ADI Sells Direct Via E-Retailers, Should Amazon Buy Them?

Surveillent is another one of a string of direct resellers on the internet that purchase from ADI and sell direct:

ADI's 'Elves' Selling Direct on Amazon

Buy From B&H, Ship Direct From ADI

They've been around for a number of years using that model.

The question re: if Amazon should buy ADI, do you also mean that ADI should drop the 'sales only to professionals' requirement and sell direct to public?

do you also mean that ADI should drop the 'sales only to professionals' requirement and sell direct to public?

Not at all, set it up so only businesses who are registered with Amazon as Integrators are able to purchase through Amazon from the ADI line of products. 

The Amazon B2B program works very well for us.

Amazon will never buy adi, they will just go past them as they do now and source from the manufacturs.  Every distributor in telecom and cctv sells to etailers and drop ships for them. We do the same thing, and with our purchasing volume, other dealers buy from us as we sell cheaper then they can get direct from the distributor.  Also many non industry or sister industry companies buy products from us without having to create accounts and all that hassle from disty.

ADI's revenue is way down because the average ticket price for a camera being bought now is what? $100-150 when previously it was $350-500 a few years back. They just cannot scale the unit volume to make up for the decrease in ticket price. Just because cameras are cheaper doesn't mean customers are suddenly doubling how many they are buying. The areas of coverage haven't changed and a lot of the SMB businesses are becoming more virtual and nimble rather than sticking as much capital in expensive RE to protect. Their own Wbox brand probably isn't helping either when the cost of Wbox parts are often times 50-100% less than a traditional manufacturer. They're slitting their own throat.

The second issue is that Honeywell intrusion is in the toilet this year by double digits. We cover several states and several metros and the recurring theme we have seen is that integrators are winning at the top of the food chain selling against legacy Lenel with the other mercury partners, whether that's Pro-Watch/RS2/S2/Avigilon/Whatever and the lower/middle portion of the commercial intrusion/access control market is being gobbled up by DMP. The issues with the camera market have already been discussed here so it's sort of beating a dead horse.

Fire Alarm is relatively unchanged but it's the least innovative product out there and likely won't change anytime soon unless code/laws change significantly.