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'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 wrote:
No.. actually he sounds like a dope..
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?
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.
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.
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.
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.
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
Dealers don't pay sales tax...not if they're licensed.
Rapid wrote:
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.
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.
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. :^)
I think he's talking about competition from online dealers. Their (or rather, my) customers don't pay sales tax.
I'm not a dealer. But if I buy from one over the 'net and he's out of state I don't either.
work out of your garage and hire some of those illegal aliens, they work cheap. ;)
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.
I took much of my CCTV orders away
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.
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.
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.
Cabling-Design.com Forums website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.