Those distributors are selling lamps in famous brands made by Philips, Osram, General Electric and Sylvania. They are selling more or less at our prices as listed in our pricelist called Prices for Famous Brands Lamps. We secure delivery of those orders to the final customers and we collect the payment; the distributor does not have to keep a stock, nothing to finance, he only needs to sell and receive the commission. The prices in the pricelist include the freightcharges for orders of at least � 250 within the European Community.

Besides selling the famous brand lamps, the distributor is also selling to more than 200 nichemarkets. Those niche markets are indicated by us, we teach and explain the distributor how what to sell and where and we make sure the right products are available at the right prices. In many cases the products will be supplied by SETMAKERS, specialized companies who are keeping stocks of such products and with whom we also have an agreement.

The distributor also sells other brands of lamps like LOHUIS, EUROLAMP, CALEX, ORMALIGHT if and when better pricing is necessary or for other strategic reasons. Here in Holland stocks are kept of many millions of Euro's at different locations to satisfy these needs and to service the distributors.

Distributors are also selling many other brands of lamps when they are buying the products from other liaised SETMAKERS. For example, we have a setmaker who specializes in lamps for caravans and motorhomes to whom we supply lamps in full containers but who in turn supplies to our distributors to satisfy the need in that particular niche market. To better understand see this setmaker, for example, at www.haba.nl . He is selling the lamps and lighting for caravans but is not at all concerned with lighting demands if they are not used in caravans....

The distributor also introduces DIY companies, supermarkets, hardware stores or whatever retailorganisations in his territory for whom we can develop a range of lamps, very often in a brand of their choice, in own designed packaging or in blister packs. Again, all this against payment of commissions. For energy saving lamps we now have our own factory in Romania, see European lamps.

As far as lighting fixtures are concerned our distributors sell, when possible, the products of famous companies that you can find under Other brands collections and they are very often selling the The Lohuis brand collection to specialized lighting shops directly and for use in projects by recommendation of lighting architects.

The optimum market size of a distributor covers a territory where about 1 million people are living. Not more because the penetration would be not deep enough; not less because the distributor needs to have a wealthy income. Such a market place in Europe spends about 25 million Euro per year in lamps and lighting and given a marketshare of 5% and an average commission of 25%, the distributor in the EC can generate an (additional) income of 300.000 Euro per year in those circumstances.

A very strong point is the 6-monthly newsletter that will be send to about 1.000 prospect buyers in your territory with all novelty items. These prospect buyers are contractors, electricians, lighting consultants etc.

A distributor needs to have his own website which will be linked to ours. If he does not yet have a website then we can make it for him at a reasonable cost. Needless to say that distributors get exclusivity protection from the lampbank within their territory.

PROFILE OF DISTRIBUTOR

The distributors we are looking for are very often small to medium size family businesses where the wife maybe running a retail shop with or without showroom and where the husband is doing the installation job outside in renewing the lighting in houses and retail shops and offices.

Likely there is a new generation with son(s) and daughter(s) that are looking for new expansion of the business and new things to do. The father is a bit tired in making money with his hands and tired of employing electricians to help him in his job. He is looking for opportunities to expand the business for his children.

What does LOHUIS has to offer these people:

We provide a distributor agreement with the promise that we nominate only 1 distributor in his territory of about 1 million inhabitants. (upto 10 million in developing countries)

We provide a package deal which contains:

- supply of catalogues

- design of showroom

- supply of samples for the showroom

- a little bit of stocks of the most common products

- website listing

- remote assistance for projects tendering

- remote assistance from lighting architect

All this at a cost of about 50.000 Euro for the first supplies after which the distributor is expected to purchase at least 20.000 US$ per month in the first year with growth to 100.000 US$ per month in the 5^th year of agreement.

Furthermore we will distribute discount credit cards to the 600 contractors that do exist in every population of 1 million people. With this special "membership" card these installation companies are entitled to a discount of 40% on all the products shown in the showroom. All the prices in the showroom will show consumer prices attached to them.

Besides the one time distribution of the " membership" cards we will at least once every 6 months distribute a "Newsletter" that will show new items in the range and special offers one may have at the nearest distributor.

In the system with " membership " cards these contractors will very often bring their customers to the showroom enabling the final customer to make a selection of the lighting he may need for his house, shop or office.

Distributors will obtain a 50% discount on the prices to the public which will allow them a 20% margin when selling to contractors. In order to cover the 5% market share that we are striving for he needs to buy about US$ 100.000 per month in the 5^th year starting from US$ 20.000/month in the first year.

This is a great opportunity for the distributor as:

a) his showroom will stay at the state of the art because we come to bring new items when they come to the market and remove obsolete items from the showroom

b) as a LOHUIS distributor no need to visit national and international trade shows as we have it all

c) No need to worry about public relations � the customer will stay informed by the LOHUIS newsletter that is sent automatically to all the main clients at least once every 6 months

d) We will finance most of the business provided the distributor qualifies for credit from a factoring company.

e) A distributor remains free to sell other products of any other supplier

Customers

The LOHUIS business focuses on sales to the general public ; people that need lamps and lighting for their homes and garden. They will turn to a LOHUIS distributor when they need a wide variety of the products.

For instance people need a candle type of energy saving lamp or need a lighting fixture with light emitting diodes. The market for these is limited and hence these products are NOT available in a DIT store or a supermarket.

The LOHUIS distributors are SPECIALIZED suppliers in lighting with a wide range in HIGH QUALITY lighting products which are generally more expensive than other stores where these products can hardly be found.

The same customers may turn to an appointed LOHUIS set-maker when they need very specific products such as new lighting for the car; new lamps for projectors etc.

For mass production lighting products the user may turn to a RETAIL store where a part of the LOHUIS range is available in low budget brands like EUROLAMP.

Business owners will turn to the LOHUIS distributor when they are in need of a new lighting system for their existing or new outlet. Small projects can be handled by the distributor with the guidance of the nearest franchisee or may turn the whole project to the nearest franchisee and make a commission when the order is placed.

TOB in Dubai as a franchisee has already sold millions of dollars of LOHUIS products in many famous projects.

What does a Lohuis distributor sell?

RETURN

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Ik wil deze producten verkopen I want to sell these products

Kunt u ook mijn producten verkopen? Can you also sell my products?

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