Distributors

Membership Eligibility Requirements

The Corporation Board of Directors shall establish the criteria, requirements and/or fees for each category of membership, which may be updated and or modified from time to time.

1. Distributor Membership is available to business entities in the wholesale distribution of security hardware.
2. The Association defines a wholesale distributor as:

   "Anyone who

   • Has annual security sales of at least $1.5 million;
   • Sells at least 75% of its total security hardware product at wholesale; wholesale is defined as business to business not business to consumer;
   • Actively promotes and distributes security hardware through a distributor produced catalog or employs sales personnel calling on customers on a regular basis through telemarketing or personal contact;
   • Sells no more than 20% of its total sales to any one customer or affiliated group of customers;"
3. Applicants must meet each of the criteria set forth above. Note that only security hardware business at wholesale qualifies for distributor membership. Business in commodities other than at wholesale should be excluded in determining the two year and $750,000 volume requirements. Wholesale business includes sales to retailers or jobbers, but not to consumer.
4. Applicants must provide satisfactory evidence for their qualifications. It is requested that each applicant submit a statement or letter from an independent public accounting or outside counsel familiar with the applicant's business that in his or her independent opinion, the applicant has been in the wholesale distribution of security hardware for at least two years and sells annually at wholesale at least $750,000 of such supplies.
5. Applicants may submit evidence of their qualifications, such as customer lists, financial statements, sales figures, etc. Material may be submitted on a confidential basis. Such material should be placed in an envelope marker "Confidential Application Material." The confidential materials will be reviewed only by the Association staff and outside general counsel who will report to the SHDA Membership Committee whether in their opinion the applicant meets the qualifications. The contents of any confidential materials submitted will not be revealed and will be destroyed or returned upon request.

Annual Dues for Distributors (based on Annual Sales Volume)

Applicants are required to submit the first two year's dues with application.

Distributor Application