Spire CorporationExport 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 Located in Europe, Far East, Africa, India, Australia Price of equipment ranges from

150K and up

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

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

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

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

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

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

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.