Tuesday January 27 , 2015

About Us

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.