Friday, November 21, 2008

Solar Power Inc. (SOPW.OB) Sees Franchise Operations Gaining Traction, Cradle to Grave Solar Power Installation and Service the Coming Wave

At some particular point, a newer market begins to settle into its own pace. Customers begin to become comfortable with a product or service and expect what they have always expected from an everyday product or service, value and service of that product. In many ways, this is where investors can make the big score. Others have done the heavy lifting, enabling the wise investor to invest more safely and with a solid expectation of steady revenue. Finding a company that is nearing this point of investment is the trick.

Solar Power Inc., a solar power module manufacturer, assembler, installer and franchisor, works to design, construct and install solar power module, mounting and balancing systems for residential and commercial customers. The company manufactures its modules in Shenzhen, China, along with cable, wire and mechanical assemblies for sale to international customers. As a matter of technical and business need, the solar and cable aspects of the company are managed separately but are comprised of an approximate 50% split in manufacturing capacity.

The company is vertically integrated in concept. From cable and wire manufacturing to silicon photovoltaic design, sizing, installation and services, the company works to offer all required elements for solar power use to be efficient and effective. In many respects, one could easily say that the company is taking solar power from a novel approach focused on solving the world’s environmental and power needs to a standardized system of making solar power an “every day”-so to speak- source of power. To achieve this task, the company looks at the problem of solar power integration from a practical point of view.

Customers are certainly interested in payback and cost of solar units, but they are also concerned about durability, aesthetics and long term service of the units. Using this perspective, the company can size, manufacture and install its systems with a long term customer approach, instead of installing a system and leaving it with just a warrantee. Generally, a solar power cradle to grave approach with a service agreement allows for consistent and reliable revenue once a system has been installed.

Consistency does not stop with current company sales and operations. To extend its range of photovoltaic systems and services, the company has embarked upon a regional franchising plan (through Yes! Solar Inc.) to grow customer base and royalty revenues. The company has worked to understand its primary customer base to the point where it can offer systems to franchisee owners that will typically satisfy a majority of potential customers.

From all appearances, the company’s move toward franchising its operations is moving forward nicely with three outlets operating. Expenses appear to be being kept in line and overall franchise costs within limits. Franchise costs not-withstanding, Solar Power Inc., through Yes! Solar, looks to be establishing itself as a long-term solar power franchise player for all your local solar needs.

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