We can also provide integrators with a variety of funding solutions that will enable them to acquire equipment from Graybar without encumbering their credit lines. They can also arrange 100-percent project financing and this provides the integrator with the ability to bundle in charges related to installation and maintenance over the term of the lease.

Sorrentino: We have built our business on the value-added model, allowing our customers to focus on sales and customer service, while we take care of the rest. We offer some of the industry’s leading education and training opportunities.

These include our Solution Series IP Workshops, which were created for security dealers and resellers looking to hone their IP video skills and strengthen their knowle
dge of the industry’s leading video surveillance solutions; the IP Center, a Web-based resource center designed to deliver the latest in IP-based video surveillance solutions; in-depth Web seminars that provide product, technology, sales and marketing information and insight; and the Wireless Quickstart Center, which helps security dealers and IT installers discover the many benefits of IP video surveillance using wireless. These are in addition to other valuable classroom and video training sessions designed to help dealers grow and enhance their business.

In addition, our system integration services allow us to configure and test dealers’ solutions, as well as load IP addresses, install software, and set up cameras in their enclosures, among many other services. Our professional services offering includes network assessments, design services, Wi-Fi site surveys, among others, which allows our dealers to deliver an enhanced level of service to their end-user customer.

What’s more, we have some of the industry’s most knowledgeable sales and technical support representatives. Our team attends hours of training each week on the latest products and technologies. In addition, we provide marketing support, including direct-mail, E-mail and telemarketing campaigns, public relations, brand development, and event and tradeshow planning.

Stone: Depot Express, custom logistics solutions, same-day shipping and systems design. Depot Express is our custom distribution arm, which delivers products to our customers by a Systems Depot employee. We have coupled that with a common-sense approach to our customers’ product procurement needs. Whether your area is serviced by Depot Express or not we still offer premium customer service, same-day shipping and systems design.

Comunale: As a distribution partner, we offer our customers much more than product delivery alone. We provide many value-added services, including our Great Expectations Customer Loyalty Program, same-day shipping, flexible credit terms, online ordering, technical systems support, ongoing product training, and customer appreciation events and programs.

Korhonian: VSS has always led the pack in terms of our level of customer service. In addition we have strengthened our IT/tech support department to cater to our growing demand of IP sales. VSS conducts regular IP 101 classes to train our dealers during their transition from analog to digital. These classes are offered at our facilities.

How is your company balancing competitive pricing while maintaining acceptable margins?

Sullivan: This continues to be a focus so we can remain competitive in the market. Dealers understand that we need to make a profit to be able to service them for the long haul. We are constantly reviewing areas such as cost to serve and total project value to ensure we are making good business decisions that service our dealer base, and help us remain a healthy company with longevity.

Ricker: We continue to provide a variety of support to our customers in order to maintain a fair margin and also provide a good value. Top-notch customer service, technical support and educational resources combined with access to a wide variety of products continue to be important in the overall customer experience.

Griffith: As a value-added distributor, Graybar provides value up and down the supply chain to the manufacturers we represent and to our integrator customers. Consequently, we have focused on rationalizing our offerings and adding more value to a select number of manufacturers.

Sorrentino: Our centralized distribution model is all about efficiency – without sacrificing quality. Couple that with our value-added services and we provide a tremendous value to our customers. This model allows us to continue to provide competitive pricing to our customers, while helping them profitably grow their business.

Stone: Our focus has been on lowering the operating cost to run our business while at the same time adding value-add services. This allows to give our customers the best pricing with the most value-add services.

Comunale: Being focused on value-added services, we are doing well because we’re offering so much more than just product. With online ordering, system specialists, ongoing training, etc., we are building brand loyalty and a satisfied customer base.

Korhonian: Let’s be honest this has been a tough challenge; however, by VSS teaming up with a handful of vendors and concentrating on support of their products we’ve been able to maintain buying power and keep a satisfactory margin. VSS also has exclusive product lines that are not sold on the Internet or by our competitors, enabling us to control our margins.

How are the dynamics of the business changing in terms of inventory, order processing and delivery?

Sullivan: We are seeing more and more dealers realizing the benefits of ordering today, and having access to a large volume of inventory for same-day pickup or next-day shipping. Dealers are depending on us as the distributor to have the products they need for each job in stock, and available when they need it.

As the business continues to get stronger, having the right inventory in the right place takes more time and attention. We can not rely solely on historical data as the only metric. Order processing has not undergone many changes.

Ricker: It is now as important as ever to understand the evolving marketplace in terms of where video surveillance is going. The advent of IP video, along with megapixel and HD technologies, continues to bring many new products into the marketplace. Understanding which new products customers will be deploying is key to maintaining proper inventory levels and the ability to meet our customers’ needs.

Griffith: Very little. We see this as our job as a wholesale distributor. We are not pushing back on our manufacturers to perform these functions for us. This is part of the value we provide to our customers and to the manufacturers we represent.

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