Tuesday January 27 , 2015

HVPurpose

HVP Global, LLC (HVPG) was created to overcome a key business issue for smaller companies manufacturing high-voltage components: Overseas representatives and trading companies offer a mishmash of random products through staff poorly trained to sell high-voltage components; most of these companies act as order takers with little or no product marketing or promotion. On the other hand, wholly owned sales offices increase the cost of goods sold, reducing competitiveness, and have isolated product lines that reduce sales staff effectiveness and limit opportunities.

The HVPG solution: Selling overseas through an effective, fully trained, multi-product technical sales force with strong marketing and layered sales through a “one-stop-shopping” line card of complementary products.


HVPattern

How does it work?

HVPG operates as an international sales channel for high-voltage device manufacturers (Principals) in the USA and overseas. HVPG has two basic sales models for foreign countries, the partially owned sales office and the franchise office .

The partially owned sales office (” HVP-SO” ) is started within the country with a general manager who is ready to be an owner-operator and to build a business. The HVP-SO is partially owned by the general manager and by HVPG. HVPG provides the startup capital, while the general manager typically provides sweat equity, business contacts, and in-country knowledge while operating with a one-year employment contract until completing a full year with profit. The two together develop an initial business plan supported by yearly operating and strategic plans.

The first financial hurdle is self-funding the entity, the second financial hurdle is paying quarterly management fees to HVPG (submitted work hours) and an ownership proportionate bonus to the general manager. The third financial hurdle is obtaining bank financing to support letters of credit and sales beyond the credit extended by the principals. The final financial hurdle is generating sufficient cash to cover operations and growth and to pay a dividend.

The franchised sales office (” HVP-FO “) is started with an established international distribution company within the country. HVPG helps the trading company set up an HVP operating division to sell and support the HV devices. Revenue to HVPG comes in three forms (i) the franchise agreement is renewed annually with a nominal renewal fee, (ii) a monthly franchise fee purchased by the HVP-FO from any and all HV suppliers and (iii) a negotiated fee for any consulting support beyond the normal franchise support outlined in the agreement.


HVPower

What drives success at HVPG?

HVPG’s vision is to become the leading supplier of high-voltage products and systems worldwide by partnering closely with general managers to create sales offices and franchises with a highly motivated technical sales force. Each office’s technical sales force offers engineering support from project definition through development and design to production, ensuring the customer’s project stays on track and the principal has key customer knowledge along the way. This philosophy assures the mutual success of the HVPG principal, the HVPG sales office, and the customer.


HVPrior

How did HVPG get started?

In 2004, James Morrison and Craig Dean began to formulate the sales channel they envisioned after years of varying degrees of success selling via international representatives and distributors – High Voltage Products Global (HVP Global). HVPG’s goal was to build a network of jointly owned sales offices and franchised sales offices worldwide with a significant line card of principals signing on with each franchisee. This strategy would provide what principals were looking for – an experienced, technical representative dedicated to selling their type of products that responded to executive level observations – and what representatives want, a broad line card of complimentary companies to represent, making cross-selling easier.

HVP Global, LLC was formed in November 2005. The ownership of HVP Global, LLC is split 50% UltraVolt Group, Inc. and 50Dean Technology, Inc. HVPG’s founders share 50 years of combined experience in design, sales, and marketing of high-voltage products and systems.

To date, the strategy employed is working – no manufacturer has left the franchise and more high-voltage component and system manufacturers are seeking access to representation in HVPG.