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BENEFITS TO THE EMPLOYER

Reduced Turnover

Reduced Retention Cost: Voluntary employee turnover is expensive and time consuming. PurchasingPower's Computer Purchase Program (ECP2™) helps to increase employee retention, lowering the costs associated with unwanted turnover. In an expanding economy, voluntary turnover is a significant cost. In a shrinking economy, key employees become ever more valuable and outplacement costs are minimized. Employers can subsidize a portion of the cost of a personal computer in exchange for a continuing commitment of employment from valuable employees.

Increase Computer Literacy

Reduced Computer Training Cost: As the workplace becomes more technology-dependent, it is important for almost all workers to have basic computer literacy skills. Employees who use computers at home increase their computer literacy skills significantly over those who do not. These skills are transferable to the workplace and less time and money are needed for employee training.

Promote Employee Self-Service

Reduced Administrative Cost: Electronic communication reduces the time, energy and costs associated with traditional corporate communications. Intranet access increases the number of programs that can be administered electronically and reduces administrative and paper supply costs. With a higher percentage of your employees having computers in their homes they are able to more conveniently access the Internet during off-work hours and connect to employee only Intranet sites (enterprise portals).

Bridge the Digital Divide

Bridge the Digital Divide: A significant percentage of the general population is unable to qualify for traditional credit, and therefore has no means to affordably purchase a new computer. Our program knocks down the barrier to ownership by eliminating the need for credit checks and qualification. Depending on the income range of your employees, you can increase the percentage of employees with home computers and Internet access dramatically.

The Credit-Impaired Consumer

Total Households in US = 105 MM

  • Households without checking account 13%
  • Households without credit card 32%
  • Households with income less than 35K 40%
  • Households that use non-banking alternatives for purchases 45%

(US Census Bureau, Survey of Consumer Finance, Stephens Inc., Dealer Business)


BENEFITS TO THE EMPLOYER

Opportunity & Convenience

Payroll Deduction: The convenience of Employee Computer Purchase Program (ECP2™) and payroll deduction means there are no down payments and no checks to write. Payroll deduction also helps many employees manage their budget more effectively. A 2001 MetLife study of employee benefit trends resulted in 93% of companies polled listing payroll deductions as the top incentive for employees to take advantage of voluntary benefits being offered. (Copyright © 2001 MetLife)

No Credit Check and 0% Financing

No Credit Check: Employees have the dual advantage of purchasing computers through payroll deduction and being extended credit regardless of personal credit history. Payroll deduction provides lower and lower-middle income employees a financing vehicle for which they do not have to qualify. For others that may be able to qualify for traditional credit, our 12-month, no interest program is far more attractive than high interest rates, credit cards, installment loans and rent-to-own plans.

Productivity

Increased Computer Literacy: Studies indicate that by the year 2005, 95% of all jobs will require basic keyboard skills. Reduce the cost of training or subsidies by encouraging computer usage.

Enhance Employee Morale

PurchasingPower provides a program that can appeal to all employees regardless of income. This program is tangible, easy to understand and benefits the employee and their families. An additional morale booster is created when an employer chooses to subsidize the program. The employee pays less for their purchase and receives a direct benefit from their employer.


FREQUENTLY ASKED QUESTIONS (FAQ)

What are the direct and indirect costs of the program?

There is no implementation or annual fee associated with Employee Computer Purchase Program (ECP2™). Indirect costs, while minimal, may be incurred managing the payroll deduction process.

What percentage of employees participate in ECP2TM?

On average, clients have a participation rate of 8-15%.

What if we already have an Employee Purchase Program (EPP) with Dell, Gateway
or some other OEM? Will ECP2™ be competition to my EPP?

This program will not compete with your current EPP. On the contrary, ECP2™ will compliment your EPP. The OEMs we work with (e.g. Dell, Gateway) understand our market and recognize our attractiveness to individuals that they cannot service.

How do employees get service or support for purchases?

PurchasingPower handles all customer care issues including order management, sales support, and returns.

Can we customize the bundled hardware / software / peripherals to ensure
compatibility with our existing architecture?

PurchasingPower can customize the bundles to meet your specific requirements.

Is ECP2™pricing competitive?

PurchasingPower's Employee Computer Purchase Program (ECP2™) is a very competitive solution for buying a computer. With 0% interest and only 12 months of payments, ecp² can save an employee hundreds of dollars. Buying direct from the manufacturer is often the best option if the employee has cash. However, the purpose of ecp² is to loan money to those employees that do not have cash, do not qualify for traditional credit through a computer manufacturer or who value the convenience of automatic deductions. In a recent survey, 93% of the respondents sited 'payroll deduction' as the biggest reason to participate in a voluntary program.

Is the finance charge front loaded?

There are no interest charges with ECP2™.

Is there any penalty for prepayment by an employee?

There is no penalty for prepayment.

Can employees pay off the balance with a check or credit card?

Yes. However, we don't recommend employees use their credit card to pay off their ECP2™ balance.

I see Dell and Gateway offering 0% financing from time to time?
What is the interest rate charged with ECP2™?

PurchasingPower extends a 0% interest rate to all participating employees regardless of their personal credit history. Manufacturers will advertise 0% interest, on a limited basis, in order to stimulate sales. In most cases, the 0% interest rate is not available due to a consumer's credit history.

How is ECP2TM marketed to employees?

With your approval, Employee Computer Purchase Program (ECP2™) develops a marketing plan. This plan may include e-mail blasts, direct mail campaigns, worksite posters, payroll stuffer, etc. All efforts are made to ensure employee participation is maximized.

How are new product offerings provided to employees and what is required of the company?

PurchasingPower will develop, design and distribute
customized marketing materials to your employees with the goal of maximizing participation in the program. As the employer, we ask that you assist in the distribution area (e.g. provide contact lists, facility addresses, etc.).

What is the procedure for setting up employment verifications?

PurchasingPower will meet all requirements of the employer to streamline the verification process. Verifications can be completed via phone, e-mail, file exchange/transfer or automated system interface.

What happens if a participating employee is terminated or separates
from the company? Does the company have any liability?

The employer does not have any liability for an employee's computer purchase. Per our client agreement, we require that you notify us as soon as possible when an employee's work status changes.

How do you handle collections for laid off employees?

Advance notice is requested and in the event of employee layoffs or plant or division closing, you will need to notify PurchasingPower immediately so that we may stop processing orders from the affected employees.

How do you handle leaves of absence both paid and non-paid?

(FMLA, worker's compensation, maternity, short and long term disability) Per the approval of the employee and as allowed by law, any outstanding balance will need to be taken from the employee's final check. If funds are not available, an alternative payment schedule will be set up with the employee.

Can the program be set up as pre-tax deductions?

No, it cannot.

If we subsidize, can the subsidy be handled as a pre-tax payroll?

While subsidizing the program is recommended and will increase employee participation significantly, the subsidy is not yet recognized as "pre-tax."

How much time will this program take our payroll personnel?

The program requires only a minimal amount of time for your payroll department and can meet all automation requirements to further streamline the process.

Is there a specific period for payroll deductions or can it vary from employee to employee?

The standard Employee Computer Purchase Program (ECP2™) payroll deduction period is 12 months. We can accommodate for all payroll frequencies (e.g. weekly, bi-weekly, semi-monthly, monthly, etc.)

 
     
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