Investment Costs Summary

Investment Costs

Financial requirements for new dealers can be broken into two primary categories:

1.Initial Cash Investment

A dealer's initial cash investment will depend on the size of operation, decisions regarding capital needs, and specific marketing or training needs. P. M. Lighting, LLC requires participation in our dealer training and support program to secure the dealer's place as an exclusive dealer for the territory and this fee varies depending on the level of support requested. Additionally, stocking dealers will require a greater initial investment to purchase inventory.

2. Working Capital Needs

Working capital requirements will also vary depending on monthly operating expenses incurred. After completing a financial plan and budget, P. M. Lighting recommends that dealers plan to begin operations with at least 3 - 6 months operating expenses for total working capital. Many dealers operate as a home-based business to minimize operating costs.

Investment costs vary and are dependent on many factors unique to each dealer and specific territory. To help plan for initial capital requirements, the table below outlines typical high and low investment requirements for most dealers. This table should only be used as a guide for planning purposes as actual investment costs must be determined by each applicant and is the sole resposibility of the individual dealer.

Expense Type

Amount (range)

Comments

Tools & Equipment

$2,000 - $5,000

Installation tools, computer equipment

Vehicle

$2,000 - $25,000

Depending on lease or purchase

Working Capital

$1,000 - $5,000

Cash needed to pay for supplies and office expenses (utilities, phone, etc.)

Training & Support Materials*

$10,600 - $26,500

Installation Training Seminar, support manuals, dealer set-up for online access, sales & marketing training and support materials

Marketing

$1,500 - $5,000

Depends on timing and number of marketing events/vehicles used (Total budget recommended is $10K - $25K minimum)

Demo Kit *

$1,200 - $3,000

Assumes up to 2 full kits that range from $1200 - $1500 ea.

Inventory *

$1,500 - $10,000

Depends on type of dealer and depth of product line carried

TOTAL START UP COST

$19,800 - $76,500

* Items supplied by P. M. Lighting, LLC as part of the Dealer Program. All other items must be sourced by 3rd party companies. Detailed equipment listing recommendations and marketing material options will be provided as part of the Factory Authorized Training Program materials.

To inquire about a specific location, visit our company web site using the HOME button

or CLICK HERE to download a dealer application form.

Expense Type	Amount (range)	Comments
Tools & Equipment	$2,000 - $5,000	Installation tools, computer equipment
Vehicle	$2,000 - $25,000	Depending on lease or purchase
Working Capital	$1,000 - $5,000	Cash needed to pay for supplies and office expenses (utilities, phone, etc.)
Training & Support Materials*	$10,600 - $26,500	Installation Training Seminar, support manuals, dealer set-up for online access, sales & marketing training and support materials
Marketing	$1,500 - $5,000	Depends on timing and number of marketing events/vehicles used (Total budget recommended is $10K - $25K minimum)
Demo Kit *	$1,200 - $3,000	Assumes up to 2 full kits that range from $1200 - $1500 ea.
Inventory *	$1,500 - $10,000	Depends on type of dealer and depth of product line carried
TOTAL START UP COST	$19,800 - $76,500