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Spire Corporation Export Expo International Channel Development December 10, 2013

Spire Corporation Export Expo International Channel Development December 10, 2013. Quick Summary on Spire. Providing equipment to make solar modules and cells Founded in 1969 Located in Bedford, MA 100 employees 40M in sales Using 12 International Reps and Distributors

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Spire Corporation Export Expo International Channel Development December 10, 2013

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  1. Spire Corporation Export Expo International Channel Development December 10, 2013

  2. Quick Summary on Spire Providing equipment to make solar modules and cells • Founded in 1969 • Located in Bedford, MA • 100 employees • 40M in sales • Using 12 International Reps and Distributors • Located in Europe, Far East, Africa, India, Australia • Price of equipment ranges from • 150K and up

  3. What Type of Sales Channel to Use • Representatives • Typically gets paid commission • Provides on ground sales and market support • Can provide service support • All quotes, purchase orders and customer contracts come from supplier • Distributor • Similar to Representative • Buys equipment from suppliers and sells to customer • Finder • Useful for new market or target customer • Gets paid an agreed upon fee, 2-4% • Spire uses combination of all above depending on region

  4. Where to Find Them • Companies that use complementary products • Requires great deal of time to investigate and follow up • Great way to locate potential sales reps • Use Mass Export Center • Free for Mass companies and great resource • Provides list of potential sales reps • Networking with colleagues that use sales reps • Use Commerce department • Various programs to locate and then arrange meetings • Tradeshows • Great chance to research and locate sales rep Spire had most success using top two

  5. What to Do Once You Find Them • Bad rep can hurt your region for 2-3 years, while good rep can help penetrate the market and increase sales • Take the time: Do the research and due diligence • Good reps are hard to find • Take your time and look at all avenues • Have 3-5 qualified candidates • Get several references for each • Follow up with each reference - never had a problem getting feedback • Make sure there is mutual interest • Do the follow-up and make a decision • Sometimes “going your gut” is the right decision • Not all reps will work out • Make sure there is way both parties can back out if it is not working out

  6. Other Factors to Consider • Decide on Exclusivity or non-exclusive • Most reps will request exclusive in order develop market and sales channel • Benefits/negatives for each • Spire mainly uses exclusive for major regions and non-exclusive for others • Decide on how much do you pay • Typically range from 7-15% of order • Depends on what service support reps offer • If only sales then it will be lower, if sales/service then higher commission • Do you use a large or small rep firm • Large firms “+” more sales coverage, stronger financially “– “not getting attention, doesn’t understand your product • Small Firms “+” More focus, can give you more support “ –”may not have contacts or depth to support product • Spire uses mostly small rep firms

  7. Once Signed – What Next • Make sure you protect your “brand” • Not properly managing a rep can impact your brand name • Don’t let rep isolate you from your customer • Sometime hard to do internationally • Important to make visit and follow up directly with customers • Get monthly reports & forecast from reps • Then have follow up call to review • Occasionally follow up direct with customers • Gauge rep’s ability and customer interface • Get feedback from customer on how the rep is doing • Respond quickly to rep’s request for information , quotes and technical assistance • Build trust which assure reps’ attention to your product

  8. Mutual Support (a small list ) • What the rep does for your company • Find qualified and follow up on leads and close orders • Provide service support • Setup and arrange meeting with customers for your sales/marketing • Attend tradeshows, conference and promote your company • Provide translation of sales literature and datasheets • Send routine reports to keep you informed • What do you provide for the rep • Sales and technical data to help the rep sell • Fast response to inquires • In-depth training on your products • On-time payment of commissions • Support for local shows • Allow time for them to develop the market • Visit to customers to help close orders

  9. The Contract • Have a prepared contract for rep to review • Expect rep to request many changes • Be sensitive to local laws and regulations • Make sure the contract allows the rep to succeed • At same time make sure your interests are protected • What is in a contract • Commission • Territory covered • Products they can sell • Their responsibilities • Your responsibilities • When and how commissions will be paid • Term on the contract • Typically 1 year with annual renewal • Boilerplate • Local rules, laws, regulations, etc • When done - Put the contract in the draw • When you find a good rep backed with a good contract, for both parties, very rarely will you need to look at the contract.

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