The name Frank Fowles should be familiar to all those in the security industry as he has been associated with leading companies in the security distribution business. Frank is now Sales and Marketing Manager of a new venture by Honeywell Southern Africa called TeqTrader.
It was back in 1989 that Frank first introduced the FBII range of alarm control products into the local market, and after suitable 'Africanisation' of this range (in terms of local transmitter interfaces etc) it was to become the leading brand name. Frank was so successful with the FBII products that a strong personal relationship was established with the American company that remains today. Over the last three years FBII became concerned at its declining sales locally in what was a rapidly growing market. They naturally approached Frank for advice as to how to turn things around. Honeywell in the US had bought the Pittway Corporation, that in turn had control of a number of security product lines, including those of FBII, Ademco, Notifier, C&K and Northern Computers. In addition to this impressive line up was Honeywell Korea CCTV (formerly LG CCTV). Frank decided to approach Honeywell to get them to enter the market directly.
As Honeywell has had a strong presence in South Africa for many years it became obvious that the company did not need a separate distributor but could handle this market itself. With Honeywell going through an acquisition process itself announced last year by the American giant General Electric (GE) it was decided that an independent company and name should be established although it would have the full backing, financial and other of Honeywell.
Going national
The new division with the name TeqTrader was then conceived on 2 April this year and from two people then, namely Frank Fowles and Steve Shannon from Honeywell SA, it has already grown to a staff complement of 40, a number that Frank expects will double within months. In the normal course of events such growth would be extremely painful with inexperienced people and a huge investment in training. The knowledge that Frank had of the industry however has allowed him to hand-pick his team and they are highly experienced in one or more of the company's existing product lines.
In a few months TeqTrader has also managed to open branches in Johannesburg (Braamfontein), Pretoria, Durban, East London, Cape Town and Port Elizabeth, ensuring that the company is truly nationwide by the end of July. The choice of Braamfontein for the Head Office and warehouse instead of Honeywell's Midrand facility was deliberate. Frank believes that Braamfontein is still the well-established and proven trading centre for security products and many security companies that moved themselves to the more plush Midrand area have seen a major fall off in terms of sales. The Braamfontein facility besides incorporating the bulk store has all the facilities available for training and repair, the latter being an area that has become neglected by many of TeqTrader's competitors.
This countrywide branch system operated by TeqTrader is IT networked and stock availability anywhere in South Africa is available with the click on a mouse. No doubt this will provide TeqTrader with a major competitive advantage. The Diginet link has the facility to be extended to major customers and they will be able to manage their own inventory through software provided by TeqTrader, a value-added technology boost for larger installers.
As for the product line Frank wanted to be able to offer TeqTrader's customers a total solution so in a short period of time distribution agreements have been signed with a list of other leading security manufacturing companies, over and above FBI and Visonic. TeqTrader has national distribution rights for HID (proximity sensors and cards), Comelit and Ringmaster (Intercom systems), RIB from Italy (gate automation products), Cifial from Portugal (hotel door locks) and Position from Canada that specialises in cost-effective access control systems (hardware and software). TeqTrader has also supported the local industry and distributes the range of electric fence systems from Hammer and the highly sought after matrix video switching control systems from Betatech.
Frank recognises that the company still has a deficiency in regard to radio transmitters but negotiations are in place with the right companies and these products will soon become a line item. TeqTrader believes that the opportunity also exists for local product development and export. Manufacture would probably begin with remote controls and could be expanded into full alarm control panels. The local radio business is large and still growing and TeqTrader intends to be part of it even if this means the acquisition of companies, possibly those with allocated SABRE frequencies.
Expansion
There are more than 3000 system installers in the country and in an initial marketing campaign TeqTrader will be using all forms of communication including mail, fax, e-mail and SMS messaging with product specials. While the time has been short since its creation TeqTrader has had early success with several major South African customers, with many more expected to follow the branded high-class products and the superior service offered.
In regard to the future of the local industry Frank indicated that recent acquisitions have resulted in most of the response industry being owned by UK principals and he believes that the product supply industry will need to adapt to these changes. He sees the trend for companies to give away the alarm system free of charge and to make revenue from the rental and response service. This means that alarm system suppliers will have to become very much more cost-competitive, and TeqTrader is well positioned to keep pace. Amongst other strategies TeqTrader hopes to educate the end user to become familiar with TeqTrader's brands and to insist that installers fit these systems.
Longer term, Frank believes there will be a strong shift towards expanding security systems to carry out home automation tasks. Besides giving you an alarm on your mobile phone through an SMS or voice message, sensitive home electrical appliances such as fridge, freezer and geyser can be remotely monitored. For the user of a rapid response service this of course means that he will get the alarm, as soon as they do so the end-user can also determine how effective his service provider was in providing a response.
For now TeqTrader can provide off the shelf practically everything needed by security companies. The vast range of products carried includes alarm control panels, all forms of sensor, access control systems, fire alarm systems, electric fencing, CCTV, perimeter detection systems and from there right down to sirens, panic buttons, remote controls and even batteries, plugs, sockets and connectors. TeqTrader intends to build its business on the back of excellent customer service and support, an area where many businesses in South Africa are still sadly lacking.
As for Frank he remains his usual dynamic self and the new challenge as he puts it 'has him operating on all six cylinders'. What pleases him most is the financial backing through Honeywell that will allow TeqTrader the freedom to establish itself firmly in the industry without fears of short-term cash flow problems. As for the association with Honeywell he reminded me that Honeywell SA became the first outright winner of the SA Excellence Award during 2000. TeqTrader will be working to the same standards as its parent company and intends to become a really world class organisation.
For further details contact Frank Fowles, TeqTrader on tel: (011) 403 3002.
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