Our business model
ESSVE Innovation offers partners flexibility, reduced cost and reduced lead time through a simple licensee model.
Licensee model
At ESSVE Innovation, we primarily operate through a licensee model, empowering partners to either source materials from a supplier or establish their own production. Partners purchase materials directly from the supplier and sell the finished products to their customers. ESSVE Innovation maintains a direct agreement with the partner, earning a license fee for the products.
Benefits of the licensee model:
- Partners have flexibility to choose their own supplier
- Local production reduces shipping costs and lead times
Material suppliers
Many of our partners produce components in-house, acting as their own material suppliers. To facilitate this, ESSVE Innovation provides detailed drawings and expert advice on the tools required for efficient manufacturing during the preparation phase.
The 4-step distributor model
For certain solutions, ESSVE Innovation works with pre-contracted suppliers to provide specific components. In this model:
The partner places an order with ESSVE Innovation
ESSVE Innovation forwards the order to the supplier
Supplier ships the goods directly to the partner, or their customer, and invoices ESSVE Innovation
ESSVE Innovation invoices the partner, covering material cost and license fees
How it all comes together
- Licensing: ESSVE Innovation grants partners a license to use our solutions along with supporting marketing materials
- Efficient production: We ensure efficient, high-quality manufacturing, with goods flowing directly from the supplier to the partner or their customer
- Partner branding: Partners sell the solutions under their own brand, offering innovative, market-ready products to their customers
- Flexible business models: By offering flexible business models and comprehensive support, ESSVE Innovation helps partners bring innovative solutions to market while maintaining efficiency and quality