EXCLUSIVE: Ongoing disputes over quality and a high level of failure of RTI remotes, is believed to be behind the dumping of Australian distributor RTI Controls by US Company Remote Technologies.
Effective from 31st of March 2010, RTI Controls who there the US Companies biggest distributor outside of the USA, has been stripped of the distribution rights to the US made remote control, with the distribution now going to a new Queensland based Company called RTI Systems, whose executives were responsible for distributing the RTI product in South Africa.
According to Philip Holtum, of RTI Controls, who are the current distributor, problems emerged in the relationship over 12 months ago.
“We have had a lot of issues with RTI remotes. There has been product failure way beyond an acceptable level and we constantly had to handle these issues. There were also other issues that impacted the relationship”.
According to Mark Hamilton who is set to take over distribution in Australia, there are no quality issues with RTI remotes.
“I have sold RTI remotes in South Africa and I am not aware of any quality issues. We distributed the product and we have moved into the Australian market to distribute the product”.
In an email sent to CEDIA channel members Philip Holtum said of the split with RTI “This decision comes on the back of lengthy negotiations to save this business after we were notified last November to our surprise, that RTI Corp had appointed their current South African agent distribution rights for this territory”.
“We apologise for our lack of representation in the market place over this period, this was solely due to us placing expansion plans and staff replacements on hold pending the outcome of these negotiations. We subsequently have been advised by RTI that we do not have their ongoing support and hence are left with no alternative but to close the business”.
“We will immediately commence a sell down of all existing stock at a greatly reduce price on a COD basis, however we will struggle to fill all orders, so we apologise for any inconvenience that this may cause” he said.
Holtum also said “We will attempt to resolve all warranty repairs up until the 31st of March, however we will cease the issue of RMA’s and receipt of warranty repairs as at the 19th of March to allow us time to resolve and return all repairs possible. The warranty for all RTI products is held by the USA manufacturer, RTI and will transfer to the new distributor. Any outstanding RMA’s as at the 31st of March will also be transferred to the new distributor for resolve”.
