Q1: What is HONGDU's official definition of an OEM?
HONGDU defines an OEM (Original Equipment Manufacturer) as an entity or organization that integrates a customized or embedded HONGDU product in its own unique solution for sale to its customers. The proof of this concept is that the HONGDU product must be significantly transformed. The OEM Partner primarily uses its own company logo and brand name on its solution and it markets, sells and provides technical and warranty support directly to its customers.
Q2: What are the key differences between a Traditional VAR business model and an OEM model?
A traditional VAR (Value-Added Reseller) will typically load a proprietary application and/or incorporate Third Party options and resell the product under the HONGDU brand name to their customer base. An OEM will significantly transform the HONGDU Product and resell the bundled or embedded product as their own solution under their brand name. The OEM seller can add their own Concept and Technology/Patent onto the HONGDU's original products. Of course HONGDU cannot use any of their own Concept and Technology/Patent.
Q3: What baseline requirements does an OEM Partner need to meet in order to be authorized by HONGDU?
The following are the baseline requirements for an HONGDU OEM Partner:
Submit a completed Global OEM Application Form.
Submit an ownership certification for its Brand (and Logo).
Submit an ownership certification for its technology/patent if needed.
HONGDU will not give up the ownership of its Patent and Brand to global or certain territory OEM Partners.
OEM will not resell or expose the special pricing on the HONGDU productions as a separate line item from their solution to their end customers.
OEM is responsible for installation, maintenance and providing 1st Level Support (at a minimum) to their end customers via their own support and warranty services.
OEM adds to the HONGDU productions a substantial amount of the OEM Value-Added Solution as a fully integrated and inseparable element of the OEM Product and resells the solution under its own OEM brand name. Other criteria applies, such as selling primarily face-to-face with full ownership for the sales & marketing cycle, sales-out reporting to HONGDU, no traditional HONGDU Reseller rebates available.
Q4: Can Value-Added Resellers apply to become OEM?
Value-Added Resellers may apply to become an HONGDU OEM Partner via the OEM Application Form process. In the event that HONGDU approves the VAR as a HONGDU OEM; the VAR's OEM sales will not eligible for benefits associated with the HONGDU Authorized Reseller Programs, as these are two separate and distinct business and programs offerings with separate partner requirements.
Q5: What is the process to become an HONGDU Authorized OEM Partner?
In order to participate in the HONGDU OEM Program, partners must first submit a completed OEM Application form to HONGDU for initial review and pre-qualification prior to issuance of special OEM sell-through pricing and must agree to the terms of the Business Development Agreement( BDA) and OEM Custom Product Addendum. The completed and signed OEM application form with required documentation should be mailed to denny@hongducz.com or fax to 0086-519-83127209.
Q6: Are HONGDU Authorized OEM Partners same to Exclusive Distributor?
No, all HONGDU's OEM Partners are not Exclusive Distributors global and/or territory of HONGDU.
Q7: Can HONGDU Authorized OEM Partners purchase HONGDU Products directly from HONGDU or from an HONGDU Authorized Distributor?
Yes, HONGDU authorized OEM Partners have the flexibility to purchase either directly from
HONGDU or from an HONGDU Authorized Distributor. The process for becoming Authorized OEM Partner(as outlined in Question #5 herein) will be followed whether the product is sourced from HONGDU or from Authorized Distributor.
Q8: Is there any extra cost for your OEM request?
Usually extra cost 100 $ if the quantity is less than 80.
Cost free (inluding simple tools, logo and manual etc.) if the quantity is more than 100 pieces.