Facts About Territories
I SEE TERRITORIES ARE BASED ON ZIP CODES. WHAT ARE MY LIMITATIONS TOWARDS TAKING A SMALL OR LARGE TERRITORY?
The purpose of a territory is to give you the full exclusivity for the area so you can concentrate on growing your business without worrying about a neighbor becoming a dealer too. We want a territory to be big enough to give you enough profit potential but not to be too big to over run your resources and create delays for service to customers on the outskirts of your territory. Choose a territory that at it's maximum size you can easily drive to the borders within 20-30 minutes.
I LIVE IN CANADA. IS THE COST PER ZIP CODE THE SAME AS FOR OUR POSTAL CODES?
No. Postal codes in Canada are much smaller than those in the U.S. The cost per zip code in the US is $60. The cost per Postal Code in Canada is $.25 USD.
THERE ARE UNDESIRABLE ZIP CODES WITHIN PROPOSED TERRITORY. I DON'T THINK I WILL SELL MUCH THERE, CAN I ELIMINATE THOSE?
Unfortunately, that is not possible. We need all zip codes covered within a city. The zip code may not be desirable and you don't need to market in that area. If you never sell a system in the area, that is fine. We just want to make sure that if a customer reaches out for a bid that their lead goes to a responsible party.
IF A TERRITORY IS EXCLUSIVE, HOW IS IT PROTECTED?
Territories are protected by us not allowing another dealer to purchase any of your zip codes. If an interested party is within your territory and they reach out to us to become a dealer, we forward the lead to you. You can work with that party to become a wholesale customer that buys material through you or you can broker a different deal to allow them to offer the product or work alongside you. That is your option.
We also do not want a dealer to only be restricted to their territory for business if they are able to go outside their territory. If a dealer receives a lead outside their area, they have full rights to take the lead. A dealer can install anywhere as long as they are careful on the method of marketing and how they are representing their business model.
THE COST PER ZIP CODE, IS THAT A YEARLY CHARGE?
No. It's a one time fee. It is only paid once at the time of contract signing.
I SEE THERE IS A QUOTA FOR TERRITORIES, CAN YOU CLARIFY?
Yes. We have a quota for dealers. We want to make sure that dealers have a little skin in the game to make this profitable for them and for us. The quota is 400' of Trimlight per zip code per year. That amount does not need to come out of each zip code. As long as the dealer purchases an overall amount of Trimlight for their territory per year. Where the job is located does not matter to us.
WHAT HAPPENS IF I DON'T HIT MY QUOTA?
Quotas are there to ensure the dealer strives to market and sell the product. If a dealer is unable to hit the quota, we will work with the dealer to resize the territory to a manageable territory size according to the previous sales history. If a dealer does very little in an entire year and is below 10% of the yearly quota with little interaction, we would consider the territory as abandoned. We would reserve the right to open the territory to a new dealer.
CAN I EXPAND INTO NEW TERRITORY IN THE FUTURE?
Yes. Expansion is possible. Adding zip codes to a territory is a possibility but the zip codes would need to touch the current territory and work within a congruent shape. We also won't allow a dealer to expand unless they are consistently hitting their quota. We also do not allow a dealer to lease a territory that encompasses an entire metropolitan area.
WHAT IF A NEIGHBORING DEALER STARTS UP IN AN AREA CLOSE TO MY TERRITORY?
Having a neighboring dealer may seem to be a threat but it has proven to be a positive situation in many areas. You do not need to give leads to the new dealer if it falls within their territory unless you want to. The new dealer also has the right to sell a job within your territory. The limitation that both have is to not directly market within an existing dealers territory. Direct marketing is considered spending money or time marketing specifically in another territory with full knowledge that you could easily eliminate that area from your marketing efforts. Appearing on television, radio, mass mailings, home shows that attract from within your area, are all considered open marketing if the dealer is unable to choose it's broadcast area. But if the dealer has the ability to choose the reach of the marketing medium, he shall not choose to market within a neighboring dealers area.
WHAT ARE MY ROYALTY AMOUNTS ON ALL ORDERS?
Nothing! We don't take royalties. Since you are buying all the lights from us, that is where we make our small percentage.
I WOULD LIKE TO SEE A SYSTEM RUNNING BEFORE MAKING THIS DECISION
No problem. We can sell you material for your personal home for you to try out without buying the dealership yet. Just get us information on the home and we can try to help get you a price.
I WOULD LIKE TO OFFER THIS TO CUSTOMERS FOR A FEW MONTHS BEFORE SIGNING ON TO BECOME A DEALER
We understand. If you would like to buy at wholesale to try it out for a while, that can be arranged. But if an interested dealer comes in during your testing period for your same area, we would consider the territory to be available and work with them directly. If they end up becoming a dealer before you, you would need to purchase from them from now on since they are now the exclusive dealer for the area.