Black Book Competitor Assessment

Direct-Ship Cost Comparison

Summary

INVOICE AMOUNT Zero-Adder Vendor Adder Vendor
PLUS: $1,000 $1,000
ADDER
NATIONAL 0 50.00 5.00%3
0
ADVERTISING $1,000.00 0 0.00%
1,050.00
SUB-TOTAL
LESS: 14.00 1.40%1 14.70 1.40%1
CASH DISCOUNT 17.60 1.76%2 27.65 2.63%4
REBATE
$968.40 $1,007.65
TOTAL

1. Do it Best Corp. passes vendor cash discounts to its members. 3. Do it Best Corp. adder is 2% to 5% based on the invoice amount.
2. The rebate percentage paid on fiscal 2019 drop ship purchases from 4. The rebate percentage paid on fiscal 2019 drop ship purchases of

zero-adder vendors averaged approximately 1.76%, excluding BlueLinx under $2,000 was 2.63%.
and other direct re-bills.

Revised 03/20 CONFIDENTIAL | 51

Adder Vendor Comparison

INVOICE AMOUNT $1,000 $1,000
PLUS:
ADDER 17.50 1.75% 50.00 5.00%1
NATIONAL
20.00 2.00% 0 0.00%
ADVERTISING $1,037.50 1,050.00

SUB-TOTAL 0 0.00% 14.70 1.40%2
LESS: 0 0.00% 27.65 2.63%3
CASH DISCOUNT
REBATE $1,037.50 $1,007.65

TOTAL

Do it Best Corp. Advantage: 2.88%

Over a $299 savings for each $10,000 purchased.

1. Do it Best Corp. adder is 2% to 5% based on the invoice amount.
2. Do it Best Corp. passes all vendor cash discounts to its members.
3. The rebate percentage paid on fiscal 2019 drop ship purchases of under $2,000 was 2.63%.

52 | CONFIDENTIAL Revised 03/20

Zero-Adder Vendor Comparison

INVOICE AMOUNT $1,000 $1,000
PLUS:
ADDER 0 0.00% 0 0.00%
NATIONAL
20.00 2.00% 0 0.00%
ADVERTISING $1,020.00 1,000.00

SUB-TOTAL 0 0.00% 14.00 1.40%1
LESS: 10.04 1.04% 17.60 1.76%2
CASH DISCOUNT
REBATE $1,009.96 $968.40

TOTAL

Do it Best Corp. Advantage: 4.12%

Over a $416 savings for each $10,000 purchased.

1. Do it Best Corp. passes all vendor cash discounts to its members.
2. The rebate percentage paid on fiscal 2019 drop ship purchases from zero-adder vendors

averaged approximately 1.76%, excluding BlueLinx and other direct re-bills.

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Drop Ship Comparison – Value Plus

INVOICE AMOUNT Zero-Adder Vendor Adder Vendor Value Plus

PLUS: $1,000 $1,000 $1,000
ADDER
NATIONAL 0 50.00 5.00%3 20.00 2.00%5
0 0 0
ADVERTISING $1,000.00
$1,050.00 $1,020.00
SUB-TOTAL 14.00 1.40%1
LESS: 17.60 1.76%2 14.70 1.40%1 0
CASH DISCOUNT 27.65 2.63%4 10.006
REBATE
$1,007.65 $1,010.00
TOTAL $968.40
0.23%
Advantage 4.12%

Using the table above, a typical store with $250,000 Zero-Adder Vendors purchases and $50,000 Adder Vendor
purchases would have the following results:

Do it Best Total: $291,885
Orgill Total: $303,000

Do it Best Advantage of $11,115 or 3.67%

1. Do it Best Corp. passes vendor cash discounts to its members. 4. The rebate percentage paid on fiscal 2019 drop ship
2. The rebate percentage paid on fiscal 2019 drop ship purchases purchases was 2.63%.

from zero-adder vendors averaged approximately 1.76%, excluding 5. Orgill adder is 1% to 2% based on the invoice amount.
BlueLinx and other direct re-bills. 6. If a retailer exceeds $125,000 in warehouse purchases in one retail
3. Do it Best Corp. adder is 2% to 5% based on
the invoice amount. outlet, 50% of the drop ship adders accumulated during the year will
be rebated.

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Drop Ship Comparison – Advantage

INVOICE AMOUNT Zero-Adder Vendor Adder Vendor Advantage

PLUS: $1,000 $1,000 $1,000
ADDER
NATIONAL 0 50.00 5.00%3 0
0 0 0
ADVERTISING $1,000.00 $1,000.00
$1,050.00
SUB-TOTAL 14.00 1.40%1 0
LESS: 17.60 1.76%2 14.70 1.40%1 0
CASH DISCOUNT 27.65 2.63%4
REBATE $1,000.00
$1,007.65
TOTAL $968.40

Advantage 3.16% 0.76%

Using the table above, a typical store with $250,000 Zero-Adder Vendors purchases and $50,000 Adder Vendor
purchases would have the following results:

Do it Best Total: $291,885
Orgill Total: $300,000

Do it Best Advantage of $8,115 or 2.90%

1. Do it Best Corp. passes all vendor cash discounts to its members. 3. Do it Best Corp. adder is 2% to 5% based on the invoice amount.
2. The rebate percentage paid on fiscal 2019 drop ship purchases from 4. The rebate percentage paid on fiscal 2019 drop ship purchases was

zero-adder vendors averaged approximately 1.76%, excluding BlueLinx 2.63%.
and other direct re-bills.

Revised 03/20 CONFIDENTIAL | 55

Adder Vendor Comparison

INVOICE AMOUNT $1,000 $1,000
PLUS:
ADDER 20.00 2.00% 50.00 5.00%1
NATIONAL
0 0
ADVERTISING $1,020.00 1,050.00

SUB-TOTAL 0 0.00% 14.70 1.40%2
LESS: 2.90 Varies3 27.65 2.63%4
CASH DISCOUNT
REBATE $1,017.10 $1,007.65

TOTAL

Do it Best Corp. Advantage: .93%

Over a $94.50 savings for each $10,000 purchased.

1. Do it Best Corp. adder is 2% to 5% based 3. True Value rebates .29% of the adder.
on the invoice amount. 4. The rebate percentage paid on fiscal 2019 drop ship

2. Do it Best Corp. passes all vendor cash discounts purchases of under $2,000 was 2.63%
to its members.

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Zero-Adder Vendor Comparison

INVOICE AMOUNT $1,000 $1,000
LESS:
CASH DISCOUNT 0 0.00% 14.00 1.40%1
REBATE 0 0.00% 17.60 1.76%2

TOTAL $1,000.00 $968.40

Do it Best Corp. Advantage: 3.16%

Over a $316 savings for each $10,000 purchased.

1. Do it Best Corp. passes all vendor cash discounts to its members.
2. The rebate percentage paid on fiscal 2019 drop ship purchases from

zero-adder vendors averaged approximately 1.76%, excluding BlueLinx
and other direct re-bills.

Revised 03/20 CONFIDENTIAL | 57

Notes:
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