Do you make your own products?
I came across this post from John Honovich over the weekend, and I couldn't help but feel funny about this. What John has discovered is nothing new, and it is certainly standard operating procedure in many other industries. I would take issue with the tone of his piece though. In so many words, John is suggesting there is something unsavory about the white label/OEM approach. I am not so sure.
As a businessman, what is taking place in the security industry is nothing more than the market's way of allocating resources and capital, a division of labor of sorts. If you have a particular strength in marketing, and the OEM supplier does not, I see no problem whatsoever of private labeling the item and sell for a much higher mark-up to compensate your expertise in customer relations, marketing, support and so on. The OEM supplier thus gain a new market avenue of selling their product, something they couldn't have done without the channel. The market will be the ultimate arbiter of what this added value is worth. For the determined few who want the best prices and are willing to forgo the added benefit of support and various services the channel marketing company can provide, there is always the Internet.
Here at JDL, we see our roles clearly, and we are more than happy to support our channel partners.
posted by Victor


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