Cummins RETP - Engine Tailoring Program Overview
The Cummins RETP (ReCon Engine Tailoring Program) helps in customizing ReCon engines to meet customer needs, offering discounts on parts and labor for tailoring. The program aims to enhance sales and competitiveness while maintaining warranty standards. Distributors can utilize the RETP to modify engines, reduce lead times, manage inventory effectively, and upsell to customers. Limitations include claimable and non-claimable parts for tailoring purposes.
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ReCon Engine Tailoring Program Overview Cummins Team January 2016 Cummins Confidential
Program Overview Above all, the RETP is designed to help you sell more ReCon engines Cummins Confidential 2
What does the RETP do? Cummins New and ReCon Parts provides via the RETP a 40% discount on new CMI parts and a 20% on ReCon (RX or NX) parts used to upfit or tailor a ReCon engine* Discounts are off Distributor Net Price Pays 50% of up to four hours of Standard Repair Time labor needed to upfit a ReCon engine The intention of the program is that these discounts be applied to the initial customer quotation to help close the sale and the keep Cummins ReCon solution as competitive as possible The engine warranty is NOT affected by tailoring performed by the distributor The ReCon, as well as any parts added to it as part of the RETP, will be warranted exactly the same as if those parts were installed at the factory Details and limitations to follow in a later slide Cummins Confidential 3 * Hereafter, engine includes ReCon engines, long blocks or short blocks
Why Use the RETP? To help modify a standard ReCon engine offering to exactly match the customer s failed engine To help better utilize distributor inventory: Instead of ordering Engine A from the distribution center, you may be able to tailor Engine B that has been sitting unsold in your inventory To shorten lead times: When the best fit engine is on a long lead time, consider tailoring an engine that is more readily available To upsell: Customer may opt to replace the starter and alternator if they know they will get a 20 or 40% discount (for LBs or SBs, the list of possibilities may include the turbo, head, injectors, fuel pump, etc.) Cummins Confidential 4
RETP Limitations and Details What s claimable: Most CMI parts that would be needed to tailor a ReCon engine to fit the customer s application and install it in the equipment Ex: Turbo, injectors, brackets, engine mounts, electrics, brackets, air compressor, flywheel, flywheel housing, exhaust manifold, water pump, dipstick, oil pan, suction tube, belts What s NOT claimable: Most performance parts (block, crankshaft, camshaft, pistons, con rods, etc.), gaskets, thermostats, EGR cooler, filters Items having any product code other than CECO or DRC (e.g. FLG, DAYCO, CES, etc.) Cummins or non-Cummins parts purchased from a third party re-sale entity such as S.R. Sales Complete list available in the program PPC on QuickServe Online (to find current program PPC, go to Primary Parts Communications in QSOL, then enter ReCon Engine Tailoring into the Search function. If more than one PPC is found, select the one marked Active ) Limitations: Parts credit maximums: Midrange = $2,000; Heavy Duty = $3,500; High Horsepower = $4,500 Labor: Maximum of 4 hours of SRT labor, paid at 50% of shop rate Filing deadline: Claims must be filed within 90 days of engine upfit or be subject to automatic denial Cummins Confidential 5
RETP Limitations and Details (cont.) Cannot be used for overhauls or other repairs the RETP may only be used as part of a sale of a ReCon Engine, Long Block or Short Block Does not permit the return of off-engine parts for resale. Parts that are removed from the ReCon can be used to satisfy core return obligations (if applicable) but you cannot get full or even partial DN credit for said parts because Cummins does not resale off-engine parts Tailoring work performed at the dealer level is not claimable, only tailoring performed by a Cummins Distributor Only one claim per ReCon ESN is permitted, and only one ReCon ESN per claim Cummins Confidential 6
Customer Communication For straight-forward tailoring quotes, customer probably doesn t even need to know the details, but always needs to be quoted with the discounts applied as early as possible in the process If the tailoring quote isn t built into the initial customer quotation, your price may be unnecessarily hundreds or thousands of dollars too high, jeopardizing the sale For upsell opportunities, customer should know that they can get a discount on a wide variety of additional parts: If you buy a ReCon, I can give you a big discount on a new starter and alternator; can I price those out for you? The warranty is preserved: If we do the tailoring here, everything is warranted just like the ReCon was built that way at the factory. If the end-user or dealer modifies the engine, there may be warranty issues due to workmanship, use of non-Cummins parts, etc. Cummins Confidential 7
RETP Overview Summary RETP helps you sell more ReCon engines and parts by discounting the parts and labor needed to make a particular ReCon fit the customer need Most CMI parts are claimable, whether from distributor stock or ordered from the distribution center Building the Tailoring Quote up front helps you provide the most competitive price to the customer No cost to the distributor no co-op, matching funds, etc.; the program is funded 100% by Cummins New and ReCon Parts Only one claim per ReCon ESN is allowed, but you make a claim on every single ReCon engine that you modify Cummins Confidential 8
Questions/Comments/Concerns For more information and detailed claim filing instructions, please see the current ReCon Engine Tailoring Program PPC on QuickServe Online, or contact: For claim status: Brittany Richards brittany.m.richards@cummins.com 812-377-9354 For general questions or concerns: Clay Gaillard, ReCon Engine Product Manager clay.gaillard@cummins.com 850-596-8271 Cummins Confidential 9
