ADI Pricing question

[ABLE_1]

I know this topic has been cover to some extent in the past. But something
happened today that has started to fry my shorts.

A potential customer needs an upgrade and I am going to spec a Vista 20P.
So I call my contact at ADI and ask for a price. Ok, got it and wrote it
down. When I get back to the office I happened to be looking for a price on
something else in price list and noticed that I had bought a 20P back in
October. And I paid 54% less than quoted today for the dang thing.

So I call back to ADI (4:30pm) and my contact had left for the weekend. So
I ask the guy on the phone what the price is for a 20P. Give him the
account number and comes back with a price that is $10 bucks less that I was
quoted 1 hour earlier. WTF

Anyhow does anyone here know if there was a major price increase in the past
5 months that I did not know about??? ADI is not were I purchase most of my
product from and I do understand that I should pay a little higher because
of my limited volume but more than double is a bit ridiculous.

Any thoughts or comments????

Also is ADI the only fish in the barrel that handles Ademco/Honeywell
products???

Thanks,

Les

 

[Doug]

Everybody seems to pay a different amount at ADI, and its not only dependent
on volume. I don't know what RLB pays for his product, but I know that if he
only marks up his product by 35%, which he has often stated, then he isn't
paying 54% less than the average low volume dealer.

Doug

--

 

[Frank Olson]

ADI pricing to dealers is a function of volume. If the counter guy doesn't
know your account number first, he will seldom quote you the correct price.
Additionally it is not the ADI folks that set actual pricing on Honeywell
gear. That is determined by special pricing via special SKU on your account
number from the Honeywell guy. You can bet that guys like Bass are in fact
probably paying 54% of what you pay for the exact same gear.
If you're a high volume dealer then Honeywell will get down and dirty with
pricing. If not then wait for the monthly sales fliers if you want a good
deal, (or see if Bass or someone like him will cut you some slack).

I seriously doubt Bass has the "volume" you think he has so suggesting
the OP arranges to purchase product through him (or any legitimate
high-volume Dealer) is just plain "nuts". We get good pricing from ADI
because they want more of our business and they know we "shop" for the
best deal. When you have three distributors in town all within
"spittin' distance" of each other, it's pretty easy to maintain a lid on
pricing.

To the OP:

Send ADI a copy of the invoice for the 20P you purchased last year and
tell them that if they really want your business, they'd better
straighten up.

 

[ABLE_1]

Believe me it will not require me to make a copy of the invoice. I have a
tendency to be rather to the point on issues like this.

So after reading the responses it would seem that there has not been a major
price increase.

And the other question has not been answered. What distributor handles
Ademco products other than the online stores??? Or is there none???

Thanks, Les

 

[Noweldrecumbent]

Adi probably operates much like my Elecrical supplier did, they use
different multipliers for different customers. I became good friends with
the owner of it, he told me he had us down at the "BEST" price bracket. A
short funny story about ADI. I was contracted by a catholic church to
install the energy management system for a multi building boiler system,
Cameras, Alarms, Re wiring the school, and Church Main Panel Distrubution
systems. Since they were buying soooo much from ADI they set up their own
account. I found out they charged the church more money than my small
business account Goooo Figure!
Dave

 

[Robert L Bass]

Additionally it is not the ADI folks that

set actual pricing on Honeywell gear.
That is determined by special pricing
via special SKU on your account number from the Honeywell guy.

That is 100% right, Roland. The OP's
Honeywell rep will set special prices
if he guarantees a certain minimum in
orders for that part number. Most of
the time they want you to buy a kit
consisting of panel, keypad, siren or
battery, Aurora, etc.

You can bet that guys like Bass are
in fact probably paying 54% of what
you pay for the exact same gear.

Well, perhaps not quite that low but I
do get good pricing on the itmes I
emphasize. This is nothing special.
Every dealer can do the same. As you
said earlier, it's volume related. Beyond
that I really shouldn't comment.

If you're a high volume dealer then
Honeywell will get down and dirty with pricing. If not then wait for the monthly
sales fliers if you want a good deal,
(or see if Bass or someone like him
will cut you some slack).

I will and often do. There are a number
of small dealers who buy specific items
from me. However, if the gentleman is
already established he can still do better
than what I have to charge by buying
from ADI himself.

ADI isn't unique in this area. All my
suppliers do the same thing. That's just
business. They're not trying to screw
the smaller dealers but they have to
give larger dealers a break or someone
else will.

--

Regards,
Robert L Bass

=============================>
Bass Home Electronics
941-925-8650
4883 Fallcrest Circle
Sarasota · Florida · 34233
http://www.bassburglaralarms.com
=============================>

 

[Robert L Bass]

I don't know what RLB pays for his

product, but I know that if he only
marks up his product by 35%, which
he has often stated, then he isn't paying 54% less than the average
low volume dealer.

That is correct. I assume the gentleman
was referring to the delta between two
quotes which he received. The 54%
had nothing to do with me.

--

Regards,
Robert L Bass

=============================>
Bass Home Electronics
941-925-8650
4883 Fallcrest Circle
Sarasota · Florida · 34233
http://www.bassburglaralarms.com
=============================>

 

[Robert L Bass]

I seriously doubt Bass has the "volume"

you think he has so suggesting the OP
arranges to purchase product through
him (or any legitimate high-volume
Dealer) is just plain "nuts"...

I have no idea what volume the gentleman
thinks I do. It's enough to get decent prices
from several distributors and a few direct
manufacturers.

Any established dealer can at least get
close to the same prices I do from any of
my vendors so you're right that he's better
off negotiating with ADI himself.

I'm able to help a few small dealers and
I usually do but once they have enough
business they invariably get their own
accounts. I don't mind that. In fact I fully
expect it. Until they do I make a few
extra dollars and my volume also goes
up so it's good for both but it's never
a good long-term solution to buy from
your competitor -- whether it's an online
dealer or a high volume local outfit.

--

Regards,
Robert L Bass

=============================>
Bass Home Electronics
941-925-8650
4883 Fallcrest Circle
Sarasota · Florida · 34233
http://www.bassburglaralarms.com
=============================>

 

[Robert L Bass]

Believe me it will not require me to

make a copy of the invoice. I have
a tendency to be rather to the point
on issues like this.

You only need to know the order number.
They keep the record for years.

So after reading the responses it
would seem that there has not been
a major price increase.

Correct. There has not.

And the other question has not been
answered. What distributor handles Ademco products other than the online
stores??? Or is there none???

There are several but they all have to
agree to charge standard "dealer net"
-- no discounts. That isn't to say they
won't break their promise to Honeywell
but they do so at their peril. Honeywell
will cut them off if they find out about it.

--

Regards,
Robert L Bass

=============================>
Bass Home Electronics
941-925-8650
4883 Fallcrest Circle
Sarasota · Florida · 34233
http://www.bassburglaralarms.com
=============================>

 

[ABLE_1]

There are several but they all have to

agree to charge standard "dealer net"
-- no discounts. That isn't to say they
won't break their promise to Honeywell
but they do so at their peril. Honeywell
will cut them off if they find out about it.

Please name names...............................

Inquiring minds want to know.

Thanks,

Les

 

[Frank Olson]

I have no idea what volume the gentleman
thinks I do.

I have no idea what volume you do and I seriously doubt you'd be
truthful if asked (not that it's anyone's business but yours). As long
as it keeps the Sprint Spectrum Mobile ringing off your belt holster
that's all that really matters, isn't it?

 

[Pogo]

Do you have "Anixter" in the US, think they are a US company, They are now
selling Ademco, Paradox and other 3rd party panels. Looks like there trying
to get into the Burg distribution BIZ.
I worked in a Distribution House (Tri-Ed) many moons ago, volume speaks
VOLUMES though its hard to image a 54% difference in 6~7month on a product.
though remember the local ADI manager is compensated on gross sales, if
there having a slow month...less likely to see the discounting..As Mr. Bass
as alluted to.. buy the specials/Kits.. Volume usualy equates to 20% percent
better than a local jobber, Three letters Companies (33%) better..

Money does not talk in this business.....it SCREAMS.......
Pogo

 

[Robert L Bass]

Please name names...............................

Silmar is one I know of. You might also check with Alarmax though I don't recall for certain if they carry the line.

Side note: I did a quick Google to look for others and came across a dealer in McLean, VA that calls itself Honeywell Protection
Services. I wonder what the real Honeywell would say if they knew about that. Not my problem either way...

--

Regards,
Robert L Bass

=============================>
Bass Home Electronics
941-925-8650
4883 Fallcrest Circle
Sarasota · Florida · 34233
http://www.bassburglaralarms.com
=============================>

 

[Robert L Bass]

I have no idea what volume you do and I

seriously doubt you'd be truthful if asked

I prefer not to say. I'm neither bragging nor
being humble -- certainly not be untruthful.

(not that it's anyone's business but yours).
Correct.

As long as it keeps the Sprint Spectrum
Mobile ringing off your belt holster that's all that really matters, isn't it?

Actually, it's an old Nextel model but most of
my calls come in on the VoIP lines.

--

Regards,
Robert L Bass

=============================>
Bass Home Electronics
941-925-8650
4883 Fallcrest Circle
Sarasota · Florida · 34233
http://www.bassburglaralarms.com
=============================>

 

[Robert L Bass]

I imagine they'd say nothing since Honeywell

Protection Services is the old security division
Honeywell sold off 2 years ago that is still
allowed to use the Honeywell name.
--- snip ---

Interesting. I wasn't aware of that.

--

Regards,
Robert L Bass

=============================>
Bass Home Electronics
941-925-8650
4883 Fallcrest Circle
Sarasota · Florida · 34233
http://www.bassburglaralarms.com
=============================>

 

[Robert L Bass]

It wasn't ADI giving the price break.

It was Honeywell (Ademco) the manufacturing arm, not the distribution
arm. They have separate reps, pricing,
and interests.

True, Honeywell has the final say. From
the dealer's perspective it makes no
difference. The deal is still the same.
If you sell more they give you lower prices.
There's nothing insidious about that. It's
common business practice.

--

Regards,
Robert L Bass

=============================>
Bass Home Electronics
941-925-8650
4883 Fallcrest Circle
Sarasota · Florida · 34233
http://www.bassburglaralarms.com
=============================>

 

[Nick Lawrence]

HSM ELECTRONIC PROTECTION SERVICES INC, previously named HSM HONEYWELL
SECURITY MONITORING, was the entity spun off by Honeywell Intl in ~2004.

This spun off entity was licensed and permitted to use the mark
'Honeywell' for a period of time, and then adopted the moniker 'HSM'.

This entity was (as noted in the trade press), in turn, sold to a
division of Stanleyworks last month.

The permission granted to allow use of the 'Honeywell' mark has expired,
and HSM-Stanleyworks may no longer use the 'Honeywell' mark.

 

[ABLE_1]

Ok, now for the rest of the story.

First let me say again that ADI is not my primary source for equipment.
This is because of some of their pricing issues that I have been aware of
for sometime.

I called the branch manager and questioned this issue. I was told that when
I bought the 20P in October I had bought the kit. And they have this thing
of pricing the "kit" items out as separate items which shows a much
different price than if you buy it by the piece. Therefore, a big price
difference.

On the issue of two different prices from two different sales people on the
same day. One did not pull up my account to quote a price and the other
did. The one that did not was giving me the price for a (off the street)
over the counter sale.

So given this info it seems that all is well. Doesn't change my buying
sources. I only use Ademco products when it is my only choice as it was in
this application. It also makes me ask more questions when I am asking for
a price on a given item.

Have a good day.

Les

 

[Robert L Bass]

So given this info it seems that all is well.

Doesn't change my buying sources. I
only use Ademco products when it is my
only choice as it was in this application.
It also makes me ask more questions
when I am asking for a price on a given
item.

There's a simple way to avoid confusion in the future. Just give the sales rep your account number when you ask for a quote.
She'll look it up with your account number and any special pricing they've agreed to will show up on her screen. Note however, that
if you order a specific kit and they quote you "normal" pricing you'll still be charged your special price. This has happened to me
on several occasions.

--

Regards,
Robert L Bass

=============================>
Bass Home Electronics
941-925-8650
4883 Fallcrest Circle
Sarasota · Florida · 34233
http://www.bassburglaralarms.com
=============================>