO
$50TRAOE IN
Bring in your old vac
SAVE $70 regardless of condi·
tion, worlcing or not,
and receive up to and
additional 50" OFF
r~------
I SCISSORS :
I SHARPENED i
I SSC I
YOUR VACUUM CLEANER SUPI!RSTORE
GUARANTEED LDWEST PRICES
--------
I. PA&R!
• 145 A •
Advertising
FOUR PAGE FLYER
Another form of direct mail is a flyer. A flyer is usually 4 pages or more in

size and generates tremendous impact and impressions. The flyer should be
printed in a red ink to add additional impact. With a flyer you can offer a
tremendous variety of products and services, featuring price and selection.
The flyer leads us to a "super store" concept. By a super store we mean to

create an image of having everything at competitive prices with professional
sales and service staffs assisting the customer in his buying decision. To create
a concept of "Hey! I've got the same products as the discounters at the same or
lower prices, and I've got a wider selection of brand names to choose from."
The flyer can be very effective not only because of its' overall size impact of
4 pages, but also because it brings to the customers attention other product
lines as well as the price and item lines of the major manufacturers. In addition,
this flyer shows the customer that your store has everything they need for their
floor care needs.
As with other direct mail this flyer should be limited to the 5 mile radius
around your store. Other areas can be zoned at later dates.
The approximate cost of layout, printing and distribution of 1,000 flyers is

around $45. Again, consider a reputable mail house for this distribution.
By comparing the cost and impact of a 4 page color flyer with a comparably
priced black and white newspaper ad, you will see that the flyer will be noticed
and produce results.
- 146
Advertising
37th Anniversary Sale

mm&ii.
• .. ORECK
CANISTER UPRIGHT
C«npoct- ,.,
51"-7'-9 '
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HOOVER EXPRESS "':(( ~~ 'Am,,,.,';.;.,,':.,.=:
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1 Year Warranty
COUPONS
Using coupons in a direct mail program can generate results. Generally I
reduced service rates are the most successful. Coupons are directed at coupon
customers and that customer primarily takes advantage of discount services.
Service coupons are not a new idea. They have been used across the
country for years and generally have been quite successful. These coupons
will be seen in television guides, newspaper ads, flyers and direct mail. They
are designed to bring in new customers.
The coupon shown can be distributed in one of two methods. The first way
to distribute the coupons would be from your store. Hand a coupon with an
expiration date on it to every bag and belt customer who comes in. You will find
that since the customer is already in your store and knows who you are they will
- 147 •
Advertising
be more likely to bring in their machine. Many customers need to be reminded

that it is time to service their machine and others are not aware that their
machine needs to be serviced at all.
The second way to distribute coupons would be through a mail house which
delivers an envelope full of coupons to each house in a specific zone. Again, if
the customer uses coupons they will notice yours. If they don't use coupons the
whole envelope gets tossed out. This can greatly decrease the effectiveness of
your coupon.
When the customer brings in their machine with the coupon you will have an
opportunity to either service the old machine or make a new machine
presentation. (See Service Section for Step-Up Selling on Repairs and Selling
New Machines Off Repairs).
Which ever direction you go with the repair there is good profit, making the
coupon effective in results and cost.
SERVICE COUPON
VACUUM TUNE-UP
MAKE THAT OLD VACUUM WORK LIKE NEW
Each year many vacuum cleaners are discarded & replaced because of poor ONE LOW PRICE
performance. Expensive replacement costs can be avoided and full power .
can be returned to your vacuum cleaner with just a simple service proce- With This Coupon
dure perfomored hv nllr !';tnrFl!,;
$1
8 Point Service & Inspectl 0 n
• New Belt • Gauge Test for Proper Suction

• Clean Fans • New Dlsposable(where applicable)
• Clean and Pack BearIngs • Adjust Brush to Proper Height Parts Extra
• Check Electrical System • 011 Wheels ExpIres:
Your Store Name, Address & Telephone Number
• 148 •
Advertising
TRADE-IN SALES
One big sales tool that vac shops can offer that mass merchandisers can't is
a trade in. This tool offers a large advantage over our competition and could be
the closer of a potential sale.
Many dealers have run a trade-in sale ad. In their ad they feature the usual
assortment of products. Also, in the ad are slightly higher prices with a discount
shown for a trade-in bringing the final price down to market conditions. These
ads which feature a trade-in as the theme are generally ineffective because the
final prices are little different from everyday advertised prices. In addition, it's
difficult to offer a legitimate trade-in value and print it in the ad.
Even though there is 95% saturation of vacuum cleaners in the U.S. many
people who see trade-in ads may be looking to purchase the machine as a gift,
as a secondary vacuum or as a first time purchase and don't have a used
machine to trade, limiting your sales potential.
By offering to accept trade-ins with a coupon in your ad, you can still
advertise a low price on the products and allow the customer who wants to
trade-in their old machine a legitimate value based on a physical inspection of
the machine. This value, established on the merits of its' resale value, would be
the same on a $59 vacuum as well as a $259 vacuum. It's difficult to explain to
the customer that their old machine is worth $5 on a $59 vacuum and $50 on a
$259 vacuum. For a good marketable trade you may consider selling a new
machine at or near cost to close the sale. By selling both the new machine and
the rebuilt trade-in, you conceivably could generate more income than selling
the new machine by itself.
If you are going to run a trade-in sale and offer a substantial savings for the
trade-in consider using units which have not been price established in the
market and offer good gross profit, with or without the trade.
- 149
Advertising
Trade-ins should be approached for what they are; an old selling tool.
Trade-ins can be profitable for the vac shop and greatly assist the customer in
their buying decision. When used properly in your advertising trade-ins will
produce acceptable results.
BONUS
SAVINGS
upS
TO IN
TRADE
Bring in your old vac
regardless of condition,
working or not, and
receive up to an
additional $5000 OFF
Offer limited to quantities on hand
Trade in value dependent upon
Make. Model and Condition
• 150 •
Advertising
BROADCAST
Broadcast medias are among the most expensive forms of advertising.

These advertising impressions are designed for a very broad reach and can be
targeted towards your specific customer. The drawback here is that if you only
have one store it may be geographically too far away for the customer you are
reaching.
Before spending your advertising dollars on broadcast medias make sure

that your bottom line (profits) is there to support it. Broadcast advertising is a
long term investment. It seldom produces immediate response like print
advertising. Broadcast advertising is usually used to develop an image.
In general, broadcast advertising is difficult to make work, thus becoming

cost ineffective. However, in some markets which do not have a dominant
newspaper a media mix to include broadcast may be a necessity. Without a
dominant print medium you are limited to the number of people you can reach
making broadcast more attractive.
Broadcast advertising consists of radio and television. Broadcast

advertising should be used as a price and item media by the vac shop and as
an institutional media by the manufacturers. This way, the manufacturer
bestows the advantages of his product and the retailer informs the consumer on
where to purchase it.
Of the two broadcast types radio is the least expensive. Radio advertising is
slightly more expensive than newspaper advertising, so the total advertising
budget is generally more. You should only include radio in your advertising
when you have either more than one location, since radio reaches a large
geographic area, or an additional advertising budget above and beyond your
newspaper budget.
- 151
Advertising
Radio is a very strong, effective advertising medium. Besides providing up

to-the-minute information, radio lets the retailer with limited funds target a very
select audience, which is vital to a successful advertising plan.
Do you question the power of radio? Consider this: Americans have radios
everywhere they go - in the car, the office, the kitchen. the bedroom, the living
room, the back yard. The average American owns five radios! People tune in
for entertainment as well as to keep abreast of the news.
Radio stations have different formats (top 40, news/talk, country, middle-of
the-road) which reach very specific target audiences (female teens, men ages
55 plus, adults ages 25 to 54).
Why is this important? Well, who buys a vacuum? A 1984 Simmons Market
Research study says it is women ages 25 to 54. So why would you buy time on
a radio station whose audience is primarily young men?
If every cent of your advertising dollar must produce sales, it is very

important that you spend your money to reach your primary audience. For
example, if you had $1,000 and your choice of a medium that reaches 100,000
adults ages 25 plus, or a medium that reaches 50,000 women ages 25 to 54, it
would be more effective to purchase the medium reaching your target audience
(women ages 25 to 54).
The radio stations you contact will be able to provide you with the listening
audience they appeal to. They will also provide you with a ratings sheet that
tells you how effective their station is at reaching that audience.
In radio advertising it is highly recommended to use a live personality. That

is, to do live spots rather than recorded spots. The tendency of the individual is
to give you a few more seconds of air time when they do the spot live. If the
individual really gets excited about the product he is advertising he may go on
for minutes. If the individual uses the product and has a well respected
reputation, a personal endorsement by him or her can add tremendously to the
success of your ad.
- 152
Advertising
If the spots you are using are taped, from day one, start your advertising with
an identifiable tune or jingle and a saying; something that is used consistently
to tie all your impressions together. This makes your spots more identifiable
with time and directs the customer to your store.
The key to broadcast advertising is frequency, not reach. If you have picked
the right station, show, personality etc., for your broadcast, then you will be
reaching the audience you have targeted. The key is to get them to recognize
your name when they hear your commercial. You need to contact your potential
customer 2.3 times within a short period of time (usually a week or less). If your
customer is not hearing or seeing your spot that frequently, it is difficult for you to
make a lasting impression.
Some stations offer a discount package to advertisers called Run of Station

(ROS). ROS means that the station will put one of your spots in an opening that
has not been previously sold. These times may range from prime time to 1 or 2
o'clock in the morning. In most cases, in our industry, this wouldn't seem to be a
good value. Although the spots are less expensive and you may be reaching
many people, the problem is that you are reaching the people maybe once or
twice and sometimes at odd hours of the day. In addition, you can't choose a
target audience with ROS.
TELEVISION
Television advertising is similar to radio advertising in many respects.

Different shows and stations appeal to different target groups. You must decide
which shows and times best target your audience and fit your budget.
The biggest difference between TV and radio advertising besides the fact
that you are reaching the customer with both a visual and audio impression, is
the cost. The cost of airing a TV commercial is more than the radio commercial.
Also, a cost many first time advertisers either don't know of or neglect to budget
for is production costs. In radio, there is seldom a charge for producing you a
• 153 •
Advertising
taped message. In television, however, the costs can be quite substantial

depending on the quality and sophistication of your spot. Remember that these
production costs will decrease the overall number of commercials you can
afford to air. The more you spend on production costs the less you have to
spend on air time.
An excellent approach to TV commercials would be to do a donut spot. A

donut is inserted into a pre-taped commercial which mentions specific
information regarding your store(s). The donut would fit between the opening
and closing portions of your commercial. A new donut would be done for every
manufacturer and promotion you run. By using a donut, the initial production
costs of your store's services, selection, prices, locations, slogan and jingle
would be a one time cost. Each donut thereafter would be an additional cost
and the only production cost involved.
Broadcast advertising, when used properly and with the right budget, can
greatly enhance your advertising impressions. When tied together with other
advertising you will have a very strong and effective campaign.
GLOSSARY OF TERMS
1. Rating· the estimated percent of all television households or persons

tuned to a specific station.
Households or Viewers
Rating (%) = Total TV Total Viewer
Households Population
2. Share· the estimated percent of all Households Using Television (HUT) or

Persons Viewing Television (PVT) tuned to a specific station.
Households Viewers
to Station or to Station
Share (%) = HUT PVT
3. Reach (Cume) • the estimated number of unduplicated or different
households or persons that viewed a specific station at least once for five
minutes during the average week for the reported time period; circulation.
• 154 •
Advertising
4. Frequency· average number of times the unduplicated viewers will be

exposed to the schedule of commercials or spots.
5. Gross Impressions· the average number of persons that view at the time
the commercial is to run multiplied by the number of times the commercial or
spot is to run.
Gross impressions = Average Persons X No. of Spots
6. Gross Rating Points (GRP's) • the total of all rating points achieved in a
market area for a specific schedule of commercials or spots.
GRP's = Average Rating X No. of Spots

7. Cost Per Thousand (CPM) • the cost of reaching one thousand
households or persons with a commercial.
Cost per Spot
CPM=
Ayg. Aud.
1,000
• 155 •
VII.
COMMERCIAL
Commercial Accounts
INTRODUCTION
Every independent vacuum dealer, to a certain extent, does business with

the commercial user. Developing an aggressive marketing plan to expand your
commercial business can add additional profits to your business.
Increasing your dollars per commercial account should be a major objective.
One reason the commercial business is an excellent area to expand in is

that you already carry some of the products these people need. You can bring
in additional items as they are neE3ded, gradually building your product line. By
expanding your commercial equipment you add another profit line of equipment
to offer your domestic customers as well.
The opportunities to grow without increasing expenses is a prime area to

develop. Commercial sales, when approached correctly, will greatly aid your
growth.
. 156 .
Commercial Accounts
GENERAL INFORMATION
There is a vast market out there which provides challenges and rewards. A
market with sophisticated and expansive demands. A market, which when
pursued properly, can yield additional sales and profits. This is the commercial
cleaning market. This market consists of janitors, maintenance engineers,
housekeepers, maid services, hotels/motels, apartment complexes, movie
houses and much, much more.
Unlike the retail market where you may see the customer once every other
year, the commercial market is a constant ongoing relationship. The
commercial market's needs are similar to the retail market with the difference
being in the quantity of cleaning they do.
The commercial account generally is not as fickle as the retail customer in

terms of price. Granted they are not going to pay more than they have to,
however, when they find a dealer they are satisfied with and one who provides
them the service they expect they generally stay loyal to that dealer.
There are two main areas a commercial account considers when looking for
a vendor, much the same as a vac shop looking for a parts supplier.... selection
and service. Notice the word price isn't in there. Taking into account that
your prices are competitive in the market it is not enough to be the lowest priced
if you can't provide the selection and service. By this we mean if your selection
is limited to only a few upright vacuums and parts versus XYZ company who
offers a range of uprights, wet/drys, polishers, extractors, chemicals and parts,
you're limiting yourself considerably in your appeal to your customer's needs. If
your service is limited to your store's location the company that can offer pick up
and delivery of machines and product will more likely be the choice of these
people. The commercial account wants to do as little shopping as possible.
The fewer vendors he deals with the less salespeople he has to see and the
more time he can spend in other more productive areas.
• 157 •
Commercial Accounts
Getting started in the commercial business can be a slow process. Getting

your name in front of these people so they will call you for information or prices
requires time, money (advertising, not bribes) and earning their respect. The
respect of the commercial account is the hardest to get. The best way to earn
his respect is knowing about the area he has questions in. Don't guess! If you
don't know tell him you will check into it and call him back later. He will respect
you more for doing it that way than by giving him the wrong information. If you
can't help him perhaps recommend someone he can call who can.
If you currently are not doing business with commercial accounts this area is
one that can immediately bring you an additional 35-45 percent gross profit per
month (25 percent on machines and 55 percent on parts). The commercial
account business can grow steadily for your store and in time become the base
on which to build your business.
• 158 •
Commercial Accounts
WHAT CONSTITUTES A COMMERCIAL

ACCOUNT?
A commercial account is any business or person who makes more and/or

larger than the normal purchases of a typical retail customer. Examples of
commercial accounts include:
1. Hotels/Motels
2. Apartment Complexes/Management Services
3. School Systems
4. Restaurants
5. City Governments/Municipal Services
6. Janitorial Services/Maid Services
COMMERCIAL ACCOUNT PRODUCTS
The needs of these people are slightly different than your retail customer.
They still need to vacuum and clean carpets and hard floor surfaces. But these
people also need to clean windows, walls and furniture, etc. The biggest
difference is the amount and quality of cleaning that they must do.
Some of the types of products that are available to most vacuum shops for
commercial customers are:
1. Commercial Uprights 12",14",16",18"

2. Large Area Vacs 20",24",28"
3. Commercial Canister Vacuums
4. Wet/Dry Vacuums
5. Portable Commercial Vacuums
6. Shampooers/Polishers/Burnishers
7. Built-In Vacuums
• 159 •
Commercial Accounts
8. Carwash VacuumsNacuum Motors

9. Blowers
10. Extraction Cleaning Equipment
11. Pressure Washers
12. Carpet Sweepers (non-electric)
13. Chemicals
14. Vacuum Cleaner Repair Parts
15. Vacuum Cleaner Repair Service
16. Training on Repair
The last three items are added because being a vacuum shop you are more
knowledgeable than most of the janitorial supply companies when it comes to
selling parts and service on vacuums. You also have an advantage in being
able to train the maintenance people on the correct procedures to keep their
equipment operating properly. Why not charge $25-30 an hour to do the
training? If you do this their loyalty will be shown to you in their parts
purchases.
SUPPLIERS OF COMMERCIAL PRODUCTS
Many of these products can be ordered direct from the manufacturer such as
Sanitaire, Doyle and Pullman Holt. Some products such as Advance and
Clarke are not available to anyone other than a distributor. Some products
such as Danzig Dart, Mercury and Hoover are available through local
distributors like a janitorial company or janitorial wholesaler. Some products
like Royal, Panasonic, Hoover and Mastercraft are available through parts
distributors across the country.
Many parts suppliers also stock additional items such as scrubber

accessories, wet/dry accessories and parts to repair these units. We suggest
that you study the catalog of the parts company you currently do business with
to see what they have available. Should that company not offer these products,
shop around for a supplier who does.
• 160 •
Commercial Accounts
There are also a few parts suppliers who are currently carrying chemicals,
paper goods and cleaning tools such as mops, buckets, etc. Almost everything
on the commercial product list can be purchased from the suppliers that you are
currently doing business with.
PRODUCT BROCHURE
We recommend that you start putting together a three ring binder with
everything you can sell to your Commercial Accounts. Put these into sections
such as Hoover, EurekaiSanitaire, and other manufacturers. In each of these
sections, where available, list the different type units you have access to, e.g.
12" vacuums, 14", 16", 18" wide area vacuums, wet/dry vacuums, polishers,
extractors, etc. Also, in another section, have schematic breakdowns of each
unit. This will aid you in ordering parts for the customer and also insures that
you are ordering the correct part. Another item we recommend you carry is a
sheet listing the common Hoover and EurekaiSanitaire parts with prices. This
sheet should be designed to be given to your customer so he can reference it
when he needs to order parts. This keeps your pricing consistent and if printed
on your letterhead, will also give your customer your name and telephone
number for ordering. Hoover and Eureka constitute approximately 70 percent of
the vacuum cleaners in commercial use within the Hotel/Motel industry. We
also suggest you carry a sheet listing the popular parts of a few other machines
such as Oreck, Royal and Panasonic.
Some of the product brochures can be obtained from your sales

representatives like EurekaiSanitaire and Royal. Some of these can be
reproduced out of your suppliers catalog or even ordered through your
suppliers. Be sure to have several of each with you at all times in case your
customer needs one.
While your parts business is building you can begin pitching equipment to
your accounts. Many of you have access to commercial equipment through
your sales representative. You also have available to you other commercial
lines through your supplier that should be represented in this brochure. Do not
limit yourself to one line. Be flexible and sell the customer what will suit his
• 161 •
Commercial Accounts
needs. Remember, this relationship you are building with the account is a
lasting one of trust. If you sell him a product that is not intended for the job he
purchases it for, you may lose his trust and business.
• 162 •
Commercial Accounts
SALES TECHNIQUES
We have found five effective ways of contacting accounts:
1. Postcards
2. Direct Mail Pieces
3. Telemarketing
4. Personal Contacts
5. Referrals
1. POSTCARDS
The art on the postcards should show one competitively priced product or a
monthly special (such as belts at $ .50 and assorted additional parts also at
a very competitive price). If there is no competitive price in your market,
establish one. Your mailing list should be a collection of every commercial
account you have, plus the ones you want to target. There are two ways to
develop a mailing list. One is to purchase the list from a direct mail house
and the other is to develop it yourself through the Yellow Pages. The Yellow
Pages, unfortunately, do not give zip codes so you have to look them up
separately using a zip code map or book. Another source of information is
the Chamber of Commerce in the city you want to do business. The
Chamber of Commerce will be able to send you a listing of the hotels and
motels as well as some apartment complexes.
2. DIRECT MAIL PIECES
These larger pieces are designed to show a particular line or group of

products. You may want to show the complete commercial line of a
particular company or you may want to show a particular line of cleaning
chemicals. They should also be sent to everyone on your mailing list.
• 163 •
Commercial Accounts
Follow-up with a telephone call after you have sent your mailers. This will
allow you to find out if the mailers got to the right person at that business or
even if that person took the time to look at it. This conversation will help you
put together a more effective mailer.
3. TELEMARKETING
Telemarketing allows you to call and solicit business over the phone.
Always have a definite reason for the call and target your calls to meet the
needs of the contact. Be considerate of the person and the time you are
calling, i.e. do not call the manager of a restaurant at noon.
If you can develop an effective phone solicitation program this will be your
single greatest way of making money. There are two industries you will
need to concentrate on: Hotel/Motel and Apartment and Retail Stores (Strip
Malls and Restaurants).
With the Hotel/Motel and Apartment business, you will need to talk to the
executive housekeeper, and in most cases, the chief engineer as well.
These are the two people who make the majority of the buying decisions in
the floorcare area. The following steps will give you a basic format for all
industry telemarketing:
First Call
On your initial phone call get their name. Introduce yourself and the
company. Then explain the reason for the call:
A. Services you offer

B. Products you sell
C. Let them know where you are located
D. Mail the person a card and a popular parts price sheet
Second Call
A. Reintroduce yourself and remind them of previous contact
• 164 •
Commercial Accounts
B. Ask how machines are holding up

C. Ask if you can be of assistance in parts or repair
D. Offer this month's special - e.g. belts $ .50
E. Mail another postcard with specials and expiration date
Third Call
A. Reintroduce yourself and company

B. If they ordered from you previously, thank them for that order
C. Try to establish an appointment to meet them
D. Give them this month's special - e.g. service $9.95
Future Calls
Keep a constant once a month (3-4 weeks) phone call coming in to them.
Always offer come reason for them to do business with you.
4. PERSONAL CONTACTS
These can be broken down into four areas:
A. Initial Appointment
B. Cold Calls
C. Appointments
D. Calling on Existing Accounts
INITIAL APPOINTMENT. As time goes on, you will develop a method

that you will feel comfortable with, but you should also incorporate the
following necessary ingredients into your Initial appointment.:
1. Always have your business card with you.

2. Smile and introduce yourself each time. Don't assume they remember
you.
3. Explain your reason for being there, whether it be a cold call or an
existing account.
4. Ask questions and to establish a need.
• 165 •
Commercial Accounts
A. How is your equipment holding up?

B. Do you have any unusual need areas like stairs, vents, parquet
floors, etc.
C. How do you clean your drapes?
D. How do you clean your furniture, patios or window tracks?
(Portable lightweight units)
E. Do you have large open areas to clean.
(Wide area vacuums)
F. How do you repair torn linen, towels or drapes?
(Sewing Machines)
5. Ask for an order. When asking for an order do it in such a way as to not
give them the opportunity to say no.
A. Do you need 12 or 25 belts today?

B. When can I deliver this machine?
6. Do not overstay your welcome. If they are busy when you get there,
schedule a time to return when they are not as busy.
Cold Calls, or canvassing, is done by driving down a particular street and

stopping to talk to customers who you feel are qualified to purchase your
services or product. This is not the easiest way to sell, but many good leads
(and additional mailing addresses) can be obtained this way. With cold
calls, stay as long as you feel welcome but do not stay so long as to upset
the client. You must explain your reasons for stopping, show them a
brochure or listing of products and services you offer, create a need in their
mind for a particular product you wish to sell and ask if you can be of service.
Be sure to leave them a business card and the product information. Some of
these cold calls, such as calls to hotels and motels, will become monthly
stops and others will become semi-annual stops.
Appointments are prearranged meetings either initiated by yourself or the

- client. There are four reasons to make appointments: 1) To show one
particular product or a group of similar products. Never be embarrassed to
• 166 •
Commercial Accounts
ask for the order you came for. 2) Appointments can also be useful in
generating another appointment. We have found that it takes between five
and ten individual contacts with new accounts before a sale is made. 3)
The Need Analysis Form (Exhibit A), is a good opportunity for you to visit an
account. Ask questions and tell him that you will be able to make
recommendations to him after you review his responses on this
questionnaire. 4) Another reason to generate another appointment would
be to discuss the lease package regarding vacuums (discussed later).
Calling on existing accounts is just what it says. You are calling on them for
an order, whether it be for a package of bags or a larger parts order. We
combine this area with cold calls. As long as you are in an area why not
stop somewhere else? This is good for informing the cold call that you do
business with XYX across the street.
A very important point to remember whether it be on phone calls or cold

contacts is to always remain cheerful, friendly, polite and convey a
professional manner (dress and language).
5. ASK FOR REFERRALS
As in any sales business ask the person whom you're dealing with if they
are happy or satisfied with the quality of product or service that you are
providing them with. If they are, ask if they know of another company t
business, individual etc. who may be interested in receiving the same

service. Explain that you are trying to build on the already existing base of
happy customers you presently have. At the very least ask the customer to
give your name and business card to his friends for quality product or
service and let them decide to call you. Be sure to follow up with whatever
leads this person gives you and use his name in your initial contact with that
individual. For example, "Hi, Mr. Jones. My name is with (Your
Company Name) and I service John Smith's machines. In our conversations
he suggested you may have the same need of parts and service that he has
and to give you a call. The services we offer are .... etc.
• 167 •
Commercial Accounts
PRODUCT DEMONSTRATION
In most cases, what you are pitching is a product you already have in stock
or one you can readily get. For example, you will most likely have in stock the
vacuum cleaner that the customer's needs demand. You may not, however
have a polisher or extractor in stock. There are several ways to handle this.
First, contact a local distributor of the product and ask them to go on the
demonstration with you. If you are going to buy the product through them they
should not mind going on the demonstration.
Secondly, you can buy the unit from the supplier. To do this you must have
some kind of commitment or working relationship with your supplier. Establish
the price and quality of the product you are to demonstrate before purchasing
the equipment. Try and sell the commercial account on the unit before the
demonstration. Qualify the customer as to whether they will buy the unit if it
meets their needs. This is a chancy way to pursue the demonstration because
the customer may not want the product after he sees it. However, if you are
consistently making commercial calls you will eventually sell the product.
Thirdly, sell the equipment off of a flyer and base it on the merit of its name and
reputation. This will work if you guarantee that the customer will be completely
satisfied or you will take the equipment back. You can demonstrate a similar
unit in the product line; e.g. a 9 gallon wet/dry instead of a 17 gallon. Explain
that the unit will perform as well as this unit. Do not, unless you are selling top
of the-line, compare it to a top-of -the -line unit.
And finally, if one of your other customers currently is using the product, ask
your prospective customer to call them for a testimonial of the units'
performance. Or, if you are on extremely good relations with someone who
owns the unit ask if they will go with you on a demonstration and compensate
them for their time and effort. If a customer would like to test a particular
chemical or small cleaning supply (Le. dust mop, etc.) contact your supplier and
inform them of the potential sale. In some cases the supplier may either give
you a sample product or sell it to you at a reduced price. In either case" do not
charge your customer for this sample product unless he insists that you do,
• 168 •
Commercial Accounts
since this courtesy may lead to many future sales. Be sure that a detailed
explanation accompanies the product so that it can be tested properly. Again,
this information should be available through your supplier.
COMMERCIAL DIVISION STAFF
In the initial stages of development we recommend that the owner handle

the accounts. If you are a one man store, open an hour or two later every
morning (or at least two times a week). Make your calls as discussed earlier by
either cold calls or appointment.
We recommend that you use UPS to deliver your parts orders rather than do
it yourself. Your time is more valuable making new contacts than acting as a
delivery service.
The only times you may want to deliver an order are with an opening order
to show the customer how quick and reliable your service is or if you will be
driving past his business anyway. Since UPS charges you for the delivery pass
the cost on to your customer if his order is under a specific dollar amount; e.g.
orders over $75 delivered at no charge.
TRAINING EMPLOYEES
There is no teacher like experience, but we have put together a training

outline that may assist you in training employees. It can even be of assistance
in helping you should you not be familiar with all of the products.
The training outline lists the units that have been common in the vacuum
industry and does not take into account other units such as Advance, Clarke,
Tornado, etc. However, please be aware of these units. Information for these
units can be obtained through response cards in the Sanitary SuoQly Magazine
as well as other trade publications.
• 169 •
Commercial Accounts
The following section contains only an outline and does not go into specifics.
• 170 •
Commercial Accounts
TRAINING OUTLINE
I. PRODUCT ORIENTATION
A. Commercial Units - Where Applicable
1. Upright Models
2. Powerteam Models
3. WetJDry Vacuums
4. Portable Vacuums
5. Scrubbbers/Polishers
6. Carpet Extraction Units
7. Pressure Washers
8. Applications of Each
9. Advantages - Features/Benefits
10. Approximate Costs/Selling Prices of Each
B. Domestic Units - Where Applicable
1. Upright Models
2. Powerteam Models
3. WetJDry Vacuums
4. Portable Vacuums
5. Scrubber/Polishers
6. Carpet Extraction Units
7. Applications
8. Advantages - Features and Benefits
9. Approximate Cost and Selling Prices of Each
C. Past and Present Models (in same line)
1. First Models
2. Changes Made
3. Motors
4. Chassis
a. Metal
b. Lexan
c. Polycarbonate
D. Differences Between Lines
1. Motors
a. Design
b. Construction
i. Ball Bearing
ii. Sleeve Bearing
c. Amperage
• 171 •
Commercial Accounts
d. Fan Design
2. Warranties
3. Ease of Operation
4. Ease of Repair
5. Performance
E. Hoover
1. Commercial
2. Domestic
3. Past and Present Models
4. Differences Between Lines
F. Eureka
1. Commercial
a. Sanitaire
b. Kent
c. Other Private Label Machines
2. Domestic
G. Royal
1. Commercial
2. Domestic
H. Other Common Brands
1. Panasonic
2. Kirby
3. Oreck
4. Electrolux
For training purposes use schematic breakdowns to help

understand for reference changes, features, benefits, repair,
current line and comparable models.
II. PARTS AND REPAIRS
A. Dissection of Machines
1. Handle Unit
a. Cord
• 172 •
Commercial Accounts
b. Switch
c. Handle Release
d. Handle Sockets (belts and forks)
e. Cord Hooks
2. Bag System
a. Types
i. Paper
ii. Clothe Shakeout
iii. Combination
iv. Dust Cup
b. Bag Slides
c. Bag Rings
3. Brushroll
a. Types
i. Wood
ii. Metal
iii. Double Brush
iv. Auger
b. Brushes
c. Bearing and Bushing
d. Lubrication
4. Bases
a. Metal
b. Lexan (plastic)
c. PoIycarbonate
d. Wheel Placement and Design
e. Stability
5. Motors
a. Bushing/Ball Bearing
b. Double Ball Bearing
c. Vertical
d. Horizontal
e. By-Pass
f. Blow Thru
g. MUlti-Speed
h. Differences Between Canister and Upright
6. Fans
a. Metal
b. Plastic
c. Blade Design
• 173 •
Commercial Accounts
i. Curved
ii. Straight
iii. Gaps Between Blades
d. Canister Fan vs. Upright Fan
The purpose of the above section is to acquaint the

salesman with the parts he will be selling and the role
the part plays in the operation of the equipment. It is
so important that the salesman be familiar enough with
a particular unit to take a parts order and deliver the
correct parts.
He should also be able to price the parts order for the

customer on the majority of the items while at the
account. Although phoning back with prices is usually
acceptable, the salesman should also use a schematic
breakdown when starting out to aid in his order.
III. PARTS CATALOGS
A. How to Use
B. How to Order
C. How to Determine Price
1. Cost
2. Method of Mark Up for Retail
3. Discounts for Commercial Users
D. Establish a Common Item Price Sheet

E. Who to Order From
1. Manufacturer
a. Hoover
b. Eureka, etc.
2. Parts Distributor
3. Why Choose One Over Another
a. Availability
b. Time of Delivery
c. Competitive Pricing
d. Terms
IV. Types of Accounts
A. Hotels and Motels

B. Apartment Buildings
C. Churches
. 174 .
Commercial Accounts
D. Schools, etc.
v. People to Contact
A. General Manager
B. Purchasing Agent
C. Executive Housekeeper
D. Maintenance Engineer
E. Owner of Business
VI. Method of Contact
A. Personal
B. Phone
C. Mailer
D. Referral
E. Repetition
• 175 •
Commercial Accounts
EMPLOYEES
After a period of time you should notice your commercial business becoming
larger. At this point you may want to consider hiring either an outside salesman
or someone else to help run your store. Several questions come to mind when
hiring an additional employee.
"How Do I Pay Him? Commission, hourly, or a combination?" We

suggest an hourly pay with a commission. This should give him the incentive to
make new contacts. The base pay should be rather low. The commission
structure should be designed in such a way as to allow both of you to make
money. With outside salesmen many companies have set up a budget. In this
budget they (the company) recover their operating expenses related to the
commercial division (Le. telephone, postage, wages, payroll tax, auto expenses,
insurance, etc.). After this amount has been recovered the salesman is paid a
percentage of the gross profit. Another way to pay commission is to pay a
percentage of gross sales. This amount will generally range around 10 percent.
Another question that comes up is "How do I know if he is making the

calls and doing his job?" The good thing about this is that since you started
the business you are familiar with how much business you were doing and how
much he should be doing. And being on commission he does not get paid very
much if he is not producing. Also, the enclosed weekly planner (Exhibit B) will
aid you in making your salesman more productive. This form is done prior to
the start of the work week. Have Monday morning breakfast meetings to
discuss last weeks contacts and problems and this weeks contacts. With this
sheet you are able to manage your salesman's time. Break your territory into
four sections, and each week contact a different section. Bear in mind that you
will still have calls coming in during the week from other sections so it is
sometimes necessary to revise a daily schedule but by and large the schedule
is able to be followed.
• 176 •
Commercial Accounts
Another question that arises is "How will my salesman know who to

contact, what have they been buying from me, and at what price?"
We have enclosed a customer activity sheet (Exhibit C) which lists the name,
address and phone number of the establishment as well as the people to
contact. Also on this sheet there is an area to write what you sold and at what
price. This sheet is also used even if there was no sale. Write in the day of the
contact, who was seen and what was discussed. This sheet is also useful
because it tells you what the account did last year and what area the busi ness
was done in (Le. parts, labor, vacuums, etc.). This sheet will tell you if the
account is doing less this year than they did last year. These sheets are filed in
alphabetical order in a three ring binder with the weekly planner.
Another question arises: "How does the salesman know what his
approximate commission Is at any given time'" One of the most
motivating things to a salesman on commission is to know how much money he
has made so far that month. The monthly activity sheet is also enclosed (Exhibit
D). On this sheet the salesman logs every sale by customer name, date and
type of purchase. The other two columns are for the cost of each transaction.
With this form the salesman can total the sheet at any time to determine his
commission and you can cost out each transaction to determine whether or not
you are making money.
Another question that arises is "Do I turn all my accounts over to my

salesman or do I keep my walk In accounts for the store'" In most
situations, (since we use two different invoice books for commercial and retail
sales), separate the walk in traffic from the commercial accounts. The
reasoning is that the commercial division did nothing to get that customer in the
door. If the customer came in because of a direct contact by the commercial
division then it is a commercial sale. Sometimes accounts need an item in a
hurry and can not wait for the salesman to deliver it. It wouldn't be fair to take
the sale from the salesman. At the same time the salesman can not expect you
to turn over business that he does not service and call on. Handle your phone
sales the same way, since it is the stores phone number and yellow page ad
that generated the call the initial sale belongs to the store. After that sale you
may turn it over to the commercial division. However, if you can not help the
- 177
Commercial Accounts
caller and have to turn the caller over to the commercial salesman the sale
should become his.
. 178 .
Commercial Accounts
PROFIT MARGIN
The percent of profit you will need to work on will vary from company. and
from one area of the country to another. There are several things to keep in
mind when determining the price structure. You want to work within the related
expenses, salesman's commission, and competitive market conditions. In order
to get and keep a commercial account you generally cannot charge them the
same price as a retail customer unless you have a product that can not be
purchased from another dealer.
The way some commercial divisions operate is to take 30 percent off of their
suggested retail catalog. This allows us them to be consistent with their pricing.
They give all of their accounts a 30 percent discount no matter how large. You
may want to set up a 20 percent discount for some of your smaller accounts.
Put the discount the customer is receiving on their customer activity sheet.
A general rule of thumb that they use is to double their cost on the majority of
the parts. Some parts will receive a larger mark up and some of the more
expensive parts will receive a smaller mark up.
On equipment, to be competitive in your market, you will generally need to

work on 28 -35 percent gross profit or 38-54 percent mark up. The best way to
price your equipment is to shop the bigger competition in your market and
depending on the services that they provide, adjust your price based of the
product and service you will provide. You do not have to be the lowest priced if
you can show some additional value in purchasing the equipment from you.
An important thing to keep in mind is to be flexible with your pricing. To get

your foot in the door you may have to go lower than you would like. That is a
decision you will have to make. Is the additional business worth the prof~t you
are making on the sale or the potential sale down the road?
• 179 •
Commercial Accounts
CREDIT OR C.O.D.
In order to do large sales with commercial accounts you generally must

allow them to open an account with you. You will find this to be particularly true
with corporations and large hotels as well as school districts. For many of the
smaller accounts if they realize that they can save money by doing business
with you as well as receive needed services and parts in a timely manner they
will usually accept a C.O.D basis.
One thing to remember regarding commercial accounts is they generally are

slow pay. If you give them 30 days to pay an invoice they usually take 45. In
some cases the bigger the property the slower pay they are. We have found
that on average 75 percent of accounts pay within 30 days, 20 percent within 60
days and the remaining 5 percent over 60 days. This is with a consistent and
diligent statement mailing and phone follow-up.
Occasionally on special deals where your profit structure is very low if you
get in touch with the Accounts Payable division of the property you can
sometimes expedite the payment. Do not over use this method of collection
with the same account.
We recommend you supply your customer with a credit reference form

(Exhibit E) like the one we have enclosed to fill out. We recommend that you
check the references they have provided and verify their credit history. We also
recommend you be very careful with the amounts you allow janitorial
companies and maid services to charge. These are examples of accounts that
you may experience problems with. Just like you, when the manufacturers
representative comes along and allows you to buy on open account, you have a
tendency to purchase more when you have 30 days to pay for it than if it were
all due on delivery. Use terms as a closer.
• 180 •
Commercial Accounts
ACCOUNTS RECEIVABLE
The best way to keep track of receivables is to consult your accountant.

Most vacuum dealers currently have some accounts receivables to collect and
already have a system they are currently using. One type of system is the
accounts receivable ledger cards. These cards are filed in alphabetical order
and updated every time a charge is made or a check collected. Statements are
sent out monthly to the account using preprinted address labels. When we
started we used this system. In addition to the information on the card we also
put the phone number of Accounts Receivable and the person whom we
needed to talk to.
Another system that people use is called a peg board accounting system.
This system uses a statement as the primary record keeper. On the back of the
statement is a carbon type material. This statement is put over the card system
and continually updated as activity occurs. This eliminates having to redo the
activity on the statement as in the first example. This system is available
through Neb's Business Forms.
There are several systems available and most are available through your
local office supply store as well as many mail order companies. Be sure the
system is compatible with your accountants.
In addition to the statements, contact the accounts that are running late by
phone. The phone call is a polite reminder - not verbal abuse.
Overall, the commercial business can be a very consistent and lucrative

business to go into. Eventually the commercial business can become so
consistent that you can look upon it as your base. This way if your retail
business fluctuates you will still be ahead in total sales because of your solid
base.
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Commercial Accounts
WHAT IS A LEASE AGREEMENT?
A lease agreement is a document that you and your lawyer draw up to allow
you to lease vacuum cleaners to the hotel/motel establishments (we don't
recommend leasing to any other industry). This agreement is designed to
protect you, the lessor, regarding financial arrangement with each
establishment. It also protects the establishment to make sure they receive the
services and warranties agreed to by the lessor. This lease agreement states
who specifically owns the equipment, the term of the lease, services promised,
maintenance to be provided and the future of the equipment at the end of the
lease.
WHO BENEFITS FROM THE LEASE?
By offering a lease agreement to your customers you will both benefit from
the lease. The customer will benefit from the lease by having fixed monthly
payments. This will allow the housekeeping division to provide their
management with an exact monthly budget regarding the vacuum cleaner
expense. They will know every month exactly what dollars will need to be
allocated to their department. This will help them and their management with
cash flow projections. Leasing the vacuums also assures housekeeping that
they will have perfectly functioning equipment for a whole year regardless of the
problem. Leasing allows the establishment to spread their payment out over a
whole year rather than due and payable in 30 days. Leasing will allow
maintenance more time to work on other pressing matters rather than repairing
vacuum cleaners. Leasing allows the property to expense the total yearly lease
payment rather than depreciate the equipment over a three year period. Very
few hotels can get a commercial vacuum to last three years!
• 182 •
Commercial Accounts
Another benefit of the lease is the quarterly maintenance inspections. These

inspections are designed to give you the opportunity to check the equipment
regularly. This does several things. It allows you to make sure that all the units
are still at the establishment. If one is missing, the property is responsible for all
monthly payments as well as the buyout. The lease allows you to replace worn
items and damaged parts so they do not lead to more costly repairs. And it
allows you to accurately track the parts that are required to maintain the
equipment so you can more accurately project your profits for the term of the
lease.
The lease agreement benefits you because it gives you a unique reason to
call on an account. This is something no other dealer or business is doing. The
lease allows you to sell a concept (clean floors) rather than a particular brand.
The lease effectively estimates your competition since they cannot offer a
package as comprehensive and complete as this one. And finally, the lease
agreement benefits you by allowing you to make in excess of 50% gross profit
on your new machine sales.
WHAT PRODUCTS DO I LEASE?
The type of product you should lease should be limited to upright vacuum
cleaners. The reason for this is because along with the unit you are also
providing parts and maintenance for the length of the contract. If you were to
lease a canister powerteam there is considerably more cost involved for parts
and maintenance than on an upright. In addition, there are many more
replacement parts for a canister than for an upright.
There are very few people who would be willing to lease a floor polisher or
wet/dry vacuum for a one year period. The reason being that there is very
moderate if any parts or maintenance required in the first year. Also, the lease
payments would not be price competitive with the purchase pricing.
• 183
Commercial Accounts
We recommend that you lease a brand name commercial vacuum. Since

you are guaranteeing the unit completely for a period of one year you should be
sure that it is of a good quality so as not to need extensive parts and
maintenance. Another reason to lease a commercial unit is for insurance
purposes. Commercial units are generally grounded to prevent electrical shock
which could occur on a domestic unit. If you have an exclusive distributorship
which allows you to buy the unit at a lower price than your competition, you
should use that unit so you can be more competitive with your pricing.
We based the decision of models to lease on the following statistics:
In hotel use, the average maid cleans 15 rooms per day, 7 days a week, and
spends an average of 10 minutes in each room running the vacuum. This
translate to 17 1/2 hours per week, 75.83 hours per month and 910 hours per
year. You can see that with this type of usage you will need to provide them
with one machine per maid that will last at least an entire year. We say at least
a year because you give the establishment the opportunity to purchase the
equipment at the end of the lease period and should put an additional six month
warranty on the unit when purchased at that time.
HOW MUCH SHOULD I CHARGE FOR THE LEASE?
Generally you should double your wholesale cost on the unit and then
divide by 12. That is, if you can buy one unit for $120. you would lease it for
$240 per year or $20 per month. Remember this price also includes all parts
that would be needed to keep the unit running for the year. Our calculations
show that a typical user spends approximately $2.75 per month per machine for
parts at a retail cost. At a wholesale level the amount would be less than one
dollar. With this pricing structure you can see how you would not be price
competitive on larger purchases like polishers, wet/dry vacuums, etc.
• 184 •
Commercial Accounts
WHO DO I LEASE TO?
We recommend that you only lease to hotels and motels. The reason for this
is that other users, such as maid services and janitorial companies are
extremely abusive to their equipment. They also use the equipment for longer
periods of time than the hotels. We estimated 910 hours of use per year for
hotels. For some janitor services the yearly usage could be as high as 1600
hours.
Another factor to consider is transportation. Maid services and janitors

transport their equipment from one job to another and in the process they have
a tendency to break the units.
An additional benefit in leasing to hotels and motels is that you know where
the equipment is and if the need arises you can go pick it up. Whereas with
maid services and janitors you never really know where the equipment is
located.
Credit is another reason to stay with hotels and motels. They are more
stable and responsible for their affairs than some maid services and janitorial
companies.
Finally, hotels and motels have the capacity to lease more units than most
maid services and janitorial companies.
HOW DO I PRESENT THE LEASE?
The lease is a unique reason for you to contact the larger hotels and motels.
The best way to present the lease is to start out by asking questions. Find out
from the establishment how many machines (and at what price) they purchased
in the last 18 months. Ask how much money they spent on parts to maintain the
• 185 •
Commercial Accounts
equipment in the last 18 months. And finally, if possible, how many hours of
maintenance was spent in repairing the units. (This process would be easier if
the account is currently being serviced by you). This information should be
collected on the first visit. Arrange another appointment to make your
presentation.
On your second appointment you should present the establishment with a

sales letter (Exhibit F with the appropriate information filled in. This letter spells
out all the expenses that the business has incurred without the lease and helps
set the stage for selling the lease agreement. After you have discussed the
letter with your customer, show them the Why Lease Vacuum Cleaners
advantages list (Exhibit G). This sheet lists the major advantages of the leasing
agreement that benefit the customer by leasing the units from you. After the
presentation leave a proposal with them (Exhibit H) as a synopsis of all the
benefits that you have covered as well as showing them the cost breakdown per
month.
During the presentation be sure to stress continually, the fact that leasing
provides both parts and service during the course of the lease. Unlike normal
leases which do not provide coverage or protection from accidents or abuse,
not to mention normal wear.
The best way we have found to present the lease agreement is to present it
first to the executive housekeeper. Once you sell the housekeeper on the lease
let her sell it to the general manager. After she makes her sales pitch to the
general manager the general manager will usually call you in to present the
concept to him. We have also found it very helpful to have the maintenance
engineer present when making the presentation to the housekeeper. With three
people, you, the housekeeper and the maintenance engineer all
enthusiastically endorsing the program, the general manager will most likely
say yes. We have encountered rejection by going to the general manager first.
Their usual response is to say no before they even hear what the program
includes.
In the past, leases to -hotels have been nonexistent because of cost and
because of maintenance requirements on their part. Remember, a vacuum
• 186 •
Commercial Accounts
cleaner is entirely different from a dishwasher or washing machine. People do

not care what happens to the vacuum as they use it since the cost is relatively
inexpensive compared to other items used in the hotel operation. Vacuums
have the least amount of care and are the most abused tool in the hotel, yet they
provide the service which the customer sees first -- a clean floor.
THE LEASE AGREEMENT EXPLANATION
At the end of this section is a lease agreement (Exhibit I) that our attorney
has drawn up (it abides by Arizona law). Most, if not all of the information
contained in it should be relevant any where in the United States, however we
strongly suggest you have your attorney review the document as to its relevancy
for your particular state.
Section 1 through 3 refers to Schedule "A". This blank form is located in the
back of the agreement and should be filled out completely with all the
equipment, terms, payments and insurance that will be included in each
agreement.
Section 4 asks for deposit amount if any is required. This amount can be
anywhere from a fraction of the monthly payment up to a full months payment.
Section 5 lists who owns title and possession of the equipment. Briefly,
you do. It also states that they may not put any liens on the equipment and that
lease payments are due on the first day of the month and delinquent on the fifth
day and subject to a delinquency penalty of 7 1/2 %.
Section 6 says that you will deliver the equipment to the designated place
in Schedule "A".
Section 7 says the property will pay any taxes other than transaction
privilege tax.
- 187
Commercial Accounts
Section 8 says the lessor shall try to take care of the equipment. Sub
paragraphs Band C state that you will provide quarterly maintenance
inspections. These subparagraphs are designed to allow you to go to the
property (establishment) and perform whatever service is needed to keep the
equipment running properly. We recommend that you call the property a day or
two ahead of the scheduled visit and ask the housekeeper to gather the
equipment into one area. This will speed up your servicing. During these visits
repair or replace any part that is not functioning. And, where necessary,
lubricate and grease the equipment.
Subparagraph 0 says that if something goes wrong with the equipment at

any other time it is the responsibility of the property to get the equipment to you
for service. If any parts are missing you may bill the property accordingly. We
inform our lessees that if they have problems with the equipment to call us
before they bring it in because often we are nearby and can stop and fix the
problem without their bringing the equipment into the store.
Section 8 states that the lessee may not install any device onto the
equipment if it will impair the operation of said equipment. If they do add
something, unless it can be removed without leaving any visible markings, it
becomes the property of the lessor. Section 8 also states that the equipment is
delivered according to the agreed upon equipment stated in the agreement.
Section 9 says that the lessee shall obtain sufficient insurance to cover the
equipment, and if they are unable to, the lessor may obtain it for them and be
reimbursed. This section also releases the lessor of all liabilities pertaining to
the equipment and its use.
Section 10 says the lessee is responsible for any loss or damage to the
equipment. If the equipment is lost or stolen the lessee is responsible for all
payments as well as the purchase price of the equipment set forth in Schedule
A.
Section 11 says the lessor can inspect the equipment at any reasonable
time. It also states that the lessee may not put a name on the equipment which
can be interpreted as ownership. Section 11 also states that the lessee is
• 188 •
Commercial Accounts
responsible for getting the equipment back to the lessors place of business at
the completion of the lease. If the lessee refuses to return the equipment the
lessor may go on premises and retrieve the equipment, forcibly if necessary.
Lessee agrees that no legal action will be taken against the trespassing and
any subsequent possible damages. Or the lessor may declare the equipment
purchased under the price set forth in Schedule "A"
Section 12 states that the lessee shall not borrow against the equipment
or other wise assign the equipment to someone else. The lessee may however
sublease the equipment. Section 12 also says that the lessor may assign the
lease to someone else as long as it does not interfere with the previous rights of
the lessee.
Section 13 states what legal and physical steps the lessor may undertake
to retrieve either the equipment or monetary compensations in the event of the
lessee defaulting.
Section 14 gives the lessee the opportunity to purchase the equipment at

the end of the lease. It further states that the lessor may refuse to sell the
equipment to the lessee if the lessee has not honored his obligations of the
contract.
Section 15 gives the lessee the option to renew the lease. With the
renewal they receive new equipment and for the same equipment the lease rate
may not exceed 120% of the old lease rate.
Section 16 covers miscellaneous topics and reiterates other areas of the

contract. It states that any changes must be made in writing and that no oral
change is acceptable.
Schedule "A" (exhibit) states the make, model and serial number of each
unit delivered. It also states the date the equipment was delivered, and where it
was delivered. Schedule "A" also states the term of the lease, the monthly
lease payment, the first payment, public liability, property damage liability and
the option price. This schedule is signed by the general manager of the
property and by an officer of your company. Under the monthly rent column we
• 189 •
Commercial Accounts
total up all the equipment leased, add the sales tax and a total monthly payment
and the date the payment is due.
The Guarantee (Exhibit J) is submitted to properties that you are unsure of

their ability to pay. that is, if you know the property has undergone an
ownership transfer or they just went through a Chapter 11 or anything which
may cause the property to not be able to abide with the financial obligations of
the contract. This guarantee is submitted to the owner for a personal guarantee
of payments should the property not be able to make the payments.
• 190 •
Commercial Accounts
EXHIBIT A
CUSTOMER NEEDS ANALYSIS
Name Title _
Company Name _
Street Address City State_ _Zip _
Phone (--.J __- Type of Business _
1. Circle the brand of vacuums(s) you currently use in the following areas:
HOOVER EUREKA ROYAL SANITAIRE ORECK OTHER _
2. Rate the vacuum cleaner that you currently use in the following areas:
(1=Excellent 2=Good 3=Fair 4=Poor)
A. Deep Cleaning 1 2 3 4
B. DUrability 1 2 3 4
C. Ease of Operation 1 2 3 4
D. Ease of Maintenance 1 2 3 4
E. Parts Availability 1 2 3 4
F. Weight 1 2 3 4
G. Cost 1 2 3 4
H. Value 1 2 3 4
3. Circle the letters (A-H) of the factors above that you consider most important in a vacuum.
4. Would'you replace your current inventory with the same brand(s)? yes no
5. Is the price of the unit the detennining factor in your purchase of new vacuums? yes no
6. If price is not a detennining factor, would you choose a different brand? yes no
If "yes", why? _
7. What feature(s). Le. powerdrive, easy change bag, weight, do you look for when selecting new
vacuums?
8. Do your vacuum cleaners require a great deal of maintenance? yes no

9. Do your employees repair your vacuums? yes no
10. Check the products and services below where we can be of more assistance to you:
__Parts for your present vacuums
__New vacuum cleaners
__Commercial wet/dry vacuums
__Commercial carpet cleaning equipment
__Commercial floor scrubbers and polishers
__Commercial pressure washers
__Vacuum cleaner repairs and routing maintenance
__Cleaning chemicals and supplies
_ _Other _
11. If you were to recommend a vacuum to a friend, what brand would you recommend and
why?_ _
• 191 •
Commercial Accounts
EXHIBIT B
WEEKLY PLANNER WEEK OF: _
day/
time
MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY
8:00
8:30
9:00
9:30
10:00
10:30
11 :00
11 :30
12:00
12:30
1:00
1:30
2:00
2:30
3:00
3:30
4:00
4:30
5:00
********N OTES********
• 192 •
Commercial Accounts
EXHIBIT C
Customer Activity Sheet
SOLD TO: USES PURCHASE ORDERS: YES NO

Name.... _ PHONE: _
Address _
PERSONS TO CONTACT:
City ZIP _ MANAGER: EXT _
BILL TO: HOUSEKEEPER: EXT _
Name _ MAINT.: EXT _

Address _
PURCH. AGT.: EXT _
City ZIP - - - - BILLING EXT _
VOLUME
LAST YEAR $~ n-tIS YEAR $ UPRIGHTS $ On-tER $ PARTS $ LABOR $, _
DATE ORDERS WRITTEN DOLlARAMT COMMENTS
• 193 •
SALESMAN'S ORDER LOG MONTH OF _
-
f1l
c:
:J
o(,)
CUSTOMER INVOICE
NO.
DATE EQUIPMENT LABOR PARTS MACHINE
COST
PARTS
COST
(,)
-"
~
CQ
(,)
~
(1)
E t
E w
o w
(.) J:
(/)
Ct
>
t-2=
-t
~(J
J:« ~
X en
w> ~
-'
J:
t
Z
o
~
... .... ~ ..
TOTAL THIS SHEET
PREVIOUS SHEET TOTAL
TOTAL THIS MONTH
( ( (
Commercial Accounts
EXHIBIT E
NEW ACCOUNT APPLICATION
NEW CUSTOMER INFORMATION
Company Name _
Street Address City/State/Zip _
Billing Address _
Phone L-J Type of Business, _
Check One:
Corporation__ Proprietorship__ Partnership__
Bank Information:
Bank Name Phone
Bank Address Account # _
Local Trade References:
1. Name Phone _
Address Account # _
2. Name Phone _
Address ,Account # _
Person(s) authorized to charge on account _
Do you use Purchase Orders?_ _ Resale # _
I verity that the above infonnation is correct to the best of my knowledge.
Signed -:-:-_ _---:- ~Title Oate _

If you are tax exempt. enclose a copy of your proof of exemption.
*************************STO RE US E BELOW***********************
Bank Contact, _
Reference #1 _
Reference #2 _
Credit Limit $ _ Comments _
Approved by: Oate _
- 195
Commercial Accounts
EHHIBIT F
(Type On Your Letterhead)
Date
Mr.XXXXX
Holiday Inn
123 Street
City, ST 12345
Dear Mr. XXXXX:
RE: VACUUM LEASING
In the past year. the Holiday Inn has spent a total of $ on new vacuum cleaners. and
another $ on parts to maintain this equipment. In addition. your employees are
spending approximately 30 minutes per machine per month to keep each unit in good operating
condition. If you pay the person maintaining this equipment an average of $6.00 per hour, this
would add up to an additional $ . When these expenses are totaled, you have spent an
approximate $ to keep your vacuums operating satisfactorily for one year.
Since these units are capitalized. you are required to carry the purchase price of the equipment
on your balance sheet for three years, and depreciation expense will only allow you a
$ tax deduction per machine per month.
On the other hand, if you were to lease brand-new vacuums from (Your Gomoany
~, for one year. your total investment would be $ . This amount includes the
new vacuums, all replacement parts and all maintenance required on the units. This would allow
your employees to devote more time to productive assignments instead of repairing vacuums.
Leasing equipment is also tax deductible, allowing 100% of the $ to be expensed.

You will also be able to accurately project your monthly expenses because they will always be the
same regardless of the number of repairs needed.
You will be guaranteed experienced, professional vacuum maintenance and machines that are in
perfect running condition. Even though you would be investing $ more per year to
lease than to purchase you will save with efficient new machines. free replacement parts, a tax
deductible expense, and an accurate monthly budget. We hope that you will take advantage of
this worthwhile opportunity!
Sincerely,
(Your Name)
Commercial Sales
• 196 •
Commercial Accounts
EXHIBIT G
(Type On Your Letterhead)
WHY LEASE VACUUM CLEANERS?
Advantages of Leasing Versus Purchasing
Few people realize that these two methods of acquiring equipment have so much in common. In
either case, whether you are leasing or purchasing. you have agreed to make regular monthly
payments for a specified amount of time. When purchasing vacuums. you will be responsible for
repairs, maintenance, and appearance of the equipment. Leasing, however, gives you important
financial advantages otherwise unavailable if you should decide to purchase rather than lease
AND have cost free parts. maintenance. and service.
LEASING CAN COST YOU LESS PER MONTH

The monthly lease payment for new equipment will improve cash flow instead of incurring the
large cash expenditure when purchasing new vacuums.
LOW INITIAL INVESTMENT

Think of the interest and dividends your money could earn if you put it to work rather than use it to
purchase new equipment. If you have an immediate need for additional equipment, leasing can
be the ideal way to meet your needs without a large cash outlay.
USE YOUR CREDIT FOR OTHER THINGS

Leasing will not curtail your line of credit as financed loans on vacuum purchases might. If you are
faced with large cash expenditures for other needs, leasing gives you an alternative to borrowing
without a large cash investment and without encumbering your line of credit.
YOU GET SIMPLE, ACCURATE TAX RECORDS

When you use your new equipment in business, the convenience of a single and accurate receipt
can be extremely useful in figuring your income tax deductions.
PAY AS YOUR EQUIPMENT GENERATES PROFIT FOR YOU
If your new equipment is used to provide a service, you will pay for it as it works to build your cash
in advance. Leasing permits you to conserve capital from the start while you profit from the use of
the leased units.
• 197 •
Commercial Accounts
EXHIBIT H
(Type on Your Letterhead)
LEASE PROPOSAL TO Company Name
- MACHINES AT $- -. / MONTH FOR A TOTAL OF $- -.
BENEFITS
• NO PARTS EXPENSE
• LOW MONTHLY PAYMENTS

• NEW EQUIPMENT EACH YEAR
• AUTOMATIC LEASE RENEWAL AND REPAIR EXPENSE
• IMPROVED CASH FLOW - HELPS IN BUDGET PLANNING
• ADDITIONAL EQUIPMENT MAY BE LEASED AT SAME LOW RATE

• TOTAL AMOUNT EXPENSED YEARLY - NO 3-YEAR AMORTIZATION
• QUARTERLY PREVENTATIVE MAINTENANCE BY A FACTORY

TRAINED PROFESSIONAL
• 198 •
Commercial Accounts
EXHIBIT I
LEASE AGREEMENT
THIS AGREEMENT made and entered into this day of

______, 19_, by and between (Your Company Name) hereinafter
called "Lessor", and , hereinafter called
"Lessee".
IT IS HEREBY AGREED BY AND BETWEEN LESSOR AND LESSEE AS
FOLLOWS:
1. LEASE. Lessor agrees to lease to the Lessee and Lessee agrees to
hire from the Lessor the equipment described in Schedule "A" attached hereto,
together with any additional equipment leased and hired after the execution
date of this Agreement and added to Schedule "A".
2. TERM. The lease and hire of the equipment shall commence on the
day each item is delivered to Lessee and shall continue for the period specified
as the term in Schedule "A".
3. RENT AND PAyMENT. The rental of said equipment shall be in
the amount set forth in Schedule "A". Rent shall be paid to the Lessor at such
place directed in writing and shall not be prorated for any cause or reason
except as herein specifically described.
4. DEPOSIT. Upon delivery of the equipment Lessee shall deposit
with Lessor a sum equal to month's rental as specified in Schedule A to
be held as collateral security for the payment of any rentals and other sums of
money payable by Lessee under this Lease, and for faithful performance of all
other covenants and agreements of Lessee Hereunder. The amount of such
deposit shall be repaid to Lessee after the expiration of the Lease or any
renewal thereof, provided Lessee shall have made all such payments and
performed all such covenants and agreements hereunder. Upon any default by
Lessee hereunder, all or part of said deposit may, at Lessor's sole option, be
applied on account of such default, and thereafter Lessee shall promptly restore
the resulting deficiency in said deposit. Lessor may deliver the funds deposited
hereunder by Lessee to any purchaser of Lessor's interest in the leased
equipment and thereupon Lessor shall be discharged from any further liability
with respect to such deposit.
• 199 •
Commercial Accounts
5. TITLE AND POSSESSION. This is a contract of lease only and

nothing herein contained shall be construed as conveying to Lessee any right.
title or interest in or to any equipment leased hereunder except as a Lessee
only. The equipment shall at all times during the term of this lease be and
remain personal property and title thereto shall remain in Lessor exclusively.
Lessee shall keep the equipment free from any and all liens and claims. and
shall do or permit no act or thing whereby Lessor's title or rights may be
encumbered or impaired. Failure to do so will constitute a default. Lessor
covenants that Lessee shall at all times during said term peaceably and quietly
hold, possess and use said equipment. This Lease is expressly made subject
to the terms and conditions of any security agreement covering the property
herein. All rental payme~ts are due on the 1st day of the month, and will be
considered delinquent by the 5th day of the month .. If the payment is received in
the offices of the Lessor after the 5th day of the month, there shall be assessed
a delinquency penalty of 7 1/2% of the rental amount due for each month of
delinquency.
6. DELIVERY AND INSTALLATION. Lessor shall deliver the
equipment listed in Schedule A to Lessee immediately after manufacturer shall
have delivered the same to Lessor to a place designated by Lessee and agreed
upon by the Lessor. Lessor shall not be liable for failure to deliver or delays in
delivery occasioned by cause beyond Lessor's control.
7. TAXES. Lessor agrees during the term hereof to pay, as soon as the
same becomes due and payable, any and all taxes, assessments and other
charges of any kind or nature against or pertaining to the equipment. except
transaction privilege taxes, if any, arising out of this Lease.
8. MAINTENANCE. Lessor shall:
(a) Keep the equipment in good operating condition and will be
responsive to the maintenance requirements of the Lessee.
(b) Schedule quarterly inspections at Lessee's premises at which time
the equipment may be cleaned, lubricated and adjusted. This service will be
performed without the necessity of prior notice on the customer's part.
(c) Conduct quarterly preventive maintenance at Lessee's premises
unless the required remedial maintenance is due to the fault or negligence of
the Lessee.
(d) If maintenance is required for a reason other than that set forth in
subparagraph (b) or (c), Lessee shall bring the equipment to Lessor's place of
• 200 •
Commercial Accounts
business. If a part or parts requires repair or replacing, Lessor shall provide

labor and parts at no cost. However, if equipment is in need of repair because
of a missing part, Lessee shall pay for both parts and labor.
Lessee will not, without the prior written consent of Lessor, affix or install
any accessory, equipment or device to any equipment leased hereunder if such
addition will impair the originally intended function of any such equipment. All
repairs, parts, supplies, accessories equipment and devices furnished or affixed
to any equipment shall upon the return become the property of Lessor, except
such as may be removed without in any way affecting or impairing the originally
intended function of such equipment. Lessee agrees that each piece of
equipment leased hereunder is of a size, design and capacity selected by
Lessee and that Lessee is satisfied that the same is suitable for its purposes
and that Lessor has made no representation or warranty with respect to the
suitability or durability of any piece of e.quipment for the purposes and uses of
Lessee, or any other representation or warranty, express or implied, with
respect thereto. All payments due the Lessor by the Lessee under paragraph 8
of this Lease are due and payable at the same time as the next lease payment
is due under paragraph 3 of this Lease. If any payments due under this
paragraph are not made by the 5th day of the month, there shall be a
delinquency penalty of 7 1/2% of such amount for each month that they are
delinquent.
9. INDEMNIFICATION AND INSURANCE. Lessee shall defend,
indemnify and hold harmless Lessor from and against all losses, including costs
and expenses incident thereto (including attorney's fees) by reason of claims for
injury to or death of persons, including employees of Lessee, and loss of or
damage to property (including property of Lessee) arising out of and in any
manner connected with the possession, use or operation of the equipment by
Lessee while under lease to Lessee hereunder. During the term of Lease,
Lessee at its expense shall keep in full force and effect public and property
damage liability insurance insuring Lessor and Lessor's designees, if any, and
Lessee as their interest may appear against claims for death or injury to person
(including employees of Lessor and Lessee) and loss of or damage to property
in connection with the possession, use or operation of the equipment by
Lessee. Lessee shall provide Lessor with certificates of insurance evidencing
such liability insurance. Such certificates of insurance and insurance policy or
policies shall contain a "breach of warranty" clause whereby the insurer agrees
• 201 •
Commercial Accounts
that a breach of the insuring conditions by Lessee shall not invalidate the
insurance as to Lessor and Lessor's designees. The policies shall provide that
they may not be canceled nor materially modified without ten (10) days' prior
written notice to Lessor and Lessor's designees, if any. In the event of failure of
Lessee to secure and maintain such insurance, Lessor may effect such
insurance in Lessor's own name with respect to the equipment and Lessee
shall reimburse Lessor for the cost of such insurance promptly upon demand
therefore.
10. LIABILITY FOR LOSS OR DAMAGE. Lessee shall be liable for
any loss of or damage to the equipment or during the term of lease. In the event
of repairable damage to the equipment, Lessee shall repair such damage at its
own expense, and any insurance proceeds received by Lessor with respect to
such damage shall be applied toward the cost of the repair. In the event of loss
or damage beyond repair to the equipment, or the theft or seizure of any thereof,
the obligation of Lessee to pay rent shall continue until Lessor shall have
received rent for the entire term of the Lease; and Lessee shall pay Lessor an
amount equal to the purchase price set forth on Exhibit "A".
11. INSPECTION, MARKINGS AND RETURN. Lessee shall
permit Lessor to have access to the equipment at all reasonable times for
purpose of inspection and examination. Lessee shall not allow the name of any
other person to be placed on the equipment as a designation which might be
interpreted as a claim of ownership provided that Lessee may cause the
equipment to be marked in an appropriate manner identifying its interest
therein. Upon expiration of the term of the lease Lessee at its own expense
shall return the equipment. If upon such expiration or termination Lessee fails
or refuses forthwith to return the equipment to Lessor, Lessor may, but is not
required to do so, without notice or demand, enter Lessee's premises or any
other premises where they may be found, forcibly if necessary, and take
possession of an remove the equipment. Lessee hereby releases any claim or
right of action for trespass or damages caused by such entry or removal. If upon
expiration or termination, Lessee fails or refuses forthwith to return the
equipment to Lessor, Lessor may at its option declare the equipment purchased
from Lessee by Lessee at the price set forth in Exhibit "A".
12. ASSIGNMENT, TRANSFER, ENCUMBRANCES, ETC.
Lessee shall not sell, mortgage, encumber, pledge or hypothecate the
equipment to any other person, firm, association or corporation, nor otherwise
• 202 •
Commercial Accounts
part with possession of any thereof, nor assign this Agreement or any interest
therein, without the prior written consent of Lessor. Lessee shall not sublease
the equipment without prior written consents, however, such consent shall not
be unreasonably withheld. Lessee shall payor satisfy and otherwise keep the
equipment free and clear of all liens, charges and encumbrances and all taxes,
assessments and other governmental charges levied or assessed upon the
interest of Lessee therein or upon the use or operation thereof, and upon
request of Lessor shall deliver appropriate satisfaction, waivers or evidence of
payment to Lessor. Lessor's right, title and interest in and to this Agreement
and the equipment may be transferred and assigned by Lessor, and Lessor's
assignee shall have all the rights, powers, privileges and remedies of Lessor
hereunder; provided, however, that no assignment may be made by Lessor
which adversely affects Lessee's right to operate the equipment. Any such
assignee shall not be obligated to perform any of the obligations of Lessor
hereunder and Lessee may not amend or terminate this Agreement without the
written consent of such assignee. If Lessor should notify Lessee that it has
assigned this Agreement, Lessee shall recognize such assignment, and, if
instructed by Lessor, shall pay the rentals together with all other sums due
hereunder tOr pursuant hereto direct to such assignee at the times specified
herein. Such payments to be made without interruption or abatement pursuant
to the terms of this Agreement notwithstanding any event whatsoever including
without limitation the bankruptcy or insolvency of Lessor or any disaffirmance of
this Agreement by any trustee or receiver, and notwithstanding any defense,
setoff or counterclaim whatsoever whether by reason of breach of this
Agreement or otherwise which Lessee mayor might now or hereafter have
against Lessor. Lessee agrees that neither the payments to be made to such
assignee nor the rights of such assignee under such assignment shall be
subject to any setoff, counterclaim or defense with respect to any claim of
Lessee against Lessor or otherwise, that it will not assert any such setoff,
counterclaim or defense in any proceeding brought under said assignment, and
that it will not seek to recover back any such payments previously made;
provided that nothing herein contained shall affect any claims which Lessee
may have against Lessor or the right of Lessee to enforce any such claims in
any manner other than attachment or recoupment of, or setoff, counterclaim of
defense against, the aforementioned payments to be made to such assignee.
Lessee's undertaking to pay such rentals and other sums to an assignee shall
- 203
Commercial Accounts
constitute a direct and independent obligation of Lessee to said assignee.

Lessee agrees to hold the equipment and the possession thereof for and on
behalf of said assignee's rights under any assignment from Lessor subject to
and without impairment of ~essee's rights hereunder. Nothing herein contained
shall release Lessor of its obligations to Lessee under this Agreement and no
such assignee of Lessor shall be obligated to be performed by Lessor under the
terms of this Agreement, but the same shall be performed by Lessor.
13. DEFAULT. In the event that (a) Lessee shall fail to make any
payment due on or before its due date; or, (b) Lessee shall fail to perform or
observe any of the other covenants, conditions, or agreements to be performed
or observed by it hereunder, which failure shall not be remedied within (10)
days after notice thereof by Lessor to Lessee; or (c) Lessee shall dissolve or
become insolvent (hqwever evidenced) or make an assignment for the benefit
of creditors, or any proceeding under any bankruptcy or insolvency statute or
any laws relating to the relief of debtors be commenced by or against Lessee, or
a receiver, trustee or liquidator shall be appointed of Lessee or of all or a
substantial part of Lessee's assets, or an order, judgement or decree shall be
entered by a court of competent jurisdiction and shall continue unpaid and in
effect for any period of sixty consecutive days without a stay of execution, or any
execution or writ of process shall be issued under any action or proceeding
against Lessee whereby the equipment may be taken or restrained, then and in
any of the foregoing events set forth in clause (a), (b) or (c) of this Paragraph
Thirteenth, Lessor may, without notice or demand (1) take possession of the
equipment wherever found, with or without process of law, and may enter upon
any premises of Lessee and remove same without liability for damage, suit,
action or other proceeding by Lessee, and/or (ii) declare immediately due and
payable all the rental installments, purchase price in Exhibit "A", and other sums
forthwith due and payable as liquidated damages and not a penalty, and/or (iii)
proceed by appropriate court action or actions, at law or in equity, to enforce
performance by Lessee of the applicable covenants of this Agreement or to
recover damages for the breach thereof.
14. OPTION TO PURCHASE. The Lessor hereby grants to the
Lessee the option to purchase the leased equipment at the expiration of the
term of the lease for the price set forth in Exhibit "A" provided that the Lessee
shall give notice in writing of his intention to exercise said option, which notice
must be given twenty days prior to the expiration of the lease term, and provided
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Commercial Accounts
further that the Lessee's right to purchase said equipment shall be terminated
and become null and void on failure of the Lessee to fully perform anyone or
more of the obligations resting on him under this Lease.
15. OPTION TO RENEW OR LEASE NEW EQUIPMENT. The
Lessor hereby grants to the Lessee the option to renew this lease upon the
same terms and conditions contained herein for an additional year. The
Lessee's right to exercise this option and the manner of doing so shall be the
same as that set forth in paragraph 14 above. As an alternative, the Lessor has
the right to lease new equipment comparable to the equipment in this lease
following the termination of this lease. The rental rate and purchase price shall
be negotiated by the Lessor and Lessee but in no event will either be greater
than 120% of the present rental rate or purchase price. All other terms and
conditions of the new lease will be the same as this one.
16. MISCELLANEOUS. This Agreement may not be changed orally,
but only by agreement in writing. The captions in this Agreement are for
convenience only and shall not define or limit any provision hereof. The
equipment shall at all times be the sole and exclusive property of Lessor, and
Lessee shall have no right, title or interest in or to any thereof except the right to
use the same upon the terms and conditions herein contained. This Agreement
shall be interpreted with, and performance shall be governed by, the laws of the
State of (Your State). No failure to delay on the part of Lessor in exercising any
power or right hereunder shall operate as a waiver thereof, nor shall any single
or partial exercise of any such right or power preclude any other or further
exercise of any such right or power. No modification or waiver of any provisions
of this Agreement nor consent to any departure by Lessee therefrom shall be
effective unless the same shall be in writing signed by Lessor, and then such
waiver or consent shall be effective only in the specific instance and for the
purpose for which given. No notice to or demand on the Lessee shall entitle
Lessee to any other or further notice or demand in similar or other
circumstances. Time is of the essence of this Agreement. Lessor's title to the
equipment and its right to take possession thereof in compliance with the
provisions of this Agreement shall not be affected by the provisions of the
Federal Bankruptcy Act, as amended. At the delivery of the equipment by
Lessor to Lessee, Lessee shall execute and deliver to Lessor a form of
acceptance satisfactory to Lessor, whereupon i! shall be conclusively
presumed, between Lessor and Lessee, that the equipment was delivered to
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Commercial Accounts
Lessee in good repair and that Lessee accepts same under this Agreement.
The remedies herein provided are cumulative and not exclusive of any
remedies provided by law.
If any term of provision of this Agreement or the application hereof to any
person or circumstance shall, to any extent, be invalid or unenforceable, the
remainder of this Agreement, or application of such term or provision to persons
or circumstances other than those as to which it is held invalid or
unenforceable, shall not be affected thereby, and each term and provision of
this Agreement shall be valid and enforced to the fullest extent permitted by law.
Lessee authorizes Lessor or any assignee thereof to file financing statements
signed only by Lessor or such assignee in all places where necessary to perfect
a security interest in the equipment in all jurisdiction where such authorization is
permitted by the Uniform Commercial Code.
IN WITNESS WHEREOF, we have signed this Agreement as of the date
first herein above written.
By _
• 206 •
SCHEDULE A
fI)
c:::J Make-Model Serial # Delivery Delivery Terms Monthly First Public Property Option
o Date Place Rent Payment Liability Damage Price
o Liability
o
~
-
~
.~
(1)
E
E •
o
(.)
......
o
N
Dated:
----------
By ~_ _
Title
( ( (
Commercial Accounts
EXHIBIT J
GUARANTEE
INCONSIDERATION of the execution by Lessor of that certain Lease,

dated the day of ,19_ between (Your Company
Name), as Lessor, and , as Lessee
respecting certain equipment as delineated on Exhibit "A" attached to the lease,
Lessor being unwilling to execute said Lease without this assurance of
performance, the undersigned (hereinafter referred to as "Guarantor") hereby
unconditionally and irrevocable guarantees to Lessor the prompt and faithful
performance by Lessee of the Lease and all of the terms, covenants and
conditions thereof including, but not limited to, (i) the payment by Lessee of the
rental and all other sums to become due thereunder; (ii) the payment and
satisfaction of all damages, liability or expense incurred by Lessor resulting,
either directly or indirectly, from Lessee's breach or failure to fulfill its covenants
and obligations therein: and (iii) the payment of any and all expenses which
may be incurred by Lessor in collecting same Guarantor agrees that:
1. Immediately upon each and every default by Lessee, without any
notice to or demand upon Guarantor, Guarantor shall pay to Lessor the sum or
sums in default and will comply with or perform all of the terms, covenants and
conditions of said Lease which shall be binding upon the Lessee as provided in
said Lease; and
2. No extension, forebearance or leniency extended by Lessor to Lessee
shall discharge Guarantor, and Guarantor agrees that at all times it will be liable
notwithstanding the fact that Guarantor has had no notice of any said default or
any said forebearance of any said extension; and
3. Lessor and Lessee without notice to or consent by Guarantor may at
any time or times enter into such modifications, extensions, amendments,
renewals or other covenants respecting the Lease, and Guarantor shall not be
released thereby, it being intended that any joinder, waiver, consent or
agreement by Lessee by its own operation shall be deemed to be a joinder,
consent, waiver or agreement by Guarantor with respect thereto, and Guarantor
• 208 •
Commercial Accounts
shall continue as Guarantor with respect to the Lease as so modified, extended,

amended or otherwise affected; and
4. Neither the Guarantor's obligation to make payment in accordance
with the terms of this Guarantee or any remedy for the enforcement thereof shall
be impaired, modified, changed, released or limited in any manner whatsoever
by any impairment, modification, change, release or limitation of the liability of
the Lessee or its estate in bankruptcy or any remedy for the enforcement thereof
resulting from the operation of any present or future provision of the Federal
Bankruptcy Act or other state or federal statutes or from the decision of any
court; and
5. Guarantor shall be bound by each and every covenant, obligation,
power and authorization in said Lease with the same force and effect as if
Guarantor was designated in and had executed said Lease or Lessee
thereunder; and
6. The obligations of Guarantor are independent of the obligations of
Lessee, and Lessor may bring and prosecute a separate action or actions
against Guarantor or any of them whether or not the Lessee is joined in any
action against the Guarantor; and
7. If this Guarantee is signed by more than one party, a release of any
one or more or any limitation of this Guarantee in favor of or for the benefit of
one or more shall not in any way be deemed a release of or limitation in favor of
or for the benefit of any other party hereto; and
8. If Lessee is a corporation or partnership, Lessor is not required to
inquire into the power of authority of the Lessee or of the officers, directors,
partners or agents acting or purporting to act on its behalf, and any obligation
created in reliance upon the professed exercise of such powers shall be
guaranteed hereunder; and
9. Guarantor shall pay reasonable attorneys' fees and all other costs and
expenses which may be incurred by Lessor in the enforcement of this
Guarantee; and
10. Any married person who signs this Guarantee expressly agrees that
recourse may be had against his or her separate property, if any, for all of his or
her obligations or liabilities under this Guarantee; and
11. If this Guarantee is executed by two or more parties, it shall be the
joint and several obligation of all such parties, and it shall not be revoked or
impaired as to any by the death of all or any of them; and
. 209 .
Commercial Accounts
12. This Guarantee shall bind the heirs, successors and assigns of
Guarantor and inure to the benefit of the heirs successors and assigns of
Lessor. In the event that the Lease is assigned or transferred by Lessor, this
Guarantee may likewise be assigned by Lessor to the assignee of the Lease,
and, in such event, the holder of this Guarantee may enforce this Guarantee as
if said holder had been originally named as the Lessor hereunder.
IN WITNESS WHEREOF, the undersigned have cause this Guarantee to

be duly executed this day of , 19_ _
Guarantor
Guarantor·
• 210 •
VIII.
EXTENDENDED
SERVICE·
AGREEMENT·
Extended Service Agreement
INTRODUCTION
So often vacuum dealers look for new areas of development. These areas
can usually increase expenses and capital investment without appreciably
affecting the bottom line.
With price becoming more and more of a selling point in retail sales it is
becoming increasingly more difficult for independent retailers to make a profit. If
you are not priced competitively with the larger chain outlets it is harder to get
the retail customer into your store because many customers are not willing to
spend more for the same product, even if you offer service. If you can't get the
customer into your store with price you will never have a chance to sell that
customer anything.
An excellent program for a vacuum dealer to implement is an Extended

Service Agreement (ESA). An ESA is a primary area to focus on allowing a
vacuum dealer to become more competitive and add to the bottom line without
initially increasing any expenses. This is also an excellent opportunity to
immediately increase your business.
By implementing an ESA program you have the opportunity to advertise

more aggressively. It allows you to make additional profits when step up selling
is next to impossible. It allows you to pursue aggressive price points on any
popular vacuum in your marketplace i.e.; a $59 ad or a low priced self-propelled
ad.
Our intention is to explore the negatives along with the positives of

implementing an ESA program in your store. You should carefully plan and
investigate this opportunity.
In this section variations of ESA's are discussed as well as a full multi-year

package including forms which can be implemented in your store immediately.
• 211 •
WHAT IS AN ESA?
Wouldn't you like to make $50 on a $69 vacuum sale? Many vac shops
advertise a $69 vacuum and many customers buy $69 vacuums. The customer
has closed his mind to other products or features even before he has come into
the store and only wants the $69 vacuum. How can you meet their needs and
still make an agreeable profit? You can sell an Extended Service Agreement
(ESA).
An ESA is a written policy which gives the retailer additional profits with no
increases in operating expenses or inventory.
The trend throughout the country in all phases of retailing is to offer

extended service protection on almost any item imaginable from waterbed
mattresses to cars.
An ESA can be sold in the vacuum cleaner business on any item with a
motor, with a policy term of one to four additional years. Products and/or
services are provided in these warranties and may include shampoo brushes
and pads to transmissions and cord rewinds.
Consider the possibilities your store may achieve if you begin selling ESAs.
Based on the full service ESA described later in this section, sales of ESAs
average 15 to 20 percent on all eligible machines. If your store averages 50
new machines per month you can expect to sell between 8 and 10 ESAs (15
percent of 50 = 8, 20 percent of 50 = 10). If you are charging on average $40
per ESA you can add $320 to $400 additional revenues to your store per
month.
- 212 •
VARIATIONS AND TYPES OF ESAs
There are several types and variations of ESAs. One particular form of ESA
extends the manufacturer's warranty, by the dealer, for an additional year or so.
This warranty is usually provided at no charge to the customer as an incentive
for the customer to buy from that dealer.
Another form of ESA is a labor only warranty. This policy is normally for an
additional two or three years and covers the labor costs only, with the customer
paying for any parts requires. This is usually a nominally priced policy in the
area of $10-$20 for the additional years.
A variation of this ESA is a lifetime repair w~rranty. This ESA guarantees

the part installed for as long as the customer owns the machine. The customer
would pay labor only and the guaranteed part is free. This warranty generally is
included at no charge and on repairs only.
I~
Another type of ESA is sold on rebuilts. This policy can be the same as your
labor only warranty provided on new machines.
The warranty that is covered in depth in this book details a complete and
total warranty package which includes bags, belts, any and all parts as well as
services.
By offering an ESA to your customer you are giving yourself an edge over
your competition. By charging for it you are allowing yourself to be paid for any
additional services you provide and not giving those services away to be
competitive in your market.
Some vac shops include the warranty in the cost of the vacuum. For
instance on top of the line cleaners they may include an additional number of
years of manufacturer's warranty as a closing incentive. This is well and good,
however, if the customer walks and shops that product more often than not they
- 213
will find the item priced significantly lower somewhere else. So there is little
benefit for them to return to the higher priced store. By maintaining a
competitive price on the unit and selling the ESA you are allowing yourself to
make a profit on both sales. If the customer does not purchase your ESA you've
lost nothing in the way of services or products by giving it away at no charge.
The comeback many vac shops offer when told they are giving profits away
by not charging for an ESA is that they are getting a higher dollar for the
product. In truth, the vac shop is becoming uncompetitive in the marketplace
and leaving himself vulnerable to the customer who shops the product.
ESA ADVANTAGES
There are many advantages to the dealer by selling an Extended Service

Agreement. Listed are some of the major advantages:
1. Keeps the customer coming back to you for bags, belts and service. .
2. Increases your gross sales with minimal cost of goods and operating
expense.
3. Allows you to make more gross profit as an add-on sale.

4. Gives you a competitive edge over your competition by offering more
value as a dealer.
5. Keeps the customer coming back for additional add on opportunities i.e.
attachments, hand vacuums, etc.
6. Allows you to be price competitive with units such as the HOOVER
CONCEPT and the EUREKA SELF-PROPELLED and have a
vehicle to make additional gross profit when you cannot step out
of these sales.
7. Adds credibility and value to your business.
There are a few areas that you should be aware of before you establish an
ESA in your business:
• 214 •
1. In some states you must establish an escrow account to cover the policies
should you go out of business, and also because the Extended
Service Agreement becomes a liability (check state and local
regulations).
2. You must consider sales tax obligations. Some states classify the policy
as labor (non-taxable) and others classify them as a product (taxable).
Consult your accountant and/or state department of revenue.
3. The sample copy of the Extended Service Agreement should be
reviewed by your attorney to check for binding statements in your state.
THE COSTS OF OFFERING ESAs
Of course, the idea is to offer the customer a value, yet keep operating
expenses and inventory costs steady. To do this, you should limit your ESA
sales to residential users only. There is also room for individual discretion. You
obviously wouldn't want to hard sell Ms. Jones on an ESA if she destroys
!./A vacuums on a regular basis.
Pricing is critical to the success of your ESA program. Again, based on the
full service ESA covered later, many stores charge $40 for a three year policy
on uprights, straight suction canisters and polishers. A charge of $50 for a three
year warranty on powerteams is very common. The higher charge is taking into
account the additional parts on a powerteam such as two motors, electric hose
and two units to service.
Through the years of selling full service ESAs the stores we have checked
with have found that the average cost of goods on each ESA ranges from 12 to
20 percent. (This figure does not include labor, which for the sake of argument
we consider here at no charge). The average customer will use three packages
of bags and two belts per year. The annual check-up requires less than 15
minutes of labor per unit.
• 215 •
HOW TO SELL AN EXTENDED SERVICE AGREEMENT
There are several ways to present an Extended Service Agreement (ESA).

Primarily during your presentation of the new vacuum you will want to mention
your ESA. For instance, "Now this machine comes with a one year
manufacturer's warranty and also qualifies for our three year no-fault warranty
which gives you free bags and belts for three years". If the customer asks
questions about the ESA, go ahead and explain it. If they do not, then go on
with your presentation and explain the policy in detail later.
After you have sold the vacuum and are writing up the invoice, you can
make another presentation of your ESA. Be sure to first verify that the machine
will NOT be used commercially (we do not recommend these agreements for
commercial customers since they use the machines extremely hard), which
would not qualify them for an ESA. You can use the following two methods or
develop a variation of your own.
THE INSURANCE POLICY APPROACH
"Now Mrs. Jones, this machine comes with a one year manufacturer's
warranty which protects you from problems arising from manufacturers defects.
This warranty does not cover broken fans, brushes, bags, belts or accidents
such as running over the cord or picking up water. At (fill in your comoany
name), we offer a no-fault warranty which completely covers your machine for a
period of three years. Our policy supercedes the manufacturer's warranty by
covering everything on your machine including bags and belts. In addition, we
allow a free yearly service on the vacuum. The manufacturer of your vacuum
recommends that you service your machine every 1·2 years. Without our
Extended Service Agreement this could cost as much as $24.95. Under our
Extended Service Agreement, your vacuum would be serviced free for the next
3 years. And, in between these yearly services if anything goes wrong, like a
• 216 •
Extended Service- Agreement
broken fan, etc., just bring in the machine and we will repair the vacuum at no
charge.
"One way to understand the policy is to compare it to an insurance policy.

The difference between our Extended Service Agreement and an insurance
policy is that the only time you collect with an insurance policy is when
something goes wrong, but with our Extended Service Agreement not only do
we cover accidents like an insurance policy; we also give you the bags and
belts you need for everyday operation of your vacuum. The cost of our three
year Extended Service Agreement is $40.00 and you will receive almost that
much in bags and belts over the next three years, not to mention the yearly
service and the accident protection that the policy comes with."
"Just to recap, for the $40.00 cost of our Extended Service Agreement you
receive nearly $40.00 in bags and belts, three yearly services valued at $25.00
each plus any additional parts or problems you may have over the next three
years." If, during the presentation of the policy the customer says he wants to
purchase the policy, end your presentation and write up the sale. If they say no
again, ask them to allow you to explain because you are sure they will see the
value that the policy can represent to them. At the end of your presentation if
they say no again ask them if they understood everything that you said because
in your enthusiasm in presenting the policy you may have left something out.
Then do the recap again but with more enthusiasm.
We are not advocating browbeating the customer or high pressure sales, but
we are advocating that the customer realize the full value of what they are
saying no to. This policy is an excellent investment for the consumer because it
offers unlimited, no-fault, protection as well as the bags and belts....they cannot
go wrong by investing in this policy.
• 217 •
THE EXCELLENT SAVINGS APPROACH
"We have a three year package deal we offer with our new vacuums. With
this package, we give you all of the bags and belts that you will use free for
three years. The way it works is, any time you need bags or belts, just come into
our store with the ESA policy and we will give you two packages of bags and
one belt. Once a year you can bring your vacuum in for a tune-up. This
package is a no-fault parts and labor warranty on your vacuum, so if you break
a fan we will replace it at no charge to you. This policy also covers normal wear
and tear on parts such as lightbulbs, brushes and the brush rolls.
Did you know that the average person uses one bag per month and a belt
every six months? Those alone add up to over $40.00, but then we also include
a set of brushes and at least one service in the three year period. All of these
total approximately $70.00. However, our three year policy is only $40.00.
Wouldn't you agree that that's a fantastic value for your $40.00? This policy
includes an unlimited supply of bags and belts, a free tune-up once a year, and
all parts and labor as a result of normal wear or accidents!"
COMPLETING THE ESA
SIDE ONE
The top right hand corner has a place for consecutive numbering. This will
allow you to keep track of the ESA's If you have multiple stores, this numbering
system will also allow you to designate which store sold the ESA. For example:
#0535-01, the first four digits are the number of the policy and the -01 tells you
that store number one sold that ESA.
In the bottom left hand corner we recommend that you write "any and "all" for
the quantity of bags and belts (see Exhibit A). If you want to restrict the
- 218
quantities, write in the number that you are going to give them. When they
come in for the bags and belts you can give them the full year of bags and belts
and then initial or cross off that year on the ESA.
Write in the number of years the policy is good for and circle the year that the
policy expi res.
SIDE TWO
Fill in the invoice number in the space provided at the top of the form and
either sign or initial for the "Company Authorization". In the first paragraph, write
in the amount of ADDITIONAL years that the ESA is valid for after the
manufacturer's warranty expires. We have worded this as such because the
term of the policy may vary. On the bottom line write in the model number, serial
number and the expiration date. It is important to complete these three items
because they will protect you from the customer trying to use the warranty on
another vacuum or after the ESA expires. We also recommend that you fill in
the ESA number and expiration date on the invoice in case the customer loses
the ESA policy.
FILING AN ESA
You should keep some type of record of the ESA's you sold because
inevitably you will get customers misplacing this agreement.
One way to keep records would be to make file cards alphabetically in a file
box. They should be kept under the counter with all the information needed in
case a customer comes in without their ESA policy and wants bags or service.
On the index card you can keep track of the number of bags and belts that are
given away and the date of servicing. The index card should contain the
customer's name, address, phone, date of purchase, expiration date of the
policy, make, model and serial number of the vacuum and the ESA number.
- 219
This information can also be stored in your computer if you have one. Using
your "List Manager" or "Mailing List" program you can create those files. They
will provide a mailing list of customers that are already familiar with your store,
so you can send mailers to for other products you sell, such as attachments and
sewing machines, along with keeping track of your ESA's.
We also recommend that you put a sticker on the bottom of the machine with
the ESA number, invoice number, and expiration date of the policy. This will
speed things up when you are busy with several customers at the same time.
- 220 •
POINT OF SALE MATERIAL
An excellent idea for selling ESAs is to use point of sale materials. These
items can be as simple as a poster which reads "Ask About Free Bags and
Belts" to something more elaborate such as a wall sign listing the products and
costs received with the ESA (see Exhibit D).
The poster can be hung on the sales floor and done in a bright color so as to
bring attention to itself. Even customers who are coming in for service or parts
will ask about the "Free" goods. Take time to explain to them the excellent
warranty package you have available in new machine purchases. This could
be a good lead in to a new machine sale.
The other sign is hung near your register to act as an additional sales tool to
the customer pointing out the value received with your ESA.
Another point of sale idea would be to stack twelve packages of bags, six
belts and maybe a set of brushes and a light bulb on the counter. With this you
can point out the tangible value to the customer in purchasing the ESA.
- 221
MULTI-STORE OPERATIONS
If you have Multi-Store operations a form that will allow you to track and
charge each individual store for services and parts provided for that store by
another store is included (Exhibit E).
For example, if Mrs. Jones bought her machine and ESA at store number
one and takes it to store number two to be serviced, this form allows you to
charge back store number one for services that store number two provided.
Since store number one received the additional gross profit and sales, it is only
fair that they be charged back for the cost of the service or bags. We will also
include a service reimbursement chart which suggest the amount of labor to
charge back (Exhibit F).
With Multi-Store locations, we recommend that you use a prefix in front of the
policy number of indicate somewhere on the policy the number of the store
. r-'"\
selling the policy.
Selling ESA's in Multi-Store locations will give you an edge over your
competition because the customer can go to anyone of your locations to get the
parts and service he needs.
. 222 .
EXHIBIT A
out vour 1000 nere Use Consecutive Numoers
Enter Quantities
any -- a II
put your logo here
SIDE 2
Name
Your Store
MaKe tvoesettlng changes on EXHIBIT B
- 223
EXHIBIT B
Use EXHIBIT A as a gUide .
. 224 .
EXHIBIT C
Use EXHIBIT A as a gUide .
. 225 .
EXHIBIT 0
POINT OF SALE POSTER
ASK ABOUT OUR

3 YEAR NO-FAULT WARRANTY
YOURS YOUR COST YOUR COST

AUTOMATICALLY WIO WARRANTY WI WARRANTY
3 YEARS OF BAGS $ 18 - 32 FREE

3 YEARS OF BELTS $10-18 FREE
3 ONCE A YEAR SERVICES $ 60 - 90 FREE
TOTAL VALUE $ 88 • 140 FREE
:r-
ANY OTHER PARTS AND ANY OTHER
LABOR NEEDED FOR ANY REASON
IS YOURS FOR NO CHARGE
OUR 3 YEAR NO FAULT WARRANTY
COSTS YOU JUST
CANISTER OR UPRIGHT VACUUM - $40

POWERTEAM - $50
* EXCLUDES COMMERICAL USE
• 226 •
WARRANTY SERVICE CREDIT FORM WARRANTY SERVICE CREDIT FORM

.....
t: INVOICE # - - - - - INVOICE # - - - - -
Q)
E
Q) STORE: _ DATE: _ STORE: _ DATE: _
Q)
~
Ol BOUGHT AT STORE # BOUGHT AT STORE #
oq: --- ---
Q)
ESANUMBER: DATE EXPIRES: _ ESA NUMBER: DATE EXPIRES: _
'-
0
;:..
~
Q)
CUSTOfv1ER NAME:
ADDRESS
PHO'JE::...- _
_
CUSTOMER NAME:
ADDRESS
PH::NE:,
_
_
CI)
CITY: STATE ZIP _ CITY: STATE ZIP _
"tJ
Q)
"tJ
MAKE rvrna SERIAL # MAKE fv1CX)El SERIAL #
t:
.....
Q) :2
a: PARTS USED PARTS USED
~ 0
u.
QTY PART # DESCRIPTION PRICE QTY PART # DESCRIPTION PRICE
w ~ .....
t- 0 N
- <{ LABOR LABOR N
~ OJ
J:
>< UJ
UJ C}
a:
<{
J:
U
( ( (
EXHIBIT F
LABOR RATE
LABOR RATES
REPLACE
UPRIGHT FAN
UPRIGHT CORD
UPRIGHT SWITCH
UPRIGHT HANDLE BAIL OR SOCKET $ 2.50
REPLACE
CANISTER MOTOR
CANISTER SWITCH
CANISTER CORD OR REWIND $ 4.50
REPLACE
BASE
TRANSMISSION $ 6.00
SERVICE $ 4.50
NOTE: MAXIMUM LABOR RATE REIMBURSEMENT IS $6.00.
r"-
• 228 •

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VAC SHOP

GENERAL INTRODUCTION vii

I. BOOKKEEPING & ACCOUNTING 1-22

Sales Invoices 2-4

Profit & Loss Statement 5-14

Profit & Loss-Exhibit B 13

Cash Receipts 15-19

Cash Receipts Journal 17

Daily Close-Out Tape-Exhibit E 19

What A Computer Should Do 21

II. INVENTORY 23-44

Purchase Orders:Written or Verbal 24-32

The Purchase Order Form-Exhibit A 25

The Purchase Order Process-Exhibit B 26

The Purchase Order Exhibit-Exhibit C 30

The Receiving Order Exhibit-Exhibit 0 31

The Purchase Order Flow Chart-Exhibit E 32

Inventory Control Sheet 33-35

Inventory Control Sheet Exhibit-Exhibit F 36

Parts Catalog 37-44

Stocking Genuine vs. Replacement Parts 42

Commercial Accounts and the Parts Catalog 43

Parts Catalog Insert

III. MARKETING 45-67

Success and Survival 46

Competition - The Pie Chart 47

The Physical Plant - Store Displays 52-55

The Work Area 54

What Lines to Carry 56-59

IV. SALES 68-87

Why Won't A Customer Buy 77

Preventing Lost Sales 78

Asking for the Sale 84

Using An Effective Service Ticket 92

Selling Off Repairs Into New Machines 96

Service Ticket Exhibit-Exhibit A 101

VI. ADVERTISING 102-155

Developing A More Effective Advertising Budget 103-106

Measuring Advertising Effectiveness 105

Yellow Pages 117

Developing More Effective Newspaper Ads 118-132

General Information 119

What Can Newspaper Rep Provide 119

Multi Newspaper Markets 120

Ad size & Placement 120

Frequency and Reach 121

Screens, Reverses & Color 121

Common Mistakes 122

Types of Ads 126

Submitting Ads to Newspaper 132

Insertion Order 133

Tracking Promotions 135

Vendor Support Program 136

Direct Mail 142-148

Previous Customer 143

New Customer 144

Four Page Flyer 146

Trade-In Sales 149

Glossary of Terms 154

VII. COMMERCIAL 156-208

General Information 157

Commercial Accounts Products 159

Suppliers of Commercial Products 160