Dahua NA Consolidates Rep Firms Led By Ex-FLIR Team

By IPVM Team, Published Aug 01, 2018, 12:13pm EDT

When Dahua acquired Lorex / FLIR SMB, Dahua NA had 11 manufacturer rep firms and FLIR had another 6. Now, Dahua NA, led by the ex-FLIR team, has reduced their rep firms from 17 to 6.

Inside this note, we examine the move, share feedback from Dahua and what this means for the company.

Changes ********

***** ***** ******* *** has * ************ *** firms, * ********** **** FLIR, * (********) ******** from *****: 

  • *************** **
  • ******** *** ***** ******* US [****** - *** has ******* *****/**** *** reps ******* ***.]
  • ******** ****************, ***** ****, ***** Lakes ******, ***-********
  • **** [**** ** ****** available], ******
  • *********, *** ****, ***** Jersey
  • ***********, *** *******

***** ********* ** ****:

*** ******* **** **** to *********** *** ******** FLIR ******* *** ***** business ****** *******, *** *** to *** **********. **** will ***** *** ******* within ***** ******* ******* gaps.

*** ****** **** ** easier ** ****** **** both * ***** ********** and ** ************** ********** than ******. ***** **** also ****** **** ********* from ***** *** ****** as ***** ****** **** will ** ***********.

Ex-FLIR ******* *****

**** *****'* ****, *** most ******* ******** ** this ***** *** *** ex-FLIR ****, ****** ******** by ***** ** *** ******* Dahua ***** *******, **** notably ***** **** *** *** made ** ** ***** *** all ***** ***** *******. **********, *****, *** years, *** ** ** of ***** ** ***** America, * ******* ********** despite ***** ******** *** rapid ******.

**** **** ** ** and all *** *** ** the ****** **** *** firms ********, **** ** a ***** ****** ***** is ******** *** ******** FLIR **** ** ******* their ***** ********. ***** how **** *****'* ***** organization *** **********, **** is * ***** ***********. Now, **** ******* ** be **** ** *** far **** *** ** inside ** *****, ***** the *********** ********** ******* manufacturers *** ****** ** the **.

Tough *** *** *****

*** **** * ***** have **** ****** ********* for *** ***** *** this ** **** *** latest *******. ******* ******* prices *** ************* ** companies, ***** *** *** fewer ********* ***** ************ rep ***** *** ********** to ******** ******* *******. Unless *** ***** ***** is * *** **** of **** ******** **** can ****** ************ *** firms, **** ***** **** continue ** **** ******** pressures.

Comments (11)

Can someone explain to me how Rep Firms work in the US. Being from Australia we tend to market our own products as manufacturers and use distributors to hold stock and sell to the installer base. I know our population is a lot smaller than the U.S. but I am not sure how this extra layer is beneficial.

Every rep firm I have dealt with sucks. Most of the time they just try to ride the coattails of successful companies like ours and attempt to take credit in the form of monetary compensation from manufacturers for our success. Why manufacturers continue to use them is beyond me. Most rep firms I have dealt with make their companies look bad. When I find out I have to work with a rep firm for support I typically walk away.

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.

John, 

Your analogy is very accurate. We use this model and our number one reason is the fact that most rep firms have long standing relationships with integrators and specifiers in their regions. Our philosophy is the rep firm gets the integrator interested and in our case we use our Sales/Engineers to come in along side and assist closing the deal. These Sale/Engineers for us are kind of a hybrid type, they can "suit" up and handle a demo to any audience or can turn into a field support engineer and assist with local issues. We have found this model to be very successful and I don't foresee in the near future us reverting back to a traditional direct sales model but see us expanding our field support team. 

 

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.  

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.

Keith, that is an interesting comparison! I never thought of it that way and I don't disagree :)

 

Just to Clarify, I am all for print and e-ads.  I am not knocking it at all. Just making a point that various forms do work and I feel 5-10% commission does go a long way for many manufacturers as proven by growth, consistent relationships to maintain existing business as well as new exposure for new business revenue. There are some washes as sometimes we do get paid on stuff we had little to do with but many times we spend hours, weeks even months on projects to come out empty handed for whatever reason and this costs the manufacturer nothing as opposed to a direct salaried employee with expenses. We work well alone in the field as well as alongside our factory direct sales managers.  

I do know that they hired rep firms earlier this year and went on the Top Golf tour with all of them to promote their product and then earlier this week fired some of them last minute. With the addition of Dahua to rep firms this adds to the multiple video products they already represent. My guess is some of the smaller video manufacturers will also make a change to other rep firms as a result of this.

Update: LRG is no longer repping Dahua/FLIR. LRG is repping Vivotek.

Locally it went from RW Kuntz to LRG back to RW Kuntz in a short order. Really strange.

To clarify further- LRG has been a Vivotek rep partner since 2010 and simply elected not to transition from FLIR to Dahua so the new Executive Management team has welcomed back part of the legacy Dahua rep network. We still have friends among both the FLIR and Dahua sales teams and wish them all the best.

Thanks IPVM for helping keep all in the know!

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