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AVAD Initiates Radical Business Model Change

Distributor AVAD will move away from reliance on physical branch locations to centralized distribution centers, expanded field sales force with call centers, and web portal for purchasing.

AVAD Initiates Radical Business Model Change

Jason Knott · November 10, 2016

In its first strategic move since being acquired by Kingswood Capital in July, AVAD LLC is announcing a series of structural changes that will migrate the distributor away from total reliance on its physical branch locations to more of a web-based purchasing model with centralized distribution facilities.

AVAD currently has 23 existing branches across the U.S. and Canada. Some of the locations will be expanded and relabeled as "Experience Centers," while other new locations will be opened. At the same time, as part of the evolution AVAD had announced it will close three branches: Livermore, Calif.; Chesterfield, Mo.; and Edison, N.J. 

As part of AVAD's moves, the distributor is expanding its field sales force to new markets beyond its current footprint and blending national and regional call centers. AVAD is changing its approach to logistics by establishing central distribution centers across North America.

The company says the move will provide increased inventory availability and rapid order fulfillment to integrators. Part of AVAD’s new initiative will also include expanded will-call for dealers. 

Finally, AVAD is also launching a transactional and information based web and mobile portal platform. CE pros will be able to use the portal to buy products, along with share ideas and receive training. This move is not alien to the market. Distributors like Capitol Sales ship from a central distribution hub and rely on purchases electronically. 

AVAD is also expanding its design services for dealers, and has doubled its tech support department.

The results of these changes, according to the company, will be streamlined operating costs, improved methods for delivering training and education, and the opportunity to showcase its products at AVAD’s soon-to-be-announced experience centers located throughout the United States and Canada.


SEE RELATED: New AVAD CEO Discusses Vision


“We are very excited about the future of AVAD and these changes to our business approach,” said Tom Jacoby, Chairman and CEO for AVAD LLC. “The current AVAD business model was developed before virtual sales organizations and just-in-time product deliveries were the standard of commerce in North America. AVAD intends to break out of its longstanding ‘analog’ branch model and take our business to our customers.

"The future of AVAD includes a meaningful expansion of digital, web and mobile tools, central and regional call centers, expansion of our design and technical services, a regional-based sales force and extended availability of will-call centers in many new markets along with the continued use of company-operated physical locations in many of our existing markets.”

These investments and enhancements will begin implementation immediately with several AVAD locations transitioning to new sales centers over the next 30 days.

The company says the changes will take effect with minimal disruption in AVAD’s ability to take or fulfill orders.

Additional company initiatives will be announced over the coming months.



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  About the Author

Jason Knott is Chief Content Officer for Emerald Expositions Connected Brands. Jason has covered low-voltage electronics as an editor since 1990, serving as editor and publisher of Security Sales & Integration. He joined CE Pro in 2000 and serves as Editor-in-Chief of that brand. He served as chairman of the Security Industry Association’s Education Committee from 2000-2004 and sat on the board of that association from 1998-2002. He is also a former board member of the Alarm Industry Research and Educational Foundation. He has been a member of the CEDIA Business Working Group since 2010. Jason graduated from the University of Southern California. Have a suggestion or a topic you want to read more about? Email Jason at jason.knott@emeraldexpo.com

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  Article Topics


News · Business · AVAD · Distributor · All Topics
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Comments

Posted by Joshuaad on November 11, 2016

I’m using the same Scottsdale branch. Where are they moving to? I was there recently and wasn’t informed of any upcoming changes (not even by email).

Posted by WWTech on November 11, 2016

Maybe not for you, Joshuaad, but they are moving about 10 miles father out of the city (and they are out of the city a long way now) and the traffic will mean about a 4 hour window to get there. Plus smaller, less staff. Totally wrong move (literally).

Posted by Joshuaad on November 11, 2016

It doesn’t sound like much is going to change other than added options and services except for the 3 branches that are closing. I’m a long time AVAD customer, and I must say their website for online orders and product search is terrible. I often have to email to get product availability, pricing and other info. In this day and age a bad website is money lost. But then again, most of the competitors’ websites are not much better. Take some cues from Amazon, please. That said, change is good and I’m looking forward to see what positive changes will happen.

Posted by WWTech on November 11, 2016

I, too, got the Scottsdale email. Extra point of contact - soon the order centers can go overseas. I’m not impressed with the new ‘Amazon-ed’ version.

This will be good news for the other local distributors in town. If I wanted mail order, I would join SnapAV (and I don’t). Wholesale change without consulting customers is stupid these days. They will be out of business soon. Sad.

Posted by TotalControlRemotes on November 11, 2016

I just ordered product from AVAD here in NJ from my Edison location earlier this week.  I was told the product (which was special order) would arrive next week and I could pick it up.  This morning, I received a cryptic message telling me that I have a new point of contact at the Scottsdale location?  I called him up and he was completely confused about my order, where it was, or when it would get here.  I told him to cancel that order please.  I am guessing my business interaction with AVAD is on long-time hold, as it sounds like there is more chaos going on than some organized business plan. 

I will say this, while I wish them luck with their new “Web-based” presence, I am truly going to miss the product training, interaction with staff and other installers, and relationships I have built over the years.  This company and people deserved a better fate.  I myself don’t plan on purchasing from AVAD in the future and prefer a more personalized and people interaction.

Posted by TotalControlRemotes on November 11, 2016

I just ordered product from AVAD here in NJ from my Edison location earlier this week.  I was told the product (which was special order) would arrive next week and I could pick it up.  This morning, I received a cryptic message telling me that I have a new point of contact at the Scottsdale location?  I called him up and he was completely confused about my order, where it was, or when it would get here.  I told him to cancel that order please.  I am guessing my business interaction with AVAD is on long-time hold, as it sounds like there is more chaos going on than some organized business plan. 

I will say this, while I wish them luck with their new “Web-based” presence, I am truly going to miss the product training, interaction with staff and other installers, and relationships I have built over the years.  This company and people deserved a better fate.  I myself don’t plan on purchasing from AVAD in the future and prefer a more personalized and people interaction.

Posted by WWTech on November 11, 2016

I, too, got the Scottsdale email. Extra point of contact - soon the order centers can go overseas. I’m not impressed with the new ‘Amazon-ed’ version.

This will be good news for the other local distributors in town. If I wanted mail order, I would join SnapAV (and I don’t). Wholesale change without consulting customers is stupid these days. They will be out of business soon. Sad.

Posted by Joshuaad on November 11, 2016

It doesn’t sound like much is going to change other than added options and services except for the 3 branches that are closing. I’m a long time AVAD customer, and I must say their website for online orders and product search is terrible. I often have to email to get product availability, pricing and other info. In this day and age a bad website is money lost. But then again, most of the competitors’ websites are not much better. Take some cues from Amazon, please. That said, change is good and I’m looking forward to see what positive changes will happen.

Posted by WWTech on November 11, 2016

Maybe not for you, Joshuaad, but they are moving about 10 miles father out of the city (and they are out of the city a long way now) and the traffic will mean about a 4 hour window to get there. Plus smaller, less staff. Totally wrong move (literally).

Posted by Joshuaad on November 11, 2016

I’m using the same Scottsdale branch. Where are they moving to? I was there recently and wasn’t informed of any upcoming changes (not even by email).