Vol. 31 - Page 2

November 2000

If you have any customers with these or any other products, they’ll appreciate seeing on video our new- 2001-pick up head and how it can handle their product. Bring them or send them to see us at S2425. Item #3: NEW RENT-TO-OWN and FINANCE LEASE PACKAGES On all quotes we shall now start quoting the price of the robotic cell being offered with both a "Rent-to-Own" and "A Finance Lease" showing how they can get the robot(s) without having to go through a capital budget request. These two-dollar amounts will almost always yield an immediate positive cash flow and a favorable return on investment. DEFINITIONS: "Rent to Own": or an "Operating Lease" under this plan the customer can buy the equipment at its 60 months term at 25% of fair market value. An "expensed" tax benefit.

"Finance Lease": under this plan, they can buy it for $1.00 at the end of 60 months. The tax advantage is – it’s depreciable and they can deduct the finance charges. An example of each with a $125,000 PL2 cell: "RENT TO OWN": $2,336.25/mo. "FINANCE LEASE": $2,755.00/mo. Compare these numbers to his current labor burden assuming 1 shift – 1 person at $10.00/hour with a 25% fringe – no overtime, workers compensation, or other overhead factored into the equation. His known, direct cost is $2,150.00/month and increasing. What are the employer’s additional costs for replacement, training, no-shows, product damage, etc? Item #4: OUR NEW WEB SITE It will be opened to the public very soon. It has many features, which the competition lacks. More on this at the training session at the show, Sunday 11/5/00 at 8:30am.

American Productivity Group, LLC, 224 Passaic Ave., Fairfield, NJ 07004-3581 Phone: 973-244-1995     Fax: 973-244-9020     E-mail: info@apgllc.com     Dwight Carey, Managing Member