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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.
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