Section: Sales

Subject: Discounts

Approved by: Anthony L. Massey

Effective Date: 1 June 2014

Last Reviewed Date: 6 June 2014

Policy Owner: Vice President of Business Development

Policy #

Massey Services values long-term, trusting relationships with our customers and our employees. In pursuit of this aspect of our Company’s mission, Massey Services has instituted a policy regarding discounts on services.

OUR COMPANY HAS NO “STANDARD” OR “AUTOMATIC” DISCOUNT FOR NEW
CUSTOMERS.

Every discount is either specifically designated as indicated below, or is the result of a published marketing initiative

Customer Discounts #

Documented Discounts #

Massey Services invests heavily in offering published discounts to potential new customers. These discounts are distributed via Direct Mail, Newspaper Inserts, Trade, Home/Garden/Lifestyle Shows, etc. These discounts vary in dollar amount and by service type depending on the market and the time of year. The list of these Discounts are included below.

A PUBLISHED DISCOUNT COUPON MUST BE ATTACHED TO THE SERVICE
AGREEMENT, AND MUST BE CONSISTENT WITH THE DISCOUNT INDICATED ON THE SERVICE AGREEMENT, OR SERVICE CENTER MANAGEMENT WILL REJECT THE SALE.

Preferred Customer Discount #

The Preferred Customer Discount is granted to EXISTING customers who add a new residential service.

Senior Citizen & Armed Services/Veteran Discount #

The Senior Citizen & Armed Services/Veteran Discount is granted to new customers over 55 years of age, current armed forces personnel, or America Veterans who purchase a residential service.

Commercial Customer Employee Discount #

The Commercial Customer Employee Discount is granted to employees of PrevenTech customers who purchase a new residential service.

Referral Discount #

The Referral Discount is granted to someone who refers a new customer.
All of the aforementioned discounts are as follows:

• Pest Prevention: $25.00 deducted from the initial service on an annual contract.
• GreenUP Landscape, Lawn or Tree/Shrub Care: $25.00 deducted from the initial service on an annual contract.
• Termite Protection (Conventional, Fumigation, Baiting): $50.00 deducted from the treatment or installation price.

“Pass It On” Referral Program #

Our “Pass It On” referral program is granted to our customers and the new customer referred by our existing customer.

The reward for a qualifying “Pass It On” referral is as follows:

• All Annual Services: A $25 gift card is given to the referring customer and a $10 gift card is given to the new, referred customer. No gift card is provided to either recipient until the service is started on the new customer.

Team Member Discounts #

All Massey Services Team Members and of related subsidiaries are eligible for discounts on residential services. They are as follows:

• Pest, Lawn, or Irrigation Recurring Services: 20% deducted from the initial service and 10% from the recurring service price.
• Termite Protection (Conventional, Fumigation, Baiting), Irrigation Repair, or Renovation: 20% deducted from the treatment price.

Sales Compensation #

Discounts should only be offered when and where appropriate. This means that customers who do not meet the criteria above with regard to non-documented discounts, or who fail to provide a current, published marketing generated discount should not receive a discount on their service purchase. While we deduct the discount from the initial service internally, to the customer the discount is off the entire annual charge or, in the case of Termite Protection, the treatment or installation charge.

NOTE: Only the net amount, that is the “after discount” amount, will be reported in our sales, Daily Operations Report (DOR), and/or revenue numbers. The Service Agreement will show the gross amount, the discount amount, and the net amount.

Sales Inspectors and Account Managers will be compensated on the NET or DISCOUNTED amount indicated on the Service Agreement. Under no circumstances will sales personnel be compensated on the gross amount of discounted sales.

Service Technicians and Lawn Specialists will be compensated on the GROSS or UNDISCOUNTED amount indicated on the Service Agreement. Follow our payroll policies to ensure proper payment for our Service Technicians and Lawn Specialists.

IN ALL CASES, ONLY ONE DISCOUNT MAY BE ALLOWED ON ANY SALE AT ANY TIME. IF A CUSTOMER’S SITUATION PRESENTS MORE THAN ONE DISCOUNT, THE LARGEST DISCOUNT OF THOSE PRESENTED WILL BE HONORED. CUSTOMERS PURCHASING MORE THAN ONE SERVICE CAN RECEIVE DISCOUNTS ON EACH SERVICE PURCHASED AS LONG AS OTHER DISCOUNT CRITERIA ARE MET.

IN ALL CASES, DISCOUNTS CAN ONLY BE APPLIED TO SALES WHERE CURRENT PUBLISHED RATE CARD PRICING IS INDICATED.

ANY DEVIATION FROM THIS POLICY MUST HAVE THE PRIOR APPROVAL OF THE REGIONAL/DIVISIONAL MANAGER AND THE EXECUTIVE VICE PRESIDENT OF OPERATIONS.

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