1. OPERATION
Rewarding Business with Pleasure

2. Believe
nothing,
no matter where you read it or who
has said it, not even if we have said
it, unless it agrees with your own
reason and common sense.

3. Wholesale distribution companies of every size and description are being squeezed
hard by a number of mounting factors: the erosion of margin, the struggle to
maintain differentiation, and the rapid imitation of technological innovation. Having
top notch employees and knock-your-socks-off customer service have become table
stakes and no longer provide competitive advantage.
Competition is beyond fierce – it’s cutthroat. The hunt for more sales, new sales, and
especially take away sales has intensified. It’s a war. Fought battle by battle. And
the ground to be won is customer share.
And that’s where we come in.
DEPARTMENT P helps wholesale distribution companies gain competitive edge
through the tactical use of high impact incentive programs that create excitement,
guide behavior, build loyalty, and most importantly, produce jaw dropping results.
Since our founding in 2009, DEPARTMENT P has maintained an unbroken track
record of successful incentive marketing initiatives; among our clients are some of
the largest and most forward-thinking wholesale distribution companies in America.
The cornerstone of DEPARTMENT P’s approach to incentive marketing is
customization. We believe that each targeted customer in an incentive program has
a unique backstory and that lumping customers into categories, expecting everyone
to think and act alike, is nonsensical. A well-designed incentive program must have
the flexibility to be customized to fit individual customers.
P IS FOR PERFORMANCE
We also believe that in order to thrive in the hyper-competitive, dog-eat-dog world of wholesale distribution, you constantly
need a strong and steady stream of new marketing ideas to drive more business your way. No matter what you’ve done to get
to where you are today, you are going to have to do something different tomorrow.
And that’s where OPERATION GODFATHER comes in.
It is an immutable law in business
that words are words, explanations
are explanations, promises are promises
but only performance is reality.

4. THE OPERATION GODFATHER
MANIFESTO
OPERATION GODFATHER is a highly targeted, fiercely creative, and extraordinarily effective incentive marketing strategy created specifically for
wholesale distribution companies to use in the ongoing battle for customer share.
Like most highly effective strategies, OPERATION GODFATHER is remarkably simple, even obvious, once you understand how it works. There
are six basic principles to consider:
#1 80 percent of your sales and profitability comes from 20 percent of your customers. Of course, the ratio is not always 80/20. Maybe it’s
75/25, 70/30 or even 90/10. However, the situation the ratio describes is always the same: a few Core Customers buy a great deal while a
great number of small customers buy very little.
#2 Core Customers are the lifeblood of your business and servicing them should be a company-wide obsession. Indeed, the real measure of a
healthy distribution business lies in the strength, depth, and length of its relationship with its Core Customers.
#3 Regardless of the extraordinary measures you may take to delight your Core Customers, attrition is inevitable. When a company gets
acquired or closes its doors, there’s not much you can do about it. And you certainly can’t assume that those customers currently
giving you the lion’s share of their business will continue doing so in the future; even your best and most loyal customers can and will
break your heart. Every time you lose a Core Customer, your profitability takes a hit-- sometimes a big hit. That’s why the long-term
expansion of your business is critically dependent on continually cultivating new Core Customers.
#4 Most of your small customers are low impact customers with no potential for significant growth. Many of them , however, have the buying
power to become Core Customers and significantly impact your bottom line. We refer to these high-potential, under-penetrated customers
as “Sleeping Giants.”
#5 Like your Core Customers, Sleeping Giants are savvy business people who practice economic calculation in every choice they make and
who are only loyal to one thing—best value. In those selling situations where all things are equal, including the price, the buying decision
almost invariably comes down to the personal relationship between the customer and the sales rep. Essentially, the relationship becomes
the tiebreaker. However, personal relationships always have limitations. If customers can find better value in another supplier, they will
often take their business there without looking back.
#6 In the eyes of many Sleeping Giants, there aren’t any sharp differences between you and your most formidable competitors. These are the
customers that can be motivated to change their buying behavior with only a small improvement in value such as the opportunity to earn
insanely desirable Big Splurge Awards in exchange for a greater share of their business. Granted, not all of the targeted customers will
take advantage of this opportunity; however, for many of the targeted customers, it will be “an offer they can’t refuse.”

5. SOMEBODY HAS TO BE THE BEST!
For an incentive program to be effective (we mean really effective) nothing is
more important than selecting highly desirable rewards; rewards that excite;
rewards that inspire; rewards that have the power to actually entice Sleeping
Giants to give you more of their business.
And that’s where our Big Splurge Awards come in.
You can search far and wide and comb the Internet until your eyes bleed and you
won’t find any rewards more desirable than our Big Splurge Awards.
After all, who wouldn’t be ecstatic to receive a Big Splurge Award that can be
redeemed for a custom-tailored vacation anywhere in the world—with no
blackout dates, no fine print, and no restrictions whatsoever. Those recipients
not interested in vacation travel have the option to redeem their Big Splurge
Awards to purchase anything their heart desires from any store in the United
States or Canada.
This unprecedented degree of choice and flexibility is what makes our Big
Splurge Awards so enticing and such remarkably effective change agents.
Big Splurge Awards, however, are only as good as the people that stand behind
them. After all, the ultimate measure of success comes down to just one thing:
Happy Customers!
And that’s where our “Escape Artists” come in.
DEPARTMENT P’s team of enthusiastic and dedicated Escape Artists thrive on
the challenge of achieving total customer satisfaction and that includes securing
the absolute lowest prices on airline tickets, hotel accommodations and other
travel related services. Their experience is our guarantee that your customers
will return from their vacations with great big smiles on their faces—feeling really
smart about being your customers.

6. OPERATION GODFATHER is a turnkey promotion which is intended to complement , not replace ,your existing marketing efforts.
The lead time to launch the OPERATION GODFATHER is approximately 60 days; the length of the promotion period is usually
9 or 12 months.
As you will see when you review the following action plan, our methodology is based on the premise that the clearer the sales
reps and branch managers are about the objectives of OPERATION GODFATHER, the more efficient and effective they will be in
achieving their personal performance goals. Perhaps Henry Thoreau said it best: “In the long run, men hit only what they aim at.”
NOV 1 Blast email to the participating Branch Managers announcing the program and inviting them to participate in a
webinar (or meeting ) that will provide them with all the details of the program. In conjunction with this briefing,
the Branch Managers will receive Program Briefing Booklets and samples of all promotional mailings.
NOV 8 Branch Manager webinar or meeting to be orchestrated by DEPARTMENT P.
NOV 11 Blast email from the Branch Managers to their respective Sales Reps announcing the program. The Sales Reps
will also receive Program Briefing Booklets and copies of all promotional mailings. Although this email will be
sent by the Branch Managers, the content for the email will be provided by DEPARTMENT P.
NOV 12-28 Sales Reps do the necessary “opposition research” to compile their lists of viable Sleeping Giants. Depending on
the make-up of their individual territory, each Sales Rep will be responsible for identifying 5-15 Sleeping Giants.
NOV 29 Deadline for the Sales Reps to submit the names of the Sleeping Giants to their Branch Managers.
DEC 2-13 Branch Managers and Sales Reps work together to finalize the list of SLEEPING GIANTS that will be invited to
participate in the program. The Sales Reps must be able to justify in definitive terms why each targeted customer
deserves to be included in the program.
DEC 16 Branch Managers email their final lists of targeted Sleeping Giants to DEPARTMENT P.
JAN 2 Teaser Mailing
JAN 7 Sales Reps start making appointments to personally deliver the Program Launch Booklets to their customers.
OPERATION GODFATHER
METHODOLOGY

7. OPERATION GODFATHER
TACTICS
In a “perfect world,” all of your Sales Reps would understand that tremendous sales gains come from converting Sleeping Giants
into Core Customers and would treat these situations as prime opportunities. This, unfortunately, is not the case.
This being the “real world,” most of your Sales Reps are essentially Customer Service Professionals that provide excellent service
to their best customers and will follow up on a lead if it’s sent their way, but are out of their comfort zone when it comes to
strategically pursuing Sleeping Giants.
And that’s where the Promotion Campaign comes in.
The Promotion Campaign is a turnkey action plan that will allow your Sales Reps to engage their targeted customers with new
found enthusiasm and confidence, knowing that in many selling situations they will have a clear competitive advantage.
JAN 2 Personalized Teaser Mailing from the Sales Rep introduces the customer incentive program, without
revealing much in the way of details.
JAN 7 Sales reps begin to contact their targeted customers to schedule appointments.
JAN 8-24 At face to face meetings, the sales reps brief their targeted customers on the incentive program and get
them registered in the program. At this meeting, each customer receives a Launch Booklet with
individualized qualification criteria.
FEB 14 Scorecard #1 is mailed to the customer’s home address
MAR 14 Scorecard #2 is personally delivered
APR 11 Scorecard #3 is mailed to the customer’s home address
MAY 9 Scorecard #4 is personally delivered
JUN 13 Scorecard #5 is mailed to the customer’s home address
JUL 11 Scorecard #6 is personally delivered
AUG 8 Scorecard #7 is mailed to the customer’s home address
SEP 12 Scorecard #8 is personally delivered
OCT 10 Scorecard #9 is mailed (final results)
END OF OCT Sales reps personally deliver the Big Splurge Awards to the qualifying customers
Y

8. THE ENDGAME: INCREASED PROFITS
OPERATION GODFATHER will change
the buying behavior of specific high
volume customers by providing them
with a superior value proposition.
CUSTOMERS
BRANCH
MANAGERS
OPERATION GODFATHER will improve
the effectiveness of your branch
managers by providing them with a
well-defined process to ensure that
your sales reps devote more time to
securing the most profitable business
and less time trying to make marginal
business more profitable.
SALES
REPS
OPERATION GODFATHER will
increase the productivity of
your sales reps by providing
them with a well-defined
process to generate more
business from high-potential
under-penetrated accounts.

9. Award Sales Goal Year -over-Year Year-Over-Year Face Value Net Incremental Liquidation
Level Jan-Sep 2014 Sales Increase Profit Increase of Award Profit Percentage
I 17,500 12,500 2,500 500 2,000 20%
II 30,000 25,000 5,000 1,000 4,000 20%
III 42,500 37,500 7,500 1,500 6,000 20%
IV 55,000 50,000 10,000 2,000 8,000 20%
V 67,500 62,500 12,500 2,500 10,000 20%
VI 80,000 75,000 15,000 3,000 12,000 20%
VII 92,500 87,500 17,500 3,500 14,000 20%
VIII 105,000 100,000 20,000 4,000 16,000 20%
IX 117,500 112,500 22,500 4,500 18,000 20%
X 130,000 125,000 25,000 5,000 20,000 20%
PROGRAM STRUCTURE
Here’s an example of how a program would be structured for a Sleeping Giant with the following profile:
Base Period Sales (January – September 2013) $5,000
Gross Profit Margin 20%
Base Period Profit $1,000
The program is structured in such a way that the Face Value of the Big Splurge Award will always be equal to 20 percent of the
Year-Over-Year Profit Increase.
Since Gross Margins vary from customer to customer, the sales required to earn Big Splurge Awards will be adjusted to reflect each
customer’s Gross Profit Margin.

10. PROGRAM BRIEFING BOOKLETS FOR THE SALES REPS & BRANCH MANAGERS
Promotion Campaign Samples Kit
● Teaser Mailing
● Launch Booklet & Registration Card
● Scorecards & Spotlight Cards
● Big Splurge Award Booklet
DIRECT MAIL PROMOTION CAMPAIGN
● Personalized Teaser Cards
● Personalized Launch Booklets & Registration Cards
● Monthly Scorecards & Spotlight Cards (9)
OPERATION GODFATHER SERVICE PACKAGE
● Strategic Planning ● Mailing Services (first class postage & handling)
● Creative Services (copywriting & design) ● Monthly tracking reports for the Sales Reps & Branch Managers
● Print Production & Envelopes ● Final Audit & Evaluation
● Data Services (data entry, data scrubbing, & list maintenance) ● Big Splurge Award Booklets & Fulfillment Services
COST OF THE SERVICE PACKAGE
There are no deposits or up-front payments associated with implementing OPERATION GODFATHER. You will be invoiced for the Big Splurge
Awards and the Service Package at the conclusion of the program according to the following guidelines:
OPERATION GODFATHER
Included Features & Cost Quotation
Big Splurge Net Incremental Your Our
Award Value Profit Per Award Share Share
$500 $2,000 $1,700 $300
$1,000 $4,000 $3,400 $600
$1,500 $6,000 $5,100 $900
$2,000 $8,000 $6,800 $1,200
$2,500 $10,000 $8,500 $1,500
$3,000 $12,000 $10,200 $1,800
$3,500 $14,000 $11,900 $2,100
$4,000 $16,000 $13,600 $2,400
$4,500 $18,000 $15,300 $2,700
$5,000 $20,000 $17,000 $3,000
Big Splurge Net Incremental Your Our
Award Value Profit Per Award Share Share
$5,500 $22,000 $19,000 $3,000
$6,000 $24,000 $21,000 $3,000
$6,500 $26,000 $23,000 $3,000
$7,000 $28,000 $25,000 $3,000
$7,500 $30,000 $27,000 $3,000
$8,000 $32,000 $29,000 $3,000
$8,500 $34,000 $31,900 $3,000
$9,000 $36,000 $33,000 $3,000
$9,500 $38,000 $35,300 $3,000
$10,000 $40,000 $37,000 $3,000

11. PREDICTING THE RESULTS
VARIABLE #1: The magnitude of the program
Clearly, there is a direct relationship between the number of Sleeping Giants
participating in the program and the amount of incremental profit that will be
generated. The magnitude of the program is determined by (a) the number of “high
quality” Sleeping Giants that you have the ability to identify and (b) the number of Sales
Reps that will be involved in the program. For planning purposes, figure one Sales Rep
per 15-20 targeted customers. Since no up-front expenditures are required to launch
OPERATION GODFATHER, cost is not a limiting factor in determining the size of the
target audience.
VARIABLE #2: The number of customers that qualify for Big Splurge Awards
On average, 20%-30% of the targeted customers will qualify for Big Splurge Awards.
For planning purposes, 25% is a good working number.
VARIABLE #3: The number of awards issued at each of the various award levels
Predicting how many Big Splurge Awards will be issued at each of the various award
levels is impossible. However, it’s interesting to note that Pareto’s 80/20 Principle does
apply: very few customers qualify for upper level awards, compared to the number of
customers that qualify for lower level awards.
VARIABLE #4: The performance of the Sales Reps
Not surprisingly, Pareto’s 80/20 Principle once again comes into play: approximately
80% of the Net Incremental Profit will be generated by 20% of your Sales Reps. Please
note that the biggest gains will not only come from your “heavy hitters,” but also from
average Sales Reps who have a knack for “working the program.”
The amount of Incremental Profit generated by OPERATION GODFATHER is largely influenced by four variables:

12. Case Study #1
HOMANS ASSOCIATES
Qualification Period 9 Months
Number of Targeted Customers 445
Number of Sales Reps 29 (average 15 customers per sales rep)
Number of Big Splurge Award Qualifiers 98 (22% of the target audience)
Incremental Profit $1,000,000
Total Value of Big Splurge Awards $250,000
Number of Award Total Incremental Percent of Total Percent of
Qualifiers Value Award Cost Profit Incremental Profit Total Qualifiers
46 $1,000 $46,000 $184,000 18% 47%
26 $2,000 $52,000 $208,000 21% 27%
8 $3,000 $24,000 $96,000 10% 8%
6 $4,000 $24,000 $96,000 10% 6%
2 $5,000 $10,000 $40,000 4% 2%
1 $6,000 $6,000 $24,000 2% 1%
2 $9,000 $18,000 $72,000 7% 2%
7 $10,000 $70,000 $280,000 28% 7%
98 $250,000 $1,000,000 100% 100%
Based on these results, it should come as no surprise that Homans Associates gave
OPERATION GODFATHER a perfect “10,” calling it one of the best marketing programs they had ever run.

13. Case Study #2
BEACON ROOFING SUPPLY CANADA
Number of Award Total Incremental Percent of Total Percent of
Qualifiers Value Award Cost Profit Incremental Profit Total Qualifiers
16 $500 $8,000 $32,000 2% 13%
25 $1,000 $25,000 $100,000 6% 20%
8 $1,500 $12,000 $48,000 3% 6%
14 $2,000 $28,000 $112,000 7% 11%
3 $2,500 $7,500 $30,000 2% 2%
12 $3,000 $36,000 $144,000 9% 10%
3 $3,500 $10,500 $42,000 3% 2%
6 $4,000 $24,000 $96,000 6% 5%
4 $4,500 $18,000 $72,000 4% 3%
15 $5,000 $75,000 $300,000 18% 12%
3 $6,000 $18,000 $72,000 4% 2%
2 $7,000 $14,000 $56,000 3% 2%
1 $7,500 $7,500 $30,000 2% 1%
2 $8,000 $16,000 $64,000 4% 2%
1 $8,500 $8,500 $34,000 2% 1%
3 $9,000 $27,000 $108,000 7% 2%
2 $10,000 $20,000 $80,000 5% 2%
1 $11,000 $11,000 $44,000 3% 1%
1 $12,000 $12,000 $48,000 3% 1%
1 $13,000 $13,000 $52,000 3% 1%
1 $15,000 $15,000 $60,000 4% 1%
124 $406,000 $1,624,000 100% 100%
Qualification Period 11 Months
Number of Targeted Customers 404
Number of Sales Reps 21 (average 9 customers per sales rep)
Number of Big Splurge Award Qualifiers 124 (30% of the target audience)
Incremental Profit $1,624,000
Total Value of Big Splurge Awards $406,000
Based on the results of its 2012 program, it should come as no surprise that
Beacon Roofing Supply Canada decided to repeat OPERATION GODFATHER IN 2013.

14. As much as we would like to believe that OPERATION GODFATHER is the “be all and end all” of incentive
marketing programs, we’re the first to admit that no incentive marketing strategy is right for every company.
With this in mind, here are three valid reasons why OPERATION GODFATHER might not be right for you:
#1 The objective of OPERATION GODFATHER is to significantly grow your business by taking customer share
away from your largest competitors’ Core Customers. If you lack the ability to identify who those Core
Customers are, OPERATION GODFATHER is not for you.
#2 By definition, “gross profit margin” expresses profits as a percentage of goods sold. Because your gross profit
margins vary dramatically from customer to customer, OPERATION GODFATHER’s metrics are structured
around incremental profit, not incremental sales. If you cannot assign a relatively accurate gross profit margin
to each targeted customer, OPERATION GODFATHER is not for you.
#3 The success of OPERATION GODFATHER is critically dependent on the ability to provide the targeted
customers with monthly scorecards so they can track their progress in qualifying for Big Splurge Awards.
Our job is to produce the scorecards; your job is to provide us with monthly sales reports so we can do so.
If you cannot generate monthly sales reports on a timely basis, OPERATION GODFATHER is not for you.
THREE GOOD REASONS WHY
OPERATION GODFATHER IS NOT FOR YOU

15. At the end of the day, OPERATION GODFATHER is simply an investment-- no more, no less.
Although the program does not require any up front expenditures, it does require an investment of
both time and energy.
As you evaluate this investment, it’s important to understand that OPERATION GODFATHER will
have no impact one way or another on the majority of targeted customers.
That being said, the reason why OPERATION GODFATHER represents such an excellent investment
is the extraordinary amount of profit you stand to make on those customers whose buying behavior
will be impacted by the incentive program – not only during the promotion period, but after the
program is over.
Here’s the bottom line: The question is not, “Will OPERATION GODFATHER generate incremental
profit for your business? That has long since been settled. The only question is “How much
incremental profit will be generated?”
Needless to say, we look forward to having the opportunity to find out!
WHERE THE RUBBER MEETS THE ROAD

16. Carole / Ken / Al -
I hope all is well with everybody and everybody is knocking the cover off the ball.
(Who used to say that?)
In any event , I would like to ask you all a favor and give either Roy Podell or Paul
DeLuca from DEPARTMENT P a listen for your next customer incentive program.
We recently used DEPARTMENT P’s “Operation Godfather” program with great
success. The data mining they do on your customer base will open your eyes. They
prepare monthly pieces that include a scorecard to each customer who registers in
the program and individual award books tailored to each individual customer.
The best part is that their "Big Splurge Awards" can be used for anything, and I
mean anything. We even had a customer who used his award for his son’s college
tuition. DEPARTMENT P handles all aspects of the promotion and redemption, so
the program is real turnkey.
If I did not feel that “Operation Godfather” is a “10” I would not be helping them get
in touch with you. I truly believe in their program; it was one of the best programs
we have ever run.
Again, I hope all of you are doing well personally and at your companies.
Warm regards,
Bob
WHO’S WHO
Bob Tise
President, Homans Associates
Carole Poindexter
President, Baker Distributing Company
Ken Connell
President, The Gemaire Group
Al Lendino
President, East Coast Metal Distributors
“It ain’t bragging if you can back it up.”