ELECTRONIC SECURITY SYSTEM BUSINESS – OVERVIEW
R.Nanda Kumar
ATSS Founder | #1 Technology Solutions Provider | ESAI Founder | Entrepreneur | Digital Marketing Expert | Rotarian.
Electronic Security Industry Distribution Business in the Hands of OEM, National Distribution, Regional Distribution & System Integration Companies.
Manufacturer-National Distributor
National Distributor Importing Familiar Brand Selling In Same Brand Name, OEM Manufacturers who resell another company’s product under their own name and branding.
Current Scenario to Promote the OEM Brand Name is Difficult in Electronic Security Industry – Bench Mark Players reduced their overall margin to vanish the National & Regional Wise OEMS.
Bench Mark Brands With Proper After Sales Support Company Will Survive in the Indian Market.
OEM & National Distribution Company Introduce new technology product at higher price than they reduce the price every month to liquidate the container stock before new technology products come to the market. Those who are not having capability of selling the stock within 3 months of shipment they want to sell the product at less than the landing cost.
Slow and steady wins the race but for Electronic Security Distribution Company having capability to liquidate the material Fast only survives.
Regional Distributor
Regional Distribution Companies Not in a position to survive due to squeezed margin of 8% from OEM and national distribution companies.
Due to Price Reduction Every Month from the National Distributor, OEM Regional Distributor wants to sell the old stock at below landing cost at loss.
Two Types of Loss to Regional Distributor from the Margin. Due to Every Month Price Reduction from National Distributor and Bad Debts By the Way of Providing credit to B2B Partners.
To Distribute the Product
Overhead Expense [Marketing, Sales, Support, Accounts, Admin-Team] – 4% | Bank OD – 1% | Technology Loss – 2% | B2B Bad Debts – 1% | Profit – Big??????
System Integrator
A systems integrator is a person or company that specializes in bringing together component subsystems into a whole and ensuring that those subsystems function together, a practice known as system integration.
Based on Customer Requirement Suggesting the recommendable products. But Nowadays Customer Focus only on Less Cost they are not thinking on longer run for after sales support. At lesser Cost how a system integrator company survive. After One Year they close the company how customer get support for the product purchase, there is any service centre for the product purchase answer no.
Due to customer decision on cost aspect system integrator not in a position to survive close the business. Customer Invested Money on Security System No use.
Nowadays System Integrator also not happy due to reduced margin, it’s only sufficient to manage the overheads and owner salary no business profit.
Small Business Owners now working as self-employed, who earn only his salary?
Advice For Customer
If you are purchasing Electronic Security Systems You are purely dependent on the System Integrator or Dealer from Whom You Purchase. Electronic Security System Brands not providing direct service support to the customer as other electronic product companies do.
Finalization with Less Price System Integrator, Surely you will not get quality product and service.
If you decide a correct security system integrator for your Electronic Security Systems products and installation you get onsite support and service up to 5 years through AMC or On Call Service Basis. If you decide a wrong company Your Invested Amount for Electronic Security System installation is zero cost.
If you call some other company they will not serve you.
Why other Electronic Security System installer will not serve you for your installed products. Most of the cases after attending the complaint customer not ready to pay the agreed amount due to that while you are making call for service other than your installer they simply tell they will not support.
R.Nandakumar-ATSS
Managing Director at SANSTAR MICROSYSTEMS P LTD
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