Napco cuts ADI out of the picture

Thursday, January 8, 2004

January 8 , 2004

AMITYVILLE, N.Y. - Security product manufacturer Napco Security Group severed its ties with ADI this week, ending a more than decade long relationship with the nation’s largest mover of security products.

An official at Napco Security claimed that ADI has been pushing the Honeywell brand of products over other brands and that the company has asked for product exclusivity, two of several reasons Napco decided to no longer distribute product through ADI.

“They’re really driving their own brands, which we think is a conflict of interest,” said Jorge Hevia, senior vice president of sales and marketing for Napco Security.

Tom Polson, president of ADI, said he was surprised by Napco Security’s announcement, but “respects the right for them to manage their business as they choose.”

Polson said claims that ADI pushes its house brands are untrue and that the company has strong relationships many vendors, even ones whose products compete against brands from its sister companies.

“We promote both our family brand products and alternative brand products,” said Polson. “We promote both categories and those where we have strong, exclusive relationships, we promote strongly.”

The move by Napco comes as little surprise to security industry researcher Joe Freeman, principle of J.P. Freeman Co., who has seen the margins in distribution decline over the years while the competitive climate continues to escalate.

Napco Security announced the distribution change through a mailing to security professionals, a blast email and by posting a notice on its website. Hevia said the company had been considering making the change for some time, but made a definitive decision to end its relationship with ADI about four months ago.

In lieu of distributing its Napco and Alarm Lock brands through ADI, Napco Security Group will work with independent distributors across North America. The company has been selling its products through independent distributors for years, but plans to increase its technical training program to independent distributors.

As of press time for the Security Systems News’ Newswire, Polson said he had yet to speak with someone from Napco about the decision to leave ADI. He said he learned about Napco’s announcement Monday morning from a customer.

For more on this story, see the February issue of Security Systems News.