Anixter End User Sales Troubles

Good...their nonsense is coming back to bite them in the butt. If an enduser comes for help, hit them in the wallet.

Interesting comments about Anixter selling direct.  I have a relationship with a former Anixter regional sales manager who has a sterling reputation, and he has told me on many occasions that there is a strict edict in place against selling direct. 

I was also told by one of their outside sale staff that he lost a major order for an industrial customer who wanted to buy security products directly from Anixter, but who was told they had to buy through an integrator. 

I am not questioning the posted comments, but perhaps there are some loose policies that allow some Anixter personnel to bend the rules on occasion.  

I understand why this is a big deal to distributors.  I get that.  However, as an end user I find Anixter's prices to be well above what I can find elsewhere online.  Only when absolutely necessary do we buy from them, normally when we need something fast and normally just for wire.  So are they giving that big of a discount to distributors (comparable to what I find online elsewhere) or what?

Another question is whether this is really an Anixter "thing" or an end user buying for themselves "thing"?

It's one thing for a distributor to sell direct but a whole other thing when a mfg does it.  Take for instance AXIS, they claim to have a clean channel but that is as far from the truth as you can get.  You just have to look at one of their largest accounts, Target (180K+ cameras) Target is buying the cameras from Anixter and not an SI. This was not Anixter's but AXIS arrangement with Target. They may list a so called reseller somewhere but thats just good old smoke and mirrors.     Also, don't forget all of the other avenues which AXIS and other mfg's turn a blind eye to...B&H Photo, Amazon...the list is huge! If they need to cough up better margins to win a deal, they will, and without any hesitation.

How is an SI supposed to make a buck when the distributors and manufacturers keep cutting us out of the business.

Maybe the answer from a SI's perspective is to not support (or lead with when having influence) products which are sold through Anixter ? Genetec, Avigilon, Qognify,S2 and many other Tier 1 products are not sold through Anixter. If one truly has the ability to drive product selection, one should make sure that they do their best to think through scenarios where a distributor such as Anixter could undercut them. Comments ? 

Integrators need to stand together and stop supporting distribution that sells directly to our end users.  Our buying power collectively can make an impact.  

After three years of running the Tri-Ed and Anixter businesses separately, 2018 will be a year of consolidation that is already starting. I believe that they will finally have Tri-Ed brass run all security products and consolidate call centers and distribution teams and separate Data com from Security. No company of this size will double pay for too much longer. I believe this will slow down the direct business as the Tri-Ed brass has been getting there butts handed to them due to these Anixter practices.

In the interim, here are some practices that integrators can use to keep distributors from infiltrating your accounts.

1. Never give your contact the name of the project you are working on. (Call every project warehouse)

2. Never drop ship product directly to the site. (Distributors pack there boxes with sales flyers).

3. Make the distributor sign an NDA for any information on your account. 

Been there, done that, been burned. I won't use Anixter unless its an emergency that bails my customer out. The Northern Video > Tri-Ed > Anixter mix is a nasty one.

I've lost business to ADI with a school district :(

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.

That's because a lot of integrators rip off their customers. I've seen it so many times when they add 50% to the product cost. I'm not surprised that customers want to save some money

Tom....varies. I see lower margins for public bid versus negotiated direct sales.  As low as 15% on bid work to 40% on direct sales.  Don't know if there are any industry guidelines....perhaps IPVM has done a recent survey?

If you are providing value added services and expertise you shouldn’t have to Match online prices.  What vertical markets are you selling into ? 

7-12% margin on items will put in the ballpark we have seen.  Customers will price shop amazon and google and expect it to be in the same ballpark.  Most will pay a little more then online pricing but anything more then 10% and they will cause a headache.  Products are a commodity now, and the only thing you can sell is the service.  Its harsh, not good for the industry but its the new reality. 

Just seeing this thread now but I suspect the discussion is still valid. I can only speak to my 10 years of working with Anixter (we also buy through CDW and others both directly and through integrators). I couldn't disagree more with the premise that Anixter is at fault here.

First, although I am listed as an end-user we are in fact a self integrator which sub contracts to other integrators. We have requested quotes for products that Anixter carries and products that Anixter does not sell at all (eg Genetec). In every case the decision to sell is the manufacturers decision NOT Anixter.

In some cases the manufacturer recognizes us as a self integrator and allowed Anixter to sell to us directly. In other cases (Milestone) the manufacturer requires Anixter to include an intgrator and sell through the integrator. In still other cases (axis) the mfr already sells directly to end users.

In every case, it is the mfr. setting the rules. In my experience Anixter has followed those rules. In the case of Genetec Anixter, having NO chance of reselling the product, NOT ONLY referred us to an integrator who could resell genetec they facilitated meetings with us, the integrator and Genetec knowing they could not make a nickel on the sale if we choose genetec.

For Milestone Anixter made us designate an integrator and the quotes go through the integrator who adds their margin. Turns out integrators on the GSA schedule have rules that the can't offer a lower margin than they give to the feds. So the integrator adds their margin and that is our cost.

Of course Axis sells direct to end users so Anixter sells Axis direct to us. All of these are manufacturer decisions with which Anixter, in my experience, has been scrupulously compliant.

NOTICE: This comment has been moved to its own discussion: Anixter Is Not At Fault For Selling Direct, It's The Manufacturer's Decision