The Most Frequently Asked Questions

The investor's of Powerpole seem to be asking the same kind of question's, so below is a list of questions that are the most common question asked.  These questions are answered in a Question and Answer form. 

John has been saying that we will sell 5000 Powerpoles and prove the potential.  when and Why has it not happened?.

John is still saying it now, we have to sell the Powerpoles and Prove the potential.  The emphasis is on Proving the potential not selling the Poles.  All promises and projections have been based on this action plan.  It will happen as soon as sufficient funds are available.

How many Powerpole sold?

400 have been sold 200 have to be fixed 4,200 are left to sell.

Can't we put people on the road?

Can't we door to door sell them and prove the potential?

Yes we can put people on the road selling, but it will not prove any potential we can exploit, it but will only prove in the best instance if we have good salesmen.

Example:

If a salesman went door to door and calls on 20 houses in one day, the average possible Powerpoles sold per day would be 4.  While saying that keep in mind that no body knows what Powerpoles is until we brand the Powerpole product.  In a normal suburbia area in Australia say a sales man calls on 20 houses in one day,  spending 5 minutes in each house making a total of 1 hour and 40 minutes.  Out of those 20 houses 6 are not home, 10 will listen for 5 minutes and send you on your way, 3 will show some interest but have not intention of committing, that leaves a total of 1 Powerpole sold in 1 hours and 40 minutes.  Possibly making 4 full sales per day minus a average of $200 dollars for his expenses.  The salesman would be under pressure to sell 3 Powerpoles a day just to keep his job.  FACT To sell our 5000 Powerpoles this way we will need 100 salesmen selling 15 per week for a month.  At lest half of those salesmen would sell 1 or less on average representing a weekly loss to the company.

Can't we sell them to A-Mart, Rebel Sport or Elite...etc?

If a salesman goes to a sporting outlet and sells Powerpoles at wholesales prices, the process is different altogether but the potential is there and volume is needed.  Our question would be do we want to carry credit with these stores or would we prefer to have cash flow.  ANSWER Cash flow.  FACT This has been tried and they love the Powerpole but they won't stock it in volume until it is "branded".  Even "Rebel Sports" the biggest store in Sydney with 60 stores will start with a maximum of 10 Powerpoles per store.  They wanted at least 50% mark-up and they all demanded to be credited.  The difference here will be the salesman will be battling to do 5 calls a day and will close one in 10 calls.

The Defense Force, Institute of Sport, Olympic Comities, and Physics have been tried.  They all love it and belive it is a great device but they all see some limitations because they would like more accessories from the start but we don't have the money to produce.  They tell us to come back when we have them.  We can and have tried man others avenues of this nature.  This is exciting but frustrating.  A study of how it works for them shows their biggest revenue comes from the products known by branding and public relations "active or repeating".  Historically few products ever start in retail stores because of this reason.

Can't we let the interested parties in America sell them for us?

You have to pay in the USA to be in the store before yu buy floor space.  The interested parties in America will show the profit but not us, they might stuff up or pinch our idea "they have a record of pinching ideas that succeed".  You have to pay in the USA to be in the store even before you buy floor space, here they have big retailers wanting up to 150% mark-up price, independent of sports outlets.  They also wanted it for under $100 and will sell it for over $250.  Other costs are we have to ship it to them and take out insurance on late arrivals if we accepted their order.  We will have to carry the manufactures warranty and expenses of freight & administration on complaints or returns.  We will have to carry satisfaction warranty's on however many days "depending on distributing technique".  We have to provide products liability in USA.  We have to pay import excise tax "last trip to the USA we took over 80 Poles total costs was nearly $2000".  We have to pay insurance in transit.

We have $30 per pole to do the above and make a profit.  There would be added accounting and tax fees and admin.  Management would need to meet often and be in PR with accommodation and expenses or appoint onshore management for problems or spokesmen as needed "ongoing".

Can't we do Trade Shows?

Trade shows work best for branding not for profit, if you go to shows as we have the booth space & cost to man the stalls usually prohibits profit.  Speaking to stallholders, some make a good living but 400 shareholders "in our instant" would not see much in dividends.  When we have stock, bulk sales, and have successfully branded the product we can look at sporting and fitness equipment shows.

Can't we let Danoz Direct sell them?

Danoz Direct would live to do it "IF" we would let them have each Powerpole for $80.  They will sell it up to $300 and we carry all expenses "as America above" except import excise tax.  They will control media image and we can float or drown "at their mercy" but would make no profit even if they succeed.  Payment is always a problem.

Cant we start with small ads on TV and build it up?

Small marketing campaigns can succeed but rarely do unless handled by a big marketer.  PR and air time must be sufficient.  Spaced Repetition is needed.  A good quality infomercial is needed.  Endorsement can be an advantage, but it is expensive to get one of the few who justify their cost.

Can't we sell the rights to interested parties in Australia or abroad?

We could negotiate a deal with an Australian Company who has expressed interest in Australian right.  He has the outlets and would move Powerpoles.  The profit factor to us as will be screwed as low as possible.

As with the above  for them to make it big for us, they have to "brand the product".  Common sense says they are not going to do this for nothing.  We may make $15 per Powerpole, he may go broke and catch us, he may be associated with some other product scandal, and condemn us by association.

Can't we get an expert marketing director and put him/her in charge?

We can employ a Marketing Director and this has been considered and in fact we have had an offer from a guy with the credentials of national sales and marketing manager with an Australian known company executive management at the level of competence we need, is on $100,000 - $150,000 plus per year.  The bottom line is we can not afford one just yet.

Where is all the money going, nearly (Three) 3 million dollars and we are still not there?.

Who is getting the money, where is it going?

How can John possibly account for three million dollars?

The money goes to Wages, Legal & Accounting Expenses, Patent Annuities and Expenses, Engineers, Toolmakers, Plastics Injection Mounding, Stationery Expenses, Factory Rents and Overheads, Power, Phones, Computer, Printing, Internet fees, Travel and Accommodation when away, Fuel and Car Maintenance, Insurance (example Stock against fire or damages and Products Liability...etc.  Work care, S

Staff Superannuation, Machine Development, Machine Maintenance, Commissions, Government fees and fines...etc.  Theses are the main groups.  The three million dollars is all accountable.

Can I see the records of transactions?

Powerpole has a record of all the costs, the ATO did an audit in 2001.  We have claimed research and development (Example) cash back rebates.  The ATO would not vie us these claims if every thing was not in order.  Any audit is welcome.

Can I get a copy of the financials or last year of Powerpole?.

We can do a print out of all money transaction or transfers with MYOB.  All is accountable and in our Computers on disc or file.  John has never drawn a salary, he draws against a loan account in Powerpole Developments to cover cost on invoice of ongoing Powerpole expenses and exists.  John intents to forgive this loan.  Both of John's children Jason and Terri work for the company, their salary is less than other paid workers in the company o hourly basis.

Many shareholders have had their accountant ask for financials.  We ask that you get your accountant to ring me and I will explain the situation.  They usually accept because of the special circumstances, a printed copy of what we have.  The report may only sow financials on the company that they show shares in but will not help them see the value of shares, and they handle it some way in their books.  The only way to reflect the true share value is audit ALL the entities and then incorporate the "Interest in the Patent shareholders.

When will I get a Annual Report?

Powerpole Holdings Limited has sent out a report in July 2003 for the company and an attached understanding the annual report is necessary by law.  It is sufficient by law but does not reflect the true value of s single share.  This Will only be possible when all consolidated companies and entities are audited as one which will cost time and money we do not have.

I am doing my yearly tax return and my accountant wants to know what my shares are worth?

To an accountant they are worth what the financial report can verify that he/she can enter as an decreased asset

value on original purchased cost.  Your accountant needs this to assert capital loss/gain.  To an auditor the values in the financial report have to be verified.

To a holder of shares they are worth "what you can get for them" and the whole stock market works that way.  Many investors who buy public share have paid more than they are worth at one point, but that is the gamble of investing.  It always come to "What you can get".

I had shares in early companies what was the formula and what have I got now?

Are my old shares worth anything?

There are two early Powerpole Companies "Powerpole Pty Ltd" and "Powerpole Developments Pty Ltd" and you still have those shares.  John or Holdings will probably offer to buy them back one day.  The director of these two companies will continue to direct that they win not pay a dividend.  They are still a salable item however and they are worth "WHATEVER YOU CAN GET" at the moment you could not argue a case that they are worth anything.  But what if that company found some value.

What is the formula for my shares given to me?

The formula was invented by John and its not for sharing.  It is designed to be fair, having no regard to personal favor or selection.  All investors were insured an end return on investment via dividend or sales of shares that accounted for the time they had their money in the project.  While connecting all to be of the same final entity, and at the same time returning the equity/ control to John that he had sold off to fund the project since 1992.

How do I sell I shares?

To sell your shares, there are only four basic steps but you have to do them.

  1. Find a Buyer

  2. Collect a cheque

  3. Pay Stamp Duty

  4. Submit transfer to the share register

Powerpole even as " Powerpole Holdings Limited" is an unlisted Public Company, by law it can not publicly trade it's shares.  Powerpole will only be able to trade share if we list on a stock exchange.  The shares price ill again be what the market will accept.  But when we list we have to justify our asking price.

Do I still have an Interest in the Patent?

Investors who came into the project via the purchase of and "Interest in the Patent" do NOT own that "Interest" anymore.  They have substituted that "Interest" to shares in Powerpole Holdings Limited.  These Investors are by far the most substantial group that funded the last four years and all the major developments.  They are the reason we completed development.  Splits, bonus's, Gifts, company shares or interests in the Patent shares, have consequence because price paid on new share never changed an perceived company value, increasing to continually re-value the company at least on a money paid for equity basis.

They have:

  1 Been an opportunity to cash back the original Investment and have free equity. Some Investors have and at one time the value of the company buy sale of shares was 39.9 million.  Some gave shares away but effectively lost nothing.

  2. Were useful, in the formula by John allowing for the compensation of time, ongoing rewards will show in the dividend with an old investor compared to new in perpetuity.

When will the product be launched?  What is stopping it now?

Has it started in Melbourne yet?

No...the trip to Melbourne was to get quotes and proposals to market.

When will it start?

 It will start when money is secured to pay for marketing as quoted. 

Who is doing the Marketing?

Four companies are on a shortlist. 

  1. Clevenger Harvie Edge

  2. George Patterson

  3. Mojo's

  4. Go

Why are we missing Christmas?

The advice from all of the above names was the same,  "Do not Launch a new product at Christmas for it will get lost in the CLUTTER". 

Are the infomercials made?

Air time is more expensive and less available.  Mileage for dollars in response would be much less.  Infomercials will be made when the script or scripts are accepted by the board.  We have several options re-endorsement but selections will be made to suite script by the board.

Will we make anything from the first Sales?

The first dividend will be at best a year away yet.

Who is endorsing it?

 We have the tooling and contractors to produce 100,00 poles $250 million in revenue per year.  We will go to America when we can make more by being there than here.

Will we be able to supply if orders are big?

Quality control will be hard but we will have to, we have no option.  All indications are we can keep materials in front of demand.  Pirates will copy Powerpole.  We will secure degree's of protections when can afford it.

When will we go to America?

Belief is that they will come to us when we succeed.  Lloyds will insure Powerpole.  Printing and PR materials including new wall charts, training video's and instructions manuals will be produced when scripts and endorsee's or models are selected.  We do not have enough money, still looking for 3 to 4 hundred thousand.  We have near $150,00 on promise and other promising leads, but am confident it will come.

Are we a public company yet?

We are a public company but NOT on any exchange.

Do I pay stamp Duty?

Yes... you pay stamp duty about $30.00 per $5000.

Will we have any problems "Going Public"?

A lot of intelligent people will say it is risky to list on the stock exchanged.  Advice is you need more than one product to get excitement. General market downturns can run share price down.  If you are "listed" everything you do is watched and monitored by ASIC an others.  Few would argue it is a good idea when launching a product.  We could have a problem with approval for "listing" but it mostly will depend on the performance of the company.  Directors of Powerpole Holdings Limited are doing everything they can to find out they need to do, in order not to have problems.  We already comply in most areas.  The main hurdle as we can see it is convincing ASIC and the Exchange that we should list at0.20 cents or more.  This challenge is being addressed at the moment.

What do we have to do to go Public?

To go on a "Listed Stock Exchange" you have to have 400 shareholders, you have to have certain assets, to have to have reached certain dollar revenues from sales or be examined.  You have to secure an approval to issue a prospectus.  You must raise the money or give it back.  There is much more.

Why have we not done it already?

We have not applied to list because we are not ready. 

How high could the shares go if "Listed on ASX or others?

The price of Powerpole shares or any share can go is too hard to predict.  John has predictions based on "What if" scenario's but there can never be a guarantee.

Why do we want to go public?

We would want to go public and "List" for a few reasons

  1.  To give shareholders and easy exit point, they can ring up a broker and say sell/buy.

  2.  To raise more money to supply orders.

  3.  To set up Powerpole "hub entities around the World" much money is needed.

  4.  To get accepted value by banks and institutions will not accept now.

The main reason is to make money by trading.