Kiwikrane currently designates the following organisations as National Customers:

• The Warehouse
• Woolworths
• Reading Cinemas

Kiwikrane has a significant advantage over other crane and instant-prize operators because of our ability to provide nationwide coverage through our franchise network.

This gives Kiwikrane considerable leverage when dealing with large organisations that operate multiple locations throughout New Zealand.

Why Kiwikrane Designates National Customers

1. One central point of contact

Large national organisations generally prefer to deal with one central operator rather than a multitude of individual amusement operators.

A national arrangement allows the customer to have:

• One commercial relationship
• One point of contact
• One set of agreed terms and conditions
• One consistent approach to machine placement and operation
• One monthly commission payment or consolidated reporting process

This significantly reduces the administration required by the customer.

2. Nationwide coverage

Kiwikrane can present a single national proposition to a customer while utilising local franchisees to operate the machines.

This provides consistency across the network in areas such as:

• The initial sales pitch
• Commission structure
• Machine types
• Product presentation
• Operating standards
• Reporting
• Customer service

The customer therefore receives a consistent proposition regardless of where its locations are situated.

3. Quality control and minimum service standards

A national agreement enables Kiwikrane to provide the customer with an assurance that its machines will be operated to minimum national standards.

Kiwikrane can establish expectations around:

• Servicing frequency
• Machine presentation
• Stocking standards
• Machine performance
• Response times
• Compliance
• Health and safety
• Customer service

This is particularly important because a poor-performing machine or poorly serviced site can reflect negatively on the entire Kiwikrane brand.

4. Protecting the national relationship

A national customer relationship also provides an important level of protection for both Kiwikrane and its franchisees.

Without a national agreement, it is possible for one franchisee’s poor performance to damage the relationship between the customer and the wider Kiwikrane network.

For example, poor servicing, untidy machines, inappropriate stock or failure to respond to a site can cause the customer to question the performance of Kiwikrane as a whole.

With a national agreement, Kiwikrane can manage the relationship centrally and, where necessary, address an issue with the individual franchisee responsible.

This helps ensure that one franchisee’s performance does not unnecessarily jeopardise opportunities for the entire network.

5. Protecting the network’s commercial position

National customers also provide an important mechanism for protecting commission rates and other commercial terms across the franchise network.

When an individual franchisee is negotiating independently, there can be a temptation to offer a higher commission rate than is actually necessary to secure a location.

While this may benefit the individual franchisee in the short term, it can establish an expectation or benchmark that subsequently affects negotiations at other locations.

For example, if one franchisee offered a potential national customer 40% commission on a crane machine, to secure a particular site, that customer may reasonably expect the same or better terms when negotiating for another location.

This can create a cycle of increasing commission expectations across the network.

A national agreement allows Kiwikrane to establish a consistent commercial framework rather than having individual franchisees compete against one another on price.

6. Greater negotiating leverage

The combined strength of the Kiwikrane network gives Kiwikrane greater negotiating leverage with large organisations.

Rather than negotiating over a single machine or individual site, Kiwikrane can offer access to a nationwide network of locations.

This makes the relationship more strategically valuable to both parties.

The customer receives a single national solution, while Kiwikrane can negotiate from the position of being able to provide coverage across the customer’s entire network.

What National Customer Designation Means

Designation as a National Customer means that the commercial relationship is managed at a national level by Kiwikrane.

Individual franchisees may still be responsible for:

• Visiting sites
• Presenting machines
• Installing machines
• Stocking machines
• Servicing machines
• Collecting revenue
• Managing day-to-day site relationships

However, the overarching commercial relationship, agreed commission structure and key terms remain subject to the national arrangement.

The principle

The objective is not to prevent franchisees from developing local relationships. Rather, it is to ensure that where a customer has a national footprint, Kiwikrane uses the strength of the entire franchise network to secure and protect the relationship for everyone’s benefit.

One national customer. One consistent proposition. One standard of service. One commercial framework.