We have an arrangement with Countdown to have Kiwikranes in stores (in Auckland we also have Flixbox DVD kiosks and possibly some other areas in the future). We do not have a contract for Kiwikranes and it is a goodwill arrangement. This makes our positive ongoing relationship with Countdown very important and every 4 - 6 months Thomas and Cliff meet with our assigned liaison at the Countdown Head Office. He is high up in the organization and would only have one manager above him who reports to the New Zealand Countdown General Manager.

Any complaints about a Kiwikrane or requests for one to be removed from a Countdown Store or Area Manager end up on his desk. He will then contact us and we will attempt to handle the complaint and report back to him.

We have a very good relationship with Countdown which has been built up over a number of years. This however can easily change through the actions of one or two people, especially if the machines in Countdowns are not maintained or serviced properly. Our best line of defense is for franchisees to have positive relationships with the Countdown managers/staff where they have cranes located. If a particular manager wants a machine out of a Countdown we have to work very hard from a support office perspective to try and keep it in. Sometimes we are not successful.

If you would like to site a Kiwikrane at a Countdown use the following steps:

• Call in preferably and ask for the manager
• Have Kiwikrane siting brochure handy
• Have a list of possible sites in mind before you go in (often a manager won't agree to the first place you want a crane sited). Look for power points and recognize that a manager will not site a machine next to doorways or the "alligator" (metal folding bars people walk through as they enter the store). If there is no power point available offer to pay for the installation of one (you will need to use the Countdown authorized electrician - not your own).
• Be prepared for a "No", be gracious and build relationship so you can come back and try again. Countdown managers often move every six months, therefore leave on friendly terms as this manager may move to another Countdown where you already have a crane installed.
• Be prepared to come back and try again. many of our franchisees have sited cranes at Countdowns when current managers have moved on. Keep a record in your diary of when you tried the site so you can go back six months later.

Suggested introduction when siting and meeting a Countdown Manager:

Hi, I'm the local operator for Kiwikrane. Our company operates machines in over 100 Countdown stores in NZ and we have machines at other Cstores near yours and around the country.

Our Head Office in Auckland deals the Countdown Head Office Manager who looks after foyer space at a national level. We pay the Countdown Head Office a turnover based rental for each machine, and this money is attributed to your store each month by the accounts team. The agreement we have with the Countdown Head Office is that if the store manager is OK with a machine, then they are happy for a crane to be sited as this gathers revenue from a non-revenue piece of floor space.

We work with the store managers on placement of the machine and I'm hopeful you would consider having one of our machines in your store and for us to see if you have any space in your foyer area.

Keep the Support Office in the loop:

Please inform the support office of all complaints to do with Countdowns. Also, any new Countdown site you manage to secure (we will need to pay Countdown and invoice you) and any requests for removal of cranes.