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50 Security Dealer & Integrator / www.SecurityInfoWatch.com July 2016 D istributors serve as not only a means to buying product, but also as a valuable resource for project information, training and installation. Once distributors unite, however, the partnership enables them to provide even better service in more locations, as well as expertise on a broader range of products and services. Distributor alliances in any industry are rare — usually because there sim- ply are not enough distributors across the country to form multiple alliances or partnerships, which tend to form more frequently between retailers and dealers because of quantities, rather than those on the wholesale side. Whether your market is rockets, luggage, hardware or food, the goal of any distributor alliance is first and foremost to discuss best practices. However, being a distributor alli- ance in the AV and security spaces brings in other elements that may not affect other categories. Because of the technical nature of these industries, a distributor alliance takes a significant amount of training to understand the categories, products, and if and how they work together. Alliance Means Discounts A major benefit of a distributor alli- ance is buying power — the alliance gains a competitive edge by pulling together to purchase greater quantities of product for a reduced price. A pri- mary factor in our product purchases is ensuring that our members and their dealers have what they need, and get- ting them the products when needed. For the partnerships in any indus- try, having the right products starts by choosing the best vendor partners, which we do using a wide variety of factors. In the case of the PowerHouse Alliance, before we agree to represent a manufacturer, each of our members votes the vendor in. Taking on a new line is a selective and involved process because in our industry, we have to buy the line upfront and train the sales force and dealers about the products. Other Benefits It may be a difficult process, but ven- dor partners are crucial to any alliance to supply members with the best vari- ety of products to suit their needs. As consumers are now paying more atten- tion to home automation and enter- tainment systems, this has become an expanding category for security dealers. Embracing new technologies as the market shis provides value to members and their dealers. Additional advantages of an alliance is that they have access to an extended network of distributors who have experience and resolutions to a wider variety of issues as well as product knowledge. Distributor partners and their customers can benefit from the broad knowledge base by using them for help with product, technical issues and project planning. is is a major benefit of a distributor partnership for the obvious reason that the shared knowledge of a network of distribu- tors is much larger than that of a single one. Additionally, with an alliance, there is a much faster reaction time when assistance is needed. Other advantages that a distribu- tor alliance can offer includes conve- nience, local inventory and training in many accessible locations. As fewer integrators are stocking product on their own, distributor alliances have an edge in local touch. ere is also an education compo- nent that alliances offer, where distrib- utors provide diverse training pro- grams to help acclimate dealers to new technology, solutions and installation methods. ey also serve as a resource to help integrators plan a project. is shared network of resources from the team of distributors helps improve the education, consistency and efficiency across the network. is advantage alone can demonstrate how alliances play a key role in supporting the industry by strengthening integra- tors' ability to problem-solve, provide the latest products and quality service for their customers. ■ » Dennis Holzer is Executive Director of the PowerHouse Alliance of distributors. Request more info at www.securityinfowatch.com/12084590. When Distributors Unite How partnerships in the product distribution world can bring benefits to the channel By Dennis Holzer Partnership Possibilities