© 2017 by WaterStation Technology LLC

The Dealership Program business model is very simple. Our objective is to install one of our office machines, on a monthly rental basis, in businesses throughout the United States.
 
The sections below lay out the structure to accomplish this goal.

 
Structure: Distributor and Dealer Relationship

Most States will be made up of one Distributor, additional Distributors will be added to states where demand requires. Distributors will have inventory on hand and ready for deployment. Some Distributors will assist with backend work (flushing filters) to get the office water machines ready for installation, this service will be an additional cost to the Dealership Partner.

Each Distributor will have a number of Dealership Partners. The number of Dealership Partners is dependent on geography, population, and demand.

The Distributor will sell machines and filters to Dealership Partners. Along with selling office water machines, the Distributor will provide marketing collateral, help Dealership Partners grow their business through running a website, forwarding leads to the appropriate Dealership Partners and helping with general business development and growth (networking events, call center, assisting in vetting outside sales representatives). Distributors will be the go-to resource for Dealership Partner.

 
Day-to-Day: Dealership Partners

Clients: B2B

Objective: Rent office water machines (units) to business clients on a month-by-month basis (typically 36-60 month contracts)

The day-to-day of a Dealership Partner can be broken down into one of two structures.

1) Owner Operator Business: Dealership Partner sells units on his/her own, forgoing any commission obligation to sales representatives. With the proper skill set and prior training, an owner operator could also do the installs (check the proforma for estimate cost savings from doing installation).

All units are outfitted with filters, so after the appropriate time period, owner operators will be required to change out the appropriate filters throughout the relationship (this cost is estimated in the proforma). 

2) Owner Managed Business: Dealership Partner hires sales reps (commission only, we have the contract and commission break down ready to go). Utilizes install team to install units and either utilizes sales reps or install team to change out filters for the duration of contract. 

Acquiring Business:

Sales reps will be encouraged to apply our sales training document to their sales efforts. This document outlines recommended cold calls and appointments each week. Additionally, sales reps will be provided a short, 90 second, video to provide prospective clients, as well as other marketing materials.

Dealership Partners are encouraged to support their sales staff by attending networking meeting in efforts to grow brand awareness and build strategic relationships. Some Distributors have staffed call centers to help generate warm leads. All Distributors will have a website that will direct leads to the appropriate Dealership Partner, depending on geographic location of the lead.

Dealership Partners should encourage sales reps to get reviews and Dealership Partners should follow up on closed sales in efforts to acquire a word-of-mouth lead and/or referrals from happy customers.

 
After the Contract Expires

Contracts are for 60 months. After the contract expires the Dealership Partner has a few choices:

1) Let the client buy the machine at a reduced price (we can advise)

2) Renegotiate a reduced monthly rent and collect the payments yourself (the "Financing" section below outlines how option 2 is different than the traditional financial structure)

3) Sell them the newest model--doing the entire transaction all over again

*Our suggestion is option three.

 

Financing

Their are two options to finance your office water machines (units):

1) collect the monthly rents yourself and payout the sales reps and install team from working capital

2) sell the contracts to a financial institution and receive the money for the units upfront (this is what WST does) 

Financial institutions will fund one of two ways. They will factor the total and give you 75%-80% of the total rents upfront. Or, they will give you 100% of the rents and then charge additional interest, on top of the negotiated monthly rents, to the customer.

Example:

Scenario 1: (example of factoring) 60 month contract for $70 a month (60 x 70 = $4,200). $4,200 x 75% = $3,150 to Dealership Partner upfront. 

Scenario 2: 60 month contract for $70 a month (60 x 70 = $4,200). Dealership Partner gets $4,200 upfront. Client, after interest, will be charged closer to $78 a month. 

  • Typical turn around time for financing is 24-72 hours.