Manufacturer Financing
As equipment moves through the channel, some manufacturers offer their installers discounts. OnSSI sells
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| ▲Lance Holloway, Director of Technology Strategy, Stanley Convergent Security Solutions |
through manufacturer representatives, distributors and its certified installers; it does not sell directly to end users. To support its channel partners, it launched a financial services program that allows customers to finance projects from software, hardware, labor, maintenance and training, without using their own cash or credit lines. "We worked with Susquehanna Commercial Finance for certified channel partners or integrators, to finance the whole project and not just the software," said Gadi Piran, President of OnSSI.
This is helpful for applications with fixed annual budgets. For example, K-12 school districts will not know how much public funding they have until the next school year. Instead of delaying until the districts receive their budgets, integrators can start work right away, Piran said. The company's certified partners can apply through the OnSSI program for projects up to US$100,000 by completing a one-page credit application. For larger amounts, they must provide additional financial information.
Some manufacturers choose not to use financing."Some system integrators try to pressure us, saying they'll pay in 180 days, but if we reduce prices by 2 to 3 percent, they'll pay in 30 days," said John Romanowich, President and CEO of SightLogix. "One time, we were specified on the request for proposal, so we were able to negotiate a one-third down payment. It depends on the architect and engineers."
Loyalty Programs
Similar to OnSSI's certified channel partners program, Infinova launched its own certified integrator program for
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▲Mark Wilson, VP of Marketing for
Infinova |
better support. Its integrators need to pass a technical product certification to be eligible. Infinova will award certified integrators who meet an "achievable" quarterly incentive by giving them an additional year on standard warranties, said Mark Wilson, VP of Marketing for Infinova. "Users can get the benefit of the incentive and co-op marketing."
Infinova also supports its channel partners with brand promotion funding. "The types of things we sponsor are executive seminars for key executives, as we provide training content," Wilson said. "They're interested in what benefit surveillance brings to their businesses, as it enables value beyond security."
OnSSI does not demand exclusivity from its distributors, although its certified channel partners must pass a certain level of training that has to be maintained every two years, Piran said. Its preferred partners have a gold program, when they sustain a certain level of sales per year and receive discounts based on that amount. The channel partners will also be supported with marketing funds. "We hold training all over the U.S., via seminars and webinars," Piran said.