Mobotix Partner Program Changes Examined

By: John Honovich, Published on Oct 02, 2011

In September 2011, Mobotix announced a new partner program that shifts the company's channel approach in favor of stronger protection of dealer/integrators and decreased direct availability of their products online. In this note, we examine the changes and what this means to the market.

We see the program having two aspects - one being a common tactic and one being a more aggressive one. The common one is to support multiple tiers with increased discounts and project registration. The more aggressive aspect is to root out and stop predominatly online resellers with the stated goal [link no longer available] of "maintaining a stable margin."

Today, Mobotix products are frequently available online and are a common choice of IT end users. We asked Mobotix about how this new plan would impact such online availability. They noted:

"We have implemented a MAP (minimum advertised price) policy and training requirements to ensure that only MOBOTIX authorized partners have access to our product line. We will not conduct business with resellers whose business model is e-commerce only and will actively monitor Web sites weekly to make sure our products are not being sold by such resellers. Also, if we find the MAP policy is being violated by any partner, we will serve the reseller with a notice stating they have 24 hours to increase the price or they will be removed from our program. Overall, these partner program components protect our pricing structure and limit the possibility for direct sales online."

MAP policies are not unheard of in the surveillance industry, however, many manufacturers do not actively enforce them.

Analysis

Integrators love this approach. It is one of the most common cited pluses of Avigilon's channel strategy and a key part of their skyrocketing growth. One of the most common concerns/complaints is being undersold through online sales channels. It is now a regular occurence for end users to take a quote and cross reference pricing online within minutes .

For Mobotix in particular, we think this makes sense. They have a highly technical (some, like us, would say overly complex) product that really demands expertise and training. It is a product that really benefits from professional integration (though as noted we know quite a number of IT end users who have deployed Mobotix directly on their own). Secondly, since Mobotix aims to sell a complete solution (cameras + recording/VMS), it is offering that can be directly and totally delivered by a single integrator.

On the other hand, the primary risk of this approach is increasing end user costs. Protecting integrator margins means increased product costs to end users though proponents would argue that this is offset through higher quality installation, optimization and reduced errors.

The biggest surveillance camera manufacturers in the world almost all have a much more open approach than Mobotix as it is easier to tighly control the channel when a company is small than when it is big. It will be interesting to see how this works for Mobotix as they would be the biggest IP camera company to take this approach (Avigilon and IndigoVision have similar channel plans but significantly lower revenue).

Finally, as much as this should encourage integrators to sell Mobotix, we do worry that this will bias integrators to propose Mobotix even when Mobotix does not make sense for a customer's needs. This is not unique to Mobotix but a natural consequence to integrators having strong financial incentives for Mobotix vs Axis, Panasonic, Sony, etc. While Mobotix has impressive technological capabilities, its overall architecture and approach is not a fit for many users who need a more traditional open and simple experience.

Comments : Members only. Login. or Join.

Related Reports

Disruptive Free Lead Generation Added To IPVM on May 15, 2020
IPVM has added lead generation for sellers, for free, disrupting the...
IPVM To Disrupt Trade Shows With Launch of Online Shows on Mar 17, 2020
IPVM is launching Online Shows, a series of ongoing events that allow sellers...
JCI / Tyco Security Products Layoffs on Jun 05, 2020
Johnson Controls / Tyco Security Products has confirmed COVID-19 related...
Anyvision Layoffs on Mar 19, 2020
Anyvision has conducted a layoff, citing the impact of coronavirus, joining a...
Convergint Coronavirus Cuts on Mar 25, 2020
One of the world's largest security integrators, Convergint, has made a major...
Pivot3 Mass Layoffs on Mar 27, 2020
Pivot3 has conducted mass layoffs, the culmination of grand hopes, a quarter...
Axis Discontinues Companion Hardware, Fully NDAA Compliant on Feb 03, 2020
Axis will be fully NDAA compliant, as the company has confirmed to IPVM it is...
Worst Over But Integrators Still Dealing With Coronavirus Problems (June Statistics) on Jun 30, 2020
While numbers of integrators very impacted by Coronavirus continue to drop,...
Mobotix Thermal Detection Camera Tested on Jun 09, 2020
For years Mobotix has struggled but now sales are surging driven by Mobotix's...
Genetec Goes Virtual, Drops Essen and GSX, Skeleton Crew to ISC West 2020 on May 05, 2020
Genetec is dropping Essen and GSX shows this year as well as planning to send...
Dahua Faked Coronavirus Camera Marketing on Apr 01, 2020
Dahua has conducted a coronavirus camera global marketing campaign centered...
Genetec Drops Support for Dahua and Hikvision on Jun 01, 2020
Genetec has dropped support for Dahua and Hikvision, citing US blacklisting...
Integrators Rising Against Coronavirus on May 27, 2020
IPVM integrator statistics make it clear - Coronavirus's impact on business...
Deep Sentinel Presents Crime Response For Business on Jun 11, 2020
Deep Sentinel presented its anti-intrusion and live response for home and...
Disaster Relief Loans For Integrators Examined on Mar 23, 2020
Integrators are being impacted by the coronavirus. Now, the US government is...

Recent Reports

Google Invests in ADT, ADT Stock Soars on Aug 03, 2020
Google has announced a $450 million investment in the Florida-based security...
US Startup Fever Inspect Examined on Aug 03, 2020
Undoubtedly late to fever cameras, this US company, Fever Inspect, led by a...
Motorola Solutions Acquires Pelco on Aug 03, 2020
Motorola Solutions has acquired Pelco, pledging to bring blue back and make...
False: Verkada: "If You Want To Remote View Your Cameras You Need To Punch Holes In Your Firewall" on Jul 31, 2020
Verkada falsely declared to “3,000+ customers”, “300 school districts”, and...
US GSA Explains NDAA 889 Part B Blacklisting on Jul 31, 2020
With the 'Blacklist Clause' going into effect August 13 that bans the US...
Access Control Online Show July 2020 - On-Demand Recording of 45+ Manufacturers Presentations on Jul 30, 2020
The show featured 48 Access Control presentations, all now recorded and...
Face Detection Shootout - Dahua, Hanwha, Hikvision, Uniview, Vivotek on Jul 30, 2020
Face detection analytics are available from a number of manufactures...
Sunell is The First China Manufacturer to Market NDAA Compliance on Jul 30, 2020
Most China manufacturers are going to be impacted by the NDAA 'Blacklist...
Ink Labs Relabels China YCX Fever Camera And Steals Dahua's Marketing on Jul 30, 2020
A US company marketed a 'thermal temperature scanner' as its own, selling...
Genetec and Dahua-Backed Intelbras Split Examined on Jul 29, 2020
China is the cause of the breakup between Canada's and Brazil's largest video...
This YouTuber is Now Selling ThermoHealth Temperature Screening on Jul 29, 2020
An enterprising 20-year old is mass marketing medical devices on Facebook and...
Hikvision Returns To Growth Driven By Overseas Fever Cameras on Jul 29, 2020
While Hikvision's revenue fell in Q1 2020, it rebounded in Q2 attributed to...
Brazil's Biggest Domestic Surveillance Company Intelbras Profile on Jul 29, 2020
While Intelbras is not widely known outside of Latin America, Intelbras is a...
The Kiosk Market Pivots To Temperature Screening (Interviewed) on Jul 28, 2020
Video surveillance is not the only market that has pivoted to medical device...
Integrator Acquisitions 'A Good Market' During COVID-19, Says Greybeards on Jul 28, 2020
Industry broker Ron Davis of the "Greybeards" says that the integrator and...