Eventually These Monthly Sales Will End And Then What?

Eventually, these monthly sales will end, and then what? DW recently stopped a promo that had been going on for a long time (over a year at least), and we stopped buying their servers because of it, they lost a lot of our business. I was going to start another thread, and then I found this one.

Up until recently, DW gave 8 camera licenses when you purchased one of their servers. In the past we considered building our own servers, if we did so, we would save about $600. At the time it wasn't worth the hassle of ordering parts, dealing with warranty issues in-house or the time it took to build the units for little savings, getting 8 licenses was nice, so it enticed us to buy their servers. DW recently eliminated the "double down" promotion that had been going on forever, each unit now comes with four licenses and not eight bringing the difference to almost $900. So we decided to build our own servers, we can build twice the server for $900 less than we can buy it from DW and keep plenty of parts on hand for in-house warranty repairs.

All of these sales are good if you get them while they're going on. But it's no way to build a long-term client base. We recently decided to stop all discounts and promotions at our own company, we found that all too often sales, discounts or promotions brought in customers that would go to the next sale the first chance they got while clients who paid full price would stay much longer. We want to attract only the best clients, presenting the value without the "sale" we offer has helped us do that.

NOTICE: This comment was moved from an existing discussion: Importance of Sales To Integrators - Statistics


I made this its own post because it is a good point.

Playing moderately devil's advocate here on your example. Let's say 100 dealers (to use a round number) took up that 'double down' promotion. The question is - how many of those dealers continued after it ended? If a high enough number did continue (and I don't know how many), it could still be viewed as a success if they effectively added more dealers than without the promotion (even if some dealers stopped).

As for the Hikvision sales, we'll see. It will be fascinating what happens when they stop. Of course, Hikvision is in the middle of another across the board sale right now, their 4th in 7 weeks :)

John - I saw their stock dipped quite heavily over the span of two days a month or so ago.  Normally IPVM has some pretty deep investigation into the underlying cause that I appreciate.  Do you have any indication as to what may have happened?

I saw their stock dipped quite heavily

We have been looking into that. I am 99.9% sure that represents a stock split (We checked with a China econ expert who said there was no readily available documentation they could find but that looking at the market cap - unchanged or up - indicated it was a split). 

Actually, and we will soon do a post on this, Hikvision's stock price is up 100% over the past year, so the stock (i.e. market valuation) is doing phenomenal. What that means for the fundamentals is more complex since the Chinese stock market is driven by 'broader' factors.

We also were selling the DW servers for the same reason and are now looking to build our own. I'm interested in knowing if you are already doing this, how the experience has been so far and where you are getting your parts for this. Any help is appreciated.