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ATI Partner Program
Hello Owners & Managers,

We are excited to announce the newest refresh of our National Account program with the Automotive Training Institute! 
With the help of your Franchise Advisory Council, we have developed a program that is mutually beneficial for the 1-800 Radiator & A/C Franchise network and ATI. This program refresh officially went into effect on January 1st, 2022.

Over the last two years, we have been very impressed with the support provided by ATI's corporate office and business coaches. ATI continues to add new member shops at an impressive rate, further updating their MSO group, back-to-back years of growth prove that they have the ability to influence where their customers buy from. All the details of the new arrangement are listed below. But, first, please review ATI's impressive sales results in 2021!

Sales Information: 
ATI was ranked 3rd overall in purchases in 2021 with over $3,600,000 in sales! That's 22% YoY, with a $630,200 increase over 2020. Last year their margin averaged 47%; with an order count over 23k, up more than 2,000 in orders.
Listed below are all of the key details for our new ATI partner program. We feel that these sales growth and volume-based incentives will motivate sales from ATI members in 2022, continue to strengthen our relationship, and grow sales. In addition, standard verbiage has been included to protect Franchise profitability. 

Sponsorship:
We have committed to ATI's new 2022 Annual Partner Program at the Silver Sponsor level. This will increase our presence with the local members at trade shows and actively promote 1-800 Radiator to ATI members throughout the year. 

We have provided ATI with a flyer and a letter to share with their store teams. Please click the links below to view and print copies as needed for your visits.

Priority Vendor Status:
We are considered a "Preferred Aftermarket Temperature Control and Exhaust Supplier" for all ATI locations. 
 
Pricing Structure:
Service & Repair ATI members will receive a minimum MP 6 Discount off Vendor's National Base Price. 

Collision Body Shop ATI members will receive a minimum of MP 46 Discount off list prices to all locations on qualifying purchases.

  • A new upgrade to our system allows for a minimum discount to be set and, at the same time, provides our franchisees the option to adjust for a greater discount than the set minimum. This will ensure that ATI Service & Repair and Collision locations receive the correct "minimum" discount for their members. 
  • Warehouse teams will be able to manage the discount locally but will not set a discount lower than the set "minimum" discount floor. More aggressive discounts may be applied at the warehouse level/ discretion.
  • If you set a discount lower than the minimum floor, our system will automatically return it to the correct discount once it has been detected. 
  • ATI members listed as Fleet, Heavy Duty, and Distributor will not have a national discount program applied but will be eligible for an annual rebate.

ATI Member Rebate Structure:
2% sales volume-based Quarterly Rebate on qualifying purchases split between Franchise and 1-800 Radiator & A/C Corporate.
  • 1% paid by franchisee
  • 1% paid by 1-800 Radiator National Account Corporate
  • Paid out quarterly

Rebate Eligibility Requirements:
  • High-volume ATI members will receive a 2% rebate on all sales regardless of sales growth. High volume is considered to be individual location stores that purchase $2000 or more per QTR.
  • ATI members not considered to be high volume can still receive a 2% rebate! 
  • Purchases between $500 to $1999 per QTR can earn you that 2% rebate. To qualify, shops will need to beat prior year sales.
  • Example 1: store purchased $450 current QTR = no rebate earned
  • Example 2: store purchased $1,500 current QTR, but prior QTR purchased $1,600 = no rebate earned
  • Example 3: store purchased $1500 current QTR; prior QTR purchased $1,300 = 2% rebate earned on all sales

Important Details:
  • Rebates will be calculated by individual location results; purchases cannot be combined with other locations or ATI member MSO groups. 
  • 60+ Days past due A/R at the end of the QTR will disqualify your store, permanently forfeiting any earned rebate for the quarter being measured.

ATI Corporate Rebate Structure:
Important: This is not to be discussed with ATI members for any reason. 

ATI Corporate is eligible for a quarterly volume-based sales rebate paid on all purchases as per the table below: 
The rebate is based on $4 MM in sales from ATI in 2022. ATI purchases were over $3,600,000 and 22% up YoY in 2021. We are hoping to see a $400,000 sales increase for an 11% YoY in 2022!

ATI Corporate Rebate Structure will be split between Franchise and 1-800 Radiator & A/C Corporate.
  • 1% paid by franchisee
  • 1% paid by 1-800 Radiator National Account Corporate
  • Paid out quarterly

Pay Terms:
  • No special billing terms were negotiated.
  • There will be no changes to current ATI customer accounts. 
  • As before, all billing arrangements will be set up at the discretion of the franchisee and negotiated locally.

Automotive Training Institute members will be eligible for:
  • Limited Lifetime Warranty on Qualifying Purchases against MFG. defects
  • NEW, Volume-based "Tiered Hourly Labor Rate" labor reimbursement program 
  • Tiered Labor Rate Reimbursement Program Eligibility Requirements:
  • Tiered sales volume based on high, medium, and low sales over for a 90 day period prior to the claim submission date
  • Must be current on Accounts Receivable per billing terms on file with supplying 1-800 Radiator warehouse
  • Must be under a national warranty return rate of 3% (Annual piece count purchased vs. warranty returns)
  • Reporting is forthcoming that will assist in determining an account’s warranty return rate.
  • In the meantime, use your system records and good judgment. If you need help, email Service Central and someone on the National Accounts team will assist you.
  • For complete program details, please refer to the Automotive Training Institute 2022 1-800 Radiator & A/C Grow Together Program Limited Warranty Policy  
  • To view our ATI Limited Warranty Policy, click here.
If you have any questions, please submit a ticket to Service Central.

Thank you,

The National Accounts Team