April 2013
Arteries of the Industry
Pyramid of influence Where the game is played
Importance of fitting – irons drivers
Manufacturers need a solution to maximize channel benefits
Depth and breadth of product representation
Profitability of account servicing
Green Grass need a solution to fully participate in club sales
Can’t afford eCommerce (know how, inventory commitments, etc.)
5,000
Green Grass eShops
6,000,000
Manage content, images, marketing message
Dynamically served by eShopPGA
Control pricing: set MAP, change on the fly
Recurring traffic
Select and decide which products are sold
Merchandising /
Exposure opportunities
We deliver unprecedented reach opportunities
We deliver accelerated sales cycles
We deliver promo capabilities at Green Grass
We deliver a profitable Green Grass channel
#Cost Factors eShopPGA Green Grass
Reach costs Low High
Collection risk None High
Inventory write downs None Some
BIF Low Low
Opportunity Factors eShopPGA Green Grass Product representation High Low
$ Volume per account High Low
Marketing controls High Low
Golfer reach High Low
Team
Pascal Stolz
15 years Golf Industry (Taylor Made, Cobra)
12 years technology (ShopNow, Microsoft, startups)
Eric Anderson
19 years technology expert, Unix/Magento/etc.
Technology
Magento eCommerce back-end
OneTree technology management (GolfChannel-LA.com)
Advisors
George Montgomery – Former CEO Taylor Made Golf
Mark McClure – Former CEO Cobra Golf, ShopNow.com Board
Alain Beja – Former CEO Blue Green – 40 courses under management
Jim Vincent – Ernie Sabeyrack Award, PGA of America
Philippe Barret – Former CFO Taylor Made Golf
Country Club Website Promote eTransaction Distributed Platform Full margin less 3% Fulfillment Tee-Time Manufacturer Your images/content/MAP
Direct tie to inventory levels
Order
Member Validation
Green Grass account installs a special personalized link on their website and immediately get access to a fully stocked eShop You have set minimum pricing at MAP throughout the network
and the Pro has control over “above MAP” pricing
Golfers logging on website for tee time reservations provide recurring traffic supplemented by Pro’s marketing efforts ALL eShopPGA orders are Green Grass originated
Golf Professionals earn full margin less credit card fees and 3% Manufacturers paid immediately
Product representation and fulfillment direct from manufacturer 48h / overnight shipment direct to consumers (or store)
(Hypothetical numbers for scenario simplicity)
Retail
MF Incentive Net to Golfer
eSP integrates your end consumer discounts on the fly and manage its accounting 37.0 3.7 3.0 4.1 Cash margin Credit Card Fees MF Invoice Discount eSP Commission
eSP nets out wholesale and credit card fees & include your invoice discounts via API*
eSP auto pays the full net amount on every order
eSP commission is off “net” of the transaction 100.0 10.0 3.0 1.6 9.0 Wholesale Consumer incentive Invoice discount is any Prompt pay eSP commission Wholesale 100.0 137.0 10.0 127.0
Invoice discount
Prompt pay discount
Merchandising / Displays
Co-Op / Investment Funds / Marketing Inventory write down costs
Sales costs
Collection costs
Customer service costs
12%
8%
to
10%
eShopPGA Off Course
Wholesale $100.00
Account discount given ($10.00)
Prompt Pay ($1.80)
Operational/Marketing Costs ($9.00)
Commission to eShopPGA.com
Manufacturer Net Revenue $79.20
eShopPGA Off Course
$100.00 Wholesale $100.00
($3.00)* Account discount given ($10.00)
($1.75) Prompt Pay ($1.80)
($1.00) Operational/Marketing Costs ($9.00) ($9.70) Commission to eShopPGA.com
(Hypothetical numbers for scenario simplicity) Retail $137 Wholesale 100 Cost $32 $76* $15 $10 $4
Merchandising positions – Extend your visibility
Elect premier positions in your preferred categories
Home Pro Staff Program – Extend your sales force
Include eShopPGA as part of your contracts
We build a manufacturer centric eStore
Home Pro receives commission from you, shares it with the Pro-Shop (auto managed by eSP)
eShopPGA Partner Program – Extend your reach
Leverage your reach to encourage sign-up for accounts electing not to have physical product representation
Premium Gold
• #1 category listing position • #1 product listing position • Lead product purchase/specs
Premium • #2 to #4 listing position • Rotating • Product purchase/specs on mouse over more
Be in control
Move the inventory you want to move
Direct account records tie-in
Market dynamic efficiencies
Fulfillment integration
Maximize your Green Grass relationships
Get paid when the order is placed
Capture Golfers’ addresses
One-to-Many Management Groups
Trinity, Sequoia, Troon, American Golf, etc.
Manufacturer’s rep
Preferred Partner Program
Home Pro Staff Program
One-on-One
USAG VASP Partnership – 78 GHIN organizations
PGA Shows: Las Vegas (9/13) / Orlando (1/14)
National Golf Course Owner Association
55
We will most likely be first to the table with all of our 55 clubs. Brent Reid | EVP40,000
members
Facilities Golfer Reach
You have a solution that will now allows us to participate in product launches.
Jeff Whitt| Partner
77
200
136
108
41
Mike Cutler | EVP Charlene Gallob| VP Procurement
Michael Miraglia | President
Marketing
Sales
Reach
Evolutionary Model
• Show channel support • Expand GG distribution • Reach core avid golfers • Empower home pro staff • Product depth & breadth • Digital campaigns
Control & Flexibility You decide
• MAP across network • Included products • Product images • Product claims • Inventory levels
Maximize Channel Benefits
• Implement manufacturer incentives • Green-Grass exclusive opportunities • More products in more shops = more sales
Letter of Intent
Primary aggregated Green Grass digital platform Drop ship agreement (API/EDI integration)
Terms similar to volume level partners, year end true-up
Premier Partner Program upfront commitment
Brand, product line and MAP/pricing control Merchandising positions
2014 Product Launch marketing program at no charge Home Pro Staff program