Distribution Letter August 9, 2015 Mr. Steve Turrell Branch Manager MI IL-63 Motion Industries 3761 East Sangamon Avenue Springfield, IL 62707 Dear Mr. Turrell: Your recent comments in regards to ride along suggestions from a manufacturer’s perspective are much appreciated. I am writing you to share the most recent findings after evaluating all distribution RFQs over $7K within Sumitomo District DE03. The following information has been gathered from Sumitomo Machinery Corporation of America’s internal www.salesforce.com DSM and CSR quotation system. This comprehensive Configurator program tracks all distribution sales pricing request opportunities over a certain dollar amount. 2013-2015 SMA District DE03 RFQ Sales Results Statistical data from www.salesforce.com supports, in detail, the certain fact that less than 2% of all inside customer service RFQs from distribution over $7k are converted into an order. The research indicates that end users generally are not as comfortable processing this type of dollar amount purchase order simply by a verbal or email presentation. Tracked data suggests that by asking for a price they are interested and may have additional questions on the Sumitomo product. This has now become an appropriate time to get the SMA DSM involved in the field. Increasing MI IL-63 RFQ Closing Ratios by Over 60% Documented field sales examples support the fact that when an SMA DSM is seen by the end user physically viewing the RFQ reducer, checking dimensions and potentially making specific suggestions based off of the environment/surroundings an order is placed. It seems that customers are also more receptive to seeing a factory representative at the time of RFQ and gladly takes 15 minutes to speak with them since they have asked to see pricing. By distribution representatives agreeing to allow a factory representative to join them in these specific instances, everyone wins. SMA DSM Purposed Commitment to Growing MI IL-63 Sales The distribution strategy to decline or refrain from riding with factory representatives is well observed, noted and understood. It is realized that distribution has 100s of manufactures calling on them. However, in the situations were Sumitomo product RFQs over $7k arise, it is kindly asked that notification to your SMA DSM to participate in a single joint call is extended. This plan will eliminate end users from receiving multiple unsolicited calls as well as strengthen the overall relationship between SMA and MI IL-63. In these instances, can you kindly ask your inside or outside sales team to invite the SMA DSM on a joint call? If a joint call is not feasible, can they please direct the DSM to the account? Could you please support this effort through all your branches? There are also other advantages to gaining the business when physically taking in a manufacturer. Overall Advantages for MI IL-63 • Reduced manufacturer distribution solicitations on re-relevant topics • Pricing advantages can potentially be authorized by a SMA DSM • A more professional team presentation is projected to the end user • Increase in overall closed orders for MI IL-63 • Relationship building and comradely is created between distribution and manufacturer • Selling vs. quoting advantages; including better return on employee investment • Opportunity protection • Mechanical engineering selection accuracy Thank you very much for your continued support and representation of the Sumitomo line. Partnering with MI IL-63 on a local level is very important. If you have any questions or need additional information please feel free to contact me by phone. ___________________________________ Matt A. Masterson SMA District Sales Manager LCIE Lindenwood University Enclosure: sleins@suminet.com DPW: MAM cfalconer@suminet.com ilcs@suminet.,com E:/MI IL-63-DE03 14-2723.01/CS Inquiries.doc Via First Class Mail