Anixter End User Sales Troubles

Happening right now on a large school project we are working on.  We introduced the customer to the product, then they went to Anixter to buy demo gear.  Now we are competing against them directly on $300,000 worth of gear.  They stated the customer said they did not have an integrator working on the account, even though Anixter knows we work with the district and never called us to ask. And of course the school is going to say this.  I hope they have fun hiring installers to go put it in. If we sold it now (after they sold it and their normal markup from their wholesale price), we would make less than 7%.  The least they could have done is sold the demo at MSRP. This forces me to sell competing products so the manufacturer that doesn't have a backbone to call them out and fix it will lose all the sales we have with our other customers in the future.  

It is not clear if that 98% number is based on Anixter tracking and measuring how much they sell to end users or if it was simply to make the point that, relatively speaking, Anixter does not sell much to end users.

If simply making a point, the correct usage is “99%” ;)

Here in Seattle, every "big" distributor sells direct to end users.  They all have a "Demand Creation Group," and I get it, they can't just rely on integrators for business.  I've met with all of their sales people and most are just fine, and admit it has and will continue to happen with certain inside sales people because the end user just "doesn't need an integrator."  So they think.

Then there's Anixter.  Who quote the highest prices to the integrator AND sell direct to end users, LOL.  We've caught them with direct Anixter shipments at the end user offices.  "It won't happen again."  "It was a rogue."  But it still continues.

Complete snakes, without a disciplined, unified approach as a company.

All you can do is choose the lesser of evils.  For Seattle, that means don't bother with Anixter.

Make no mistake. The manufacturers who do business with Anixter are equally complicit. In the 21st Century "quarter to quarter" business world we live in - the manufacturers are well aware of what's going on. Understand the landscape and work around it. Use products not available thru Anixter, join PSA - and compete. Compete and win with Service, experience, and your knowledge. 

We buy from Anixter.  We also buy from ADI and Scansource.  The main reason we buy from Anixter is the 90 payment terms we were able to negotiate. As their prices are slightly higher then ADI or Scansource.  Regarding the direct selling.   They definitely do.   There posture is if you are an integrator who actively does business with them they won't sell direct to your customers or potential customers who are in need of an integrator (usually I get the referral from them), however, if its a customer that has an integrator, but that integrator doesn't buy or is unwilling to buy from Anixter then they will aggressively sell direct.  I don't think this model has negatively impacted my business.

Our branch wines and dines the end user with golf games, lunches, etc.

This is nothing new. Distributors and manufacturers have been selling direct to end users for decades. They will do what they have to to make the quotas and commissions with impunity; dealers just get in the way. In many projects over the years, I've specified the product, demoed the product, proposed the solution only to have the customer sold direct. Sometimes those (ex) customers have the balls to ask us to install the system they just purchased!. Needless to say, I have become that brands worst outside salesman and 'voted with my pocketbook' on subsequent projects. No manufacturer can afford to be a prima donna any more--their brand and product just ain't that "special". Only two manufacturers in my 65 years of doing this stand out as reputable. Dolby and the old Eventide. Either one would place a dealer on "permanent backorder" if they got a hint of slimy behavior. Sadly, those times are past as well.

Below you will find the NYS Office of General Services Security Solution contract number and the list of all the Security Manufacturers that Axinter has position to sale direct to all NYS & NYC Agencies and also position themselves whereas no one can voucher or qualify there Security contract direct sales.

BELOW IS ANIXTER NYS SECURITY CONTRACT NUMBER AND THE STATE SECURITY CONTRACT WEBSITE THAT VALIDATES ANIXTER SECURITY CONTRACT:

 https://www.ogs.ny.gov/purchase/snt/awardnotes/7720120191can.HTM

NYS Contract #PT63201

Anixter, Inc.

325 Washington Avenue

Albany, NY 12205

Fed ID #: 36-1361285

NYS Vendor ID #: 1000004825

Administrator Daniel Olguin

Tel: 480-293-2359

Mob: 480-240-8337

daniel.olguin@anixter.com

www.anixter.com

The products below are listed on Anixter NYS Security Solution contract that allows every NYC and NYS "END USERS" to purchase in huge quantities DIRECTLY.

2N Telecom, Addco, Alpha Tech, Altronix, APC, Apollo Vid, Arecon VI, Arrow Lock, Assa, Axis, Belden, Blonder Tongue, Bogen, Bosch, Burgess CD, Ceeco, Code Blue, CohuHD Costar, Commscope Uniprise, Comnet, Compu-link, Corbin Rus, Corning, CPI, Cyberdata, Dedicated B, Digital Watchdog, Ditek, Dotworkz, Eastern Wire, Erico, Exacq Tech, Firetide, FLIR, Fluidmesh, Gaitronics, Gallagher, Garretcom, Genetec, Glynn-Johnson, HES, HID, Hudson Video, Immersion, Imron, Infinera, Infinias, Inova, Interlogix, Iomnis, Ipconfigure, IQINVISION, Kaba Accss, KBC Network, Keyscan, LCN Closer, Lifesafe PW, Lynn Electric, Medeco HIG, Microsem, Milestone, Mobotix, Norton, NVT, ONSSI, Optelecom, Orion, Panasonic, Panduit, Pelco, Pixel Velocity, Raytec, Rf Codein, Rixon Doo, Safepoint, Samsung, Sargent, Securitron, Sensys, Sony, Speco Tech, Systimax, Talk-A-Phone, Tappan Wire, Tote Vision, Transition, Uinversal Electric, Valcom, Veracity, Verint, Viavi Solutions, VideoIQ, Viking Ele, Vivotek, Von Duprin, West Penn, Wheelock, Wire Mold,
Wrightline, Xtralis, Yale Security

This is a contract that many System Integrators like myself are up against with Anixter and I still can't understand the logistic as to why Anixter would position themselves to sell directly to the "END USER" and put us integrators in a position where we can't be competitive with and another way that they position themselves to sale directly to your end-user is when you provide your customers information via any project registration, so unless I really have to purchase from them, that would be the only reason they get my business.