member intro 040113(ppt2010) (1)

distributors

The following materials are confidential property of Edge and are intended for your sole use and review only.

INCREASING COMPETITIVE ADVANTAGE, CAPABILITIES

& PROFIT for DISTRIBUTORS

BUSINESS is TOUGHER than EVER

Fighting for attention from customers and suppliersNeed more sales Need more customersNeed more profit

HOW DO YOU LEVEL THE PLAYING FIELD…

& GAIN A COMPETITIVE

ADVANTAGE?

POSITION YOURSELF

TO WIN

WHY EDGE was formed

Help Independent Distributorsgain an advantage

buy better

pool purchasing strength – better discounts, rebates, etc.

extended capabilities – marketing, technology, financial programs

improved supplier relationships

distributor network

not just a “buying group”

Representing major distributors & leading manufacturers, suppliers

Established 1991

Distributor buying & marketing group

Edge brings together quality distributors and leading suppliers to make a positive impact on their businesses by providing value added programs, tools and support to grow sales, profits and market share.

101 independent distributors

171 stocking locations in North America

In primary & secondary markets

Financially strong

Looking for a competitive advantage

CCTV/Security Low Voltage

Electronic MRO

Datacom

Electronic OEM

STRENGTH IN NUMBERS

21 years growth

$600+ million in annual sales$90 million in distributor inventory

99.01% distributor retention

HOW EDGE WORKS Aggregate strength in numbers

Negotiate programs with select suppliers Lower cost of goods Competitive pricing Guaranteed Rebates/promotion allowances Lower prepaid freight or minimums

EDGE PREFERRED

SUPPLIERS

89.7% SupplierRetention Major & Sub Product

Categories Top Management

Alliances

EDGE SUPPLIERS

SUPPLIER PURCHASING PROGRAMS

2 Ways Programs work for you:1. Place orders direct with suppliers (97%)2. Master Account (order at cost thru Edge)Product shipped directly to you/customer

Invoiced directly (own account) (97%)Field Reps still involved and Keep VisibilityYour accounting remains the sameInsured/bonded22 years - no issuesPayments to Edge: Extended payment terms , cash discount. Average 21 days – If you have better terms, You keep them!

with distributors

Remain independent, operate as usual

Each member is a shareholder of Edge

Participate in all or part of the program

EDGE PROGRAM BENEFITS

purchasingprograms marketing,

technologytraining

Lower cost of goods (5-18%) vs. non-Edge lines

Better deal? Keep it!

Better terms? Keep it!

Savings of at least $7.9M in product cost annually

Rewards for support

Improved supplier relationships

Access to more products

Distributor network

Member to Member Resources

“Virtual Warehouse” - Immediate Stock.com

PURCHASING PROGRAMS

93.5% offer extra incentives

73.7% have guaranteed rebates

68.3% provide $ discounts – Avg. discount = 1.6%

INCENTIVES & REBATES

Average received = $20,000 - $25,000 in rebate incentives per year on average (depends on support of lines)

Average distributor would have to sell an extra $525,000 to add $20,000 to the bottom line

Top members have earned $100,000 - $120,000/year

THOUSANDS in REBATES

MARKETING TOOLSto help you reach customers

Ecommerce Platform – product content

Drip Marketing Campaigns

Product Advertisements

Corporate Brochure with Linecard

E-Fliers, Build Your Own Email Campaigns

On-Hold Marketing

Electronic Marketing, Technology Solutions, and More!

TRAINING

Product

Business Best Practices

Applications

CONCERNS BEFORE JOINING “Too good to be true” Lose control, loss of autonomy Concerned about payables Divulging confidential information Return on Investment

Do not need help in my business

I already do not have enough time

Selling to other members

My competitors

WITH THE STRENGTH

OF EDGE, YOU: Remain independent

Increase profits

Have the capabilities your competitors have

Get more for what you are doing everyday

WE CALL THAT COMPETITIVE ADVANTAGE

?% CompetitiveAdvantage

Increase Profits

Improve Market Reach

Daily Quarterly Annually Large returns

JOINING EDGE &BECOMING AN OWNER

Small One Time Investment

GUARANTEED SUCCESSOne time joining fee

$3,500 – only $2,000 down (balance year end) Security Deposit - $5,000

After 1 year if you feel Edge is not right for you… Keep all benefits Receive 100% fees and deposits back

Annual Costs Approximately $1,500

(marketing, AR, Insurance)

Tom Braun, Sales Opportunities845-548-0596 + tom@edge-group.com

Don Koehler, Sales Opportunities314-631-6787 + don@edge-group.com

Kathy Anweiler, Sales Opportunities708-385-4250 + kathy@edge-group.com