Re: ADI vs. Internet Pricing

["Robert L Bass" <robertlbass@xxxxxxxxxxx>]

> 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

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