Dahua NA Consolidates Rep Firms Led By Ex-FLIR Team

Tony, the economic problem that rep firms serve is providing lower cost regional sales and marketing than what the manufacturer could do with just their own employees. The manufacturer rep firm represents say 6 to 10 different manufacturers (say 1 from cameras, 1 from VMS, 1 from networking, 1 from wireless, etc.), allowing each manufacturer to effectively have a 'fractional' sales team. Instead of paying for additional salespeople in a region, they pay 5 - 10% of sales in that region to the rep firm.

Moreover, good rep firms have strong local relationships and can help win deals that the manufacturer would not otherwise have the connections or credibility to win. A lot of them have been in their local market doing this for 20, 30 years or more.

Hi Tony,

Just like anything in life, you will have good and bad. There will always be some Rep Firms who do not do enough work or offer enough support. But overall, Most Rep Firms put in an effort to achieve results and make money. To sit and collect a check may work for a short period for some, but just as most people are wanting to earn more, they do put the work in and wear the hats of their manufacturers with pride as they are vested financially and time wise. I have owned and operated my Rep Firm going on 15 years now and worked for 2 prior. Almost every year we have grown our lines revenues. The cost of an ad in a magazine is sometimes more than the check written to rep firms for constant and more direct exposure in a region and dealer base. Every Product or Solution is different, some require more attention, more technical support, hands on training, demos to close the sale. Some also require after the sale support. For Dealers, most rep firms are able to do the demo with their own gear at no cost to the Dealer (meaning they do not have to buy demo gear themselves). We do this on a weekly basis with Dealers and their End-Users. 5% for most manufacturers is a cost of doing business. As John Mentioned, we also get Synergy with our other lines. Many times we get a lead from one line that allows us to pitch 2 or more other products to make the project work more seamlessly and offer one stop shop for support. I understand the Undisclosed Integrator's response as some firms do not offer the same level or support or ethics as others. Through the 15 years I have built friendships with both customers and manufacturers that go beyond the industry as whole. This also creates a strong environment for all and higher level of trust. Hope this reply offers you some helpful insight about Rep Firms.