Pelco Major Rep Shakeup

By: John Honovich, Published on Jun 02, 2014

Pelco has ended their relationship with 5 of 8 Noth American manufacturer representatives while bringing on 2 new firms.

These moves have caused significant concern and discussion amongst dealers. In this note, we examine them, including feedback from Pelco.

Pelco Explanation

Pelco explained that:

"For the last few years, we have employed a hybrid go-to-market strategy using both reps and a direct sales force. As part of our annual review process, we evaluate this model and adjust accordingly. As such, we have decided to end our relationship with five rep firms. Two new firms are being brought in (an announcement will be made shortly) and the three other territories will be supported directly by dedicated Pelco Sales teams."

Besides the sheer number of firms that were let go, this continues to change the approach of Pelco, who once heavily used manufacturer representatives. Pelco noted that,

"We have had a direct sales force in place in the West and Pacific Northwest for a number of years. Working with reps has been and continues to be our preferred go-to-market strategy and the route we will choose when possible."

It is unclear to us why it is not 'possible' to use reps in those 3 regions, though presumably, given the rep options, Pelco believes they can execute better direct in those regions.

Reps Impacted

While no official list of reps impacted is available, Langbaum in the Northeast, Keith Parker [link no longer available] in the Midwest and Crockett in the Southcentral are confirmed out. A new firm has been founded by a former Keith Parker principal, Craig Jones [link no longer available]. For reference, see Pelco's list of all current reps here (not updated as of this publication).

Get Notified of Video Surveillance Breaking News
Get Notified of Video Surveillance Breaking News

For reps, losing a major line, like Pelco, can be devastating since they often generate a majority of revenue from that line (and are restricted from representing direct rivals simultaneously).

Increasing Direct Sales Force

Though many manufacturers use representative firms, Pelco's increasing use of its own direct sales force is not without precedent, especially among Pelco key competitors. For example, Axis uses no rep firms in the US. And Avigilon dropped their rep firms a number of years ago.

Rep firms typically provide the most advantage to smaller manufacturers or those only selling a single part of a system because reps are involved in many different deals. By contrast, larger manufacturers that offer their own end to end offering can more frequently leverage their own internal people in each region.

Pelco Coming Back?

Pelco themselves has admitted their troubles over the past few years in their recent 'Pelco is Back' assertion. Whether they are really back yet, the reality is that their position is clearly weakened since the Schneider acquisition.

From what we can tell, life as a Pelco manufacturer rep has been difficult because of the internal Pelco changes and the decline in their product's competition positioning.

Maybe Pelco needs a fresh start with new reps. Maybe Pelco can find more successful focusing more on their own internal sales team.

Either way, these changes are quite significant, showing the challenges that Pelco is facing.

3 reports cite this report:

Bosch Security To Terminate 7 US Manufacturer Rep Firms on Sep 16, 2015
Bosch Security will terminate 7 US manufacturer rep firms, switching their...
Pelco Responds to Criticism Impressively on Jun 09, 2014
Companies tend to put their head in the sand when criticized, hoping it will...
Falling Down: The 2014 Mid-Year Guide on Jun 02, 2014
Falling down - the theme of the 2014 video surveillance industry. This is the...
Comments (50) : Members only. Login. or Join.

Related Reports

Genetec Drops Support for Dahua and Hikvision on Jun 01, 2020
Genetec has dropped support for Dahua and Hikvision, citing US blacklisting...
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...
FLIR Suspends Agreement With Feevr on May 07, 2020
Thermal manufacturer FLIR has suspended its agreement with Feevr (aka...
JCI Coronavirus Cuts on Mar 31, 2020
JCI has made coronavirus cuts, the company told employees in an email that...
Sony Exits Branded Video Surveillance Business on Apr 15, 2020
After years of decreasing investment into video surveillance, Sony has now...
"Beyond Reprehensible" Email Leads To Boycott of CPI Security on Jun 10, 2020
One of the largest US security integrators, CPI Security, with $100+ million...
Bosch Moving Commercial Alarms Manufacturing Out of China on Apr 21, 2020
Bosch is moving commercial alarms production ~6,000+ miles out of China and...
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...
Bosch Dropping Dahua on Feb 13, 2020
Bosch has confirmed to IPVM that it is in the process of dropping Dahua, over...
ASIS GSX Atlanta 2020 Canceled on Jun 22, 2020
Beset by the coronavirus pandemic and Atlanta protests, ASIS has announced...
Motorola / Avigilon Drops ISC West on Feb 26, 2020
Motorola Solutions has pulled out of ISC West 2020 effective immediately,...
IBM Video Analytics Reborn on May 01, 2020
IBM is back in video analytics and they are even offering AI-based fever...
Milestone Drops ISC West on Mar 06, 2020
Milestone has dropped ISC West, joining a long list of companies to cancel...
Wyze Fails To Deliver Own On-Board Analytics, Launches Novel Name Your Own Price Service on Jul 24, 2020
While Wyze failed to deliver their own onboard analytics to replace the...
OnSSI Founders Return, Start Corsight on May 25, 2020
The OnSSI founders are back, less than 2 years after selling OnSSI to...

Recent Reports

Dangerous Hikvision Fever Camera Showcased by Chilean City on Aug 07, 2020
Deploying a fever camera outdoors, in the rain, with no black body, is...
"Grand Slam" For Pelco's PE Firm, A Risk For Motorola on Aug 07, 2020
The word "Pelco" and "grand slam" have not been said together for many years....
FLIR Stock Falls, Admits 'Decelerating' Demand For Temperature Screening on Aug 07, 2020
Is the boom going to bust for temperature screening? FLIR disappointed...
VSaaS Will Hurt Integrators on Aug 06, 2020
VSaaS will hurt integrators, there is no question about that. How much...
Dogs For Coronavirus Screening Examined on Aug 06, 2020
While thermal temperature screening is the surveillance industry's most...
ADT Slides Back, Disappointing Results, Poor Commercial Performance on Aug 06, 2020
While ADT had an incredible start to the week, driven by the Google...
AHJ / Authority Having Jurisdiction Tutorial on Aug 06, 2020
One of the most powerful yet often underappreciated characters in all of the...
SIA Coaches Sellers on NDAA 889B Blacklist Workarounds on Aug 05, 2020
Last month SIA demanded that NDAA 899B "must be delayed". Now that they have...
ADI Returns To Growth, Back To 'Pre-COVID Levels' on Aug 05, 2020
While ADI was hit hard in April, with revenue declining 21%, the company's...
Exposing Fever Tablet Suppliers and 40+ Relabelers on Aug 05, 2020
IPVM has found 40+ USA and EU companies relabeling fever tablets designed,...
Indian Government Restricts PRC Manufacturers From Public Projects on Aug 04, 2020
In a move that mirrors the U.S. government’s ban on Dahua and Hikvision...
Directory of 201 "Fever" Camera Suppliers on Aug 04, 2020
This directory provides a list of "Fever" scanning thermal camera providers...
Face Masks Increase Face Recognition Errors Says NIST on Aug 04, 2020
COVID-19 has led to widespread facemask use, which as IPVM testing has shown...
Dahua Loses Australian Medical Device Approval on Aug 04, 2020
Dahua has cancelled its medical device registration after "discussions" with...
Google Invests in ADT, ADT Stock Soars on Aug 03, 2020
Google has announced a $450 million investment in the Florida-based security...