Milestone Terminates All US Manufacturer Reps

When I came from IT to security, it took awhile for me to get used to the idea of rep firms and what they do. Once I eventually got the idea, it seems like a good one for most, if not all, cases. I wonder how much of the decision was the CEO not being used to or possibly understanding rep firms? I know there are rep firms in the IT world, they are just not as prevalent.

**Disclaimer I'm a manufacturer rep**

Undisclosed I think you're a little off as to what rep firms (or at least the one I work for) ACTUALLY do. When an integrator is proposing a system to a large end user and they need someone to provide a demonstration of our NVR software who do you think they call? Do you think all integrators have sales people on hand who can provide a good demo of a VMS product to a potential customer? If you do believe that, it is certainly wishful thinking.

As for being a demand creator, yes that is what we do. How many people do you think never heard about ExacqVision or Arecont Vision until I spoke to them? Even though a line is established, there will still be plenty of people who are not overly familiar with the product. Obviously the job of demand creation does not fall solely on the small rep firm, but do we play an integral part in the proliferation of the product in our territory? Absolutely.

Rep firms like the one I work for also have tight relationships with the distribution partners because of the many lines we represent. How often do you think an ADI branch manager or Tri-Ed account exec calls me with a dealer who is unhappy with their current VMS and solicits my expertise in my VMS product to help drive more business to his branch?

How about the integrators that I have close relationships and have helped close deals? I had a guy last week say he had a job spec'd Salient and that he was proposing Exacq because of our relationship. I registered the project for him and got him even further discounting. Even if we do not win that deal, I'm the guy behind the scenes showing the distributors I'm steering business to them and helping integrators spec out and sell jobs. If we only used direct sales people it would be a lot harder for the direct person to give the territory attention the attention it needs. Our rep firm has 7 people from Maine to New england but our big lines have 1 or at most 2 RSM's for that same territory. When the RSM does a week of travel in Boston who is covering New Jersey?

It's no surprise, our top 2 lines have experienced vast growth and many record months since we have been involved. Maybe rep firms didn't work for Milestone, but they do work. Just ask Pelco about their glory days.

Personally, I believe rep firms are slowly going away. And yes, I used to work for one. For several years as the Pelco rep in the "Glory Days" as a previous poster put it. Before it all tanked :).

There are certainly still some good rep firms out there. And a good rep firm that is on top of their business is a magnificent thing to watch. They will drive business, specifications, relationships and cross sell like there is no tomorrow.

The problem is that those companies are fewer and fewer with far more crappier rep firms now. And those rep firms are far more content to hand off literature and simply be another phone number to call..not go out and drive business. You don't see several of the big boys with reps with a couple having moved away from the model like Avigilon, AXIS, Genetec, Pelco and now Milestone again.

And honestly, I have no idea why Milestone would go with reps in the first place. Having a rep that has a camera line can create attachment rate for you as a VMS/Hardware manufacturer but creates huge channel conflict. If I was the ExacQ guy and wanted to Partner with the Samsung guy on deals and further that relationship but the Samsung rep is ALSO the Milestone rep.... How many deals do you think I am going to swing his way as the ExacQ guy?

If any company is going to try and stay Agnostic and/or "open platform" or however you want to put it, most rep firms just won't be it IMO.

There are several interesting points of view that have been stated about why Rep firms are the right or wrong way for a factory to sell their product- one key benifit that has not been mentioned is relationships. If you look at Linkedin and check out any of the major manufactures Regional Managers, you will see most of them stay with a company for less than 2 years. If you look at the rep firms that are successful and properly staffed most of their staff have been, not only in the industry a long time, they have been with the same company long enough to relate to that companies ethos.

As a competitve MR.. I think it is a great idea...?

Milestone may have originally hired the reps to better position themselves for acquisition. There are good reps and bad reps. The good ones know their territory inside and out. The Sony rep firm in southern Cal is outstanding. When they walk into a regional event, they know everyone. Hugs, handshakes, and mutual respect is all palpable. They know their products inside and out. They support the "Eco System" in ways that manufacturers cannot. The kicker is; the channel knows that the reps will be there year after year. Manufacturer RSMs come and go. The rep telationships are critical...but only within the really good rep firms. But man, there are some really lousy reps out there. Don't get me started.

My experience is that rep firms are a US based idea that doesn't travel well in APAC including Oceania. Since Milestone is software based, it's probably not price sensitivity, in this particular case, that's driving the decision - however personal on hand service is definitely lessening across the board, as a spec sheet is always an online item and YouTube clips substitute for physical visits. In a way it gives the end user more power.

Also, to have a social network frame of reference with your peers who are using or considering an existing item or now technology has tremendous power that didn't exist a few years ago.

I'd never considered this until this discussion and it's always expansive to see the different points of view.