Given the challenging demands from today’s customers, more and more security products manufacturers are looking to enter into partnerships with each other. One such company is ZKAccess, which joined hands with several other companies in 2015.
Given the challenging demands from today’s customers, more and more security products manufacturers are looking to enter into partnerships with each other. One such company is ZKAccess, which joined hands with several other companies in 2015, most notably the access control software developer Imron and turnstile manufacturer Delta Turnstiles.
In a recent interview with a&s International, Larry Reed, CEO of ZKAccess elaborated on the necessity of such partnerships and how they benefit the customers.
a&s: Why did you decide on these partnerships?
Reed: No manufacturer can be everything to everyone. Once a manufacturer extends themselves beyond their core competency, it becomes extremely difficult and often expensive to maintain the same consistency in great product quality and product support that your customers have become accustomed to. Consequently, the best way to get “closer” to becoming everything to everyone is by effectively leveraging other manufacturer(s) who best compliment your core competencies.
For example, the primary reason we partnered with Delta Turnstiles is because ZKAccess wishes to sell our own manufactured turnstiles in the U.S. and Canada. However, our current lack of turnstile brand recognition in these markets would normally have made it very difficult to enter the very competitive turnstile market. Delta Turnstiles, however, has terrific brand recognition in the U.S. and Canada and trusted relationships amongst its loyal following of turnstile integrators. So as opposed to trying to compete in the U.S. and Canadian turnstile market on our own, we at ZKAccess felt our chances for success would be far greater by partnering with Delta.
As a result, Delta now markets their own manufactured turnstiles, as well as ZKAccess-manufactured turnstiles. The ZKAccess turnstiles have the Delta logo printed on them, so customers can be confident the ZKAccess turnstiles adhere to Delta’s high standards in craftsmanship and reliability. The ZKAccess turnstiles also feature the ‘Powered by ZKAccess’ logo, so customers know they are also ZKAccess products.
This strategy is not new. Notable computer chip manufacturers and operating system software companies now print their own respective logos on third-party computers in which they’re installed so customers know what’s ‘inside’ the computer they bought. Regarding the ZKAccess/Delta partnership, Delta added low-priced yet reliable ZKAccess turnstiles to the Delta product line which helps Delta reach customers who previously could not afford Delta’s higher-priced turnstiles. Additionally, this partnership now allows ZKAccess turnstiles to be purchased by customers who might not have previously known about or trusted ZKAccess due to our current lack of name recognition in the turnstile industry. It’s a win-win-win for ZKAccess, Delta and customers. Customers with smaller budgets can now purchase ZKAccess-manufactured turnstiles with assuredness of receiving the same great quality and support synonymous with the Delta brand.
Regarding the Imron partnership, ZKAccess primarily partnered with Imron because of Imron’s highly trusted, feature-rich access control management software which now compliments our highly reliable access control hardware. While the ZKAccess management software is quite robust and extremely reliable, admittedly it lacks some high-end features that Imron’s advanced software has. Imron chose to partner with ZKAccess because Imron’s previous hardware vendor was becoming cost-prohibitive and their licensing model was becoming too unpredictable, making it increasingly difficult for Imron to properly plan its corresponding product roadmap. This partnership proved to be another win-win-win; Imron obtains less expensive predictable hardware, ZKAccess gains access to Imron’s enterprise-class customers, and the customer receives an advanced, feature-rich yet affordable access control solution.
a&s: How do distributors and systems integrators (SI) benefit from these partnerships?
Reed: Effective hardware partnerships help drive down the cost of integrated solutions, while at the same time ensuring customers receive even more functionality. This represents a terrific value proposition which distributors and SIs can, in turn, offer their customers. Hardware partnerships also help further differentiate distributors and integrators in this increasingly competitive commoditized security industry. Distributors and integrators who stay current in both technology and market updates become aware of newly forged manufacturing partnerships and technology developments. Conversely, old school traditional “box pushers” typically offer the same old non-integrated products. These box pushers’ only value proposition is reducing their price and profit margin to remain competitive.
But manufacturing partnerships and technology updates are part of the education that customers rely on their suppliers to impart. The more education distributors and integrators can provide their customer, the greater their value proposition becomes. The greater their value proposition, the less likely that same distributor or integrator will be pressured by customers to lower their selling price/profit margins when it’s time to close a deal. Truly value-added distributors (VADs) and integrators thrive on “change” and “innovation” in the market since it provides them greater differentiation (competitive edge) and justifies charging higher prices for their products and services. And this ensures profitability is sustainable in our industry which translates into more sales and technical jobs in the security industry.
a&s: How does the end user benefit from your partnerships?
Reed: Compared to manufacturers and distributors/integrators, it’s always the customer who benefits the most from lower prices and more features. For ZKAccess/Delta customers, reduced capital budgets no longer prevent customers from affording reliable and stylish turnstiles. For ZKAccess/Imron customers, the savings derived from lower hardware costs will allow customers to invest in other security projects which further safeguard their employees and business assets.
a&s: How are your customers and end users protected if you choose to end a partnership?
Reed: Above and beyond any additional revenue, market share or notoriety derived from partnering, the primary business asset of any manufacturer is their respective reputation. And the only way to ensure your reputation is maintained is by taking care of the customer. Customer loyalty is priority number one. So regardless how long the partnership remains in effect, both parties have a vested interest in keeping the customer happy. Product warranties and service contracts will not be at risk, although eventually an equitable agreement between the two manufacturers needs to be made. In the ZKAccess/Delta partnership, all the customers belong to Delta. ZKAccess supports Delta. Delta continues servicing their customers. So if the partnership ends, customers are not affected. Same holds true of the ZKAccess/Imron partnership. All the customers belong to Imron. If the partnership ends, customers are not affected since Imron will continue servicing their customers.
a&s: Do you expect more form more partnerships in the future?
Reed: ZKAccess will never stop assessing our customers’ growing physical security requirements. And to meet their requirements, we will continue building products ourselves if 1) There exists business justification, 2) The customers’ requirements falls within our core competencies, and 3) We have the sales and marketing resources to effectively introduce that product into the market within a reasonable time period. And if we should determine the customers’ requirements falls outside our core competencies or we lack resources, yet there is business justification, we will continue finding manufacturing partners like Delta Turnstiles and Imron who can both deliver exceptional solutions while at the same time maintain ZKAccess’ trusted brand and business reputation.