DEALER COUNCIL DISCUSSION ITEMS PRESENTED AND RESPONSES:

a. An escalation process is needed for problem resolution of ongoing problems. Answer: An escalation process was provided at that last Invitational. NEC can re-distribute copies to dealers and suggest it be used for technical problems that are not getting resolved in a reasonable time. The council also requested reimbursement for labor costs of resolving ongoing problems not resolved in 90 days, such as having to dispatch to install software patches for ACD MIS products etc. The ongoing cost of sending back techs to a site for ongoing problems due to software changes and patches can be excessive on a single job. Tom said he would get back to us on this issue. Discussion of ACD software and time needed to support software installations in the field ensued.

b. Five year warranty - where is it? In the March, 1996 meeting, the Dealer Council first requested that NEC consider a 5 year factory warranty program to increase our competitive edge in the marketplace. A number of dealers use Datacomm Warranty and find that program successful in selling more systems. Answer: Tom Burger reported that the program will be launched in late October and will cover NEC product only to start. Systems or parts will be ordered with the 5 year warranty. You have 14 month warranty on new items from the day they ship now. This will extend the coverage for an additional 48 months. The customer gets 5 year coverage. Pricing examples: Pro I with 8 phones - $126. Pro II with 16 phones - $246; Pro IIA with 48 phones $530. NEC will research and report which PC software and scanners will make it easier for larger dealers to track warranty status. Dealers will need to order stickers to mark phones that have a 5 year warranty. You'll probably mark circuit boards and or record bar code numbers. When you get a replacement part back, it will have the remaining warranty time on it. Hint: If you are going to sell this on a per job basis, (as opposed to converting all your sales to 5 year factory warranty) order some stickers NOW to put on the bottom of the phones to avoid delays and confusion. Seaton (800-451-7084) was suggested as a source for stickers. Put your company name on the sticker, phone number, 5 year warranty etc. Dealers can mark up the pricing. You will also want to sell the labor portion of the maintenance contract separately. NEC has to allow end users to transfer the warranty to another dealer, but it will not be cheap. So, by using this program you protect your service base.

c. Training concerns - high costs - too slow with training development. Key system training is free. PBX training is expensive, high cost per tech per sale to the dealer. Should be free. Lots of talk - results slow in coming. Let us help with priorities. Internet training should be free. Answer: We mutually agreed to form a Training committee like the product committees. Members will be Tim Madden, Maureen Gaynor, Mark Lynn and Steve Autor. Note: Steve Autor would like to find someone to take over the 2400 product committee!

d. National Accounts - status. Tom reported that Mike Christy is reporting increased activity, but the program has been slow to take off. NEC recently landed the Hilton Hotel chain account so some of you may pick up some business doing I & M.

e. Telemarketing results? Where are leads? Answer: Marketing funds have not been used for end-user type advertising and hence fewer call ins. Many call ins to 800-TEAM NEC are for other NEC products. Discussion ensued whether national telemarketing is appropriate use of marketing funds or is that better done on a local level if we can get more coop dollars.

f. CTI free software demos - where? Answer. Some demo software will be available for dealers to have to show in their demo rooms, but DON'T SELL IT YET. Sell it as a future capability only. Too many bugs in the software yet.

g. Consultant liaison - directions? Important for PBX bids

Answer: NEC has recently hired Larry Kollie, former president of the 2400 Users Group to run the program. Larry is out meeting with consultants and doing a needs assessment before a new program is developed.

h. Windows software for 2000 and new key system to cut down installation time. Windows 2400 software to dealer is too expensive. Answer: Software for the 2400 has been recently released. Question was raised on pricing for software for dealers to use. Pricing for multiple sites is too expensive for dealers that need to maintain multiple customers! Tom will get back to us re software prices for dealers for their internal use.

i. Technician training - Help finding tcchs. ITT Technical Institute, DeVry - Train in basic telephony; then special courses on NEC certification. Answer: Refer this issue to new training committee. Some discussion has taken place with technical schools already.

j. Number of dealers being added. (Most of them in Long Island - per Vito - haha) Ongoing concerns. Answer: We currently have 220 associates. 40 dealers were added and 20 were dropped.

k. Training dollar credit for each PBX system sold. Coupons we can redeem for training classes. Let us earn our training with more sales. Same deal for all dealers. Answer: Will take this issue under consideration.

l. CTI training - Not appropriate for 99% of dealers. Answer: Refer to training committee.

m. How does AD-16 voice mail sales count toward our discounts and coop? Electra mail and Voice Point purchases should count toward key system. Answer: Will investigate this and get back to us.

n. Promos for key systems need to be continued. Possible variety of programs especially for NEC only dealers. Answer: All programs have to be consistent and offered the same to all dealers. Some discussion on alternative programs. NEC sees definite increased sales when dealers use these programs. Suggestions are welcome.

o. Coop money is only 1% Barely covers Yellow Pages. Need to bump back up to 2%. Answer: NEC will get back to us on this issue. Formerly coop dollars were not used due to all of the restrictions. Many restrictions have been lifted and coop money is now being used.

p. NTAC - most techs know don't have as much experience as the techs calling. When is software going to be up to help them see what to do in these problems? Answer: NEC has similar tech problems that the dealers have. Dealers commented that better MAT software would minimize calls to tech center.

q. Additional discounts for NEC only dealers. Answer: This will be considered. Mike Ellis suggested free 5 year warranty for NEC only dealers that also meet volume commitments. Council agreed that this would probably cause dealers that handle multiple brands to move more business to NEC.

r. NEC affordable demo units - floor plan for demo units for video, 2400's, data equipment. Need video systems in Dallas that we can call to do a demo. Answer: NEC will look into ways to help dealers get video and other products in their demo rooms.

s. Expert presentations on Navigator or other demos via dial up video. Dealers with dial up video capabilities can impress customers by dialing up a NEC expert on special product concerns. Conference calls would be pre-arranged. Answer: NEC is currently installing video conference units at all of the remote offices.

t. 2000 In house demo systems we are using in our shop - we need 50% discount for adding cards to implement ISDN PRI in shop, station side BRI. Answer: No problem. Indicate for in-house demo system on your P.O.

u. Free training for new key system. Windows MAT software that works before we sell the systems. Answer: No problem.

v. Meeting with NEC leadership at CTI in LA? Our annual meeting is Wed. at 6pm. Want to schedule dates well in advance with NEC for council meeting with NEC management. We will have our annual business meeting Wednesday night at 6pm, March 5, 1997. Dealer Council's next meeting with NEC leadership to resolve issues will be Monday, March 3 at 1pm before CTI show, March 4-6 in LA. Dealer Council (only) meeting will be Sunday evening at 7pm.