1. America’s Online Solar Store
Contact: Nathan Thompson, CEO
Direct Office: 678-666-0040
Cell: 404-991-0777
nathan@solarsystemsusa.net
www.solarsystems-usa.net
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Solar Systems USA
1

2. Legal Stuff
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
THIS DOCUMENT CONTAINS FORWARD-LOOKING STATEMENTS, INCLUDING PROJECTIONS, WITHIN THE
MEANING OF THE SECURITIES LAWS. THESE FORWARD-LOOKING STATEMENTS ARE SUBJECT TO A
NUMBER OF RISKS AND UNCERTAINTIES, MANY OF WHICH ARE BEYOND THE COMPANY’S CONTROL. ALL
STATEMENTS OTHER THAN STATEMENTS OF HISTORICAL FACTS INCLUDED IN THIS DOCUMENT,
INCLUDING ANY STATEMENTS IN THIS DOCUMENT REGARDING STRATEGY, FUTURE OPERATIONS,
ESTIMATED REVENUES, PROJECTED COSTS, PROSPECTS, PLANS AND OBJECTIVES OF MANAGEMENT, ARE
FORWARD-LOOKING STATEMENTS. WHEN USED IN THIS DOCUMENT, THE WORDS “WILL,” “BELIEVE,”
“ANTICIPATE,” “INTEND,” “ESTIMATE,” “EXPECT,” “PROJECT” AND SIMILAR EXPRESSIONS ARE ALSO
INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS, ALTHOUGH NOT ALL FORWARD-LOOKING
STATEMENTS CONTAIN SUCH IDENTIFYING WORDS. ALL FORWARD-LOOKING STATEMENTS SPEAK ONLY
AS OF THE DATE OF THIS DOCUMENT. THE COMPANY DOES NOT UNDERTAKE ANY OBLIGATION TO
UPDATE OR REVISE ANY FORWARD-LOOKING STATEMENTS, WHETHER AS A RESULT OF NEW
INFORMATION, FUTURE EVENTS OR OTHERWISE. ALTHOUGH THE COMPANY BELIEVES THAT THE PLANS,
INTENTIONS AND EXPECTATIONS REFLECTED IN OR SUGGESTED BY THE FORWARD-LOOKING
STATEMENTS MADE IN THIS DOCUMENT ARE REASONABLE, ULTIMATELY, SUCH PLANS, INTENTIONS OR
EXPECTATIONS MAY NOT BE MET.
THE ACCOMPANYING DOCUMENT ENTITLED “RISK FACTORS” DISCLOSES IMPORTANT FACTORS THAT
COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM EXPECTATIONS. THESE CAUTIONARY
STATEMENTS QUALIFY ALL FORWARD-LOOKING STATEMENTS ATTRIBUTABLE TO THE COMPANY.
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Solar Systems USA
Page 2

3. Outline
Page
Description
Page
Description
1
Trademarked Logo & Contact Information
21
Value of Solar Systems USA business?
2
Legal Stuff
22 - 23
Corporate Team Introduction (Salaried)
3
Outline
24 – 25 Remote Located Corp. Team (Commission)
4
About the company…
5-7
Market Drivers
8
Value Proposition
Key Suppliers
27
Key Partners
28
Investment Opportunity
29
9
26
Purchase the Company Opportunity
The Benefits of Solar Systems USA
30 - 32 Two Year Profit & Loss (8/2011- 8/2012)
10 - 11
The Solar Systems USA Solution
33 - 35 Operation Increase Profit Margin
12 - 18
Market Potential
19
Competition – Barriers to Entry
20
How does the company make revenue?
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36
Operation Decrease Over-head
37
Profit Margin & Sales Guidelines
Solar Systems USA
3

4. Solar Systems USA
• We are an industry-leading online solar marketplace.
• We act as trusted advisors in helping our commercial,
municipal, institutional, and residential customers
leverage the power of the sun and save money.
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Solar Systems USA
4

5. Market Drivers
• Customers experiencing…
•
•
•
•
•
Dramatically increasing energy costs across the board.
Inability to predict and control electricity prices.
CO2 reduction goals and other compliance demands.
Weakened real estate markets.
Volatile prices impacted by growing and inexhaustible global
demand for energy.
• Seeking public relations credit for greening efforts.
• Lack of energy alternatives.
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Solar Systems USA
5

6. Market Drivers
• Solar Manufacturers experiencing…
•
•
•
•
Declining prices of products made.
Increasingly competitive global market.
Increasing demand for greater reliability and higher efficiency.
Rising cost of manufacturing, marketing and distributing
products.
• Unequipped to sell on their own.
• Increasingly squeezed margins.
• Solar Distributors and Dealers experiencing…
•
•
•
•
•
•
Increased cost of buying, storing and shipping products.
Rising costs of square footage.
Holding stale and antiquated inventory.
Greater opportunities for damaged goods.
Declining prices of inventory.
Increasingly squeezed margins.
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Solar Systems USA
6

7. Market Drivers
• Customers responding by…
•
•
•
•
•
Taking control of their energy use and cost.
Generating investments in green business initiatives.
Making changes in supply chain and workflow.
Transitioning energy production into a profit-center.
Transitioning budgets to elevate Environment, Energy or
Facilities Management Departments as strategic business units.
• Seeking ways to increase the value of their properties.
• Customer behavior changing…
•
•
•
•
•
Shopping and purchasing online.
Seeking expertise and knowledge.
Desire immediacy and accuracy.
Increasing volume of direct purchases.
Expecting best pricing and value.
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Solar Systems USA
7

8. Value Proposition
• We focus on making solar energy systems more understandable, affordable
and possible.
• We offer the right combination of expertise, project management,
economics, customer service, and capital financing skills to help customers
make the most of solar in their current energy investments.
• We eliminate the cost of dealers, distributors and shipping - connecting
customers directly to reliable, high performance, pre-qualified solar
manufacturers and their goods.
• We partner with the manufacturers, associations, engineering firms,
architects, utilities, installers and government agencies that shape and
drive this market.
Manufacturer
Distributor
Dealer
Shipping
$
$$
$$$
$$$$
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Solar Systems USA
Customer
8

9. Solar System USA Benefits
• High Quality Customer Service - assistance available at every step of
the planning, ordering and delivery process.
• Increased Return on Investment - we offer pricing advantage with
our direct manufacturer relationships.
• Accuracy and Velocity - we help customers find the right solutions
and help manufacturers move their products.
• Expertise and Focus - we deliver flexible, scalable, proven solutions
and employ processes focused on making the biggest energy impact
for the price.
• Greater Success – we’re passionate about helping our customers save
budget, win proposals and get credit for making solar investments for
their organizations and homes.
Manufacturer
Wholesale
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Expertise
Service
Financing
Solar Systems USA
Customer
9

10. The Solar System USA Solution
• Solutions for the manufacturer…
– Provide the shortest route to the customer.
– Expose product benefits to more customers, more places using
web analytics paired with superior customer service.
– Educate our technical and customer staff to properly position
capabilities and features with customers.
– Deliver more and better qualified customers to their products.
– Increase customer satisfaction and repeat business with right
solutions.
– Sell manufacturers’ inventory faster.
– Sell higher volume of solar solutions.
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Solar Systems USA
10

11. The Solar System USA Solution
• Solutions for the customer…
– Augment and improve the migration to online shopping by
providing high quality multi-channel customer service.
– Provide expertise and service throughout the experience of
planning, ordering, financing and delivery of a solar system.
– Provide quick, easy-to-understand, accurate proposals.
– Deliver higher return on solar investment than other methods.
• Offer factory direct pricing
• Carry no inventory
• Provide drop shipping at no cost
– Provide decades of clean, reliable energy at or below utility cost,
increasing the value of their property or their operations.
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Solar Systems USA
11

12. Market Potential
• Customers seeking solar solutions:
– 1000s of builders & millions of homeowners seeking value.
• Qualify for higher loans or equity loans.
• Increase value of home for future sale.
– 1,000s of green development communities & builders.
•
•
•
•
Builders using or seeking LEED, EarthCraft, EcoCraft certifications
Environmentally- and cost-conscious consumers.
Home owner associations.
Apartments, mixed-use areas..
– 1,000s of non-profits & low-income properties.
• Reduce or eliminate monthly utility costs.
Solar Systems USA
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Solar Systems USA
12

13. Market Potential
• 100,000s of companies, universities, municipalities trying
to offset rises in other expenses.
–
–
–
–
Reducing ongoing utility cost or run as a profit center.
Green initiatives, CO2 reduction, compliance goals.
Building and retro-fitting for higher efficiency.
Creating value for fully depreciated buildings.
• 100,000s of heavy hot water users.
–
–
–
–
Industrial process heat, manufacturing.
Food processing, food service, linen services & laundries.
Hotels, hospitals, nursing homes, dorms, non-profits.
Apartments, retail storefronts, car washes, multi-family
properties, any home with large families.
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Solar Systems USA
13

14. Market Potential
• 100,000s of customers planning and deploying solar
solutions:
–
–
–
–
Solar installers.
Architects.
Engineering Firms.
Government Contractors.
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Solar Systems USA
14

15. Market Potential
Demand for solar is growing exponentially…
76% growth in 2012
Record year expected for 2013
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Solar Systems USA
15

16. Market Potential
While solar panel prices have decreased dramatically...
cost and complexity of equipment remains a barrier to
faster adoption.
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Solar Systems USA
16

17. Market Potential
# Locations
144
62
124
30
41
14
35
1
134
= 1.2 M
Solar Panels
in just top 20
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Solar Systems USA
17

18. Market Potential
• Rising US installs.
– Annual U.S. PV installations grew 76% in 2012 to reach 3,313 MW.
– Over 90,000 PV installations in 2012 in the U.S., including 83,000 in the residential
market.
– US market forecasted to grow 30% in 2013 with 4.3 GW of new PV installations across
all market segments; Q1 2013 had 723 MW installed.
– 4,400 MW of PV and 938 MW of concentrating solar power expected to come online in
calendar year 2013
– The International Energy Association believes that by 2016 solar will be the second
largest electricity source behind coal.
• Larger US installs.
– 11 states installed over 50 MW each in 2012, up from eight in 2011.
– 8 of the 10 largest PV projects currently in operation were completed in 2012.
• Decreasing solar panel cost.
– Blended average sales price for PV modules for Q4 2012 of $0.68/W and 41% below
the Q4 2011 price of $1.15/W.
– 2012 weighted average U.S. PV system prices fell 27% to $5.04/W in the residential
market, $4.27/W in the non-residential market, and $2.27/W in the utility market.
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18

19. Competition – Barriers to Entry
• Few competitors already in this space.
– Online market used as sideline for some companies.
– Home improvement stores pushing do-it-yourself solutions.
– Solar market is large and growth rate will make it possible for several
firms with the manufacturer relationships, historical sales, service
records, and trusted advisor status to remain successful and grow.
• Changes in the energy industry.
– Competition from other energy sources, utility & legal barriers.
– Rapid advancement, complexity of solar technologies.
– Non-certified, untested equipment dumped on US market.
• Financial constraints of buying customers.
– Competition for budgets and capital investments.
– Reduction in or loss of government incentives.
• Lack of education or misrepresentation of solar power.
– Training of building Inspectors, facility managers, policymakers.
9/23/2013
Solar Systems USA
19

20. How Does Solar Systems USA Make Revenue?
•
Keep expenses low while growing volume of customers.
– Strong web analytics, site optimization and gamification brings in large volume of
pre-qualified customer leads.
– We are a lean organization with skilled solar professionals to validate pipeline of
opportunities.
– Sales professionals are commission-only and paid percentage of sales; incenting
production with low cost of sales.
– No storage of inventory required.
– Leverage educational resources of manufacturers.
•
Maintain quality customer conversations that move efforts to closure.
– Surround customer with multi-channel, solution-based expertise and service to
enhance the online shopping experience.
– Becoming the “Amazon” of solar purchasing but with multi-channel expertise.
– Deliver quick, accurate proposals addressing customer’s pain points to facilitate
faster buying decisions.
– Create strong bonds with customers as trusted advisors to complex and varied
technology.
– Sales & fulfillment of product with high customer satisfaction.
– Build repeat business, reference-able business.
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Solar Systems USA
20

21. Value of Solar Systems USA Business
• Management vision, marketplace traction and differentiation is
working and scaling.
• Online Marketplace, Management and Sales Operations established.
• Web analytics and search optimization of online site has stickiness:
– Attracting tens of thousands of unique shoppers per month.
– Delivering average revenue of $6.00 per visitor.
– Growing website traffic - expected to double each year.
• Revenue trending up as the solar marketplace expands.
– $2M in revenue within 18 months of online launch.
– Revenues are at $200k+ per month.
– Robust pipeline of validated customers.
Increased
Online
Shopping
Manufacturers
Squeezed
Customers
& Market
Growing
• Growth of leads, qualified conversations and sales.
– > 70 Outside Sales Associates expected to generate approximately $5k/month.
– > 250 Affiliates driving web traffic.
– CRM system in place for customer management, sales tracking, marketing and
proposal generation.
– Manufacturers increasing reliance on us to help them move inventory quickly.
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Solar Systems USA
21

22. Corporate Team
Nathan Thompson - Chief Executive Officer
As a principal, Nathan is a highly motivated start -up specialist combining over 25 years of business ownership
spanning multiple industries. Prior to starting Solar Systems USA, Inc Nathan built a group of service
companies; including a multi -million dollar service business that catered to the Military Housing Privatization
Initiative that started in the late 90’s. From 20 03 through 2010 his company worked on some of the largest
military bases in the country including Ft. Benning, Ft. Stewart, Ft. Polk, Ft. Bliss, Key West Naval Station,
Charleston Naval and multiple Air Force Bases throughout the continental U.S. Nathan’s group of companies
provided services such for incoming soldiers and “Turn -key” services such as preparing returning soldiers'
homes before move -in. Successfully built and managed these contracts to the multi -million dollar range.
Nathan’s primary strength is visualizing a potential business model and then rapidly scaling the business. His
achievements include growing Solar Systems USA from $300 into grossing $2M in revenues within a year and a
half. From 1990 to present day Nathan's startup enterprises have grossed over $150M in revenues.
Nathan can be reached 678-666-0040
Gary Thompson - Chief Financial Officer
As a principal, Gary has over 30 years of growing, developing, and selling businesses. He joined Solar Systems
USA at the beginning and quickly became a valuable asset to the team. Over the past 2 years, Gary has provided
leadership for many of the new team members brought on board. He's lead the team in positioning and selling
solar energy while providing clients with superior customer se rvice. Additionally, Gary's business background
and experience in consulting and financial management has allowed Gary to serve as the company's CFO in
addition to his role as interim sales manager. In the mid 90’s Gary started “National Drive Buy Broadcas ting,
Inc.”. NDBB was the first to take advantage of FM radio transmitters inside a home or business to communicate
a service or product. Gary took existing technologies and put it all together to launch this business. Upon
reaching approximately the miles tone of 80 licensees across the U.S., Gary sold the company for $7.2 million
dollars. All the technology, including FCC approval, behind NDBB was developed and patented by Gary. Gary’s
primary leadership strengths include a solid educational background, in -depth business experience and
tremendous ability to overcome the financial challenges of a small business.
Gary can be contacted 678 -999-2131
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Solar Systems USA
22

23. Arin Adamson - VP of Web Strategy
As a principal, Arin is a web developer and programmer who manages theSolar Systems USA web site and
affiliate program. He joined up with SSUSA while attending Gwinnett Technical College and studying web
development and design. Over the past two years he's used the opportunity to practice his talent in building and
adapting the SSUSA e-commerce website, optimize the search engine capabilities, and build a superior online
marketing engine and content management service. He manages a worldwide team in making SSUSA.net one of
the top solar procurement and fulfillment destinatio available anywhere. His efforts have made SSUSA.net
ns
easy to navigate, to connect with resources, to gain expertise and to track orders.
Arin can be contacted 678-999-2665
Paul Merriman - VP of Operations & Customer Service
Once a product or system is sold, Paul Merriman is in charge of communicating with the customer through the
delivery of the purchased items. Paul is also in charge of invoicing the customer and generating a purchase order
to the supplier. Once submitted, the financial trans
actions are turned over to Gary Thompson while Paul
manages customer expectations on shipping dates and product delivery. Paul also manages product returns,
damaged items, and product refunds in the event there are any. So far so good! Paul is very good at
customer
service and manages our 1-800 customer service line at 1 (800) 737
-3907. Paul’s experience includes real estate
brokerage, leasing, redevelopment, property management and financing in the North Atlanta area. Paul was also
a Market Segments Manager for calcium carbonate and specialty clay sales & marketing into select polyolefin
market segments including: plastic films, wire/cable, cultured marble, rubber/elastomers and reinforced
composites.
Paul can be contacted Toll Free1(800) 737-3907
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Solar Systems USA
23

24. Remote Corporate Associates
Onur Kaya – Engineering & Design Complete Systems
Mr. Kaya completed his Bachelor of Science in Electrical Engineering at the University of Instanbul, but quickly
came to the states where he has fully developed his love and passionfor solar energy. Onur brought with him an
in-depth knowledge of solar and all its advantages. By his mid 20’s Onur had located to Miami, FL where he
worked with Sun Electronics, a major online and bricks and mortar distributor, doing designs, sales and
assisting with installations of solar and wind energy systems. He also became very hands on with site analysis,
single line and 3D drawings, He also knows Autocad for solar and he even did a stent in the Sun Warehouse as
manager of shipping and receiving. Onur Kaya is Solar, if you will. He also seems to genuinely enjoy working
with people. He is well versed in all aspects of solar and particularly strong in off grid and battery back
-up
systems. This is a big asset to the SSUSA team as off grid system req
uest continue to increase. Onur joined the
SSUSA team in Spring of 2012 and has never been to our corporate office. He proudly represents SSUSA from
wherever he resides and thus far has been a great asset to the team.
Onur can be reached Toll Free at 1 (
800) 959-9717
Joey Keys – Engineering & Design Complete Systems
Mr. Keys brings to SSUSA 15+ years of progressive experience serving in increasingly responsible positions
with Motorola, Dell and Freescale. Joey has served in capacities from product e gineer through project manager
n
to product manager. His credentials include a PMI Master’s Certification in Project Management, as well as an
Electronic Technology degree. Joey received his undergrad from The George Washington University and was
accepted in the School of Business. The last 5+ years Joey has been involved in the solar industry and received
his NABCEP certification in “Solar PV Installation”. NABCEP certification is the premiere certification for the
solar industry. Prior to joining Solar Sys
tems USA Joey worked with a national level solar installer and over
seeing mega-watt size solar projects. In 2010 Joey joined Solar Systems USA and is responsible for managing all
out-going grid tied and off grid solar system proposals. Joey participates rom his home office in Austin, Texas.
f
Joey can be contacted Toll Free 1(800) 928-4492
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Solar Systems USA
24

25. Dan London
Founder and President of Solar Max, Inc, a renewable energy company helping homeowners and businesses
save money with low cost solar energy solutions. Dan is representative of some of the creative ways SSUSA
has found ways to meet the company’s needs by working highly qualified individuals that would otherwise not
be possible for the company. In addition, Dan brings significant experience and accredita
tion in the design and
installation of Solar PV and Solar Thermal systems to SSUSA via the Long Island, NY area. Solar Max is a fullservice, low-cost / high value provider of customizable turnkey Solar PV systems for residential and
commercial applications, and of totally off-grid systems and cabins for remote areas lac ing infrastructure.
Dan join the Solar Systems USA team in the summer of 2012 and has been a very welcome addition to the team.
His service as manager of our “Live Chat” communication program has been invaluable to the company as his
department drives sales for the company and provides his business solar installation leads in the Long Island, NY
area.
Dan can be contacted Toll Free - 1(800) 979-0917
Phillip Newman
Design Engineering working in the aerospace industry for approximately 20 years in the areas of product
development of FAA
-PMA aftermarket aircraft parts, aerospace bearings, automotive tubular products,
anodizing, coating, plating, heat treatment, machi ing fixtures and tooling for the manufacturing processes while
n
working for Lockheed Martin, General Dynamics, Kamatics Corp and Siemens Energy & Automation.
Phil joined the SSUSA team in the Winter of 2012 and brings a whole new meaning to the words solar
advocate.
Phil aka “Newman” rather sell solar to a customer just as quick as most people would eat a meal. Phil Newman
is solar! Newman joins the team from his home office in South Metro Atlanta and attends weekly staff meetings
at the corporate office.
Phil can be contacted 678-999-2107
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Solar Systems USA
25

26. Key Suppliers
70+ suppliers
& growing
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Solar Systems USA
26

27. Key Partners
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Solar Systems USA
27

28. Investment Opportunity
Raise $250,000.00 (Round 1)
•
Sell Convertible Notes @ 8% Interest @ 20% Discount. (Note agreement
available upon request)
•
Funding will be used for: (Request Use of Proceeds List From Nathan)
– Grow the number and quality of customer conversations.
• Drive customers to our online site.
• Increase connectivity with our resources.
• Manage web analytics, SEO, superior marketing, branding and customer
retention.
– Keep management focused on exceeding topline goals.
• Make key hires in search engine optimization and office administration.
– Training and recruiting for success.
• Workforce development.
• Continue to offer the highest quality service.
• Attract and maintain the best performing sales team.
Note: The above investment is an option other than purchasing the company.
9/23/2013
Solar Systems USA
28

29. Purchase Opportunity
 Purchase Solar Systems USA for $995,000.00






Option 1 – Buy 100% of stock – SSUSA Team transition you in.
Option 2 - Buy 40% of Company’s Stock From Nathan and Nathan maintains
position as CEO or President For Compensation. Nathan maintains 10% for
the future sale of the company )
Option 3 – Buy 50% of Company stock from Nathan and partner with Gary
and Arin.
Option 4 – Buy ANY % of the company stock and we all equally dilute down
our shares to raise funding.
Option 5 – Invest in SSUSA (See slide 26)
Option 6 – Open to new ideas?
 We are flexible!
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Solar Systems USA
29

30. First Two Year’s P & L 8/2011-8/2013
Solar Systems USA, Inc.
Profit & Loss
August 31, 2011 - August 31, 2013
Total
Aug 31, 2011 - Aug 31, 2013
% of Income
Income
Pending Sales
0.00
0.00%
Refunds-Sales
-114,328.92
-3.64%
Sales-In House
627,218.21
19.98%
2,733,729.31
87.09%
10.56
0.00%
3,246,629.16
100.00%
Freight and Shipping Costs
107,773.55
3.32%
Purchases - Resale Items
2,650,847.73
84.45%
72.54
0.00%
Sales-Online
Uncategorized Income
Total Income
$
Cost of Goods Sold
Wells Fargo MS Charge Backs
Total Cost of Goods Sold
$
2,650,920.27
84.45%
Gross Profit
$
487,935.33
15.55%
97,322.93
3.10%
7.50
0.00%
585.24
0.02%
592.74
0.02%
Expenses
Advertising and Promotion
Automobile Expense
Fuel
Total Automobile Expense
9/23/2013
$
Solar Systems USA
30

31. Bank Service Charges
97.97
0.00%
Fees - AMEX - Expenses
131.18
0.00%
Fees - Chase
388.00
0.01%
63,452.81
2.02%
Fees - Transnational
451.34
0.01%
Fees - Transw orld
175.12
0.01%
11,262.28
0.36%
4,780.96
0.15%
Fees - Intuit Paym ent Solutions
Fees-PayPal
Fees-Wells Fargo
Total Bank Service Charges
$
Business Licenses and Perm its
80,739.66
2.57%
75.00
Charitable Contributions
0.00%
250.00
0.01%
Com puter Expenses
5,922.03
0.19%
Continuing Education
2,061.29
0.07%
Depreciation Expense
411.56
0.01%
Dues and Subscriptions
917.44
0.03%
Interest Expense
0.00%
Interest - AMEX
Total Interest Expense
594.29
$
594.29
Managem ent Fees
0.02%
0.02%
0.00%
Arin Adam son
28,249.36
0.90%
785.69
0.03%
Gary Thom pson
75,315.53
2.40%
Nathan Thom pson
81,523.69
2.60%
Bradford J. Nutting
Total Managem ent Fees
$
Total Marketing
$
0.39%
449.19
Mailboxes
5.92%
12,225.52
Marketing
185,874.27
0.01%
12,674.71
0.40%
Meals and Entertainm ent
3,208.76
0.10%
Office Supplies
4,261.08
0.14%
Office/General Adm inistrative Expenses
4,060.99
0.13%
Outside Labor
0.00%
Adm in
8,660.50
0.28%
Affiliates
3,033.50
0.10%
Marketing
6,448.15
0.21%
Operations
51,338.86
1.64%
Sales Associates
46,229.30
1.47%
Website Developm ent
27,861.05
0.89%
143,571.36
4.57%
Total Outside Labor
9/23/13
$
Solar Systems USA
31

32. Postage and Delivery
211.72
0.01%
12.41
0.00%
3,190.07
0.10%
3.55
0.00%
9,408.76
0.30%
344.30
0.01%
6,209.88
0.20%
600.00
0.02%
10,975.84
0.35%
Travel Expense
2,824.72
0.09%
Uncategorized Expense
1,991.28
0.06%
867.23
0.03%
11,500.20
0.37%
Printing and Reproduction
Professional Fees
Reconciliation Discrepancies
Rent Expense
Repairs and Maintenance
Sales Support
Taxes - Penalties
Telephone/Internet Expense
Utilities
Web Site
Total Expenses
$
590,678.07
18.82%
Net Operating Income
-$
102,742.74
-3.27%
-167.91
-0.01%
Other Expenses
Reconciliation Discrepancies-1
Total Other Expenses
-$
167.91
-0.01%
Net Other Income
$
167.91
0.01%
Net Income
-$
102,574.83
-3.27%
Thursday, Oct 10, 2013 01:39:38 PM PDT GMT-4 - Accrual Basis
9/23/13
Solar Systems USA
32

33. Operations Increase Profit Margin
Things to Know In Advance:
1.
2.
3.
The Company was incorporated on 8/27/2010 and went live in the Spring of 2011.
When determining commission we always pay from a percentage of net profit. This is the amount of
money remaining after deducting the cost of product & the shipping cost.
Advertising in this document ONLY refers to advertising we pay for, like PPC advertising. (Pay Per Click)
Present Day Example on a commission using our current mark-up & paying 30% of the net profit commission.
$12,324.72 = Total sale price w/shipping
Minus - $10,061.00 cost of product (X 1.225 Multiplier)
Minus $425.00 Shipping cost
$1,838.72 X .30%
= $551.61 Commission Paid To Sales Person
I.Mark-up & Profitability History: The following break-down offers a quick history on the evolution of
the mark-up modifier, commission structure and paid advertising cost as it relates to profitability.
Additionally, this document shows the learning curves along the way.
_______________________
Phase 1 Period – 4/2011 – 9/2011 - “Development Period & Pre-Gary”
Profit/Mark-up – We posted products on the SSUSA website directly from a
distributor’s catalogue and marked up their product list “cost X 1.15”. The first
six months of doing business was Nathan selling, developing product
relationships and while Arin (10% partner) was figuring out how to get
customers to the website.
Advertising - We were selling purely off double digit per day organic traffic.
Commission - We had no commission sales people to pay at that time.
Hindsight Visual - The mark-up was too low, but it was the right move at the time in that it ultimately led
us to the “low priced leader” theme. In turn, as the low priced leader, this confirmed we needed factory
direct sources on solar panels.
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34. Phase 2 Period – 9/2011 – 8/2012 – “Increasing Traffic, Gary Joins SSUSA & We Learn To Sell”
Profit/Mark-up – During this period we moved the product multiplier up to
“product cost X 1.175 = price of product”The 1.175 was on all products across
the board.
Advertising – We began experimenting and learning how to use PPC (pay per
click) advertising at a rate of approximately $2,054.33 pe month or $24,652.00
r
per year. This was in May of 2012. In retrospect this rate is very close to
accurate when doing $150,000.00 - $200,000.00 per month in sales.
Commission – We brought in a master electrician who was an veryexperienced
solar installer who could put together solardesigns and sell. We were paying
him 40% of the profit for his sales + he received 20% of the profit if he designed
a system for one of the contrac
tors. We began the OSA or contractor program
during this period as another way to scale the business. During this period there
is a percentage of sales where we paid out 60% of the profit.
Hindsight Visual – We now know the advertising was in line, butthe commission
structure was totally unacceptable. However, this was another necessary lesson
on the path to profitability.
Phase 3 Period 9/2012 – 8/2013
Profit/Mark-up – We continued to use 1.175 up until approximately 8/2013.
Advertising – We increased PPC spend to average $6,100.00 per month ($73,270.00)
This was too high.
Commission – We brought the commission down to 30% of thenet profit for all
commissioned sales people, but it was during this period we learned with absolute
certainty we could hire reasonably educated semi-solar knowledgeable people to
sell on straight commission at 30% of the net profit.
Hind Sight Visual – All though the advertising lesson was equally as painful as the
commission lesson learned in phase 2, this was a learning curve we had to experience.
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35. Summary: Present Day
Profit/Mark-up - We currently mark-up product using a multiplier of “cost X 1.225” and we still
are 20% to 30% lower than our main competitors. There is room to increase this, but
recommend a stabilization period to see the net results of this recent change.
Advertising – We are currently producing sales from 100% organic traffic, but upon integrating
some pay per click advertising into our mix we will spend no more than $2,000.00 per
$150,000.00 to $200,000.00 in sales.
Commission – We now pay sales people and solar designers 30% of the net profit commission.
The sales team currently consist of the following:
1 commission & 1 salaried person fielding phone calls from the 1-800 number.
2 commission solar knowledgeable designers are receiving complete system leads from
our online request form. (This is an area we would spend PPC advertising dollars)
Online Submission Form - http://www.solarsystems-usa.net/solardesign/
1 commission sales person fielding & developing live chat request as generated from the
website.
1 commission sales person fielding & developing email request as generated from the
website.
All Commissions paid are 30% of the net profit
*The above “sales team” excludes any contractors and/or affiliate sales. Any sales from contractors are
temporarily worked by any of the above team members. These programs are currently available and
actively receiving new sign ups, but under developed, underutilized and under managed. This is an area
I would allocate resources going forward.
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36. Operation Decrease Over-head
Name
Description
Amount
NT
Salary
$4,113.50
GT
Salary
$3,464.00
AT
Salary
$1,558.80
PM
Salary
$2,000.00
Windz & Julz (Web Prod Mgmt) & Web Help
Marketing
$824.00
Jake Wahome
Content Writer & Marketing 400.00
$
Marlon
Marketing & Web Help
$143.00
Kelly
CPA / Accounting
$500.00
Skype
Phones - Personnel
$187.99
Ring Central
Phones - 800 toll free
$140.87
Georgia Power
Utility
$153.83
Office Depot
Supplies
$99.00
Intuit
Accounting / Book Keeping $31.96
Rent
Rent - corporate
$1,024.00
Big Commerce.com
Email Hosting
$24.95
Big Commerce.com
Website Hosting
$149.95
Go Daddy
Domain & Hosting
$29.95
Digital Reach (Ralf)
SEO Mgmt
$499.00
Google
Advertising
$583.64
Hoot Suite
Marketing
$7.98
Linkedin
Advertising
$49.95
Amex
Re-payment of Loan
$250.00
Modsolar
Proposal Generator - Sales $315.00
Constant Contact
Email Marketing
$85.00
Total
9/23/13
$16,636.37
Solar Systems USA
%
24.73%
20.82%
9.37%
12.02%
4.95%
2.40%
0.86%
3.01%
1.13%
0.85%
0.92%
0.60%
0.19%
6.16%
0.15%
0.90%
0.18%
3.00%
3.51%
0.05%
0.30%
1.50%
1.89%
0.51%
100.00%
36

37. Profit Margin & Sales Guide Lines
Sales & Profit Required For Break-even
Amount of Sales Required
Gross Profit
20%
$83,181.85
19%
18%
$90,905.56
17%
$96,252.94
16%
$102,268.75
15%
$109,086.67
14%
$116,878.57
13%
$125,869.23
12%
$136,358.33
10%
9/23/13
$86,121.05
$163,630.00
Solar Systems USA
37