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IP Interview
Published May 23, 2025

Halma: Apollo Fire Detectors, Distribution Model & Economics

Executive Bio

Former Director at Apollo Fire Detectors - a Halma company

Interview Transcript

Disclaimer: This interview is for informational purposes only and should not be relied upon as a basis for investment decisions. In Practise is an independent publisher and all opinions expressed by guests are solely their own opinions and do not reflect the opinion of In Practise.

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The installer, right?

Yes, the installer. Nine times out of 10, they go with the cheapest detector and put that quote forward. If the client accepts it, great. They're more likely to accept it if it's 5% to 10% cheaper on detectors than if they have to explain a higher price. It's always challenging when you introduce a new detector with new technology to stay competitive. My opinion was that introducing a better detector range would be a 20-year investment, so you price it competitively and transition people to the new technology. Eventually, the new technology becomes standard, and the old products disappear. This would reduce costs by consolidating product lines, approvals, certifications, inventories, and manufacturing. Unfortunately, this was never taken seriously.

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How was the UK market structured when you started to grow and take share from closed systems? How was the market split back then, and how is it now? I'm trying to get a sense of the market dynamics.

Between 2007 and 2014, there was a mix of large fire accounts, both direct and through distribution. Now, I would suggest that it has nearly shifted entirely to distribution. Previously, we had control over larger accounts to ensure they were buying Apollo. Now, you're relying on distribution businesses to manage sales to larger accounts. The danger is that competitors can offer directly to the installer, undercutting the distributor. It's a fine balance between allowing distribution to take over control in the UK and maintaining some control over who you want to buy your equipment. When I was leaving, someone described the process to me as if they wouldn't be happy until they sold one detector for 120 million to one distributor.

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