ADI vs. Internet Pricing

[camman]

Either I am not getting the pricing everyone else is getting on CCTV equip.,
or dealers on the net are selling below cost.. I am getting better pricing
off the internet on Pelco than from my supply house! Anyone else seeing
this trend?

 

[Crash google]

It's not unusual. Month or two ago I sold a 65" Panasonic Plasma, the
best price I could get it for through my distrib here in town was abt
9000.00, my client got it on the net for 8299 delivered - fine with me
he still paid me my retail price of 10,500.00. Nice guy huh.

 

[camman]

No.. actually he sounds like a dope..

 

[Bob Worthy]

Either I am not getting the pricing everyone else is getting on CCTV equip.,
or dealers on the net are selling below cost Anyone else seeing
this trend?

It has been there. Depends on who you are buying from, on the net, if it is
a smart practice. You may need to look at some other things besides the
price difference. Like warranty issues. One online dealer, here on this NG,
lost warranty from several distributors, on product he resells for instance.
Now, with him, if there is warranty offered, it is on him. Would you trust
that? B grade product is another item of concern. Do you, as a dealer,
receive terms when making an internet purchase? Sometimes, mostly not.
Support is sometimes an issue with certain products. Return, replacement and
repair issues are another item of concern. All of these things have a hidden
value. I am not saying it is bad to use the internet if that is what you
like to do, but sometimes, when the customer is paying the difference
anyway, why not use the benefits of purchasing from a local distributor?

 

[Robert L Bass]

Either I am not getting the pricing everyone else is getting on CCTV

equip.,
or dealers on the net are selling below cost.. I am getting better pricing
off the internet on Pelco than from my supply house! Anyone else seeing
this trend?

It varies from one manufacturer to the next but some distributors will give
you a much better price than others. Almost none of the manufacturers'
dealer direct prices are competitive though.

--

Regards,
Robert L Bass

=============================>
Bass Home Electronics
4883 Fallcrest Circle
Sarasota · Florida · 34233
941-866-1100 Sales & Tech Support
http://www.bassburglaralarms.com
=============================>

 

[Bob La Londe]

It has been there. Depends on who you are buying from, on the net, if it is
a smart practice. You may need to look at some other things besides the
price difference. Like warranty issues. One online dealer, here on this NG,
lost warranty from several distributors, on product he resells for instance.
Now, with him, if there is warranty offered, it is on him. Would you trust
that? B grade product is another item of concern. Do you, as a dealer,
receive terms when making an internet purchase? Sometimes, mostly not.
Support is sometimes an issue with certain products. Return, replacement and
repair issues are another item of concern. All of these things have a hidden
value. I am not saying it is bad to use the internet if that is what you
like to do, but sometimes, when the customer is paying the difference
anyway, why not use the benefits of purchasing from a local distributor?

I've gone this route and found if the MFG is going to dick me around they
have already burned their distributors too, and I need to find a different
brand.

I mostly buy through my established distributors, and I don't mind them
making a profit, but I don't want them getting rich off just me.


--
The Security Consultant
Bob La Londe - Owner
849 S Ave C
Yuma, Az 85364

(928)782-9765 ofc
(928)782-7873 fax

 

[Robert L Bass]

I've gone this route and found if the MFG is going

to dick me around they have already burned their
distributors too, and I need to find a different brand.

I mostly buy through my established distributors,
and I don't mind them making a profit, but I don't
want them getting rich off just me.

What I've found with ADI is that they will give you great prices on
Honeywell owned brands *if* you but a lot of it and *if* you make a deal
with the manufacturer. For example, if you want good prices on cable you
have to talk with your local Genesis rep -- not your ADI branch guys because
they don't have the authority to go below whatever column your gross ADI
volume entitles you to.

The same is of course true of Ademco. You work out special pricing on
various kits with the Ademco rep. He'll authorize ADI to give you the
prices. On their own ADI can't do anywhere near as much for you. I've
found the same practice with several of our other suppliers.

BTW, when you buy through distribution, all manufacturers' warrantees remain
in full effect for your customers because the manufacturer doesn't even know
or ask which dealer sold the product. There are several manufacturers who
try to stop *all* online sales but if they want to use ADI as a distributor
they have no choice. ADI's policy is that they will offer sales and
warranty service (which they obtain directly from the manufacturer) on all
of their products and to all of their dealers.

--

Regards,
Robert L Bass

=============================>
Bass Home Electronics
4883 Fallcrest Circle
Sarasota · Florida · 34233
941-866-1100 Sales & Tech Support
http://www.bassburglaralarms.com
=============================>

 

[Rapid]

Either I am not getting the pricing everyone else is getting on CCTV equip.,
or dealers on the net are selling below cost.. I am getting better pricing
off the internet on Pelco than from my supply house! Anyone else seeing
this trend?

I too have noticed this. ADI is losing business. Plus if ordered over
the internet from a different state.... no sales tax, woohoo. Adds up
quick.

 

[J.]

It varies from one manufacturer to the next but some distributors will give
you a much better price than others. Almost none of the manufacturers'
dealer direct prices are competitive though.

That all depends on how big the dealer is. Like anything else, price
obviously depends on volume. It used to be we could get some stuff
cheaper from ADI than directly from the manufacturer. With all of the
consolidation and competition that doesn't happen anymore. Our
problem is overhead and labor costs.

 

[Rapid]

What I've found with ADI is that they will give you great prices on
Honeywell owned brands *if* you but a lot of it

sounds a little wierd to me. how does that work? is that what you call
your but, the "honeywell"? too much info Robert!

and *if* you make a deal

 

[Crash google]

Dealers don't pay sales tax...not if they're licensed.

 

[Robert L Bass]

That all depends on how big the dealer is. Like

anything else, price obviously depends on
volume. It used to be we could get some stuff
cheaper from ADI than directly from the
manufacturer...

I hear that. We buy enough from ADI to get good prices on most stuff, but
the real deals are made directly with Honeywell subsidiary manufacturers.
Those who are interested in developing online sales tend to be more willing
to deal. Those whose products don't really lend themselves to the medium
are less cooperative.

The other side of it is that ADI has serious competition these days, not
just from major distributors but also from small, regional houses. You can
and should shop around. Make a list of your most popular products, try to
estimate annual purchasing for each and run it by a few. You may be
surprised at the amount you can save. I took much of my CCTV orders away
from ADI a few months ago after finding a much better deal elsewhere. Now
CCTV is becoming a significant element of our business.

With all of the consolidation and competition
that doesn't happen anymore.

You can use that competition to your advantage. You don't need to have my
purchasing power to make the distributors work harder for you. Just shop
around a little and when you find a better deal offer ADI the opportunity to
best it. If they won't, take your business elsewhere for a few months. I
promise they'll come knocking.

Our problem is overhead and labor costs.

I can't help you there. That's part of doing business and if you're running
a service department plus stocking parts you're only going to see those
costs rise. The good news is that every other dealer (your competition) is
in the same boat. :^)

--

Regards,
Robert L Bass

=============================>
Bass Home Electronics
4883 Fallcrest Circle
Sarasota · Florida · 34233
941-866-1100 Sales & Tech Support
http://www.bassburglaralarms.com
=============================>

 

[Robert L Bass]

Dealers don't pay sales tax...not if they're licensed.

I think he's talking about competition from online dealers. Their (or
rather, my) customers don't pay sales tax.

--

Regards,
Robert L Bass

=============================>
Bass Home Electronics
4883 Fallcrest Circle
Sarasota · Florida · 34233
941-866-1100 Sales & Tech Support
http://www.bassburglaralarms.com
=============================>

 

[Rapid]

Dealers don't pay sales tax...not if they're licensed.

I'm not a dealer. But if I buy from one over the 'net and he's out of
state I don't either.

 

[Bob Worthy]

I too have noticed this. ADI is losing business. Plus if ordered over
the internet from a different state.... no sales tax, woohoo. Adds up
quick.

I was led to believe this as well from one of the DIY on line sales companys
that participates on this NG. After looking into it, Florida's Dept of
Revenue has a different view about this. It is all about the money, you
know. I would check each state prior to simply ignoring your tax obligation
because you heard it somewhere. It is the penalties and interest that adds
up quick.

 

[Rapid]

I was led to believe this as well from one of the DIY on line sales companys
that participates on this NG. After looking into it, Florida's Dept of
Revenue has a different view about this. It is all about the money, you
know. I would check each state prior to simply ignoring your tax obligation
because you heard it somewhere. It is the penalties and interest that adds
up quick.

Mr Bass wouldn't have misled the unwashed dumb masses would he?
Seriously, I'll check into that. Just assumed that since tax wasn't
charged, there was none. That's the way it is with stuff purchased over
the internet, I had read, no sales tax. And because everything I have
purchased over the internet has been tax free for years now.

 

[camman]

I took much of my CCTV orders away

from ADI a few months ago after finding a much better deal elsewhere. Now
CCTV is becoming a significant element of our business.

Exactly Robert.. I was finding CCTV stuff much cheaper through the internet
and on sites that were retail, not dealer discounted. No application, no
resale ID... support, I dont know? But I am a small two man shop and my
volume with ADI is minimal, thus the pricing column I fall into is prob. the
highest tier.. For me, being a small operator, I am prob better off
cultivating a relationship with an online vendor than dealing with ADI..
they want big guys.. not me.

 

[Bob La Londe]

Mr Bass wouldn't have misled the unwashed dumb masses would he?
Seriously, I'll check into that. Just assumed that since tax wasn't
charged, there was none. That's the way it is with stuff purchased over
the internet, I had read, no sales tax. And because everything I have
purchased over the internet has been tax free for years now.

There are some Federal regulations that prohibit states to enact any regs
which inhibit interstate trade. In general this prohibits the charging and
collection of sales taxes on interstate sales. However states find
innovative ways to try and get around that. One Arizona tries is to charge
a "USE" tax and make the buyer responsible for it. Many things are
impossible for them to colelct on, but for something that is registered like
a boat or car they make you show the original sales receipt. If you did not
pay sales tax where you bought it they make you pay use tax when you
register it. Personally I think its a deliberate attempt by the state to
circumvent Federal regs, but hey they are getting away with it.

Another thing Az does is call their sales tax a "transaction priveledge
tax." Where this becomes an issue is in selling to federal agencies.
Federal agencies are exempt by federal law from state and local sales taxes.
Arizona doesn't charge a "sales" tax and makes the seller responsible for
all transaction taxes regardless. Due to competitive pressure they finally
did allow an exemption so that sellers only have to pay half the sales tax
on "transaction priveledge tax" to federal agencies. Still, somebody
selling to a local fed agency from out of state has a built in 3%-5%(apx)
pricing advantage over a local business.

Taxes suck. "Its about plucking the maximum number of featehrs from the
goose with a minimum of squaking." (Hamilton I think)

Its no big surprise that Arizona is a rogue state. We started out that way
from our very 1st admission into the union. We can remove any elected
offical by popular refferendum. This includes judges. The fed objected to
this in our constitution so we removed it, joined the union, and then put it
right back in. Yes, a judge who makes an unpopular decision could possibley
be removed by popular vote in Arizona.

 

[Bob Worthy]

Exactly Robert.. I was finding CCTV stuff much cheaper through the internet
and on sites that were retail, not dealer discounted. No application, no
resale ID... support, I dont know? But I am a small two man shop and my
volume with ADI is minimal, thus the pricing column I fall into is prob. the
highest tier.. For me, being a small operator, I am prob better off
cultivating a relationship with an online vendor than dealing with ADI..
they want big guys.. not me.

They have sale quotas to meet just like any other business. Take pricing to
them and see if they will match or beat it. They would rather negotiate than
simply loose your business. Once you have negotiated a price on an item,
that will be your price because they look at the last price you paid. Talk
to them. I am a small dealer as well and if the price is to high, I tell
them they need to do better on the item if they can. They usually can and
do, believe me. I also deal with two other distributors in the area as well.
Between the three, I get the price I can live with.

 

[Bob Worthy]

Mr Bass wouldn't have misled the unwashed dumb masses would he?
Seriously, I'll check into that. Just assumed that since tax wasn't
charged, there was none. That's the way it is with stuff purchased over
the internet, I had read, no sales tax. And because everything I have
purchased over the internet has been tax free for years now.

I don't have the specifics as of yet, however, when I was in Tallahassee on
some legislative issues with a bill that the governor signed into law,
internet sales questions came up. Sales tax was questioned and Florida does
expect to receive sales tax on internet sales, according to a State
representative.We will be looking closer at this now that the session is
over. Maybe RLB will volunteer his time to have the Department of Revenue
look at his business as a model. )