1. How to Build a Lease a Flag Program 1

2. By Ken Smith & Jim Edwards of the Louisville Rotary Club 2

3. No Notes Required www.louisvillerotary.com CLICK ON “How to build a Flag Program” to view this whole presentation at home.www.louisvillerotary.com 3

4. How to start a "Lease A Flag Program“ “In a Nutshell” We lease a flag for $20 / year. Since the flag cost $8, we make $12 the first year. The second year to the same customer, we make $18. 4

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6. Why our Flag Program works! Louisville & Nimishillen Twp. have a total population of 19,000, 7,400 households. Every September, we celebrate the signing of the U.S. Constitution with a Queen's pageant, and a huge parade. Flags and the Constitution Celebration go hand in hand. Over time, I think we can subscribe 2,200 households. 6

7. Benefits! Membership Growth: In 2003, we had 6 Rotary members, today we have 42 members. For the past 30 years, we ran our club on about $3,500 per year. - - Pancake & Rose Day. For 2010, our flag program made us $12,500 For 2011, our flag program will make us $17,300, plus Pancake & Rose Day. Goals: As a Club, we have pledged to back the planned Louisville Community Center/Library ($4,000,000). (est. 2014) 7

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9. “SHOOTING FOR THE MOON” In Sept, we saw a chance to quickly triple our 900 customers! If we would pay a large commission (the first year’s net) to any group that would sell a flag for us; then, we would receive all the profits for future years. The club did not agree to hire other groups to help us sell because our route system was running so well. Rotarians run 22 of our 29 routes. Slow growth is the answer. 9

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11. YOU’LL NEED 6 MANAGERS Overall Flag Mgr. Ken Smith Database Mgr.Jim Edwards TreasurerJay Barton Manufacturing Mgr.Jim & Ken & Ted & Lanse Base Installation Mgr.Ted Burwell Route SupervisorKen Smith & Route Drivers One for every 30 flags. We now have 909 customers and 29 routes. 11

12. Ken Smith is our “Overall Flag Program Manager” 330-417-1527 or Click to E-Mail.Click to E-Mail Ken secured: (1) Tele # for our club, His Cell! / answering machine. (2) Club mailing address - he used the Treasurer's work address. (3) Barn to house our program. We were offered an unheated brick barn with a concrete floor & a 10 x 30 work area for manufacturing. (4) Permission from the city – he contacted the city manager and found out where the city would like the flags installed. Either in front of, or behind the sidewalk. The bases are normally 18" behind the sidewalk in the city. In the township, they are normally 54" off of the road. (5) 10' Electrical Conduit, Lowes sells them to us for $1 each! Retail = $1.90. X 12

13. Ken Smith is our “Overall Flag Program Manager” 330-417-1527 or Click to E-Mail.Click to E-Mail (6) White schedule 40 PVC - each base costs us about $.30 (7) 3’ x 5’ flags Made in America. We buy ours thru a local retailer in our home town at cost. She buys our flags through Eder Flag Company 1000 W. Rawson Ave. Oak Creek, Wi 53154 Tele 414-764-3522 or 800-558-6044 E-Mail: sales@ederflag.Com Item # 010124 (Endura Polyester Outdoor Flag) (8) Wire ties 8“, We pay retail at Lowes (9) Red caps, (tapered plug model # T185) We pay about 2 cents apiece thru: Sinclair & Rush Inc. 123 Manufacturers Dr. Arnold, Mo 63010 Tele 636-828-6800 www.sinclair-rush.com Model # T185 A ny new customer leasing a flag after July 7th of any year will receive the remaining 3 postings of that year plus all 6 postings for next year. Then it’s fair to all concerned? Our 2’ x 2’ outside signs were extremely effective. “Rotary Flags” 330-417-1527sales@ederflag.Comwww.sinclair-rush.com 13

14. Database Manager Jim Edwards 330-875-1595 or Click to E-Mail Click to E-Mail We have E-mails for 79.2% of our clients. We use Excel. Once a year, we export the Database to Quickbooks to E-Mail the invoices. On March 15 th, we E-Mail an invoice to each UNPAID customer. 80% of the E- Mailed invoices were paid by April 15 th saving the Club $560 in USPS mailing costs. On May 1 st, we mail an invoice (USPS) to all the remaining UNPAID customers. Overall, we have a 94% renewal rate. CLICK HERE FOR AN EXAMPLE OF OUR INVOICE. I’ll give you a free template of our Excel database with Macros. XCLICK HERE FOR AN EXAMPLE OF OUR INVOICE. 14

15. Our Dollar Sized Application 15

16. FRONT SIDE OF APPLICATION Join your neighbors and show your patriotism. We will post your U. S. Flag on the following 6 holidays: Memorial Day, Flag Day, 4th of July, Labor Day, 9/11, Constitution Day, and Veteran's Day. The Louisville Ohio Rotary Club will place a flag in your front yard a few days before the listed holidays. A 3’x 5’ flag on a 10’ staff will be placed in a plastic anchor pipe permanently buried in your front yard. The anchor will be flush with the ground with a red plastic cap on it when not in use. The flag and staff will remain the property of the Louisville Rotary Club. You must live in the Louisville School District to lease a flag from us. The flags will remain posted from Labor Day through 9/11 & Constitution Week. All profits will be used to support Rotary projects such as: 1. Sponsoring a foreign exchange student at LHS or St. Thomas. (This year she is from India.) 2. Rotary International’s campaign to eradicate Polio worldwide. 3. A project similar to our new bathroom in Metzger park. 4. Punt, Pass & Kick, YMCA, Louisville Library reading programs for children. 5. Plus locally, many, many other worthwhile projects. 6. See www.louisvillerotary.com for additional projects. Hidden www.louisvillerotary.com 16

17. Flag Applications Our Flag applications fit in your wallet, or by the tellers window at a bank or grocery store. We originally had 5,000 printed by Pinnacle Press in Canton. We will get 3 years of use out of them. 17

18. Treasurer, Jay Barton 330-875-5539 at work or Click to E-Mail Click to E-Mail He receives the checks in Quickbooks and deposits them in the bank. For RENEWALS - - - - - No paperwork, just a check with name & address. For NEW CUSTOMERS - - - - - All applications & checks go to the Treasurer first, he marks each new application paid, and gives the database manager a copy of the deposit slip to trigger all the deliveries. X 18

19. Manufacturing Manager We use a team of 4 to produce 200 finished flags in about 4 hours. We cover 3 saw horses with a 2” x 6” x 36” laid on its side. Now we can drill through the conduit and not damage the horses. We lay 20 pieces of 10' electrical conduit (flag poles) together & parallel on the 3 horses with the ends flush. We mark all 20 poles at the same time with a permanent magic marker. Then we use a punch to put a 1/16" dent in the conduit to help start the drill accurately. We keep 2 of the horses directly under the drill holes for support. Using a 1/4" drill bit made of cobalt or titanium, drill the top hole 1" down from the top. From that hole, measure down the pole a distance equal to the distance between your flag's 2 grommet holes and add one inch. This will be the distance between the top and bottom holes. The extra inch is needed to keep the flag taut when you draw the bottom wire tie finger tight. A batch of 20 takes 20 minutes to mark, peen and drill. Then we buff the rough edges of the holes with a stationary wire wheel grinder. To assemble the flag on the pole: Insert an 8" wire tie thru the top grommet and the top hole on the pole. Pull this wire tie tight. Then stretch the flag down and make sure it is not twisted, and insert the bottom wire tie. Making the 18" long pieces of PVC for the bases is a little dirty (white flakes). It took one man 1 hour to make 240 PVC bases. Using 5 sections of 10' PVC at a time, we set up a jig 18" from the cutoff saw blade and cut all 5 at once. We attached a Shop-Vac to keep the area clean. Many of our flags have been out 2 years and some of them are getting tattered. Next spring, we’ll dip all of our flags (new & old ) in a blend of General Electric Silicone Caulk and Spirits of Mineral Oil to keep them from shredding in the wind. X 19

20. Base Installation Manager Currently unassigned A base is an 18" piece of 3/4“ schedule 40 PVC (white). It takes us about 4 minutes to install a base. To determine the location of the base, we consider road visibility, safety, customer's preferences, & an obvious reference for measurement. Whenever possible, we line up the hole with a crack in sidewalk, or in line with the end of a concrete drive. We took a 6' spud bar, cut it in half and ground the top half to a point. We make 2 tools out of each new spud bar. The 1" shaft is perfect for the pilot hole needed to drive the PVC section into the ground. We measure back from the road or sidewalk and call this measurement “back”. Then, measure right or left of the sidewalk and convert the right/left to a N S E W direction. 18" back- 7' 11“ N. of sidewalk. On road, we paint a 9“ mark at perpendicular to the road in front of the flag base. Then we install a red cap on the PVC to keep it open. Log the dimensions for the database. X 20

21. Web Site Designer – Not required, but helpful - Jim Edwards 330-875-1595 or Click to E-MailClick to E-Mail When someone calls our club #, we refer them to our printable flag application posted on our web page: www.louisvillerotary.com X www.louisvillerotary.com 21

22. Route Supervisor Ken Smith 330-417-1527 Click to E-MailClick to E-Mail. Ken sets up meeting times with each route driver prior to each posting and retiring. He then meets the drivers at the barn to distribute the flags and the route kits. We have 29 routes, 22 of which have a Rotarian as a primary driver. The other 7 drivers are local citizens interested in supporting our flag program. Flags are posted 2 to 3 days prior to a holiday and retired 2 to 3 days after the holiday. Here is a link to our route summary: link to route summary: which denotes the drivers and their routes. Route Kits include: 25' Tape Measure Pry bar to find red cap in tall grass Extra caps, Rubber bands Applications (curious neighbors) Extra pencils Aerosol can of white line paint Route list sorted on; Paid - Street - House # Next spring, I'll take pictures of tools in route kit. X link to route summary: 22

23. Route Driver's Plus spotters/helpers The average route has 32 flags that can be posted in less than 80 minutes and retired in one hour. If you can’t find it quickly, use the coordinates on the printed route sheet. We use the curved end of the pry bar to jab the ground in the target area until the red cap is found. When posting, we keep the red caps and rubber bands in the route box. When we retire, we roll each flag to store them neatly. Raining? We’ll wait until the flags are dry before we pick them up. Each base is marked with a 9" white hash mark in the road in front of the flag base. The white mark, along with the red caps on the bases is usually sufficient to locate the bases for flag postings. Write any corrections on the printed route sheets and hand them in. Spend 3 minutes max looking for a flag base; a manager will come out and put in a new base and "post a flag" with new dimensions. Helpful note from all post offices: Odd # addresses are on the north or west sides of the street. Even # addresses are on the south or east. 23

24. 33 - Free Flag Postings COMPLIMENTARY FLAG POSTINGS 1. LOUISVILLE H.S. FOOTBALL STADIUM (19 FLAGS) 2. SOLDIER’S MEMORIAL - CITY HALL 3. SOLDIER'S MEMORIAL - OLD HIGH SCHOOL 4. METZGER PARK 5. MOLLY STARK PARK 6. VFW 7. LOUISVILLE EAGLES 8. ACCENTUATE OUR SIGNS 9. WHERE WE KEEP THE FLAGS. 24

25. 5 Year Projections History 2009 History 2010 Projection 2011 Projection 2012 Projection 2013 Price / Flag$20 $25 New Leases480370285220169 Net / Flag$12 $17 Net / Year$5,760$12,562$17,315$26,591$29,109 I used a94%RenewalRate I used a77%SaturationRate ProjectionsareNOTRELIABLE 25

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27. ON THE APPLICATION, WE NEED TO EXPLAIN WHY WE NEED AN EMAIL. PEOPLE WON’T GIVE UP THEIR EMAILS EASILY Rules for night lighting Questions ON THE NATIONAL LEVEL THE FEDERAL FLAG CODE: 1. PROVIDES UNIFORM GUIDELINES FOR THE DISPLAY OF AND RESPECT SHOWN TO THE FLAG. IN ADDITION TO THE CODE, CONGRESS HAS BY STATUTE DESIGNATED THE NATIONAL ANTHEM AND SET OUT THE PROPER CONDUCT DURING ITS PRESENTATION. 2. THE CODE IS DESIGNED “FOR THE USE OF SUCH CIVILIAN GROUPS OR ORGANIZATIONS AS MAY NOT BE REQUIRED TO CONFORM WITH REGULATIONS PROMULGATED BY ONE OR MORE EXECUTIVE DEPARTMENTS” OF THE FEDERAL GOVERNMENT. 3. THUS, THE FLAG CODE DOES NOT PRESCRIBE ANY PENALTIES FOR NON-COMPLIANCE NOR DOES IT INCLUDE ENFORCEMENT PROVISIONS; RATHER THE CODE FUNCTIONS SIMPLY AS A GUIDE TO BE VOLUNTARILY FOLLOWED BY CIVILIANS AND CIVILIAN GROUPS. OTHER FLAG PROGRAMS CHARGE: $50 – 5 postings, $50-6, $35-7, $30-5, $30-5 sunrise to sunset, $45-6, $35-5, $30-6, $30-5, $40-5, $40- 5, $35-8, $100-?, $35-5, $50-4, $35-6, $30-6, $35-5. Hidden Footnotes! 27

28. ANY QUESTIONS? We had “UNANIMOUS” support to MANUFACTURE, SELL and DELIVER! KEN SMITH 330-417-1527 ksmith@neo.rr.com JIM EDWARDS 330-875-1595 jedwards@neo.rr.com www.louisvillerotary.com jedwards@neo.rr.com www.louisvillerotary.com 28

29. 29 Now Lets Do some Projections History Projection 2,009 2,010 2,011 2,012 2,013 2,014 2,015 Sales Price / Flag 20 25 Sold this year 480 370 285 220 169 130 100 Net profit per Sale 12 17 New Sale Net P. 5,760 4,440 3,420 3,740 2,873 2,212 1,703 Renewals - 451 772 994 1,141 1,231 1,280 Net profit per Renewal - 18 23 Renewal Net P. - 8,122 13,895 22,851 26,236 28,316 29,430 Net profit for the year 5,760 12,562 17,315 26,591 29,109 30,528 31,134 I used a 94% renewal rate based on the 1st year's renewals Note the projected renewals are based on previous year's sales. From of the 480, 451 renewed We assume an $8 cost factor the first year We sold 23% less in the second year than the first. Therefore I used a '77% sales saturation rate 'to project future sales. Note the reduction in Sales / year from 480 down to 370 I will change the saturation rate after I see the results for 2011 in Nov of 2011 Projections are exactly that. They are not FACT ! ! !

30. 30 Now Lets Do some Projections Fact Projection 2,009 2,010 2,011 2,012 2,013 2,014 2,015 2,016 2,017 Sales Price / Flag 20 25 Renewals - 451 772 994 1,141 1,231 1,280 1,297 1,292 1,270 1,237 1,196 1,149 Net profit per Renewal - 18 23 Renewal Net P. - 8,122 13,895 22,851 26,236 28,316 29,430 29,831 29,709 29,211 28,447 27,502 26,438 Sold this year 480 370 285 220 169 130 100 77 59 46 35 27 21 Net profit per Sale 12 17 New Sale Net P. 5,760 4,440 3,420 3,740 2,873 2,212 1,703 1,312 1,010 778 599 461 355 Net profit for the year 5,760 12,562 17,315 26,591 29,109 30,528 31,134 31,142 30,719 29,988 29,046 27,963 26,793 I used a 94% renewal rate based on the 1st year's renewals Note the projected renewals are based on previous year's sales. From of the 480, 451 renewed We assume an $8 cost factor the first year We sold 23% less in the second year than the first. Therefore I used a '77% sales saturation rate 'to project future sales. Note the reduction in Sales / year from 480 down to 370 I will change the saturation rate after I see the results for 2011 in Nov of 2011 Projections are exactly that. They are not FACT ! ! !

31. VISIT: www.louisvillerotary.comwww.louisvillerotary.com CLICK ON “How to build a Flag Program” to view this whole presentation at home. 31

32. VISIT: www.louisvillerotary.com 32 TAKE TO SPEECH COMPUTER & MOUSE MASTER LIST ROUTE LIST SORTED DB STREET & ALPHA PPT PRESENTATION APPLICATIONS ROUTE KIT, CAPS, LIST, TAPE, PRY BAR, SPARE APPS, RUBBER BANDS SLEDGE & SPIKE FLAGS CONDUIT PVC