w-box is getting pushed hard. I don't blame ADI for bring a lot of this stuff in-house. Cutting out more middlemen helps to bring the cost down. A lot of the wbox stuff is made by the same "name brand" companies ADI has been pushing for years. This is a good move on their part IMO. Pricing is right and warranty support is better on these product lines. Most of the things we buy that are wbox branded are small low cost items that add up fast.
ADI's Financials Revealed + W-Box Growth Priority
Published Oct 15, 2018 16:54 PM
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Comments (8)
John Bazyk
Oct 15, 2018JH
John Honovich
Oct 15, 2018A lot of the wbox stuff is made by the same "name brand" companies ADI has been pushing for years. This is a good move on their part IMO.
JB, thanks, interesting feedback.
I think the challenge is how far ADI pushes W-Box and how much they upset their manufacturer partners. ADI knows they have market power and they use it well, pushing manufacturers for various marketing payments, rebates, discounts, etc. On the other hand, I am not sure how much the manufacturers will take. At some point, some manufacturers might pull their lines from ADI. It's an interesting issue - Who needs who more? So far, ADI has bet correctly that the manufacturers need ADI more than ADI needs them. If they try for 25-30% annual growth on WBox, I wonder if that will change.
UI
Undisclosed Integrator #4
Oct 24, 2018Interlogix Switches were pulled a few months ago and I am betting more are to come. In our experience the honeywell products just don't last! We had as bad as a 23% fail rate on cameras @ just one, 82 camera installation. We replaced them with Arecont and have a less than 5% since..... I will say the security (Ademco) products are hanging in but the video....... NOT!
UI
Undisclosed Integrator #1
Oct 15, 2018I have found sometimes its not cheaper to buy Wbox. also salesrep seem not to give any discounts on wbox items when buying in volume. they tell me i cant touch the price.
JH
John Honovich
Oct 15, 2018But you can see good growth at 25%-35% every year with our in-house brand.
Dan, did you see or hear what in-house brand revenue currently is? While 25-35% is high for a business overall growing at ~6%, W Box is likely still relatively low and has room to grow but at some point, sooner rather than later, that growth will canabilize ADI's partners.
UM
Undisclosed Manufacturer #2
Oct 16, 2018Amazing they publically lie about not competing. The entire point of a "generic" or "house" brand is to take market share from higher priced products, positioning them as a valid substitute, while boosting profits and ideally creating their own exclusive brand. ADI is screaming "cameras are a commodity" just like HDMI cables and tie wraps.
UI
Undisclosed Integrator #3
Oct 17, 2018As noted in the article the WBox items cover a large amount of product. When this first started I thought some of the misc. items such as zip ties were silly, but figured the margin on it was probably very good. However it started to introduce the brand slowly.
We use a hand full of items such as mounts and transformers and cables. However i think it’s safe to say these are OEM products from vendors that otherwise were in ADI previous or still are.
Ultimatly if you commit to buying a large amount of product from a vendor your gonna get better pricing which would allow ADI to sell the product at a lower cost and maintain the same margin or sell at the same price and make a higher margin.
LT
Larry Tracy
Oct 22, 2018Have not had good success with Wbox have had many quality issues so don’t trust any products with that brand.