Integrator Surveillance Camera Gross Margins Down (Statistics)
Gross margins on product sales have long been important to profitably running a security integration business but what are they know and how are they trending?
140+ integrators answered two questions:
What is the average markup of surveillance camera you sell currently? (e.g., if you buy for 100 and sell for 150, markup would be 50%) Why?
Over the past 5 years, do you believe markups / margins / profits on equipment sales have been roughly steady, going down or going up? Why?
In this report, IPVM examines the results and highlights common themes, including overall margin data and dozens of detailed quotes from integrators.
*** ********* *** ******* ******* ** the *********:
- *********** ******** * ****** ******* ****** of **%, **** */**** ** *********** indicating ******* ******* ******* **% *** 40%.
- ****** ****** ********* **** **% ** 2022 ** **% ** ****.
- *********** **** ******** ***** ********* *****/********* as *** ****** *** ********* ******, though **** **** **** **** ******* were ** *** ** ***** *******.
- ********* ***********, *** **** *************, *** internet ***** **** **** ********** ***** as ********* *** ********* *******.
- ***** ****** ******* ******** ****** **** frequently ******* ** * ************/"*****" ***** model ** ******* ** ********* ****** on *****.
*******, *** ******** ******** *** **** impacted ******** ***** ******,*********, ************ ***** ******* *** **** *** *****.
Margin ********
*********** ******** * ****** ******* ****** of **%, **** *** **** ****** response ******* **%-**%, *** **** *** thirds ** ********* ******* **% *** 40%. *******, *********** **** ***** ***** as ****** ** ****** ******* **%-**% compared ** **%-**%.
* ***** ****** ** **% ** equivalent ** * ****** ** ~**%. For *******, *** ********** **** * widget *** $** *** ***** ** for $***, ***** ** ***** ** a ***** ****** ** **% ((***-**)/***) and * ****** ** ~**% ((***-**)/**).
Integrators: ******* **** ** ****
***** **% ** *********** **** **** margins **** ********* **** *** **** five *****, **** ****** *** **** amount ****** **** **** ******** *** same. **** ~**% **** **** ******* were **.
***** ** *********, *** ****** ****** has ********* *** ********** ****** ***** our **** ******, **** ********* ** the **-**% ***** ********* ** * third. **** ** **** ***** ***** from *** **-**% *****, ***** ********* by ***** ********** ******, * ~**% decrease, ***** ***** ****** ******** ****** 1-2 ******.
Key ******
********** ******* *** ****** ***** **/****/****** fell **** ******* *** ******:
- ***** ******* ** *********/********* *****
- ********* ***********
- *** **** ************
- ******** *****
- ****** ******* *** ************/"*****" *****
- ******* ********* ** ********** *** ********* Costs/Steady *******
Increased *****/*********
*********** **** ******** **** **** ********* margins **** *** ** ********* ***** and *********. **** *** ****** ******** categories, ******* *****, *****, *********, *** other ********.
- "*'* ******* *** *******, *** **** for ********** *** **** **! *****, insurance, *****, ****, *****.....**********. ** **** to **** ****** ***** *** **** we ***."
- "******* *** ******* * ****** ******* to ****** *** **** ** ****. Thats *** ** ***'* **** *** asking *** ********* **** *** ************ on *** ****** ****."
- "******* ****** *** ********* ***** **** a ******. ********* *** ********* *** cost ** **** ***** *** ***** the ****** ** *******, ******** ****** afford *** ********* ***** ** *** planned *******."
- "** *** *** ************* ******* *** markups ** *** ****. ******** *** record ******* *** ******* **** ****. As ** ********** **** **** *** the ***** **** ** **** *** pinch ** ********* *** ***** *******."
- "**** ********. ******* ********* *** ***** and ***** ** ********* ** ******* are ****** *** ***."
- "******* ** **, ******* ** ****. Primarily ********* *** ****** **** ***** that ******** ***** ********* ****** *****."
- "* ***** *** ** ** ***** down, ****** *** ** *********. * do **** **** ******* ** *** future"
- "* ***** **** ** ****** ****, but ********* *** *********** ******* **** other *********** ***** ******* ****."
- "** **** ********* *** ****** ** meet ******** **** ********* - ********** Access *******. ***** **** **** ******** increasing *** **** **** *****, ****** this **** ******** ** ** * pause ** ******. **** ******* *** our ***** ** *** **** ********* goal ** *****. ** *** ****** work ** ****** *** ****, *** much ** ** *** **** *** last **."
- "**'** *** ** ****** ***** ********* from ************* *** ******* ** ******** sales ******* **** *** *** ** stay ** *** ** **** *** adjust *** ******* ******* ***********. ** were ******** **** ************ **** ****** others ** ****** *******."
- "* ***** *** ***** **** ********. Manufacturers **** ******* ****** - * am ****** ** *** *** ** the ****, *** **'* **** ** keep ** *********."
- "******** ***** ****** ** ******* ******** especially **** ***** **** ****@#%! [*******] offering ********* ***** *********, *** ***** people **** *********. ***** ****** ** dropping ** *** **** ** ***** to ***** *** ******* ********* ****** and **** *** *** *** *********** right ** ** ********** *** ***********."
- "******* ****** *** ******* ******* ***** going ** *** *** ****** *** to *** ****** ***** ** ********* and ******."
- "***** ****. **** *** ***** ** materials ***** **. ** **** ** bring *** ****** ****** **** ** stay ***********."
- "******* ** **, ******* ** ****. Primarily ********* *** ****** **** ***** that ******** ***** ********* ****** *****."
- "*'* ******* *** *******, *** **** for ********** *** **** **! *****, insurance, *****, ****, *****.....**********. ** **** to **** ****** ***** *** **** we ***."
- "* **** **** **** **** **** because *** ***** ** **** **** gone ** ** ****."
- "**** ******* **** *** **** ** quite * ***."
- "********** ** ***** ** - **********!"
*******, **** ****** **** ***** ******* increased ** ********* *********, *** *** now ** *******:
- "* ***** **** **** *************** **** the **** ******, *** **** ****** increased ***** *** **. *** ****** was ******* **** ***** *******, *** after *** *********, ********, ***. **** and **** ********* *** *** *** value ** ********* ****** *** ********* contractors, ******** *** ****** ** ***** back ** *** *****."
- "* **** *** ******* *** ******* have ********** ****** ****** **** *** last *** *****. * **** **** everybody ********* *** ************* *** ***** as * ****** ** ******* ***** prices *** ******'* ******* ** **** them ** **** ***** ******* **** like *** ****** ******."
- "***** **. **'** *** ** ***** our ****** ** ******** ** ***** increased ******** *** **** ** ***** business."
- "**** **** ** ** ***** **, most ********* *** ********** ***** ** pay *** ********* **** *****."
- "**** **** **** ***** **. ******* the ***** *** ******* ****."
- "***** **. *********."
*******, *** **** **** ******* **** up *** ******* ** *** ***** of ********** *******, ** **** *** price ********** *** ** ******** ** lower-cost *********** ********.
- "***** **...*** *****'* * **** **** where ** ********** **** ***** ********** right *** ** *** ****** *** some ***** **, ***** ***-******* **** expired, ****** ** **** *** **** expertise *** **** *** ***** **** as *** *** ****."
Increased ***********
*********** ********* ********* ******* **** **** commonly **** ** *** *** ** increased *********** ** *** **** *** years.
- "** *** ** * *********** ****** and ***** **** ** **** **** some *********** ***** ******** ******** ** hit ***** ***** ******. **** ** need ** **** ** *** ** balance *** *****. * *** ****** back ** **** ****** * *** done ** ******* **** **** **** laid ***** ******* ***** **** ** the **** ****** ** *** **** to **** ****. *** ****** *** no ****."
- "*** ******* *** ******** *** **** to **** *** **** ***** ** current ***** *******. ******* **** ** during *** **** ***** ***** *** have **** **** **** ***** *****. Currently, ** ***********, ******* *** ********* because ***** ** *** ** **** work ** ** *** *** ********** competition **** **** ******/*** ****** ***********. The ***** ***** ******* **** *** always *** *** ** **** ***** pants **** **** ******* ******."
- "******** ****, ** *** ******* ******** by *** ********** *********** *** ********* pricing **** *** *******. ** *** only ******* ********* ** ****."
- "*** ****** ** **** ***********, ** we **** ** **** **** ************* who ** ****** *** ******** *** how ********** ** **** ** ** in *** *********."
- "****** ** ***** *** ** *********** 10-30 ****** *********. ***** ** ***** we **** *****. ****** *** *** an **** ****** *** ********."
- "**** ** *** *********** **** **** there ******* *** **** *** ** also ***** **** *** ************ ** the ******* ********** ** *** ******* the **** ********* ** *** ********/********* companies."
- "***** **** ** *********** **********. ***** are ******, *** "****" *********** *** eating *** ****** ** ******** * steady **** ** ********."
- "***** ****. **** *** ***** ** materials ***** **. ** **** ** bring *** ****** ****** **** ** stay ***********."
- "**** *** ** ****** **** **** competitively ***** **** *** ** *** cloud ******** *************** *** *********** ** the ******."
- "** *** **** **** ***** *** margins **** **** *** ****, ** many ******* *** ********* ** ****, decreasing ****** *** *********** *******. ** wonder **** *** ** *** ********* shape"
- "***** ****. *** ******* ******* ** Europe ** **** *** *********** ** rough"
- "***, **’* ***** **** ** *****’* a ***** *********** **** ******* *******"
- "******...***** ** **** *********** ***"
- "***** **** *** ** ***********."
- "***** **** ** **** ***********."
****** *** ******* *** **** **** have ****** **** **********, *** **** to **** ********** **** *** ******** relationships.
- "** *** * ******* ***** * new ******** **** **** ********** ** we ***** * **** **** ************. This ** **** ** ************* *** physical ************** ** **** ** ******* to **** *** ****** ** ***** company. ******* *** *** **** **** to ** **** ********** ***** **** as ** *** **** ******* ** get ** *** **** **** ***** margins *** **** ***** * **** term ************."
Low **** ************
*********** **** **** **** ***** **** camera ************ *** ** ***** *******. Some ************ ********* ********* *** *****, as **** ** *** "**** ** *** ******."
- "** **'* * ****** ******, **'* a **** ** *** ****** *** margins **** **** ************."
- "***** ****. ******* ************ *** ********** their ******** ******** *** ** ********."
- "***** ****** **** ** ******** *** to *********** **** **** ***** ******* products. **** ****** *** ****** **** has ******** ******, *** *** ****** on *** ********* *** *********."
- "**'* ******** ** *** ****** ****** for **** **********. ****'** ********* **** going **** *** *****-***** *********."
- "****** ****** **** ************* *** *******, as *** *** ***** **** **** competitive *** ********** ** *** ** analytics ** **** ********** *** ******* to ****** * **** ** *** bottom"
- "***** *** ****. ******* * ***** decline. *** *** ****** **** ** target *** ****** * *** ******* with *** **** ****** ** ******** equipment *** *********."
- "******* *** ****. *** **** ** inexpensive *************, *** ** *** ******'* Republic ** *****, *** *** ** a *********** *** *****. "
- "******* *** ******* *** ** *** flood ** *****, **** ******* ******* and *** ******** ** *********** *** user *********"
- "***** ****. ** *** ********** ********* products *** ******** **** *********."
- "***** ****. ****** *** *** ******* resellers *** ********* ******** ** ***** of *******."
- "******* **** **** ***** ** *********** and *** **** ******** **** *****"
- "**** *** ** ****** ** *********/*****"
Internet *****/****** ************ *******
******* *********** ********* ******** ***** *** unprotected ******* ***** ** ******* ******* down, ** *** ***** *** ****** research ******* *** ******** ** **********.
- "***** ****, * ****** ******* ** the ******** ***** *** *********** ********. Also *** ******* ***'* ***** **** margin (***** ********!)"
- "** *** **** * *** ** manufacturer's *** ********* **** ** *** general ****** *** ******* **, *** Integrator, ** **** ****** ** *** make ** ** ***** ** **** that ****** ******. **** **** ** dependent ** **** ******* ***** **** those *************. ** **** ***** **** our ******* ** ***** ****** ****** you *** ****** * ****** ******* and *** * ****** ******** *****."
- "* *** ******* ******** ** ************* disclosing ******* ****. ** ***/***** ******** as * ******** ******* *****, ** the ******** ********* *****'* **** ***** the ******** ******* *******."
- "**** ********* ** *******. ***** ****** pricing ******* ****** (******) ** ******* some."
- "***** ****, ***** ** **** **** awareness ** *** ****** ** ****** costs, ****** ****** *** ****** ******* allow *** *** **** ** ** much ****** ********."
- "** ** ***** **** ** * said ***** **** *** ***** *** getting ***** ******* **** *** ******** or ******* ***** *******. **** *** Global ******** ** ***** *********, *** they ********* ***."
- "****** ***** ********** ***** ** **** difficult ** ******** ****** *******."
- "********** ***** **** *** ** ********* suppliers ***** *** *** ***** **** supply ** ********, ******* *** ********* which ** ********* *** ***** ** the ************"
- "***** **** ** *** ******* *** been ************."
- "**** *** ** ****** *******."
Combination ** *******
*******, **** ******** **** ****** *** down *** ** *** ** ***** factors ********:
- "****. *. *** ***** *** *** do *** **** *****/**** ******* ******* at ******* ******** ****** **** *** cost. *. **** ***********. ***********, ****** contractors, */* *****, ** *****, ********** contractors, ***. ********* ** ******* *******. 3. *** ***** *** ** ****** intimidated ** **********. ** *********** *** and ****- *******. **** *** *** less ***** *** **** * ******** than ** *** ****."
- "********** **** *** ***** **. ** are ***** ******* **** *** ****** products. *******, **** *********** **** **** going **** ** ********** ****** **** even ***** ****, ****, ** ******* to ******** ***** ****** **** ** called **** ********. *** *******, ******** me *** * ********** *** ********* the **** ********* **** **** ** offer ************ *** ******* ** *** installation *** **** **** ** ** with ********** ******* *******. *********** ***** such *** ** ** ******* **** people ** **** **** *** **** want ** ** *** ***** ********* because ** ***** * ******* **** works ** ****** ***** ******* *** answer ***** ******."
Steady *** ************/"*****" *****
*********** ********* **** ****** *** ****** most ***** **** ** *** *** to * ************ ***** ******** *** customized ******* ** ******* ** ****** bids ** ********* ******* ** *****.
- "** ******* ** *** ******** *** the ************ **** *** ********. ** it ** * ************ ************ ***** the ****** *** ********* ** *** system ** ********* ** *** ******** margins **** **** ******. *** ******** and ********* **** *** ***** ****** margins **** **** ******* ********* ** the *********** ******* * ********** *******."
- "** **** ******* ** *** ********* only ***, *****, ********** *** ******* with ***** ** ******** ************, *** margins **** ********** *********. *******, *'* say **** ********* ****** ********* **** greater ** ****** ************, ******* **** slightly ********* ** *** ****** ******."
- "****** *** **, ******** * ** see ******* *********/***-*** ***** ******** ******* to **** *****. **** ** *** good ** ** ** *** ***********- in **** **** ** **** '****' to * ***** ******* ********* ** a **** ******, **** ***** **** been ****** ******* *** ******* **** for ***** (** *** **** **** factor ** ******* ****, ***-*** ***/*****, invoicing, ******** *** ****, ***, ******** costs ***), **** ***** * *** less ****** *** **** **** *** themselves- ******** ***."
- "*** ******* ** ** **** **** steady **** *** **** * *****. Well ** ***** **** *** ***** people ***** ** * ****** ****** instead ** ******** ** ****** *** and *** ******** **** **** ***** would **** **** * ********** ******. Our ********* *** ********** ** **** understand ** **** ** **** * profit **** **** **** **."
- "**** ** *** ********** ********* *** existing ******* ** ***** ******** *** aren't ******** ** **** ***** *******. For **** ****** *** ******* **** remained ******."
- "******. *** ******** ******* ************* *** are *** ****** *** *** ******. This ***** ***** ***** * ****** margin/profit"
- "******* ****** *** ********* **** ** not **** ** *****. ** *** are * ***-***** ******, *** ******** feel ******* *** ***** ****."
- "******. ** ** ****** ****** ** customer ********** ****, **** ****** ****** bid"
- "****** *** ** ******* ** ******** to ***** *** ********* *** ***** that ******** **."
- "******. ** *** *** *** *******"
Margins *********** *** ***** *********
******* *********** **** **** ******** ***** have *********, **** **** ********* ****** to **********, ** ******* **** ******** steady.
- "******* ******. **** ********** ********** ****** on **********, **'** *** ** *** and **** *** ******* ******, **** if *** ***** ******** *** ******."
- "** **** **** ****** ******. ** have ***** *** ****** ** *********** both *** ***** *** *** ********* model, ** ** **** *** ****** to ****** **."
- "**'** *** ** ****** ***** ********* from ************* *** ******* ** ******** sales ******* **** *** *** ** stay ** *** ** **** *** adjust *** ******* ******* ***********. ** were ******** **** ************ **** ****** others ** ****** *******."
- "******* ****** *** ******* ******* ***** going ** *** *** ****** *** to *** ****** ***** ** ********* and ******."
- "* ***'* ***** **** **** *******. Prices ** **, *** ******* * company **** ** ******* ** *** black *** *** ****. *** ***** been **** ******** ******* ****** ********* of ***** ******, ***! **** ** fading *** *** ******* *** *** stabilizing."
* ***** ** *** "*** *****" category, ******* *** **** * ********* now. ***** *** * **** ** the ****** ******* ***** *** *** that ****'* *********. **** ******** *** the *** ** *** ******** *******, but ***** "* **** ** *** an *****" **** ********, ****'** ***** to ** ** ***'* **** ** Home ***** ****** ***** ** **********.
**** * ***** **** ** *** IPVM *********** ** *** **** ****** of ****** ***** *** *** **** would ****** ** "************ *** ********* (who **** *** ** ***** ******)" were *** *** ** *** ********?
*'* **** *** *** ** *** straight **** *** ************* **** * can. ************ **** *** ******** ************ like *** *** ****** ** ****** that * *** **** ****** ***** in.
** * **** ** **** ***** new ********: ******.
*** *******:
******* ******** ********- *** **** *** distributor, ******** ** ************ ***, ******** by ******* ********, **** ******* ***** itself. *********** ******.
** *** * ********* *****, *** parties *** ***** ***** ** ** sued.
********* **** ****, * **** **** I **** ******* **** *** ******* at ** ******* **** **** *****, and *** ****** **** ******** ** asking *** * ***.Tip *** ****? I ordered my food, you were paid to cook it, and I picked it up at the window. When I buy equipment I seriously wonder where the money is going, especially when it comes to software.
***** ************* **** (**) *** ** added, ******* ***** *** *** ************ manufacturer - *** **********, **+ ***** ago * *** ** **. ** average, *% ** *** **** ** the ******* ** **** ** *** principals ** ** ** **** *** on ******* *** *** ****** **** adding **** ****** ** ***** ***** staff **** ** ***** * *** to *** ************. ** ******* *** has ******* **'* *** ** ******, I ** ****** **** *** *********** some ** *** ** ********** **** added ** ***** *****....*****....* ***********, ***** front **** ******, ****** ****** **** didn't ******. ***** **** ** *** Hanwha ***** ********* ***** ********* **** their **'* *** ****** *** **** MR ********* ** ****** *********. ** will *** ** **** ****** ****** drops *** **'*. **** ** ********** make **** ** ***** *** ** understand **** *** *** *** ** over **** *** *** *************....***** ** why **** **** ***** ***** **** don't **** ** ** **** ******** averages (***** *** **** **** ** well).
*** ***** *********** *** *** **** value, **** ******** ***** ******** ** dollars ** ******* ******* (**** **** stores) *** **** *** **** **** for *** ************ *****, ****** ********* and **** *** ******* **** **** support ******. ****** **** ** ***** as * ****** **, ** **** seem *** ************* ***** ** ****** off ****** ******* ** ***** ****, but *** **** ***** *** ******** containers ** *****.
**'* **** *** ******* ** ** like *** ****. * ***** ** hardware ****'* * ******* ** ******** like ********* ***** **********. **** *** camera ** * ****/**** *** *** ensuing ************ ** * ***** ******* brings ** ***. *********** ********* ******* are ******** *** ***** ***** ***** verification ** ********* ******** *** ****** response, ******* *** *** *** **. With ****-**********, ****** *** **** ************ monitoring ***** *********, *****'* * ***** point *** ***** ********.
** ****** ***’* **** ** ********** axis ****** ***** *** *** **** and ****?
*'** ****** ** *** ************* **** actually ******* *** ****** ******* *** am ****** **** **** *** *** options *** *****, **** ** *** manufacturers *** ***** ****** **-**% ******* on *** *******. * **** *** model ** *** ** ****** **** the ****** ****, **** *** *****. The ****** ******* **** ***** ******* it ** ***** ****** ******* *** then *** ** ****** *** **% margins **** **** **** ** ** the ***********. *** ************* ****** ** reducing *****. ** ***** **** ** why ** *** **** ** ***** manufacturers ******** '*****' ******* ** ******** to ***** ***-**-*** ******* ** **** see *** ******* ** *** ****.
**** ** *** ************* *** ***** making **-**% ******* ** *** *******
** *******, *** ******, **** **** is ***** ******* ** *********** ********* cameras ****** **** ************* *** **** sold ** *** *****.************ ******* *** *** ***** ******* what ** ***** ** **** ***** and **** **** **** ** **** to, **** ******** ** ************.
*** ************ *** *** ********* ** that ***** **-**% *******? ** * baseline, **** ***** ******* ************ **** in *** **% *****. ***** *** MSRP ** **** ******* ***** **** people ** ******* *** ******* **** enormous, **** ** **** ** **** cameras *** **** ** ***** ******* where *** ********** ***** ** ********* lower **** *** ****, ****** *** gross ******* ****** **%.
* ***'* ****** *** ****** ****** video ************ ************ *** ******* ********* results ******* ***** ******* ** ****** than **% *** **** **** *****, with *** ******* ********* ***** ******* many ***** ***.
** ******* *** ***** ** ******* how ********** * ***** ** ** that ************* ******** ** **** ***** prices ***** **** *** ***** *********** are ****** ** **** **** ******.
* ***** ****'* ****** ****** **** those ******* *** ** *** ************* that ******** *********** ***** *** ******** (I ********* ** ******** *******) *** necessarily ** ***** **** *** ******** manufacturing **** ****....****** **% ** ***** damn ****. * ***** ** *****'* environment ***** ***** ****** ***** *** product ** ****** *** **** ** the ******** ********* **** ***** *********** for **********.
*** ** ******* *******, * ******* like ****** ** *** *******. ****** Korea ********* ************ *** **** ***** the ******* ** ****** ***. ** in **** ***********, ***** ***** ***** selling ** *** **. **** *** US ***** *** ******* ** ***** integration *******, ******* ************ *** **** Hanwha **, ***** ***** *** *******. My ******** **** **** *** ***** comments ** *** *** ********* ****** change *** *** ***** ********.
*** **** *** ********, ***** ***** have ********* *** ******* *** ****** manufacturers **** ****** *** **** *** only ******'* **** **** *** *******, they ***** ** *** ** **** business, ** *** *** ******* *** slightly ***** ******* *** **** *** integrators ****** *** **** **** ******** in ***.
* ** ******* *** *** ******* indicated ** *** ******* *** **********. For *******, ** *** ********** ********* a **%****** ** ****, ** **** margin ** *** "***" ** *** total ****?
*********** ********:
**** ** *** ******* ****** ** surveillance ****** *** **** *********? (*.*., if *** *** *** *** *** sell *** ***, ****** ***** ** 50%) ***?
*** ******* ******** *********** **** ** the ****** ** *** "***," ***** is ******** **** *** **** *** include *****. *** ******** ******** ****.
** ******** *** ****-**** ***** ** increasing ******** ******** ** ********** ******* gross ******* / *******, **** ****'**** **** ****** ******** ******** ****** With ********* * **** ******* ** ******** power ******** ***** ****** ***** ********* reduce *** ***** ** ***********.
**** *******, ****** *** ***** ** *** ******** For ***********.
*****'* ************* ** **** **** *****, e.g. ** *** ***** **** ****, this ***** *** ******** **** ******* ********** *** ******* Out * *** ** **** ******** Profitable (**** *******)*** ************* *********** *** *** **** value **** ****** ********** **** *** higher *** *********.