Manufacturers Negotiating Pricing With End Users
The power dynamics between manufacturers and end-users have been shifting for years with one of the most critical elements being who negotiates pricing with end-users. Historically, it was almost always the integrator, but increasingly it is the manufacturer.
This was central to IPVM's recent coverage of how Verkada sells direct using SHI. Inside this note, we more deeply examine manufacturers negotiating pricing with end-users and how this impacts the future of both manufacturers and integrators.
Business *********** ** *************
*********, *********** *** *** ******* ** manufacturers ***** '******** ***********,' *.*., ************ employees ******* **** ***-***** ** **** them ***** ** *** ********** ** a ************'* ********. *** ******* *********** is **** **** * ************ *** done ****, ********** ******** *** ** brought ** ** ****** *** ******, negotiate *******, ***.
'Selling ******'
** ********, * ************ ******* ****** more ********** ****** ******** **** ***********. However, *** **** '******* ******' ** itself *******, ***** *********** *********:
**** ************* **** ***** **** ******** to *****, ********** ** *** ******* the **** ** *** ********* **, precisely ** **** ***'* ** ******* of ****** *******.
*** ******** ** ** ***** * channel ******* ** **** *** ***** typically ** ******* ****** (* *** points) *** ********* ******* **, ** their **********, ** *** * ****** sale.
Negotiating *******
*** ***** ** *** ***** *** 'direct *******' ** *** ********** ******* with *** ***-****—*** ************ ** *** integrator? **** ** * *** ******** because ** ** *** ****** ** significant ***** **, **** *** ******* is ****** **, *** **** ** effectively ********, ***** ** *** *********** of ************ *******.
**** ************* ********* *******, ** ******** two **** ***** ******** ** ***********; (1) *** ****** ********* ** *********** is *********** *** ** ******** ***** the ************ *** **** **** *** end-user, *** (*) *** ***** ** the ********** ** **********, ******* ** an ************ **** ******* *** *****, the ********** ******* * *********** ************.
Integrators ********* ***** ** ** ****-*******
************, **** ******** *********** **** **** built ** ** '**** *******' ************* with ****** ** *******, *********, *** fulfillment/installation. **** ********* *** **** *** these ************* *** ******** ** *************** by *********** ******* **** ***** **********, e.g., **** ** ****** ** ****** on ******* ** ****** ** ***** the ******* ******** **** **** *********** have.
Objections ** ************ ********** *******
******* ** ****, *********** ***** ******** object ** ************* *********** ******* ******* the ********* ********* (*.*., ******* *******) cannot ******* *** ********/****** ********** ** such ***********.
Don't **** **** *************
*** *******-****** *********** ***** **** ** to ****** ** *********, **** ** support ************* **** '**** ******' ** negotiate ******* ******** **** ***-***** ** try ** ***** ***** ************ ** the ********* *******/**********.
Changing ***********
******* ********* ****** *** *********** ** to ****** *********** ** ** ** built **** **** ********* (*** ********* cost) ** ******* *** ****** *** more ***** ** ********** *** ***** support. *** ********* ***********, **** ** typically **** ** ** ** *** management *** ******* **** **** ***** over ***** ** ******, **** *** fulfill. *******, ***** *********** *** *** this ** ** *********** ** ******* more ** ********** *** ****** ***********/******* manufacturers.
Direct *********** **** ****
** ***** ************* ******** *********** ******* will **** *** ****** **** ******, though *** **** *** *** **** is **** ** *********. *** ******** makes **** ******* *** ****** *** the ***** ***** ****** ******* *** setup ****** *** ************* ** ****. This **** **** ** **** ******** and ********** *** ************* ** ** so. ** *** ***** ****, *********** still **** ***** *** *****, ***** connections, *** ***** *********, ** **** tension ******* *** ***** ****** **** continue.
**** ** *** ***** *** ****** of ************* *********** ******* ******** **** end-users **** **?
********** *******, ** #*.
** ***** ******* **** ** *** new ****
**** *** **** *** ***** ** several ***** **** * **** ******* for ****, *********, *** *** ******* to:
- ****** ******** ***** ****** **** ***** Bid ******* *************
- ***** *** ********* ******* *** ******* in ******
** *** **** ***** *********** ****** or *** **********, ** ***** *********** end ***** ****** ** *********** *** new ********.
******* *********** *****, ***** *** **** brought ** **** ****** **** ** ****** ***, *** oppose *************' ********* ** ******** ***********, ********* *** **** **** ******—********* give *********** **** ********** ** ******** different *************' ********* *** *** ********** of *** ******* *** ******* *** most ******* *** ***** ********, ********** of *** ********.
**** ** * ****** ** ************* to ***** ********* ******* ***** *** technologies *** *** ****** ********.
**, ******* *** ** **** ** it, ** ** ***** ** ** prevent *** *** ********** *** ***** not **** *** ******* *** **** 4 ** * ** *** ***********, being ******* ** **** *** *** user ** ******* ******* ** *** don't ***** *** **** ** *** get **** ***** **** *** *** user ******* ** ********* ***** *** product. **** **** **'* ** *********** we ********* *** ***. (**** ** the ******** ** ******** ** ***** and *** *** ** ********** ** them * ******* ********** ****** ** the ****** **** ***** ****, ** it's ****** ** **** **** ********* than *** *******.)
*** ******** *** ***** *** *** only ********* *** **** **** ******* designs *** ***************
** *** ***** **** ** ****, a ************ ***** **** **** **** to ** **** ** **** **** their ********* ** ******** ***** *** utilized ** **** *** *** ******** blamed **** ********* **** ***** **** isn't ***** *****. **** ** **** an ********** *** *****'* ****** ****** in ******** ***** ********* ** ********* manufacturer ******** ** *********** ****.
*'* * ********* ******* *** * camera ************ *** *'** **** ** this *** ******* ***** *** **** a ******.
*** ****-**** ********** ****** ** ******* roles ** ****** **** ******* *** sales ******* ** *** ***** *********** with *** ***-****. **** ******** ************, integration, *** ********* * **********. **** way ** ** * **** ******, everyone *********** *** ******* ****** *** pricing, *** ****** *** ***** *** table ** **** ***'* ***** ** is * *** *** ***** ********. No *** ** ****** ***-***** *** these *********** ********* ***** ******** *************.
* ***** ********** *** ***** ******** and ********* ** ***** ** * manufacturer *** * ********** ******* **** was "**** ******" ** *** ***-****.
** ** * ***** ****** *** such ****** ******. **** *****, **** at ***** "******".
** * **** **** ***** *** manufacturers **** ** **** ******** ** integrators **** *** *** ** ** business ****.
***** **** *** ****** *********** **********, and ******* *** ********
**** ** * **** ** *** best ************* ** ** ******** ************ with.
* *** *** **** ************* **** manufacturers ** ** *** **** * way ** **** **** ***.
* **** **** ****. *** **** should ******* ************* *** ************.
**** ** *** ****:
*** ** ****.
** ** ******** ****, ** ** your *** ** ***** ************* **** manufacturers ** **** ******* *** ** the ***** *********** ************. ** *** aren't, **** *********** ***. *** **** to ***** *****-********** ************ **** **** vendors. ** *** ****'*, **** *********** are.
***** *** *** **** **** *********** (although *** ****** ** *** *****) than **** *************, **** ************* **** the ******** ******* ** **** ******\****** dynamic. ************* **** ********* **** **** resources *** *********** **** ***********.
***** ** * *** ***** ** end-users ***** ** * ****-*********** *****. They **** *** **** ***** *** PMs **** *********** *** ***** **** to ***** *** * ****. **** dramatically **** ******** *** ********* ******* of * ******* ** **** ****.
******* ** ********** **** ******* ** if **** "**** ******" ** *** users, ******** **** ** *** **** they ******* **** ****** **** *** inevitable "*** ****" ***** **** ***. Some ***'* ****, **** ******** ***** benefits ** ***-***** ****** **** *** through ** **********, **** ** **'* a *** ****.
***** *******, ****** *** *** *******!
********* * ** *** ******* ** manufacturers ******* *** ***** ** **** as **** ** ** **** *** MSRP ******* ** **** ******** *** into ****** ***** ************* **** ********* on *** ***** *******. **** *** cause *********/******** ** *** *** **** then *** ** ************ *********** ** the ***** ******** **** *** ** inaccurate "******". ***** ** * ********** opportunity **** ***** **** *** ** about ***** ** ***** ******** ****.
** **** ** **** ** ** with *** ****
****** *** ******** **** **! ** assumption **** *********** ** **** ** would ** ** ***** **** ******** (and ******* * ***** ******** *** MSRP). *********, **** **** **'* **** of * *********** **** ***** * rough ***** ** ********* ** ****.
** ******* ********** * **** ** manufacturers **** ********* ***** ***** **** an *** **** *** **** *** orders ****** ******* ** ************ ******, I ******* *** ******* **** **** list...virtual ***** ************ * **** ****** with ** *** **** **** *******. It ****** **** ****** ** ************ facilities. **** ***** *** ***** *** "self-integrators" *** ******* ****** ** ** integrator *******, *** **** ** ********* for *** **** *****.
*** ***** * ** ***** ** all *** *** ****** ****** ******* an ********** ********** *** * ********** margin. *** ************ **** ********** **** the ********** ***** *** ** *********** for ******* *****.
* ******* *** ******** *** **** limited ** *** ****-********, *** ** would ** * ********** ***** ** see *** ******** ******** ** *** more ************* ***** ********.
* ******* *** ******** *** **** limited ** *** ****-********, *** ** would ** * ********** ***** ** see *** ******** ******** ** *** more ************* ***** ********.
#*, **** ********! * *** *** draw **** *********** ** *** ****** but ** ** ********* ****, ** my **********. **** *** *** ** the *********** ******** * ***** ***** ******* *** **** ** ******** covered, ***** ********* ** ********** ***** purchases ******* **** ********* ** ******* to * *** **** ** *********, which ** *** ******* *** ****-******** range *** *******.
******* ** *****. * ** ****** as ** *** **** *** ** are ** **** * **** ***** self **********. *** *********** *** ************* that ******* **** ** *** *** ones **** ******* *** ****** ** a **** ********** *** **** **** us ** **** *** ******* **** (we **** **** ******* ***** ** integrators *** ******** ***** ******** **** and **** ** **** **** **** be ******** **** ****** ********).
***** *** ***** ********* **** ** support *** ******* **-*****. *****'* ** make ***** *** *** ***** ********* to **** ** **** **** *** SaaS/Manufacture ********?
#*, ***, **** ******* ** ******* to #* *****. ** ** **** mentioning ** **** **** ****** **** is *** ****** **** ******* ** smaller *********.
********** ** ** ** ** *** integrator ** ****** **** ******** ** profitable *** **** **** ****** ****. Very ***** * ************ **** ***** us ** *********** **** ******** ************ but *** ****** ** ******* ****** or **** ****** ******* ****** *** increasingly ** *** ***** ****** ** turn *** ******** ****.
***** *** **** ******* ** ******* an *********** ******** ****** ******** ******** that *** ************* ** *** ********** and **** ******* *********, ******, *****, insurance *** ** **** ***** *********** insurance *********** ** **** ******* ***** and ** ** *** ****** ** points ** ** ******* **** **** take ** **** **** ** *** paid ** ** **** ******** **** away **** *** ***********.
**** ******** ** *** ***** ********** by ********* *** **** ********* ******** directly ** **** * *** ** SHI *** **** ****** **** *** we **** **** **** *** ******* opportunity *** * ****** ** *******. We ** ** ********** **** ******** that * *** **** ***, ********* but *** ******* ** ********* ************, workmen's **** *** ********* *********, ****, scissor *****, **** *****, *** *** related *********, ****** *** ******* ***** and ********** ******** ***** *** *** list **** **.
** ** ***********/********** **** ** ********** that ********* **** *******, *****, ***** Meraki **** ***** **** ** ******* the ******** ********* ** **** ** the **** *** *** **** ** maintain ***** ******* *** *** ** an ********** **** ** ****** ** your ****** ** *** ***** **** to ******. *** ******* **** **** the *** ****** ***** **** **** CDW **** *** *** **** *** always ******** *** ******* ** **** install *** **** ****** ** *** will ******* ******** **** *** *** margin ******* ******** **** **** ******* put *** *** ** ********.
******: **** ******* *** **** ***** to *** *** **********:*** ******* **** **** *** *** Margin ***** **** **** *** **** All *** **** *** ****** ******** The ******* ** **** ******* *** Your ****** ** *** **** ******* Discover **** *** *** ****** ******* Projects **** **** ******* *** *** Out ** ********.
* ****** ** *** * ****** points ** **** ************ ** * have ********** ******* *** *** **********, manufacturer & ******** ** ** *** user.
********* * **** ** ** *** user *** ** **** ** ******** corporate ******** ********** **** **** ** our *** ********** *** *** ******* and ******* ****. **** ******** *** overall ******* ******, ********* ************* *** majority ** ************* **** - ** do *** ******** *** ************ ********** as ** *** ********/******** *********** ** a "***** ** *** ******" **** to ****** *** ******* ***********/**********.
* **** *** ************* **** **** teams ********* ** ******* **** *** end ****. ********* *** ********* *******, but **** *********** *** ********* *******/*********** and ******** **** ** **** ** open **** ** *************. ** **** are **** ********* *** * ****** to **** **** * *********** ****** than * ******** **********.
*. ****** ******* - ** * corporate ******** ********** ** **** ***** a ***** ** ********/******/****** ***** **** are ********* *** ******* ******* ** not ********* **********, ***** ********* *** often ****** ****** **** ******* *** throughout ******** ********* ****** *** *****. Dealing ******** **** *** ************ ** the ******* ****** ** ** **** my ******* ******* *** ********* ** I **** *** ** **** * single ********** **** ******** ** ***** region **** ** ******** **** - In ****** ** *** *** ******** with ******** **** *** ******* ******* costs **** **, **-**** ******* *** manufacturers ********* *** ************ *** **** integrators ** ***** ******* ***** ** these ******** ******* **** ** *** include *** * ****** ********.
*. ************ ** ******* - **** integrators **** ** ********* ******* **** dedicated ** ***** ***** *************, **** can ******** *** **** ******* *** the **** **** ****** **** ** comes **** ** ******* * ****. The ******* ***** **** *** *********** for ******* **** ****** ******* *** operational *** **** ***** **** *** - ******* *** ************ ** ******* such * ***** ***** ******, **** offer **** ****** ******** ** *** service ***** **** ******* ** *********** certifications - **'* ******* * *** fresh ********** **** *** ***** **** a ******* **** ** ****** *** you **** **** **** *** ******** curve ** **** ********** **** **** they *** ******. ** ******* ********** when *** **** **** ******* *********** that **** ******** **** ****** *** regarding *** **/* ****** ** **** physical ******** *******. (**** ** *** #1 ****** ** ***** *** ******* team **-*****)
*. ****** ******** - ***'* ** honest, ** **** *** **** ** from **** *** ***** ******* *** there (***** *** *****). *********** **** tell *** *** ******* **** *** want ** **** ** ***** *** a ****, **** **** ******** * product/solution **** ***** ***** ******** *** had *** ***. *** ******** ***** once *** ************ ** ******** *** now *** *** ******* **** * months ** "********* *******" ** **** original ************, ***** ********* ******* *** simply ****** ************ ** *********** ******** which ***** ****** ** ********. ******* directly **** *** ***********, ***** **** are *** ******* ** **** ****** either - **** ***** **** ** deal **** **** **** **** ******** and ******** ****** ******* ********* ***** keeps *** ***** *** ****** **** their ******** ******* ***** ***** ** my ********** *** ****** ** ** the **** ******** *** ** ********.
*. ***** ******** - ****** * will ********* **** * **** *** to *** ******* **** ** ********** that ** *********. **** **** ***** for ** ** ** *** **** is *** *********, ******** ********/****** ******** will **** **** ***** ******* ** the ******** **** ****** ***** ************, this **** **** ***** *** ***** on *** ******** *** *** ******** office - ** ** *** ******** now ***** * *** ** ******** different ***** *** *** ***** **** equipment ***** #'* **** **** * paid **** ** **** *******, **** rings **** ***** **** ***** ** state ** ******** ** ********. **** procuring ******** ** *** ********* ** end ******, ***** ******* *** ** quite *************.
*** **** *** **** * ******* integrators ********** **** * ***** **** large ***** *** *****, *** * don't **** **'* ****** ** ********* as **** ** *** ** **** thread *** *****. **** *** *** of *** **** ***** ** *** tool *** *** ******* *** ******** online *** ******.
**** ** *** ** ****, ** not ****** *** ***** *** *** revenue ****** ** *** ******** ***** away **** ******** ******** ***** ** OPEX *** ** ***** ****** ** increasing ***** ** *** ******.
*****, **** *******! ****, **** *** cloud, ************* *** **** *** **** about *** ***** *** ********* ***, where **** *** *******, **** ******** they *** *****, ***. ** ********, a ****** ***, ***** ************* ***** not **** ****** *** ********** **** them ** **** ******** * ******* request **** *** *** ****.
*'* **** * ******** ************ *** there *** **** ****** ** **** to ******** ***** **** *****, **** one **** **** ***'* *** ***********. It's **** *****, *** **** *** side, ** ****** **** **** ***********, they *** *********** ***** ** *** business' ****, *** ** ** ******* unfair *** ** ** **** * huge ****** *** ***** **** *** prices ** *** * ******* *** the *********** *** **% **** *** prices ******* ****** **** *** ***** and *** ****** **** ** **** lower ****** **** **** *** ***** and ** **** *** *******, ** happened ** ** ******* *****. ** I ***: ** ** ***** ** go ******** ** *** *** ****?***** all * ****** ***** **** *** text **** *********** ************ #*.
************* **** **** ****** ** ** demand ******** ******* *** ** *** lack ** ************** ****** *********** ***** people. **** ** *** ** *** sales *********** ****** **** *********** *** mostly ****** ***** *****. *** ****** are ******** *** **** ****** **** but ****, **** *** ** **** actually **** *** ** ****. ******* by ** ********** ** **********, *********, recommending, *************, ******* *** ***** *** asking *** *********.
*********** ******* ** ******* **** *** margins *** ****** **** *** *********** not ********. ********** ******* *********** ** often * **** ** *** *********** (which **** **********). ***** **** ********** is * ***** *** ***********, **** just **** ** **** ** ** next ***** ** **************.
************* **** **** ****** ** ** demand ******** ******* *** ** *** lack ** ************** ****** **********'* ***** people.
*** **** ****, *** *** ** (the ************) ****** ** ******* ****** the **********'* *** *******, ******* **** are **** ******* * ** * other ****** **** ******* **** **, trying ** ***** *** ****? ** you're ******* ***** ****** *** **** across, *** *** **** ****** ************* on *** ******* *** ******** ** our *******? ** ***, *** ** have ** ** ** *********, **** don't ** ********* **** *** ****** marginalized.
** ***** ******* **** ** *** new **** – ****** ************. *** Manufacturers **** **** ******* *** ******** end ***** *** *** **** ********* but **** **** ******* ******* *** implementations. **** ** * ****** ** manufacturers ** ***** ********* ******* ***** new ************ *** *** ****** ********. Is *** **** ***** *********** ****** or *** **********, ** ***** *********** end ***** ****** ** *********** *** new ********.
** *** ***, *** **** **** suffer *** *** ***** **** ** not **** *** **** ** **** simply ***’* **** ** **** ****, just **** ****** ** ****. *********** goes **** * ********* ******** ** a ****** ************ **** **** ********.