Anixter CEO Admits Price Deflation and Non-Exclusive Integrator Sales

By: John Honovich, Published on Apr 26, 2017

Anixter's CEO has admitted to (1) price deflation impacting IP camera sales and (2) not always being 'exclusive' with security integrators.

In this note, we look at what Anixter's CEO has gotten wrong about IP camera price deflation and non-exclusive integrator sales.

*******'* *** *** ******** to (*) ***** ********* impacting ** ****** ***** and (*) *** ****** being '*********' **** ******** integrators.

** **** ****, ** look ** **** *******'* CEO *** ****** ***** about ** ****** ***** deflation *** ***-********* ********** sales.

[***************]

Deflation ** ****** *******

*******'* *** ***** ********* of ** ****** ******* as * ******** ****** for ******:

***** **’** ******* **** the ****** ****** ** most ******* ********** ** our ******** ********, ******** sales ****** *** ******** by ******* *** *** price ********* ** ******* product **** ********* ***** products

** ***** ********* ** as ***** * ******* result ** *** **********:

*******, **'** **** ********* that *** * ****** of ***** ******* ** you ***** ***** **, the ********** ** *** cameras ****'* ******* ************ in ****** ***** ************ the ******* ** ******.

Wrong ** ** *******

**** *** **** *** years, ** ******* **** gotten ********* ******:

  • ********** ** ** ************* 1080p ** *** ** 4K
  • *** ** *** ****** (dual *** **** ******** true *** ********* **********)
  • *** ***** ** *** better (***** *** *****, 1/2" ******* ***.)
  • ********* ********** ** *** improved (***** ******, *.***, etc.)

*** ******* **** ** camera ** ********* ****** than * **** ***.

*******, *** ********** **** deflation ** * ******** of *** ********** ** a **********, *** *****, one. ********* ** * function ** ******* ********'* racing **** ***** ** the ******.

Virtually ********* 

** ******* ** *** users, *******'* ***************;

*** ******* ***** *** security ******** [**] **** we **** ********* *********** through ******** *********** *** installers

******, ******, **** ** the **** ****** ******* **** ****:

**'** *** * ****** of **** [*********] **** we've **** ****** ******** with **** **'** *** some ******** **** *** self-integrators.

******* '*********' ******* ****** *** sales *** ** *********** ******, with *******'************, ***** **** **** 'virtually' ** ** **** imagining integrator ***********.

Comments (10)

They will always sell through the integrator....unless it's a large enough deal, then they'll cut them out at a drop of the hat, or at least offer to.  I think in this market it gets harder and harder to justify Anixter's over the top margins.  With IP they make more margin then I do on some sales.

As someone who worked distribution (competitor of Anixter) for a long time, I promise you this is not true. Sure, sometimes we can squeeze 20% on a project we worked really hard on and spent alot of time negotiating, creating demand, driving spec, etc. but that only subsidizes all the other times we got kicked in the teeth by integrators and took a job at 3%. It stung when you tried to drive business to your friendly integrator and lose a deal because they wanted 50% GMR on the material. I can now appreciate every persons position in the chain, consultant, manufacturer, distributor, integrator, end user.

From the times I've seen, Anixter went direct only when the end user insisted to buy direct (self installer) I've never experienced them cutting the integrator intentionally. 

It make sense since they don't want to lose the sale and they won't force the end user to do something he doesn't want to.

Why not test it by calling them up and saying you want to buy some product direct. Don't tell them your an integrator or end user, just say you wan to buy a product and you'll pay cash or CC. I did it before (a long time ago) and I got a quote. Would be interesting to have a few test calls done and see what they say.

There will always be very large end user organizations for whom it just makes sense to pursue direct purchases. If they have the resources to install and maintain large, perhaps integrated, systems what they need is a supplier that can provide a wide spectrum of product at good pricing. It makes no sense to criticize distributors who will sell direct to those end users. 

Rather than making decisions not to sell to those organizations knowing the sales will indeed go to a competitor regardless, Anixter is simply responding to demand. That's not something you "admit to", but rather sound business practice.

Slings and arrows fire at will :-)

I agree that the average 2017 IP camera is radically better than a 2013 one. But the improvements are not the kind of growth drivers like we saw when resolutions go from CIF to 4CIF to megapixel. Or transitioned from MJPEG to MPEG4. That is when we were seeing the slow but steady migration from analog to IP. Sure 4K is cool but 2 MP is fine for most applications.

But the improvements are not the kind of growth drivers like we saw when resolutions go from CIF to 4CIF to megapixel.

I agree that the increase of resolution has not been as important as SD to MP but the resolution increase + the increase in WDR + the increase in low light + the 50-80% decrease in bandwidth are very significant combined.

Yes indeed Anixter is selling straight to utilities and some are self sufficient and others are not self sufficient. Anixter's big push to sell straight through to the utilities is the fact that they bought the "Power Solutions" segment of HD Supply. By doing this the utilities hit higher volume levels and increase their buying power and rebates back on purchases thus massively reducing how much product an integrator can sell to the utilities as they buy the product themselves for projects and service the having the integrator's install said product. This cuts down on margins overall for the integrators. I understand the need for utilities to keep costs down for their customers but at the same time they expect integrators to lower their labor rates as well.

Anixter gives us better prices than anyone else. When local government entities wanted to buy direct in the past, Anixter sent them to us to buy off state term rather than cutting out the integrator.

I know it varies from branch to branch, but the service I receive from Anixter in Ohio is exceptional. 

Technology hasn't changed? - maybe you should look to see if that issue is only with your leading camera line? 

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Related Reports

Milesight Company Profile on Jan 22, 2019
Milesight Technology, a Chinese company building an International branded business, says they are slowly building their presence through a series...
Avigilon Launches 'Renewed Products Program' on Mar 19, 2019
There are lots of 'pre-owned' cars but pre-owned IP cameras? While such programs are common in other industries, in video surveillance, they are...
Undercutting Partners, Arbitech Sells Millions In Unauthorized Axis on Mar 29, 2019
One of integrator's top complaints about Axis is poor margins. An enterprising, ethically questionable distributor is solving that. Inside this...
Closed Cloud Cameras Trashed on May 13, 2019
When you buy a camera, do you own it? Not anymore. In the world of closed cloud cameras, you may think you are buying a camera but all you are...
Axis Will Not Block Resellers on Jun 10, 2019
While Axis generally has strong favorability amongst integrators, the biggest complaint is their channel model, which results in smaller integrator...
Vivotek Revenue Soars on Aug 05, 2019
Vivotek's revenue has soared so far in 2019, growing 45%. Inside this note, we examine import records and see who is driving Vivotek's growth...
Online Video Surveillance Sales Comparison - Amazon, B&H, CDW, LTS, Super Circuits, More on Jul 31, 2019
IPVM has uncovered the key trends and top options being offered across commonly used surveillance sellers. How has the market shifted since we...
Resideo CEO To Step Down on Dec 03, 2019
Resideo's CEO, Mike Nefkins, is stepping down, just 18 months after being brought in to lead the now plagued spin-out. Inside this note, we...
End User Buying Axis At Prices Better Than Axis Gold on Jan 10, 2020
IPVM recently found an integrator contract with an end-user that guaranteed the end user could buy Axis products at a price / discount better than...
Wesco Wins Anixter on Jan 13, 2020
Despite Anixter earlier arguing that Wesco's bid was inferior to CD&R's by nearly 10%, Anixter confirmed that they are taking Wesco's 3.1%...

Most Recent Industry Reports

Hanwha Wisenet X Plus PTRZ Tested on Feb 14, 2020
Hanwha has released their PTRZ camera, the Wisenet X Plus XNV-6081Z, claiming the "modular design allows for easy installation". We bought and...
PRC Warns Against China Video Surveillance Hacks, Hikvision Targeted on Feb 14, 2020
Hackers are targeting China video surveillance manufacturers and systems, according to the PRC's main cyber threat monitoring body. The hackers...
IPVM Conference 2020 on Feb 13, 2020
IPVM is excited to announce our 2020 conference. This is the first and only industry event that will be 100% sponsor-free. Like IPVM online, the...
Bosch Dropping Dahua on Feb 13, 2020
Bosch has confirmed to IPVM that it is in the process of dropping Dahua, over the next year, as both IP camera contract manufacturer and recorder...
BluB0X Alleges Lenel, S2, Software House Are Dinosaurs on Feb 13, 2020
BluB0X is running an ad campaign labeling Lenel, S2, Software House, Honeywell, AMAG and more as dinosaurs: In a follow-up email to IPVM,...
London Live Police Face Recognition Visited on Feb 13, 2020
London police have officially begun using live facial recognition in select areas of the UK capital, sparking significant controversy. IPVM...
Converged vs Dedicated Networks For Surveillance Tutorial on Feb 12, 2020
Use the existing network or deploy a new one? This is a critical choice in designing video surveillance systems. Though 'convergence' was a big...
Monitoreal "Completely Autonomous" Home AI Tested on Feb 12, 2020
Monitoreal claims to allow users to "see the things you want (people, vehicles, animals) and ignore the things you don’t”, using AI to distinguish...
Cisco Video Surveillance Is Dead, Long Live Cisco Meraki Video Surveillance on Feb 11, 2020
A dozen years ago much of the industry thought that Cisco was destined to dominate video surveillance. They stumbled repeatedly, failing. Now it is...
BICSI For IP Video Surveillance Guide on Feb 11, 2020
Spend enough time around networks and eventually someone will mention BICSI, the oft-referenced but only vaguely known standards body prevalent in...