Boycott Anixter, Says 82% Integrators

IPVM, the Wikileaks of the security industry. :)

Ran into them while walking a project about 12 months ago. This happens about every 12 months. They were finishing up their walk-through right before we started ours. I made a phone call to our Anixter rep and the Tri-Ed rep (owned by Anixter? Somehow they are affiliated) and they both 100% denied it. It was a flat out lie, especially when the potential customer said "it's only you and Anixter bidding this job."

Later, we got a phone call from Tri-Ed saying "this was a rogue employee and it won't happen again," except this is the 3rd + time it has happened in the last few years, and every time they say "oh, right, just another rogue employee. Don't worry about it." 

We haven't spent a dollar with them for the past few years and we won't do so in the future.  

These manufacturers clearly are trying to emulate the networking & computing business model in which manufacturers make their products available on an unrestricted open market.

The big problem with that is that the security integration business, while there are some overlaps in the hardware and software used, is apples and oranges to the IT business model: Security integration involves architect & engineer involvement, CAD drawings, cabling infrastructure, poles, conduits, electric, furniture, in-depth knowledge of physical security practices in order to recommend, design, implement and maintain a solution. Selling cameras on the internet will not get these manufacturers far, because the cameras are useless without all the other components listed ( obviously not talking about some mickey-mouse office or corner deli with 3 or 4 cameras doing a DIY - that market is gone already and integrators even bothering to do a sales call at such establishments tend to be wasting their time).

The IT business model is built primarily around "billable-hour professional services". The hardware and software quite often is purchased directly by the end-user under the advice or direction of the IT consultant. That's not feasible in security integration - there are too many moving parts and government licensing agencies and insurance companies involved with security to split the components and the labor in that manner. 

So what Anixter and others are doing is, to me, pointless. They render themselves an irrelevant commodity serving the market for small DIY projects.

Certainly this will be the beginning of the end.   I hope other manufacturers that are thinking about playing both sides of the fence will take notice of the pushback from the channel

In all likelihood this will push Anixter to pursue more direct sales.  I honestly look forward to the opportunity to compete against their telecom cabling sales personnel on a large security project.  Their channel is limited where ours is not.  As integrators we can pick the best product for the opportunity not just plug in items from our line card and hope they work.

i do think pressuring the manufacturers routing through distribution will be more effective.  For those recently complaining about low margins on Axis, their margin would be a bit better without the distributor margin in between.  The value Anixter/Tried/Accutech offer to the manufacturers is logistics, but there is one company far better at this. If I were a manufacturer I would pay Amazon to handle stock.  I am sure the manfacturers could work with Amazon to create preferred and project pricing options for each integrator that are not visible to the public at large.  Amazon Business is slowly heading this way now.  It is nice to receive text updates when equipment arrives, have actual tracking without asking, receive RMAs easily, and have some visibility into stock levels.

Hello 

All product manufacturers will sell pruducts directly. 

Unfortunately they will do it

Maybe we will only do infrastructure services...

We have always sought business partners that aren't also competitors. It's hard to draw absolutes, but for distributors who pursue direct sales (Anixter and others), we do as little business with them as possible, and the same with "open distribution" manufacturers like AXIS, it just doesn't serve our best interest, nor that of most integrators, in my opinion. You can choose direct relationships with manufacturers and there are some distributors and distributor models who I believe make a genuine effort not to sell direct to end users: Scansource and PSA Security among them in my experience.

With all the price pressure from the Orient on all Security Products don't be surprised if more distributors follow the direct sales model.  No one is making any money these days selling CCTV products not even integrators.

Graybar does the same thing.
They sold a large access control job and quoted the customer dealer cost on the controllers.

Now the integrator has no profit for cushion in case the quoted labor goes over.

From 30+ years of experience, all manufacturers DO NOT and WILL NOT sell direct!  We partner with one who doesn't, under any circumstances! Many manufacturers who have jumped on to this slippery slope (over the years) have fallen dramatically and most resulted in their ultimate demise! 

An 82% Boycott is a strong number! This and growth towards a Full Boycott is likely to get their attention and, should change their behavior! If not, they too will ultimately disappear or evolve into something much smaller and insignificant.

I wouldn't mind participating in a private data base of what manufacturers will and will not sell direct and under what circumstances.

Anixter employee denies selling direct to security end users - 'not one product'

I quoted the National Guard a pair of Axis Q6114-E PTZ cameras and mounts yesterday.

2 People quoted it. Me and ADI.

ADI quoted them 200.00 over my cost and I'm a Axis Channel Partner.

.....they did this in another bid here in Florida!  

I have had the opposite experience. Several times in the past few years my Anixter rep has called me to say he has an end user looking to buy. He referred them to us and we made the sale. Two of my better customers were acquired this way. 

The majority of manufactuers in the security industry highly value proper sales channels. Many have a different strategy; 3rd party reps, direct to integrators, exclusively through distribution, or hybrid models. 

Typically, the SI has the best support and best margin within the various sales channel mixes. I highly disagree that SI makes no money on camera hardware anymore. Many of my SI average 40% GM on just the video hardware vs 8% on networking hardware, while the distributor will make 13-25% GM. This is an effect of how manufacturers participate in the channel.

In my experience, if SI is not making 40% GM on video hardware:

1. Their chosen manufacturer has poor channel strategy and support for SI

2. Their target customer vertical is a poor choice 

3. Their sales and marketing strategy and/or competency is poor.

4. Their business model relies on volume vs margin

Interestingly, networking and IT-focused companies who entered the IP Video space were really selling themselves short because 8% margin was status quo. Some still accept this on IP Video products in order to win a bid or because it is still "not their focus", but that leaves money on the table and cameras are more complicated and typically require more support than a switch.

Although, SI must understand the complicated dynamics of such a high profile contract. Typically, whoever did the work and has the deepest relationship has the justified power to run the product through the channel how they want.  If Anixter owns the opportunity, they get to decide what to do. SI should not feel entitled involvement. The issue is that Anixter constantly lies about it and Bosch has a good channel strategy to support  SI involvement. It is almost always worse for the entire channel not to have a certified SI involved and negotiate at least a box sale pass-through no matter what resources/expertise end user claims they have.

If you want to avoid distribution games, it is an immediately fireable offense if anyone at Scansource sells direct to an end user, even if it is a single BNC connector. Unlike almost all major security distributors, Scansource doesnt even have an end user facing sales group.