1. Hwacheon Machinery America Dealer Evaluation Summary
Purpose:
• To help fairly identify strengths and improvements of each dealer
• Identify Key target dealers to work more closely with Hwacheon
• Identify potential growth areas for a stronger Hwacheon sales network
• Create a set of standards and expectations for each dealer
• Properly control accountability and create a historical record
a. Market share
b. Identify regional competition
c. Creditability
d. Lead generation
e. Marketability
f. Sales strength
g. Growth potential

2. ACT DATABASE

3. History:
email,
phone INDIVIDUAL CONTACT PAGE
calls and Individual
meetings Project
tracking
General Planned Purchase
Notes phone orders,
about calls, to letters and
company do and important
meetings documents

4. DEALER SALES ACTIVITY TRACKING PAGE
EACH DEALER HAS SEPARATE PAGE OF WON,LOST AND OPEN PROJECTS

5. SUMMARY OPPORTUNITY PAGE

6. Groups Category Listing
Target
customer,
dealers and
industries are
defined into
particular
categories

7. COMPANY PAGE: DEALER AND CUSTOMER CONTACT & SALES ACTIVITY TRACKING
Company
List
Combined
company
sales
activity
Main
Industries
General
Notes
about
company
Territory
covered
Evaluation
Section

8. DEALER PRODUCT LINES AND BEST SELLING MODELS ARE TRACKED AND
MODIFIED EVERY 4 MONTHS.

9. EACH DEALER HAS SEPARATE PAGE TO TRACK SALES HISTORY, GOAL AND
MARKET SHARE COMPARISON
COMPARISON % OF GOAL MARKET
GOAL
OF NEW AND ACHIEVED, SHARE, is used
COMPARISON
EXISTING This is used to provide a
AGAINST
CUSTOMER because some standard to
ACTUAL
SALES, This tells times dealers compare
RESULTS
us if the dealer do not make against the
is growing his dealer goal but company
territory or if the makes dollar nationally.
company is goal
living off of
existing
installations

10. EACH DEALER HAS SEPARATE PAGE TO OPEN HOUSE AND TRADE SHOW RESULTS

11. ALL ACTIVITY IS GENERATED INTO A SUMMARY EVALUATION

12. Good Dealer: Demonstrates above average applications,
service, and territory dedication, which is complimented by
good internal company structure and marketing.
Target Dealer: Demonstrates excellent applications,
service, and territory dedication, which is complimented by
excellent internal company structure and marketing.

13. 1. A one page report is
generated to discuss areas
of strength and concern and
identify how to increase.
2.
Five primary sections
3.
1. Dealer name, state and common industries
2. Product lines carried
3. Sales /goal/market share history
4. Evaluation section
4.

14. 5. 5. Tradeshow/open house summary
6. Local Competitive Companies
6.

15. SECTION ONE: STATE AND INDUSTRY
The most popular Industries are identified using the Standard Industrial Code (SIC) by
using the UCC filings and EDA spreadsheets.
This purpose is to understand the background, territory character and machinery quote
expectations.
Machine shops often incur much change over, heavy torque machines with live tooling
Special Dies and Tools require accurate machining centers
Motor vehicle parts and accessories are more high volume chucker equipment

16. SECTION TWO: PRODUCT LINES CARRIED
Dealer product lines are organized with best selling models to identify potential
interference of other product lines and understand Hwacheon’s position inside each
company. This information also comes from the dealer product line sheets & UCC filings.

17. SECTION THREE: SALES RECORD HISTORY
GOAL COMPARISON % OF GOAL MARKET
COMPARISON OF NEW AND ACHIEVED, SHARE, is used
AGAINST EXISTING This is used to provide a
ACTUAL CUSTOMER because some standard to
RESULTS SALES, This times dealers compare
tells us if the do not make against the
dealer is dealer goal but company
growing his makes dollar nationally.
territory or if goal
the company is
living off of
existing
installations

18. SECTION FOUR: EVALUATION SECTION
Twenty point weighted areas that identify each section of a dealers company
A
B
C
D
E

19. SECTION FOUR: EVALUATION SECTION
A
Sales Power:
These are 6 core measurements that measure direct sales performance. Goal achievements and dollar
achievements have the hi
12 point category: Points given based on % of goal acheived
•Goal Achievement (Units): based on % of units sold against forecasted goal
•Goal Achievement (Dollars): based on % of units sold against forecasted goal
7 point category: Points given based on actual numbers of each achieved. Bonus points can be achieved
if they maximize their goal.
•Monthly Forecasts: we monitor the exact number of forecasts
•Machines Sold on Forecast: achievement to forecast
•Sales to Existing Customer: We make sure existing customers are still buying
•Sales to New Customers: We make sure the territory is growing.

20. SECTION FOUR: EVALUATION SECTION
B
Company History/Potential:
4 point category:
•Company History: This helps define longevity on the area
•Experience of Manager: We analyze this to understand experience level.
•Sales Engineers: Dedication to the territory
3 point category:
•Territory Coverage: Helps us correlate why sales may be up /down compared to previous yr.
Company History: Experience of Manager: Sales Engineers: Territory Coverage:

21. SECTION FOUR: EVALUATION SECTION
C
Credit Worthiness:
5 point category:
This section creates an understanding of the dealers ability to pay back credit
extended to them. Lower ratings means different business plans must be put into
place to ensure payment of machinery.
•Paydex Rating: USA credit rating system.
•Receivables Rating: Internal rating used and
Paydex Rating:
Receivables Rating:

22. SECTION FOUR: EVALUATION SECTION
D
Application/Service Power:
Understanding the level of support a dealer can bring to market is important. With
Service and application resources
4 point category:
•Service Engineers: Understanding the resources available is important.
•Application Engineers: Understanding the resources available is important.
•3 point category:
• Showroom Capacity: Is this distributor capable of showing equipment &
helping customer’s find the correct application
Service Engineers: Showroom Capacity:
Application Engineers:

23. SECTION FOUR: EVALUATION SECTION
E
Marketing Power:
This helps us understand their level of participation in local and National Markets. Knowing their
involvement helps us plan budgets to support them in the same efforts.
2 point category:
Magazine: How many times does the dealer advertise, will they COOP with
Hwacheon, what industries, and what magazines is discussed
Website: Customers are shopping online, each dealer needs a website
Direct Mailings: We want to know the promotion level and how to participate
Open House : This also describes the level of dedication to the market.
5 point category:
Trade Shows Direct participation in a trade shows responsibility to demonstrate and educate
customers on the opportunities that have been discussed.

24. SECTION FIVE: TRADE SHOW & OPEN HOUSE RESULTS
A history of the dealers participation in tradeshows, open house’s and
application seminars is recorded. The leads are tracked by forecast as well
as a UCC filing search is conducted to stay on top of the leads from each
event. Notes from the dealers feedback and participation are used to create
history and consistency

25. SECTION SIX: LOCAL BUILDER COMPETITION REPRESENTATIVES
Used as a reference point to understand territory strength competitive profile
of the local area. This has the TOP eight companies for each territory

26. 2008 2009 Comment
Methods MI 81 51 Auto industry declined
Methods NC 55 32 Sales below market share
Methods NE 79 74 No machines sold on forecast
Methods IL 45 35 No machines sold
Methods AZ 70 45 Less machines, forecast unpredictable Alta
Machine Tools 35 33 No machines sold, forecast unpredictable
Welsh Machinery 38 20 Low sales, low market share
Knox Machinery 64 43 Economy, Auto Industry declined
Meredith Machinery 72 45 Auto Industry declined
CNC Technical 52 52 Has potential, Auto Industry has declined
Kemsley Machine Tool 20 22 No machines sold
The Coretec Group 33 23 No machines sold, no company structure
Erickson Machine Tool 64 50 Low sales because of economy
L&M 71 34 No machines sold, no company structure
Paul Cody 56 44 Low sales, no company structure
Agility Machinery 50 Has potential, no open house/trade show
New West 35 Good potential but no sales
Triad 35 Good potential but no sales
Selway Machine Tool 58 Good potential, good applications/service
State Machine Tool 68 Good potential, good applications/service
Presotec 30 43 Low sales
Mabscott 39 22 Small Territory
AVERAGE 55 42

27. Three Target Dealers have Resulted from our Evaluation
1. State Machine Tool: Wisconsin Territory
2. Meredith Machinery: Indiana, Kentucky, and Tennessee
3. Selway Machine Tool: S. California, N. California, Oregon and Washington
These companies have been chosen because of their,
application, sales, service and marketing capability

28. STATE MACHINE TOOL EVALUATION
State Machine Tool Co Inc is a full-service machine tool distributor with technical support.
Established in 1933 as a sole proprietorship, State Machine Tool Co., Inc. is now recognized as
a leading supplier of the most productive CNC manufacturing equipment. Their team includes a
trained professional sales staff, engineers and project management teams, along with factory
trained technical service support professionals to provide the best manufacturing solution and
after post installation technical support in Wisconsin. They provide fully automated machining
systems or Robotics to optimize through put and minimize manufacturing costs with "state of
the art" equipment that is affordable and productive.

29. STATE MACHINE TOOL EVALUATION
But Hwacheon
sold 4 units
market share
has grown for
first time in 3
years

30. STATE MACHINE TOOL EVALUATION
State Machine Tool is a good
Hwacheon partner because
of the internal company
strength. The unit and dollar
goals were off but their
market share was higher
than average. The only
reason the scored low on the
sales goals was because the
forecast was not proportional
to the unpredictable economy
Perfect Scores

32. Headquartered in Louisville, Kentucky, Meredith Machinery is the tri-state's only full-line machine
tool distributor; serving Kentucky, Indiana, and Tennessee. They offer machine tool sales and service
as well as automation design. The Meredith technical centers and offices are located in Indianapolis
and Louisville. This offices are fully staffed with Application Engineers, Robotic Engineers, and
Service Engineers. Meredith Machinery has emerged as one of the largest and most unique
machine tool firms in the U.S. They can build and integrate complete automated systems that will
reduce customers costs making them more competitive in the global market.

33. Sales were on goal for 2008, but 2009 was a very bad year
economically for the Automotive industry. Unfortunately, IN, KY and TN
are primary automotive states. When automotive fell so did Meredith’s
sales

34. MEREDITH MACHINE TOOL EVALUATION
Despite a bad sales
year, we think that
Meredith’s internal
company strength is
very high and will create
momentum for 2010 and
beyond especially for
MC’s and Multi axis
equipment

36. Headquartered in Northern California, Selway Machine Tool is the largest West Coast machine tool
distributor covering CA, WA, and OR. They offer machine tool local sales, service application
engineering and local showrooms that are close to almost every customer in each state. Next to
Methods, Selway may be the most impactful distributor we will partner with.

37. With one sale, Selway Machine Tool achieved the dollar goal we set
together and make 33% of the unit goal. Market share is still low, but
Selway Machine Tool has only been selling since August.

38. Selway did not score as
well as State and
Meredith only because,
Selway was only
representing Southern
California at the time.
Starting January 1st.
Selway machine will be
representing N. Ca, WA
and Oregon. This will
bring more application,
sales and service staff to
the partnership
equation.