ADI Asks What Type Of Trunkslammer Are You?

JH
John Honovich
Oct 11, 2016
IPVM

ADI is infamous for being the distributor of choice for trunkslammers.

One expo registration question made that abundantly clear:

So the very top level company revenue is one million dollars?

There is certainly no shame in being a small integrator doing one million dollars but if you are an integrator doing less than $100k (their first two categories), my goodness, are you really even much of an integrator? Moreover, from ADI's perspective, are $1+ million integrators so rare, that they do not even consider segmenting that out?

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Tyler Blake
Oct 11, 2016
BCI Integrated Solutions

These categories should really be:

less than 250k(or 500k)

less than 1mm

less than 5mm

less than 10mm

10mm+

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Brian Rhodes
Oct 11, 2016
IPVMU Certified

Given the typical crowds that sign up to attend ADI Expos, I'm not sure those levels are far off.

(I'm not being mean or snarky.)

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Jon Dillabaugh
Oct 11, 2016
Pro Focus LLC

I would agree, for the most part. I don't know how many companies that do $10mm per year are shopping at ADI.

UI
Undisclosed Integrator #3
Oct 11, 2016

I do, but not for cameras, servers, cable, card access components, or VMS. If I need racks, range extenders, multi-port power supplies, or lower end items they are low hanging fruit due to their web portal. I also occasionally buy door hardware. Their web portal makes it very easy to get quick pricing on items that make up such a small portion of the project.

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UI
Undisclosed Integrator #4
Oct 18, 2016

What are some examples of where we should be buying from then?

UM
Undisclosed Manufacturer #1
Oct 11, 2016

I have been to about 7 ADI expos this year and I can tell you right now these segments are accurate to the level of customers attending the events.

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U
Undisclosed #2
Oct 11, 2016
IPVMU Certified

Seems consistent with other company related questions:

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Greg Hussey
Oct 17, 2016

exactly!

BF
Brad Frailey
Oct 18, 2016
IPVMU Certified

You say there is no shame in being a small integrator but then you slam any integrator that isn't big. I take this as a personal attack on small and startup businesses. As an electrical engineer with 22 years of integration experience I started a company from the ground up with 2 employees. We have grown slow and steady in the past 10 years but in the beginning we would be classified in that lower "insignificant" category that you discount as all trunk slammers. I would put my teams knowledge and abilities much higher than most the large integrators in our areas. We can run circles around them. Remember that in all large businesses, 10% of the people do 90% of the work so big doesn't mean better.

Why is this even a topic of discussion?

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JH
John Honovich
Oct 18, 2016
IPVM

then you slam any integrator that isn't big

Brad, can you point out what specifically I said that, quoting you "slam any integrator that isn't big?"

in the beginning we would be classified in that lower "insignificant" category that you discount as all trunk slammers.

There's an obvious difference between a 6 month old startup and a trunkslammer. My point is that any 'integrator' who is doing under $100,000 per year, unless they are just starting, is hardly an integrator. You simply can't make enough take home after expenses and reselling products on $100k revenue.

If I am 'slamming' anyone, it's ADI who clearly focuses on trunkslammers. And I am not saying it based on sub $100k annual revenue customers alone, but their training as well.

Brad, I think you have misunderstood my point. I do apologize if I gave the impression I was against small integrators. I am not. And if you look at how IPVM is built and priced, it is done on purpose to make it affordable to all integrators, rather than most media / analyst businesses that focus on big companies.

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BF
Brad Frailey
Oct 18, 2016
IPVMU Certified

Hi John. I figured you were mostly directing the topic at ADI but what I took personally was "if you are an integrator doing less than $100k (their first two categories), my goodness, are you really even much of an integrator?"

The first 2 years we did less than $100K and we were a very capable integrator. Maybe we were the exception.

I'm certainly not trying to voice a support for trunk slammers either.

Just curious, does ADI sell to "trunk slammers" more than SES, Anixter, Tri-ed?

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Ethan Ace
Oct 18, 2016

Just by nature of them having more branches with more security product stock, ADI sells more to "trunk slammers" than others. For example, near me, within about 2 hours' drive (which was our service area when I was an integrator), there are about three Tri-Ed branches. There are about ten ADI branches, so it's much more likely that anyone needing parts same day would walk into ADI.

U
Undisclosed #2
Oct 18, 2016
IPVMU Certified

"There are about ten ADI branches, so it's much more likely that anyone needing parts same day would walk into ADI."

He's not asking who sells to more trunkslammers, just who more sells to trunkslammers.

ADI could have more branches but Tri-ed could have cheaper, less professional crap, more for trunkslammers.

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JH
John Honovich
Oct 18, 2016
IPVM

ADI markets as being a 'warehouse' for trunkslammers. I've heard the pitch directly and I do agree that it makes sense. If you operate literally out of your car, ADI is a great resource. Don't stock anything - cameras, recorders, cables, brackets, etc. This saves space, cashflow, etc. When you need it, and only when you need it, go to ADI.

Obviously this does not make sense when you scale, as even small integrations benefit from their own warehouses / stock. But for the true 'trunkslammer', it is a value added service.

CP
Chris Powell
Oct 18, 2016
IPVMU Certified

Twenty years ago when I first met ADI, I was working for a small trunk-slammer. We often did local/regional installations of chains (think Marshals, Family Dollar, Longhorn Steakhouse, etc). ADI was strictly for picking up equipment and materials ordered in by the 'nationals' (like Securitas or Niscayah, etc) who ran jobs for these clients across the country. THEY were the customers that ADI catered to.

For our own jobs, no one could beat SGI or an independent distributor, which Tri-Ed later bought) for walk-in, carry-out, that-day's-project trunk-slammer sales. Had an atmosphere like the corner bar, where everyone knew your name. ( ADI was always too expensive, but were there only when SGI, then Tri-Ed, now Anixter, was out of stock.)

UM
Undisclosed Manufacturer #5
Oct 19, 2016

Stevo and his crew are awesome in Austin. It may seem like a bar, but they have great customer service skills!

UM
Undisclosed Manufacturer #6
Oct 20, 2016

Well, if you do the maths ... being an integrator doing $100k does seem plausible, if not downright rewarding. Especially if you were to fire employees 2 and 3.

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Armando Perez
Oct 21, 2016
Hoosier Security and Security Owners Group • IPVMU Certified

$500/month for an employee? You must be using knightscope robots!

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UI
Undisclosed Integrator #7
Oct 21, 2016

No, he just attended Trump University and knows how to keep labor costs down...

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Armando Perez
Oct 21, 2016
Hoosier Security and Security Owners Group • IPVMU Certified

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UI
Undisclosed Integrator #3
Oct 22, 2016

Let us be fair. UM6 a manufacturer who obviously makes inexpensive product by making use of inexpensive labor. UM6 is not used to paying actual labor rates. Welcome to the IPVM forum Arecont!

U
Undisclosed #2
Oct 21, 2016
IPVMU Certified

So what I hear you saying is

"Start your own $100,000 Security Integrator Firm, for just $4 !!!"

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Armando Perez
Oct 21, 2016
Hoosier Security and Security Owners Group • IPVMU Certified

This brings up a good question... At what point is an integration business viable?

Ive always said it was somewhere between 2 and 2.5M in revenue.

Between insurance, vehicles, tools, employee benefits, actual W2 employees, etc, it seems very difficult to make it work in this industry below that without alot of RMR or some other advantage.

anyone care to share their thoughts without alienating other members?

NOTICE: This comment has been moved to its own discussion: How Much Annual Revenue Is Needed To Make An Integration Business Viable?

UI
Undisclosed Integrator #8
Oct 24, 2016

I believe ADI's question is just a result of knowing the segment of their market who attends the expo. ADI knows the high revenue integrators exist...they have them as accounts. The fact that their survey question has smaller revenue options on it is probably because their larger accounts do not attend the expo.

My guess is the larger accounts don't need to attend the ADI expo. Either their training is provided in-house and their technicians don't waste the time at the expo OR their training is provided directly by the manufacturer since they are such a large integrator. The training classes at the ADI expo reflect this...they are usually entry level classes designed to start you selling one product or another, and there is nothing wrong with that.

If you think ADI does not have large accounts over 1 million, I beg to differ. I can only provide one example but I'm sure there are others. I currently have a part time job working security on the weekends at a large pharmaceutical plant. My business is my weekly gig and I use the weekend income to pay off my students loans. The security integrator who services our plant is a very large company with accounts at concert venues, sports stadiums, and other pharmaceutical companies in the surrounding three states. Based on our contract, if they had only 10 other clients like us, they would easily make $1 million on service contracts alone. Do you know where their receipts come from when they install HES door strikes, Axis cameras, wiring, etc? That's right, ADI.

I think ADI is smart with their business model. They offer the convenience of a local branch with design assistance and other value added services. The prices are okay but there are breaks as you do more volume. As for the small integrators, I'm sure ADI knows that 1 in xxx will become that large integrator and I'll bet they will be happy to have started the relationship early when the integrator was making less than $100,000 a year.

I left this post as undisclosed not because I work for ADI or have any interest in them other than being a customer, but for the purpose of not disclosing the security company I work for nor the integrator that services them without their permission.

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JH
John Honovich
Oct 24, 2016
IPVM

8, thanks for the detailed feedback!

I know they do business with larger accounts, though I am curious how well / profitable they do with them, given that they have a lot more competition from Anixter, Scansource and other large distributors for that tier, given that ADI's strongest value add services - local branches / inventory are not as powerful for larger integrators.

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Mark Kirkeby
Oct 24, 2016

The entire term trunk slammer just pisses me off,

I have worked for sizable companies in the past , and have never been able to deliver the customer service, or quality that I do as a small company, when my company,my capability and years of experience are boiled down to a single derogatory term, show the measure of the people that are writing that trash. The quality of service is NOT dependant on my balance sheet! period, none of you can argue this. I am a small business, I am living the American dream , and I have absolutely NO desire to grow into a big company. Been there Done that , and I know how many skeletons get piled in the closet to achieve that level of success. I have called guys trunk slammers in the past , but I have always referred to guys that do quick installs for quick profit and do not look back, That is not how I do business, and I am proud as F**K of what my bottom line looks like each year. This entire thread is meant to elicit hate mongering, and poke fun at small integrators. It does not matter if I do business with ADI, or as a Bosch Dealer, you have already decided that purchasing from the most readily available local low voltage distributors make for trunk slammers, Shame on all of you elitist corporate drones.

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UI
Undisclosed Integrator #7
Oct 24, 2016

Well said Mark! However well some of small frys do, you do have to admit that some small percentage of small integrators are just that, trunkslammers.

I also think that my small size allows me much more freedoms than other large integrators. I can choose to install any product that I feel is appropriate for my given project and am not married to a given set of product lines.

I also don't have the anchor of multiple support staff members needed for the larger firm to exist. I can answer my own phone calls and emails, thank you very much.

I also like the peace of mind knowing that everything that is done in my name meets my approval. I don't have to worry about someone cutting corners.

That said, I don't take offense to the term of trunkslammer, because I don't see myself as that and I honestly don't think others are targeting the good guys like you and I when they use the term. A trunkslammer wouldn't take on five and six figure projects. They are happy in the three to low four figure projects that I consider filler work between larger projects.

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