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Intl business basics for sales of smartgrid productsmay2010

Dranetz-BMI
Dranetz-BMI

The document provides advice for companies looking to sell new technologies to utilities in Thailand and other Asian markets. It notes that the sales cycle can take 2 years or more due to a lengthy bidding process. Utilities have limited expertise in new technologies so products must be proven and their economic benefits demonstrated. Building relationships with multiple levels of management is important. Budgets and priorities can change, so patience is needed as it may take 2-3 years to develop the market.

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5/10/2010 All rights reserved Power Quality Thailand LTD
All capital or large purchases are done via the tender (bid) process. (some direct negotiations but very few) Expect sales cycle to be 2 years or greater New Technology products will involve show me. Most utilities have limited engineering expertise in new technology products. Most utilities are government owned and controlled. Expect the unexpected at all levels 5/10/2010 All rights reserved Power Quality Thailand LTD
Must be a qualified and authorized company to bid. Engineering projects require local engineering license. Very often a bid bond must be posted with the bid. (5% to 10% of bid amount) A performance bond of 5 to 10 % of contract amount for the duration of product warranty. Bid must include all local taxes, import duty, training, installation costs, local warranty support, travel for factory acceptance tests and any ancillary costs, options etc. 5/10/2010 All rights reserved Power Quality Thailand LTD
New technology products require extensive educational process. For the technology of the product For the economic return on the investment of product. Many levels of management must be contacted and a project developed. A budget must be set, 1 year in advance. Budgets are subject to change or delay for a higher priority project. 5/10/2010 All rights reserved Power Quality Thailand LTD
Must be proven theoretically. Must be demonstrated actual or simulated. Must have references (not necessarily in Asia) Must show economic return by customer business model. Must be viable for Asian Climate Must be adapted to Asian Culture Must support Asian Languages 5/10/2010 All rights reserved Power Quality Thailand LTD
Most have limited exposure to new technologies Most have limited available time to investigate new technologies Most are anxious to learn about new technologies No travel budget to investigate new technologies Engineering degrees in Asia have a different level of investigative training than USA or Europe 5/10/2010 All rights reserved Power Quality Thailand LTD
Most are government owned and operated Political situation is not logical Economic model is very different from USA or privately owned utilities. Vary greatly country to country Have an inherent bias to work with companies they know and trust. Building a new relationship adds 1 to 2 years to the process 5/10/2010 All rights reserved Power Quality Thailand LTD
Budgets get shuffled based on political priorities Personnel changes occur based on political positions. Working with foreign vendors is a desirable position Local civil strife (IE Bangkok) will change the situation. Competitors are always lurking and may not be visible. Especially competitors for budget $$$. Top management may change or change their mind, regardless of budget, plans etc. 5/10/2010 All rights reserved Power Quality Thailand LTD
Define your internal specific goals. Expand your market to Asia is NOT a specific goal. Set a budget to develop the market (time, $$, people) Prepare an internal road map with a timeline Identify a responsible management person for a primary single point of contact for field sales. Expect hundreds of technical and business questions beyond your domestic business. BE PATIENT!!! This is a process that will take 2 to 3 years. Are you prepared to make the investments??? 5/10/2010 All rights reserved Power Quality Thailand LTD
About the same level of power consumption as USA with 10 times the population 20 markets/countries/ with 20 (or more) sets of political influence . Countries should be studied by culture, religion, political organization and state of development. There is NO Asian market, there are 18 of them. 5/10/2010 All rights reserved Power Quality Thailand LTD
2004 5/10/2010 All rights reserved Power Quality Thailand LTD
5/10/2010 All rights reserved Power Quality Thailand LTD
Is their primary customer the local electric utility? Do they currently have projects theyve bid at the utility? What size? Do they have a technically competent staff available for your technology? Will they add one to get your product line? Do they have the financial capability to manage, finance and support a transaction for your product with the utility? What access to top management at the utility do they have? What international experience do they have dealing with your country, your language, your culture, your business? 5/10/2010 All rights reserved Power Quality Thailand LTD
Identify potential distributors in each country May need more than 1 for China, India, Indonesia Qualify, Qualify, Qualify Prepare sales, marketing materials to carry your sales message. Internet research on each potential utility customer So you can focus distributor sales efforts Physical visits to each market 4 to 8 times per year 5/10/2010 All rights reserved Power Quality Thailand LTD
A new organization (with more than 20 years experience) based in Asia to provide sales, marketing, management, service and consulting for sales into the SmartGrid market in Asian. Our members are distributors in every major market in Asia. A single point of contact provides market access to most of the electrical utilities in Asia. More than 20 years successful sales to utilities in Asia 5/10/2010 All rights reserved Power Quality Thailand LTD
Terry Chandler [email_address] 5/10/2010 All rights reserved Power Quality Thailand LTD

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Intl business basics for sales of smartgrid productsmay2010

  • 1. 5/10/2010 All rights reserved Power Quality Thailand LTD
  • 2. All capital or large purchases are done via the tender (bid) process. (some direct negotiations but very few) Expect sales cycle to be 2 years or greater New Technology products will involve show me. Most utilities have limited engineering expertise in new technology products. Most utilities are government owned and controlled. Expect the unexpected at all levels 5/10/2010 All rights reserved Power Quality Thailand LTD
  • 3. Must be a qualified and authorized company to bid. Engineering projects require local engineering license. Very often a bid bond must be posted with the bid. (5% to 10% of bid amount) A performance bond of 5 to 10 % of contract amount for the duration of product warranty. Bid must include all local taxes, import duty, training, installation costs, local warranty support, travel for factory acceptance tests and any ancillary costs, options etc. 5/10/2010 All rights reserved Power Quality Thailand LTD
  • 4. New technology products require extensive educational process. For the technology of the product For the economic return on the investment of product. Many levels of management must be contacted and a project developed. A budget must be set, 1 year in advance. Budgets are subject to change or delay for a higher priority project. 5/10/2010 All rights reserved Power Quality Thailand LTD
  • 5. Must be proven theoretically. Must be demonstrated actual or simulated. Must have references (not necessarily in Asia) Must show economic return by customer business model. Must be viable for Asian Climate Must be adapted to Asian Culture Must support Asian Languages 5/10/2010 All rights reserved Power Quality Thailand LTD
  • 6. Most have limited exposure to new technologies Most have limited available time to investigate new technologies Most are anxious to learn about new technologies No travel budget to investigate new technologies Engineering degrees in Asia have a different level of investigative training than USA or Europe 5/10/2010 All rights reserved Power Quality Thailand LTD
  • 7. Most are government owned and operated Political situation is not logical Economic model is very different from USA or privately owned utilities. Vary greatly country to country Have an inherent bias to work with companies they know and trust. Building a new relationship adds 1 to 2 years to the process 5/10/2010 All rights reserved Power Quality Thailand LTD
  • 8. Budgets get shuffled based on political priorities Personnel changes occur based on political positions. Working with foreign vendors is a desirable position Local civil strife (IE Bangkok) will change the situation. Competitors are always lurking and may not be visible. Especially competitors for budget $$$. Top management may change or change their mind, regardless of budget, plans etc. 5/10/2010 All rights reserved Power Quality Thailand LTD
  • 9. Define your internal specific goals. Expand your market to Asia is NOT a specific goal. Set a budget to develop the market (time, $$, people) Prepare an internal road map with a timeline Identify a responsible management person for a primary single point of contact for field sales. Expect hundreds of technical and business questions beyond your domestic business. BE PATIENT!!! This is a process that will take 2 to 3 years. Are you prepared to make the investments??? 5/10/2010 All rights reserved Power Quality Thailand LTD
  • 10. About the same level of power consumption as USA with 10 times the population 20 markets/countries/ with 20 (or more) sets of political influence . Countries should be studied by culture, religion, political organization and state of development. There is NO Asian market, there are 18 of them. 5/10/2010 All rights reserved Power Quality Thailand LTD
  • 11. 2004 5/10/2010 All rights reserved Power Quality Thailand LTD
  • 12. 5/10/2010 All rights reserved Power Quality Thailand LTD
  • 13. Is their primary customer the local electric utility? Do they currently have projects theyve bid at the utility? What size? Do they have a technically competent staff available for your technology? Will they add one to get your product line? Do they have the financial capability to manage, finance and support a transaction for your product with the utility? What access to top management at the utility do they have? What international experience do they have dealing with your country, your language, your culture, your business? 5/10/2010 All rights reserved Power Quality Thailand LTD
  • 14. Identify potential distributors in each country May need more than 1 for China, India, Indonesia Qualify, Qualify, Qualify Prepare sales, marketing materials to carry your sales message. Internet research on each potential utility customer So you can focus distributor sales efforts Physical visits to each market 4 to 8 times per year 5/10/2010 All rights reserved Power Quality Thailand LTD
  • 15. A new organization (with more than 20 years experience) based in Asia to provide sales, marketing, management, service and consulting for sales into the SmartGrid market in Asian. Our members are distributors in every major market in Asia. A single point of contact provides market access to most of the electrical utilities in Asia. More than 20 years successful sales to utilities in Asia 5/10/2010 All rights reserved Power Quality Thailand LTD
  • 16. Terry Chandler [email_address] 5/10/2010 All rights reserved Power Quality Thailand LTD