Subscriber Discussion

Why Do OEMs Lie? (Looking At You ENS, LTS, IC Realtime)

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David Delepine
Sep 14, 2018
Brivo • IPVMU Certified

So pretty much every day this week we have had a sales call from one of the above companies... and each of their reps has tried to lie to me. I am flabbergasted at the sheer ignorance/blazeness of these people.

LTS - on multiple occasions have their reps claimed it is not OEM Hikvision. I am blocking every single phone number and email that contacts me from their company. Don’t have time for their BS.

ENS - rep tried to tell me they are “the manufacturer” when I hit her with “you are an OEM” she said “ok, yeah”. First time a Saavytech/Eastern rep has pulled this stunt with me, but at least she admitted the truth when confronted. Here’s a tip, don’t make me call you out on your BS, at that point I have already lost respect for you. Sad because there are some great people at this company… but at least it is not as systemic as the above.

IC Realtime - got a call from a new rep of theirs today… I said “Hello this is David” the rep then launched into a 2 minute (no joke) spiel about how they are revamping, adding tech support, slashing prices, etc… when he finally gave me a chance to get a word in (I had almost hung up on him at this point but was trying my hardest to be patient and polite) and asked why I was no longer purchasing from them, I was very honest. “I only bought 1 Ella unit to test. I already am purchasing name brand Dahua. I know who the OEMs are and who they OEM from. Not interested, but thanks for your call.” He decides to give me a lecture about how they only use Dahua’s housings and everything is else is manufactured by them… and at the point I had had it, he wouldn’t stop talking so I hung up and blocked his number. Done and done.

But seriously people, can we just cut the BS? I never thought I would say this, but can’t they all just act more like Sean Nelson/Nelly Security??? Claim to be a “Wholesaler” “Reseller” “Private Labeler” or something other than what you are not. Those of us in the know will never ever even consider using your product if you are dishonest. I don’t care how cheap, how good, how different you are, if you lie I am done with you.

If you work for one of these companies (or any other OEM) take note of this. People will still buy from you without the smoke and mirrors, dog and pony show, bait and switch, etc. In fact, the people who buy from you will be loyal to you if you are honest and respectful to them. The people who you do end up fooling, will turn on you and become your staunchest opponents if they find out you have been deceiving them. So really think long and hard before trying to take the coward’s/easy way out, and talk out your dairy air.

Rant over, I feel better now.

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UM
Undisclosed Manufacturer #1
Sep 14, 2018

There is a very simple way to get to bring that to a head as seeing is believing. When they say they are the manufacturer say no problem when can I come down and see the factory. Look on Google maps at the addresses and some of these are offices on upper floors of buildings - hardly a manufacturing facility and some a small or industrial warehouse. 

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David Delepine
Sep 14, 2018
Brivo • IPVMU Certified

My problem is I don’t even want to waste the time on these people. As a matter of professional courtesy I try to give every sales person the chance to make their pitch, even if I know I won’t be interested. There are exceptions for when I truly don’t have time, and ultimately it is premised on the idea of mutual respect. I respect you enough to listen and give you a chance, you respect me enough not not insult my intelligence.

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UM
Undisclosed Manufacturer #10
Sep 17, 2018

This is true to a point. There are companies out there that design their products and farm out the production of their product to manufacturing facilities that just build it to their spec. / design. This is a common practice in the industry. there are also manufacturers that may be very good at specific things but in order to have a complete line to sell a customer they farm some pieces out. Example they may make great cameras but never got into manufacturing recorders or storage, so they take a well know OEM of the product hey need to complete their offering and have it labeled as theirs. You can look at this as a negative or a positive. OEM manufactures typically take responsibility for the product they sell you even if it is an OEM and not strictly their product. I don't think you will find any single manufacturer that offers Security Panels, Sensors, Fire, Access Control, and all components of a video system. But there are a few that offer a line that complete. Some of it is OEM, and some of it is theirs. Some of it is Theirs and they actually do the manufacturing, while some of it is theirs and they farm out the production to a 2rd party. Its still their design just not their employees physically assembling the product. If the Manufacturer bought one of these 3rd party production facilities, and the only thing they changed was they put their name on the building would that really make a difference to you as the integrator? I'm Joes security and I am a manufacturer. I have personally designed the panels, and sensors I sell as well as the cameras. I hire 3 production companies to assemble my designs. So am I an OEM to you? If yes, and I buy those 3 production facilities and put Joes security on the sign, am I an OEM to you now? If I decide I want to now sell recorders, because all my camera customers ask for recorders, and I have an OEM put my name on them, am I now someone you don't want to buy from? If I then buy that OEM company and put my name on the sign, does that mean i'm no longer an OEM?, Remember I didn't design the recorders or change anything but the badging on the equipment.  Its simple to throw a company under the bus for OEM, but, its a more complex decision than many of these comments make it out to be. The recent Hik, Dahua debacle has much more to it than a ban for US government use. I hope everyone in our industry is following closely ALL the reasons that this is coming to pass.

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David Delepine
Sep 17, 2018
Brivo • IPVMU Certified

I hold no issue with companies OEMing, my bone of contention is how they represent themselves. Companies that actually are manufacturers and/or product designers are very different from a private labeller. As a distinction, companies who design and manufacture 0% of their products (except maybe their “joes securty” label).

Also I have no contempt for exclusive private label OEMs, just how they represent themselves. When I hear that they “manufacture” their own products, that is not true. Worse if I confront them and say “No Hikua or so and so manufacture’s your products” and they tell me “no we make in usa” (looking at you LTS). That is an out right lie, and deserving on contempt.

I have bought OEM products before, and I am sure I will again. I just want to know up front and be treated with respect. No bait n switch, bs, lies, etc.

JH
John Honovich
Sep 17, 2018
IPVM

Worse if I confront them and say “No Hikua or so and so manufacture’s your products” and they tell me “no we make in usa” (looking at you LTS). That is an out right lie, and deserving on contempt.

Moreover, with the US government ban, the reseller may be breaking the law based on the claim of the 'manufacturer'.

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John Bazyk
Sep 14, 2018
Command Corporation • IPVMU Certified

When we first started selling IP cameras 6 years ago we didn't know the difference. It didn't take long to realize most of the companies selling cameras in the US were just relabeling Hikvision and Dahua. I had a real problem with them being dishonest. Saying they manufacture their own and just using housings. While that's not totally untrue it's not truthful either. A lot of these companies can request specific products from Hikvision and make minor changes to housing and internals. But they're far from actually manufacturing their own product. 

You're right. Agree or disagree with Sean Nelson. Love or hate what he sells. I believe he's an honest and reputable businessman unlike most of the people in his space. The salespeople that call me from his office (just got a call today) are polite and often on-point. 

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UI
Undisclosed Integrator #2
Sep 14, 2018

Try learning a few phrases in Standard Mandarin such as:

I have better contact in China than you.

Your so full of BullSh*t

ECT...

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David Delepine
Sep 14, 2018
Brivo • IPVMU Certified

Gave you an informative and a funny... and threw an agree on there too for good measure.

Now I am gonna have that with a thick accident stuck in my head over the weekend: “I have better contact in China than you”

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RS
Robert Shih
Oct 05, 2018
Independent

If you curse someone out in Chinese, do it in Cantonese. Mandarin is too proper and boring for that sh*t.

My personal favorite:
仆街冚家鏟 - "Puk gai ham gaa caan (soft c like in ciao)"

 

I'll let you guys learn what that means on your own.

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Armando Perez
Oct 08, 2018
Hoosier Security and Security Owners Group • IPVMU Certified

Servant Street Shovel?

RS
Robert Shih
Oct 09, 2018
Independent

No, it means to curse someone to impact the pavement and have their whole family fall to ruin.

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UI
Undisclosed Integrator #3
Sep 14, 2018

We use Dahua but have to quote a HIK project since the client uses HIk in all of their other facilities. It doesn't have to be HIK branded, it just needs to work with HIK apps and software. So I figure LTS is a good option.

 

I call LTS and when I say I need HIK or their brand that is HIk OEM she tells me they have their own R&D department in NJ etc. I was like whatever I know its HIK, just send me the price list.

 

IC Realtime I had the same experience as David. Rep insisted they were made in the USA. It's a shame because ICR probably adds the most value as I believe they use different firmware, etc.

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David Delepine
Sep 14, 2018
Brivo • IPVMU Certified

Out of curiousity, why LTS over the usual ADI/Anixter? I know the oem versions tend to be cheaper, but if you join the dealer programs and do decent volume you can get the name brand with better warranty and take advantage of ADIs longer terms? Not a fan of the big box stores, but at least they are impartial and sometimes better informed.

Or go with a real distributor, someone regional, and work to help each other. You would be surprised at how much some of these companies are willing to do to help you out. Working late, early, weekends... heck some of them will go to such lengths as to get you same day delivery even if they have to throw it in the back of an Uber if they have to. No joke, true story.

Also if you prefer the white label/brandless units you can find them all over. In fact there is this one guy named Nelly... well Nelson but you knkw what I mean ;)

UI
Undisclosed Integrator #3
Sep 17, 2018

We don't usually sell Hik so not interested in becoming a dealer. 

 

On the Dahua side, we have a great relationship with Savvytech,now ENS.

 

But thanks for reminding me about Sean. Forgot all about them.

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MD
Matthew Del Salto
Sep 14, 2018
Hudson Security

Their own 'firmware' is just a reskin of Dahua with their own model numbers. No special sauce added and no less insecure.

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UD
Undisclosed Distributor #11
Sep 17, 2018

I can confirm this. However, after adding a new manufacturer after the Dahua Cybersecurity break out and the record-breaking DDoS attack, we actually did disable P2P and other security flaws in a our firmware...

They flopped! Everyone wanted P2P! Later we ended up switching back to the regular, insecure firmware. Sales picked up but it was too little too late.

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U
Undisclosed #8
Sep 17, 2018

ICR may use slightly modified firmware but it's still crap.  The whole UI is crap and hard to figure out what's what, and to get support you have to put a message up on their support forum.  Or you can wait a few days for a callback after you've left the site of course.  The "analytics" are a joke, the motion sensing alarms for dumb stuff the sun patterns on the building moving though the day.  And then there's the security issue.

Oh, and the sales reps are extremely persistent liars.  

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UI
Undisclosed Integrator #4
Sep 15, 2018

Distributors/Integrators around the USA are forming new spins on how to persuade customers they are not hikua....that hole they dug is so deep.  

The smart hikua USA employees are polishing their resumes...

Find a new manufacturer(s) asap everyone, steer clear of anything made in China. 

This industry is about to be reborn. 

NOTICE: This comment has been moved to its own discussion: This Industry Is About To Be Reborn.

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U
Undisclosed #8
Sep 17, 2018

Had numerous calls from Hik people in the past two months or so wanting to see if they could help on any projects.  The answer was no.  He seemed resigned.

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Michael Miller
Sep 15, 2018

I lost all respect for IC Realtime years ago at a training event when the IC Realtime employee was telling a room full of people there Analog DVR was HD.  Keep in mind this was 10+ years ago and he couldn't understand that just because the DVR had a 1080p output that didn't magically make all the analog cameras HD.

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UI
Undisclosed Integrator #3
Sep 17, 2018

LOL

 

I was at an event and the rep was talking about this dome camera that was stainless steel, heavy duty, designed for use in marine/saltwater applications, etc. I asked if the camera was explosion proof and he looked at me like I was stupid and said he didn't know of any camera that could survive an explosion. 

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JH
John Honovich
Sep 15, 2018
IPVM

David, excellent post, thanks for sharing.

I will disagree somewhat with this:

People will still buy from you without the smoke and mirrors, dog and pony show, bait and switch, etc.

Some people certainly will buy anything from anyone but there are a still a lot of industry people who are fooled by this and never (or at least have not yet found out). Many of these people are not looking and are just focused on the issues immediately in front of them.

Moreover, pretending to be a manufacturer allows a company to charge more: (1) the perception of greater value being offered and (2) reducing the opportunity to switch to the same brand sold by the original manufacturer or other relabellers.

I do believe strongly that OEMs should be required to disclose who provides them their software/equipment in the same way that disclosing ingredients are required for packaged food.

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David Delepine
Sep 15, 2018
Brivo • IPVMU Certified

I have to agree, that the lies do give them the opportunity to increase their margins but so would extreme value add. If they focused on doing more to help their clients like trainings, marketing assistance, extended tech support hours, weekend pickups, etc they could still increase their margins legitimately. Lieing and taking advantage of people is short sighted and makes for terrible business.

As for disclosure I think that would be ideal, but I would be happy if they just dropped the act and cut the BS. My new slogan is “Be like Nelly”!

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U
Undisclosed #5
Sep 15, 2018

Don't most OEM contracts specifically prevent both parties from revealing the partnership between the two entities?

 

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David Delepine
Sep 15, 2018
Brivo • IPVMU Certified

Even if that was the case, they should not lie about being the manufacturer. Also when confronted by the truth, digging a deeper hole by continuing to lie is just foolish. Just say “private label” and “wholesale/resale” etc.

JH
John Honovich
Sep 15, 2018
IPVM

My understanding is that the non-disclosure aspect is almost always required / enforced by the relabeler / pretend manufacturer.

The company actually making the equipment would generally love to be able to publicize their pretend manufacturer customers who are often much better-known brands.

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UD
Undisclosed Distributor #11
Sep 17, 2018

If there was an actual contract. In my experience there is not. Even if there is a contract chances are that it is only enforceable in China. Also, chances are the Chinese manufacturer will breach their own NDA when stealing your largest customer, despite importing and building that brand for them, ha!

China might be changing these days, but when we first brought Hik and Dahua into America there wasn't a lot of "professional" or "corporate" style "partnerships" between the manufacturer and the distributors importing their product.

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UI
Undisclosed Integrator #6
Sep 15, 2018

To quote Jim Rohn from years ago, "I used to say, Liars shouldn't lie, What a sad waste of words that is! I found that liars are supposed to lie.  That's why we call them liars - they lie! What else would you expect them to do?"

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U
Undisclosed #7
Sep 15, 2018
IPVMU Certified

He decides to give me a lecture about how they only use Dahua’s housings...

“Best of breed” US OEM Strategy

Hello, Dahua?  I’d like to order 10000 DH-XXXX gut-less, label-less  bullet cameras.  Yes, housings only!

Hello, Hik? I need to order 10000 DS-XXXX case-less bullet cameras, Yes, guts only!

Hello, Arecont? I need to order 10000 Made in the USA stickers.  Stickers only!

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U
Undisclosed #12
Nov 09, 2019

Go figure...

UI
Undisclosed Integrator #9
Sep 17, 2018

I didn't take this as why do these companies or sales people lie, I thought it was why do sales rep. lie about this subject i.e.  who makes their product.  Answer, because they are ashamed and know the truth will hurt their ability to make the sale.

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Daniel S-T
Oct 04, 2018

Maybe this deserves it's own topic, but I've always felt somewhat the same about alarm monitoring companies, and maybe that's just me.

In my area there are three local companies with their own monitoring center, and then the big guys (Originally just ADT, now like ADT and Vivint and all that). The company I worked for was the bigger local company with our own monitoring center, and we had contracts with a couple smaller companies to monitor for them. When I started in the monitoring center, we were always instructed to make sure not to answer the phone using our company name, but just "Monitoring center, how can I help you?" so customers of XYZ Company don't realize they are not actually monitored by XYZ.

Some companies I find still don't seem to disclose they don't own the monitoring center which monitors their customers. Some are upfront about it, but some will dodge the issue and continue to pretend. 

What do you all feel about that? Maybe it's just me? I don't know.

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John Bazyk
Oct 04, 2018
Command Corporation • IPVMU Certified

I think this is a different topic. It is a good one. 

We do not own our monitoring center. Running an installation and servicing alarm company and running a monitoring center are two different beasts when done correctly. I know some companies have their centers. I think that's a mistake to keep their alarm company and monitoring center under the same umbrella. If we had a million accounts, I would consider opening a monitoring center. 

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Daniel S-T
Oct 04, 2018

I should clarify, I don't think there is anything wrong with not owning a monitoring center, and even with me being a lower level employee, I still know it is quite the expense and there for understand why many companies do not own their monitoring center.

But same as above, I feel like there should be no shame in admitting that to customers, and not trying to pretend you own the monitoring center your signals are going to (Generic 'You', not actually you.)

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John Bazyk
Oct 04, 2018
Command Corporation • IPVMU Certified

It's also the same us selling alarm equipment. Most installers don't disclose that they're buying equipment from a distributor and just reselling it. Everything is private labeled now. We private label everything from door contacts to security systems to motion detectors to card readers on access control to our apps on smartphones. 

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David Delepine
Oct 05, 2018
Brivo • IPVMU Certified

I couldn't agree with you more Daniel!

We are an alarm company that does not own our own central, and I am not ashamed to admit it. When a potential client asks me if we are doing the monitoring, I say "We have a triple redundancy monitoring company that we contract with to provide 24/7 service to our clients." If asked specifically who, I tell them: CMS.

I honestly don't see the point in trying to pretend to be something I am not. Besides it being morally reprehensible, sooner or later it always comes back to bite you in the butt.

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Robert Shih
Oct 05, 2018
Independent

I've never once claimed that we manufactured anything. However, I can't say that there aren't times when the company calls for us to try and hide that we are OEM and to claim that our product is manufactured by ourselves.

Whether or not this gets me reprimanded, I don't really care. I personally would rather work with people who have enough brain cells to rub together to know where our products come from and how to work with them in the first place rather than someone I can casually lie to in the first place.

The integrators I can lie to need would way too much hand holding in the first place. I'm also not looking for lawsuits stemming from product being installed where the law prohibits it to be.

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