LTS Selling Direct, Cutting Out Dealers
LTS, a sizeable relabler / distributor, is selling directly to end users below dealer cost, undercutting its own partners, public records obtained by IPVM confirm.
An end user who bought direct from LTS told the LTS partner "I feel bad they're undercutting you so much", but it's "hard to say no" to prices "too aggressive to ignore".
Manufacturers and distributors selling direct is a long-debated issue. In this post, IPVM examines this case and what this shows about the industry.
School **** ********
** *** ****, * ****** "**** a *** ******" *** ******* ** buy ** *******, ********** *******, ********* ** **********-*********** ***** ********,*** **** ** *********** ***' *** VS ***** (*********-**) ******* **** *** ****-*********:
* ******** [*** *** ****] * bit ***** **** *** ***** ** with ********* *** *****, *** *** industry ** * ***** ** ******** upon ********* *** *****. *turned *** ****** **** *** *** ** **** ********* **** ******* ** *** and they put together some information in their upcoming budget for it. [emphasis added]
*** ******* *** ********* *******, ******* says.
Dealer **** $*** *** ******, ****** ****** ****** $*** ****
****** ***** ******** **** *** ******* them $*** *** **** ******.
****** ***** ******** ********** ****** *** school $*** *** ******, * **% markup, ********* ** * ***** ** sent ****:
LTS ************ ***** ****** ** $*** *** ******
*** ****** ****** *** ***** ******** the ******'* ** (*********-**) *** ***** directed ** ***'******** *******.
*** ****** *** **** ******* ** the ****** *** **** $*** ****, according ** ** *** ***** **** obtained **** * ****** ******* *******:
**** *** **** ***** ***' *** dealer **** ** $*** *** ******. "We *** **** **** ** *** in * ****", ** *** ******* manager **** *** ******. ***** *** substantial *******, *** ****** ***** *** over *** *** ******.
"I *** *******", ********** *******
****** ***** ********'* ******* **** ** was "*******" ** ** ****** ** have **** **** $* ******* ** purchase ****** ** *** **** *** years, ****** **** *** ********** ** LTS **** *******:
I *** ******* because LTS relies on their dealer network to sell and integrate their products. I was ********* ***** **** ** ******* at the time because it was a very low cost alternative to end users attracted to Hikvision or even Dahua [...] I've literally **** **** $* ******* ** ******** ****** ** *** since I started my business with them [emphasis added]
LTS ********* ** ******* ** *** ****
**** ***** *** ******* **-****** **** was ********, *** ***** **** ********* to ******* *** ******* ** *** school ** ***** *****, *.*. ******* the ****** * "******* *****" ** July ****:
*** ******* *** ****** * ***** Friday **** ** ******** ****:
"We'll ** ******* ***", ***** "*** ********** ** ******"
*** **** ****** *** **** ****** cameras **** *** ****** ***** ** 2023, ****** ******* ****.
"**'** ** ******* *** ******* **** LTS" ******* ***** ***** *** "*** aggressive ** ******", * ****** ******** told ******* ** * ******** ** email:
"I **** *** ****’** ************ *** ** ****": *** ****
"* **** *** ****’** ************ *** so **** ** *****", *** ****** official ***** ** ******* ***** **** day:
Selling ****** * ****** ******* *** ***********
************* ******* ****** ** * ****** problem *** ***********,********* ** * **** **** ******,**** ****** */* *********** ** * "moderate" ** "****" *********** *****:
Not * ************
*** ** *** * *************** ******* ******** ******** ** ***/*******, its *** ***** **** ********* ** IPVM, ******* "***'* **** ** ** sell *** **** ********** ******** **** a **** *****-*********** *****".
*** ******* ****** ******* ******** *** company ** ********** *** *** *****. However, *** ***** ********* *** *** dealer *******. *** ***** **** ****** primarily ** **** ******* *******, **** wrote *** **** ******* ** *** *******.
LTS ** ********
*** *** *** ******* ** ****'* three ******** ******** *** *******; **** first ******* *** ** ***, **** than * **** ***, ** ***** 26.
****,
**** ***** *****'* **** *** **** very ***********; *** ** *** ***** would **** ***** *** *** **** such * *** ***** *** **** when **** **** **** ***** ****** cost **? ** **** *** ******* profits, **** **** * *** ** it ****** ** *** *****.
** ********** **** ********** **** **** has **** **** *** *********** ** selling ** *** *** **** ** roughly *** **** ***** **** * can *** ** *** **** *** same ***********.
**** *** **** ** **** *** as * ***** **********! :) **'* a ***** *****, * ***'* **** why **** **** **** ****** ** sell ** **** * *** ***** point. ** **** **** ******** **** the ****** **** *** ******* ** dealers ** ***** *********** *** * distributor (*.*., $*** ** *** ******, $159 ** *** ****** ******* * markup ** **%). ** *** ********** assume *** ** ***** ****** ***** selling ** $***, ** **** *** doubling *** ***** ** * ****** over **** **** ***?
******. * **** * **** **** seeing **** ****-** **** *** ****** of ******** ** ** **** ***********, WESCO/Anixter/AccuTech/Graybar, ***. ** * *** ** cases ********* **** ****** ********/***** **** this *******, *** *********** ******* *** in *** ****** ******.
** **** ******** **.
*** ****** ******* **** *** ****, so *** ***** **** ******** *** ? **'* *** **** *** ***** the ***-****, *** *** ******** *** Integrators ** ** *** *******.
*** **** *** ** ***** ***** from *** *********** ** *** ** that *** ****** ***** **** *** an ********* ** *** *** ******* already, *** **** *** ****** ****** the ******* ** ****** ** ***** space **** *** ********* ** ******* new ********.
****** ***, ** *** * ***** sighted **** ** ***** ***.
* *** ******** ** * ********* who ***** ** ******* ** *** system ** *******. **** ******* *** frustrating. * ******* *** *** '****' router ** ** ********** ***** *** it ******. *** **** ******** ***** the ****** **** ** ******* *****.
*** **** ******** ***** *** ****** were ** ******* *****.
***** ******** **** ** ***? *** if ** *** **** ***? ********** ports ** **** * *** *** hopefully ********** ******* ********, ************* ****** (**** **********, ****, ***, VPN) ***** ********** ****
***. **** *** **** **** *** years ***.
** *** *** ****** **** *** the **************, *** ** *** ******** because **** *** ***** ****** ************** for *** ****** * ***. ** if **** *** ** **** ** solve ***** ******, ** ** ******** the ******* ** *** ******. *** even * ******* ** ***** *** router ****** ** **** * **** of **** ***** *** *** ***** routers.
****'* ***** ** * *** ** an ********** ****** ******* ** **** 'Put ** **** *** ******** *** in.' ***** * ***. **** ** got *** **** * **** **'* have ** *** ********* ** **** the ***** *** ******* *** *** the **** ***, **** **** * was ******* *** ***, **** ****** the *** *** **** **. ** worked. ***** **** *** ***** * was ******* *** *** ** ******* him * ****** ***. ** ****** that * **** *** ***** **** forwarding *** **** *** **** *** was ***** ******* *****.
**** * ****** **** **** ***** you ***'* *** **** ** *****'* go ****. **** ** **** **** you ** ** **** ***** * bad *********.
**, *** **** ******* *** ******** the *******? ****** ********** **********?
**** ** * **** ***** **** hasn't **** *********.
***** *** ******* **** **** ********** customer ****'* **** ** ********** (** maybe *** ******** **** **** ****) so **** ***** ** **** ******.
**'* ***** * ****** ****** ***** for **** ** ** ** *** integrator ********** *** ******** ** *** and *** **** ****** ****. ** way ** ****** **** ****, ***.
*** - **** **** *** ********* only. **** ******, **** **** *******, does *** ************ **-*****.
*** ******, ****'* *******. **** ** our ****** ******** ********* **** ***** own ********** *** ********** ********** ***** to ******* *** *******. **** **** to ** **** **** **** **** cameras, **** *** ********, *** ********* to ******** ****** **** ** ***/****, vape *********, ** ****** *********, ***, etc.
** ******** ******** *** ******** ** do ** *** *** **** ****** PO's ****** **** ***** ***-***** *** cutting *** ***** ********** ********, ** is **** ** *** *** ******** model ***** ** **** ****** ***-**** relations *** **** ***** ** *** integrators ** *** *********** ** ****** or *** **** *** *** ** manafacturer ******** *** *******. ****** ********** there *** ******** ****** ****** "*********** are ***************" . ** *** *** from ************* **** ** *** ******* thier ***** *******!!!
****'* ***** ***** **** ***** ** that *** ****** *** *** ****** are ***** ** **, *** *** quote ***** **** *** ****** ** NJ. *** ******** *** ***** **** actually ******* **** **** ***** *** steal ********* **** **** *****. * used ** ******* ***** ***** **** other *** *******, ****** ** *** my ********. * *** * ********* at ***** ******* *****, ***** ******** were *** ** ***** ** ** LTS ******, *** **** **** ** stock ** **** ***** ******, *** they ***** *** ***** ** ** get ****, ** **** ****** ** keep ** *** ***** *******. * also *** **** **** ***** ***** owners, **** */** ** ******* ******* quotes ******** **** *** ** *** location *** **** *** ****** *******. LTS ***** **** *** ** ********* for ********, **** **** **** ***** anyone *** ***** ** ***** **. If **** ******** ** **, *** would ***** ** ****** ******** ($****+/****) right ****.
******: **** ******* *** **** ***** to *** *** **********:*** ******** *** ***** **** ******** Compete **** **** ***** *** ***** Customers **** **** *****
***, ** *** ***** ** ******** CA, *** ** **** ******** ******** throughout *** *******. ** **** **** multiple ****** ********* **********, *** ** have **** ***** ** *** ******* years *** ****** ******* **** ****** a ******** ***-**** ****** *** ******* and *********** ******, *** ******** **** optional ****** *********** ********, ***.
*** ***-**** ** **** ********** **** is * ****** ******** ** *********. They ********* *** ****** ** *** LTS ******* ***** ******** *** **** number. **** ****** ******* *** *** NJ ****** ******** ** **** **** transferred ** **--* ***'* **** *** back ***** *****. *** * ** know **** ***** ***** ** ***** business **** ***, *** **** ****** in *.*. (**** ** ********), ** is ***** ** ***** *** *** account *** *******. *** ****'* ***** I **** ******** ******** ******** ******** on *** ******** & ************. ** sales *** *** *** ** ***** the ** ****** **** ********** *** sale ** ****, *** *** *** unsuccessful. *** ***** *** ** **** over *** ***** ** *** ****** sale ** **** ** ** ***-**** last ****, **** ****'* **** *****. They ********* ******* **** ** **** earlier **** ****, *** **** **** likely ******** ** **** ******** ** them. **** ** *** * **** stopped ********* *** ********. * **** sell *** **** ******* ************ **** for ** *** *******, *** ****'* after * ********* ***** *******.
*** ****** ******* *** **** ****, and * **** **** ******* ** an ***-****** *** *** ******* *** other ******* ******* **** ********* * product **** **** ****** **** **** at * ***** ***** ***** ******** to *** *** ****.
**** *** ****** **** **** ** an ******** ******* ***:
- ******* *** ****** ******* ***** *** only ***** ****** ** ***-***** **** are ************* ****** **** ***** ****** price *****.
- *** ***** *** **** ** ** completed ***** *** ***** **** ** brought ******* **** **** ** *** customer ** ******* *****. **** ** equivalent ** ****** * ******* ************ and ****** *** ******/************ ***** ** in *** *****.
- *** ******* ****** ***** ***** ***** NJ ****** **** *** ***** **** in ****.
*******, **** ****! ******* *** ******* and ***** *** ************* ******** ****** this. ********* ********, *****'* *** ********* forces ************* *** ** ******* - obviously ******* ******** ** ********* *** also *** ** ******** **** ***'* distributors ** *** ******* **** ****** customers. *** ****** ***** ******* ******* to ****** (*.*., ** ******* *** concerned **** *** ** ***** ** cut **** ***, **** *** ****** not ** *** *** ** *******). On *** ***** ****, **** ** these ********* *** *** **** ********** (e.g., **********'* ********* ******* **** ****) ** *********** ** ** ***** deals *** ** ******.