Search Cleaning Systems, Inc.

Price and Program Announcement

To: All Lustra DistributorsDate: November 26, 2014Subject: Price and program changesCSI has worked hard to control costs so we can provide products that are not only high quality but cost effective in the marketplace and we are proud that we have not had a price adjustment for two years. There have been significant changes in freight and shipping with new regulations and driver shortages pushing up freight costs and changing the freight pricing structures. With these cost increases in shipping, and other cost increases in insurance, labor and packaging, we must now make some changes to our prices and programs.In 2015 we will be adjusting prices on many products by 4.5%, however, prices on all of our Ultra concentrated cleaners will remained unchanged. Please see our SMART secure website for complete price listings. To help our distributor partners offset some of this adjustment we will also provide higher volume discounts at lesser weight requirements and we have lowered the requirement to receive free delivery. Our full truckload discount still creates the lowest possible distributor price since this transportation method is the most cost effective, with the full truckload discount we are simply passing through the savings that we obtain by shipping via the full truck. Additionally, we will continue to offer the quick pay discount for payment within ten days on all orders, with larger dollar orders receiving up to a 7% quick pay discount (see details below). Please contact customer service or your Regional Sales Manager for details on any of CSI’s programs.

Effective on January 1, 2015 the following changes will take effect:

  • New prices as detailed at the SMART secure area of our website
  • Lower the weight requirement to achieve the 7% volume discount to 18,000 pounds (formerly 22,000 pounds).
  • Lower the weight requirement for the 5% volume discount to 15,000 pounds (formerly 18,000 pounds).
  • Lower the order size required to receive free freight to either 96 boxes of Ultra-concentrated product or 12,000 pounds. (Note the 3% volume discount will still apply only at 12,000 pounds.)
  • All credit approved orders for immediate shipment received on or before Noon Central Time on 12/31/2014 will receive the current pricing and discounting. Thereafter the new pricing and discounting will apply.
  • Quick pay discount remains at:
    • 5% on all orders up to $33,999
    • 6% for orders totaling $34,000 to $49,999
    • 7% on orders totaling $50,000 and above.
  • We are always striving to bring you the best products at competitive pricing and value your support in bringing the highest quality products and service to the car wash industry. Please contact your Regional Sales Manager, AVP or me with any questions.Best regards,Jim BenoVice President, CFO