LTS Selling Direct, Cutting Out Dealers

Published May 05, 2023 12:10 PM

LTS, a sizeable relabler / distributor, is selling directly to end users below dealer cost, undercutting its own partners, public records obtained by IPVM confirm.

IPVM Image

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 ***** (*********-**) ******* **** *** ****-*********:

IPVM Image

* ******** [*** *** ****] * 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 ****:

IPVM Image

LTS ************ ***** ****** ** $*** *** ******

*** ****** ****** *** ***** ******** the ******'* ** (*********-**) *** ***** directed ** ***'******** *******.

*** ****** *** **** ******* ** the ****** *** **** $*** ****, according ** ** *** ***** **** obtained **** * ****** ******* *******:

IPVM Image

**** *** **** ***** ***' *** 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 ****:

IPVM Image

*** ******* *** ****** * ***** Friday **** ** ******** ****:

IPVM Image

"We'll ** ******* ***", ***** "*** ********** ** ******"

*** **** ****** *** **** ****** cameras **** *** ****** ***** ** 2023, ****** ******* ****.

"**'** ** ******* *** ******* **** LTS" ******* ***** ***** *** "*** aggressive ** ******", * ****** ******** told ******* ** * ******** ** email:

IPVM Image

"I **** *** ****’** ************ *** ** ****": *** ****

"* **** *** ****’** ************ *** so **** ** *****", *** ****** official ***** ** ******* ***** **** day:

IPVM Image

Selling ****** * ****** ******* *** ***********

************* ******* ****** ** * ****** problem *** ***********,********* ** * **** **** ******,**** ****** */* *********** ** * "moderate" ** "****" *********** *****:

IPVM Image

Not * ************

*** ** *** * *************** ******* ******** ******** ** ***/*******, its *** ***** **** ********* ** IPVM, ******* "***'* **** ** ** sell *** **** ********** ******** **** a **** *****-*********** *****".

*** ******* ****** ******* ******** *** company ** ********** *** *** *****. However, *** ***** ********* *** *** dealer *******. *** ***** **** ****** primarily ** **** ******* *******, **** wrote *** **** ******* ** *** *******.

LTS ** ********

*** *** *** ******* ** ****'* three ******** ******** *** *******; **** first ******* *** ** ***, **** than * **** ***, ** ***** 26.

Comments (16)
JH
John Honovich
May 05, 2023
IPVM

*******, **** ****! ******* *** ******* and ***** *** ************* ******** ****** this. ********* ********, *****'* *** ********* forces ************* *** ** ******* - obviously ******* ******** ** ********* *** also *** ** ******** **** ***'* distributors ** *** ******* **** ****** customers. *** ****** ***** ******* ******* to ****** (*.*., ** ******* *** concerned **** *** ** ***** ** cut **** ***, **** *** ****** not ** *** *** ** *******). On *** ***** ****, **** ** these ********* *** *** **** ********** (e.g., **********'* ********* ******* **** ****) ** *********** ** ** ***** deals *** ** ******.

(4)
UI
Undisclosed Integrator #1
May 05, 2023

****,

**** ***** *****'* **** *** **** very ***********; *** ** *** ***** would **** ***** *** *** **** such * *** ***** *** **** when **** **** **** ***** ****** cost **? ** **** *** ******* profits, **** **** * *** ** it ****** ** *** *****.

** ********** **** ********** **** **** has **** **** *** *********** ** selling ** *** *** **** ** roughly *** **** ***** **** * can *** ** *** **** *** same ***********.

(3)
JH
John Honovich
May 05, 2023
IPVM

**** *** **** ** **** *** as * ***** **********! :) **'* a ***** *****, * ***'* **** why **** **** **** ****** ** sell ** **** * *** ***** point. ** **** **** ******** **** the ****** **** *** ******* ** dealers ** ***** *********** *** * distributor (*.*., $*** ** *** ******, $159 ** *** ****** ******* * markup ** **%). ** *** ********** assume *** ** ***** ****** ***** selling ** $***, ** **** *** doubling *** ***** ** * ****** over **** **** ***?

(2)
UI
Undisclosed Integrator #1
May 05, 2023

******. * **** * **** **** seeing **** ****-** **** *** ****** of ******** ** ** **** ***********, WESCO/Anixter/AccuTech/Graybar, ***. ** * *** ** cases ********* **** ****** ********/***** **** this *******, *** *********** ******* *** in *** ****** ******.

UM
Undisclosed Manufacturer #2
May 05, 2023

** **** ******** **.

*** ****** ******* **** *** ****, so *** ***** **** ******** *** ? **'* *** **** *** ***** the ***-****, *** *** ******** *** Integrators ** ** *** *******.

*** **** *** ** ***** ***** from *** *********** ** *** ** that *** ****** ***** **** *** an ********* ** *** *** ******* already, *** **** *** ****** ****** the ******* ** ****** ** ***** space **** *** ********* ** ******* new ********.

****** ***, ** *** * ***** sighted **** ** ***** ***.

(4)
(1)
Avatar
Ryan King
May 06, 2023
Pacific Audio and Communications

* *** ******** ** * ********* who ***** ** ******* ** *** system ** *******. **** ******* *** frustrating. * ******* *** *** '****' router ** ** ********** ***** *** it ******. *** **** ******** ***** the ****** **** ** ******* *****.

JH
John Honovich
May 06, 2023
IPVM

*** **** ******** ***** *** ****** were ** ******* *****.

***** ******** **** ** ***? *** if ** *** **** ***? ********** ports ** **** * *** *** hopefully ********** ******* ********, ************* ****** (**** **********, ****, ***, VPN) ***** ********** ****

Avatar
Ryan King
May 08, 2023
Pacific Audio and Communications

***. **** *** **** **** *** 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 *********.

(1)
(2)
DC
Darryl Cherry
May 07, 2023

**, *** **** ******* *** ******** the *******? ****** ********** **********?

(1)
U
Undisclosed #3
May 08, 2023

**** ** * **** ***** **** hasn't **** *********.

***** *** ******* **** **** ********** customer ****'* **** ** ********** (** maybe *** ******** **** **** ****) so **** ***** ** **** ******.

**'* ***** * ****** ****** ***** for **** ** ** ** *** integrator ********** *** ******** ** *** and *** **** ****** ****. ** way ** ****** **** ****, ***.

(3)
Avatar
Charles Rollet
May 10, 2023

*** - **** **** *** ********* only. **** ******, **** **** *******, does *** ************ **-*****.

Avatar
Raymond Shadman
May 18, 2023
IPVMU Certified

*** ******, ****'* *******. **** ** our ****** ******** ********* **** ***** own ********** *** ********** ********** ***** to ******* *** *******. **** **** to ** **** **** **** **** cameras, **** *** ********, *** ********* to ******** ****** **** ** ***/****, vape *********, ** ****** *********, ***, etc.

Avatar
Chris Ritter
May 08, 2023
Aqua-Logix

** ******** ******** *** ******** ** do ** *** *** **** ****** PO's ****** **** ***** ***-***** *** cutting *** ***** ********** ********, ** is **** ** *** *** ******** model ***** ** **** ****** ***-**** relations *** **** ***** ** *** integrators ** *** *********** ** ****** or *** **** *** *** ** manafacturer ******** *** *******. ****** ********** there *** ******** ****** ****** "*********** are ***************" . ** *** *** from ************* **** ** *** ******* thier ***** *******!!!

(1)
(2)
UI
Undisclosed Integrator #4
May 09, 2023

****'* ***** ***** **** ***** ** 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 **** **** *****

(3)
Avatar
Raymond Shadman
May 19, 2023
IPVMU Certified

***, ** *** ***** ** ******** 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 * ********* ***** *******.

Avatar
Raymond Shadman
May 19, 2023
IPVMU Certified

*** ****** ******* *** **** ****, and * **** **** ******* ** an ***-****** *** *** ******* *** other ******* ******* **** ********* * product **** **** ****** **** **** at * ***** ***** ***** ******** to *** *** ****.

**** *** ****** **** **** ** an ******** ******* ***:

  1. ******* *** ****** ******* ***** *** only ***** ****** ** ***-***** **** are ************* ****** **** ***** ****** price *****.
  2. *** ***** *** **** ** ** completed ***** *** ***** **** ** brought ******* **** **** ** *** customer ** ******* *****. **** ** equivalent ** ****** * ******* ************ and ****** *** ******/************ ***** ** in *** *****.
  3. *** ******* ****** ***** ***** ***** NJ ****** **** *** ***** **** in ****.