1. Distribution + Channel Partner Program
Jennifer Hones

2. Q3+Q4-15 Distribution Revenue
*Note to self: read off each company’s #s
173 out of 351 accounts that purchased Vicon product in 2015 purchased something through distribution = basically 50% of accounts did some business with distribution!
Almost 50% of active channel partners purchased something through distribution!

3. “I turned all my accounts over to distribution and they haven’t brought me anything!!”

4. Distribution Revenue
*$ in MSRP

5. How have we done with distribution?
597 Channel Partners (as of Oct. 20, 2015)
351 that purchased product in FY15
$37.9M MSRP
173 that purchased from distribution (April-Sept ‘15)
$7.1M MSRP, including $1.3M Brookshire project
$7.1M – split between 16 territories = $443,750 MSRP
How many distribution branches do you have in your territory?
Only 5 RSMs did over the average $443k

6. Existing Challenges What else?
Unseating relationships with existing vendors
Out of sight, out of mind
Products not in distributor’s system
Channel partners not coded in distributor’s system
Stocking and product availability
Best-of-breed / “open platform” marketing message strong
What else?
AIDA (Attention, Interest, Decision, Action)

7. What do we have going for us?
Eric Fullerton
High margin opportunity
Existing install base
Existing dealer base
Completely integrated standards-based video and access control line
What else?

8. Value of Distribution What else? Force multiplier
Scale and help open up new markets
Better connected
More friends versus more enemies
Reseller Benefit
Financing, stocking, one-stop shop, staging
Introduce them to new vendors and product
Ability to be a competent resource – find your local champion
What else?
Account relationships & stock levels are some of the biggest competitive advantages of a distributor!!
Ideal distributor candidate questions:
Territorial Coverage
Market Served
Product line fit
Sales capabilities
Business and managerial stability
Marketing capabilities
Operational capabilities
Local service
Ease of doing business
Reputation

9. We have distributions’ attention and interest, but you still need to build the relationships and teach them to fish!

10. Don’t be like Ron Swanson!

11. Roles and Responsibilities
Vicon RSM
Manufacturer Rep
Distributor
Reseller
A&E
Vicon RSM - Subject matter expert!; qualification and persuasive presentation; handle and close complex projects; work with A&Es; work with Gold/Platinum dealers; work with distribution, etc
Mfg Rep – “feet on the street,” in face of distributor, handle less complex project, unearth deals and bring in rsm, turn people onto Vicon,
Distributor – take orders; explain promotions; build relationships; handle less complex projects, RUN RATE, ‘know enough to be deadly,’ turn people onto Vicon
Reseller – support the end user
A&E – spec us into deals!

12. Channel Partner Data
Companies who indicate “other” are great opportunities to introduce to our main disti partners!
Create more friends, scale, and open new markets: 25% from Distributor + Mfg Reps!

13. Channel Partners & Partner Tiering
Of the # No Revenue accounts, 66 did Direct biz with Vicon in 2014 of roughly $850k
41 did Direct biz with Vicon in 2013 of roughly $2M
Flexibility given to RSMs in placing partners in a tier based on ‘potential’
Platinum must be approved
Benefits
Co-marketing funds for Gold ($500) and Platinum ($750)
Pre-system configuration service for Silver ($300), Gold ($750), and Platinum ($1,000)
Revenue Requirements
Silver = $0-$25k MSRP
Gold = $25k-$75k MSRP
Platinum = $75k MSRP +

14. Channel Partners & Partner Tiering
Remember Roles & Responsibilities conversation
Create local attack plans
Divide and conquer with manufacturer rep and distributors
Target and GROW accounts together – TEAM ECOSYSTEM
Spend our Q1 evaluating your partners and their tier
January 1, 2016: Reset of partner tiers
TOGETHER – who has the better relationship (mfg rep or rsm)? Does the disti have a better relationship with the customer? <- need to maintain good relationship with disti then!

15. Project Registration & System Pricing
Any deviation to standard pricing needs a project registration code!
Project Registration – discount to ONE partner+disti combo
Example scenarios: dealer/disti bringing and/or supporting Vicon in a project
System Pricing – one ‘set’ price offered to multiple dealers
Example scenarios: public bids, heavy competition, etc
“National” Account Pricing
Convergint, JCI, Intertech – master account as Silver
Gold/Platinum pricing: MUST USE PR CODE EVERY ORDER
Need to give code to distributor!!

16. Stocking Discussion Corporate Local Which product(s) are “run rate”?
Which product(s) are being purchased en masse through distis?
What product(s) require immediate availability?
Local
What product(s) are YOU pushing / quoting locally?
Which dealers are purchasing which product from which disti?
Which distributor(s) are you driving dealers to?

17. “Everyone with customer contact responsibility at the distributorship should be able to handle customer contact with a feeling of confidence and competence”

18. Help Them Help You! Lead identification: During quoting process:
Specific use cases with our product?
Specific vertical(s) you are targeting?
Type of dealer you are targeting?
During quoting process:
Make sure partners are coded
Ask for the reseller info up front!
Make sure part is in system
Find your niche

19. Future Tools and Collateral
Distributor messaging roadmap
Quick product reference guide
Corporate-run promotions
Local-run promotions (generic promo guidebook)
Why Vicon? messaging for potential new dealers
Why Vicon? messaging for a specific vertical

21. Security Solutions Regional Managers
Troy Mallonee (509)
VACANT-TBD Dave O’Keefe (Interim)
Craig Bourdo (512)
Jeff Palamara (713)
Justin Kozak (602)
Maureen Wills (949)
Chris O’Hara
(918)
Laura Garest
Jim Bemis
Mike Maloney
Bob Carr
John Norman Washington DC
Eric Christian
John Dean
One WESCO
SSRM

22. WESCO Business Development Group
Business Development team
Actively pursuing - 102
# of leads assigned - 178
Dead - 16
# of times we've called through list - 10
Total # qualified - 60
Total # contacted at least once - 178
Conversion - 34%

23. WESCO Become best friends with SSRM!
Talk to them about their project registration promotion
Follow-up on leads from business development team
Spend time with relevant inside sales personnel
Discuss growth strategies for existing accounts
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25. Regional Security Solutions

26. Accu-Tech Become best friends with RSS! Get to know the RVP
Spend time with relevant inside sales personnel
Follow-up on 3x3 program
Discuss growth strategies for existing accounts
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28. Tri-Ed Technical Sales Group
Rocklin, CA
414,753.85
Cranbury, NJ
182,038.39

29. Tri-Ed Technical Sales Group

30. Security Solutions Field Sales

31. Anixter & Tri-Ed Tri-Ed focus: Rocklin + Cranbury Tri-Ed branches
Not all branches made the same – identify ‘value’ branches
Ask them about “Anixter” accounts
Remind them we are in Great Expectations & Specials flyers
Anixter
Identify end-user demand creation sales personnel
Discuss growth strategies for existing accounts
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32. Other Distributors
PSA
Graybar
SMC Electric
SourceIT