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Pangolin Dealer Policy

 

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Pangolin sells our products through dealers worldwide. We set our pricing structure to enable dealers to make a fair profit. This profit can be made both on Pangolin's products, and on other hardware sold to an end-users -- for example by selling lasers and projectors along with Pangolin software. As a Pangolin dealer, you must be familiar with our products, and must also provide post-sales support to your customers.

DEALER REQUIREMENTS

Many people contact Pangolin, wanting to become dealers. Because not everyone can -- or should -- be a dealer, we have set up the following requirements:

  • Dealers must own and be familiar with Pangolin's line of software and hardware products.
  • Dealers must provide training on anything that they sell, including Pangolin products.
  • End-users generally come to dealers first for service. If the dealer cannot answer the question or solve the problem, then call Pangolin.
  • Dealers must have an active email account and web site.
  • Dealers must have a fax machine available at all hours.
  • Dealers must be reachable by customers within a reasonable time.
  • Dealers must sell a minimum dollar amount of Pangolin product each year.

These requirements are described in greater detail below.

Own the software

To become a dealer, you must first purchase our software from a current dealer. In fact, at the very least, your first two purchases must be from an existing dealer. We feel this is fair. It avoids people seeking to become dealers just to save themselves some money. In addition, those purchasing two or more systems are more serious about the business than those buying just one. Finally, by purchasing from a dealer, the dealer provides the initial service and support. This frees Pangolin to do other tasks such as further product development and improvement.

Be familiar with the software

It is not enough just to have bought Pangolin software or hardware. You must also use it on a routine basis so that you are familiar with it. This helps you sell our products, since you know what you're talking about. It also helps you service your customers, which will keep them loyal to you and to Pangolin.
     Although Pangolin has no specific standards for how well you know the software, we will discontinue dealers who we feel are not familiar enough to help their customers.

Provide training

You must train your customer if they desire it, or if you feel they need training. We recommend that if possible you load the software onto their computer, and show them how to use it on their projector. If this is not possible, you should at least expect to provide startup support. We believe adequate startup training should take from four to eight hours, depending on the client's knowledge.
     A few customers already know how to use Pangolin's software and hardware, and thus, may not need training. But for most clients, you will need to do some training and to include this in your price structure.
     You may wish to charge the customer a higher price, such as list price, and include extensive training. Or you may charge a lower price, closer to your dealer price, and break the training fee out as a separate option.

Service your customers

You must provide service for your customers. This means that they will contact you with questions and problems before they contact Pangolin. If you cannot help them, then you or your customer may contact Pangolin.
     This is an obvious benefit for Pangolin, as we are insulated from simple problems. It is also a benefit for dealers, since they learn more about the product through their customers' experiences.

Active email account and web site

You must have an active email account so that we can send you price lists, as well as information about product updates, bug fixes, etc. You must also have an active web site on which you promote Pangolin software and hardware along with (or integrated with) your products.

24 hour fax

While E-mail is fine for many tasks, unfortunately E-mail has proven to have limited reliability. E-mails may got lost on virus-ridden servers, or caught in spam filters. And there may be times when Pangolin or your customers need to send information via fax. This is why we require a dedicated fax available at all hours. By "dedicated fax" we mean that we can call at any hour to send you a fax.
     The best fax arrangement is to have your fax on a separate line. However, a voice/fax switchover is acceptable if you are willing to have your phone ring at odd hours like 2 a.m.

Be reachable by customers

We will never turn away customers who have not checked with their dealers first. However, we always ask end-users whether or not they have already checked with their dealer before contacting Pangolin. If your clients cannot get in touch with you, they are going to be dissatisfied. Unhappy customers may not buy again from you or from Pangolin. This is why we require dealers to be reachable. Also, we at Pangolin may need to get hold of you. We cannot have dealers who often disappear for days or weeks at a time.

Continuing sales

You will notice that we placed sales as the last requirement on our list. This was done purposely, and it is because the corporate culture of Pangolin is one in which we place customer satisfaction and service as a higher priority than sales. Nevertheless, there is a minimum sales volume required in order to maintain a dealership. This sales volume requirement depends on the geographic territory you serve. For example, in territories that have more challenging economies such as South America, the sales volume requirement is lower than that of more vibrant economies.

 

OTHER ISSUES

Exclusivity

Some dealers contact Pangolin and request exclusive territories -- such as a country. In today's world, it is practically impossible to ensure exclusivity. If your customers don't want to buy through you, they'll go to another country to get what they want. Such "gray market" goods are a fact of life.
     For this, and other reasons, Pangolin does not usually provide dealers with an exclusive territory. We suggest that dealers become "exclusive" in other ways, such as by providing a complete laser system built around Pangolin's software, or by providing comprehensive installation and training services. This is a far more effective way to differentiate yourself, than by being the only company who sells a certain product in a given territory.
     Think about conventional software for a moment. You can purchase it mail order (PC Connection), from software-only stores (Egghead Software), from discount computer stores (CompUSA), from full-service computer stores (Connecting Point), and even from computer makers (bundled systems). Each method has its good and bad features, and each method attracts a different type of customer.

Dealer exceptions

Not all of the requirements listed above will apply to all dealers. We reserve the right to relax one or more requirements where we see fit for a given market segment or some other relevant reason. If you feel you cannot meet one or more of the above requirements, contact us to discuss your situation further. Pangolin reserves the right to determine who is, and is not, fit to be a dealer on a case-by-case basis.

Pricing

We always quote suggested list prices in our literature and if we are contacted by end-users through telephone or email. We also mention that discounts may be available if they purchase through a Pangolin dealer. This means that we presume dealers will sell at list price, or less than the suggested list price. Of course, you are free to sell at whatever price you wish. The higher your price, the more you should be able to justify it to the customer (better service, additional free shows, etc.).
     Our suggested list price for software generally provides dealers with a 33% markup, within which you can make whatever pricing adjustments you feel comfortable.

Direct sales

Pangolin always informs potential buyers that dealers handle the software and that the customer can often save money by going to a dealer. However, if a customer insists on purchasing directly from Pangolin at full list price, then we will sell at that price, and will service and support the client.

Competition

You can represent competing products. However, we require you to fairly-represent all products.

For example, if you prepare a chart comparing LD2000 with other programs, you must cover all major areas -­ not just a few where one program is the strongest. You should not merely list whether features are included, but should also discuss the quality or depth of those features.
     If you use your dealership as a means of bait-and­switch, or in other ways blatantly misrepresent Pangolin's products, we will immediately terminate your dealership.

SUMMARY

We want strong, well-qualified dealers to represent our software. If you meet the criteria listed above, we would be pleased to consider you for our dealer program. Please fill out our on-line dealer application form for further consideration.

   
  This page last updated: Thursday, June 25, 2009 12:00 AM

 
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