Hikvision 50% Price Drop Promotion

Just noticed a 50% price drop on HIkvision cameras. They're starting as low as 60-70 € now. With that price erosion rate, it makes me wonder how much time and effort i should keep spending on video surveillance projects? Sure, they'll sell more cameras and compensate the lesser margin with higher volumes but for us, there's a limit on the number of cameras you can install in any give amount of time. Hence, we'll be making less profit with the same effort. That's not an appealing future for this industry

Hey Gert. Was that for IP cameras or TVI ones?

Have you considered charging a flat fee per camera, as suggested in this discussion:

How Low Can The Market Go? 32 Camera Kit For $750

Exactly. Who cares how much the equipment costs? You could be making your margins on the installation and the service contract, not the equipment.

"Exactly. Who cares how much the equipment costs?"

Most guys who have been in the industry for years have based their businesses on making money on equipment. To that end, it's quite a change.

Yes, you can make margins on install and service but that's a lot harder than marking up thousand dollar cameras 100%. Yes/no?

Realistically speaking, the days of 100% or 200% equipment markups have been over for several years now, thanks to Google and Costco. As Undisclosed A put it in the other thread, "So in the case where the customer knows, then they care. And regardless of whether they know exactly, they have a better feel of what the cost is, just because of Costco kits and such."

However, margins on installation haven't changed much, and have crept upward in several locations, which makes it difficult to price shop. Yes, of course there are trunkslammers, but Olive Garden and Red Lobster finds a way to compete with McDonalds and Taco Bell somehow.

This is for IP cameras

Gert, where did you see this price drop (Hikvision directly, a local reseller)? Which models are 60-70 €?

This is from ADI in Belgium. Itconcerns the 2 range cameras. It seems to be a promotional time limited offer but still.... I can send you the leaflet if you want

Made a mistake here, smartphone screens are so small... :-(

The 60-70 EURO price range is for the turbo range analoge HD camera's to be exact

Still The DS-2CD2012-I IP camera goes out below 100 EURO as well, 94,- EURO net price!!

Gert, thanks.

Here is a screenshot of the flier top:

I have noticed that ADI appears to be clearing stock of Hikvision HD-TVI cameras. Either that or they are flying off the shelves quicker than can be stocked. Perhaps this pertains to their recent OEM'ing of Dahua product?

Who is OEMing Dahua? You are saying ADI is or?

Sorry, Honeywell is OEM'ing HD-CVI... as I understand it. Is ADI not a wholly owned by Honeywell any longer?

Yes, Honeywell is OEMing CVI for their HQA. Yes, Honeywell owns ADI.

But I doubt ADI is going to lead with Hikvision in their promotions if they were trying here to favor Honeywell. Why give Hikvision that attention / focus in that case?

Fair enough. It may have been a leap of faulty logic on my part.

Considering the big splash announcement of Honeywell HQA with distribution thru ADI, why would they run Hik at half the cost of the soon to arrive HQA?

Fire-sale to clear logistical space in warehouses and on shelves for the new product seems to make as much sense as anything else. Why do you think they are doing it?

Could there be a pre-existing ADI agreement with Hik that doesn't allow both CVI and TVI to be offered at the same time?

"Could there be a pre-existing ADI agreement with Hik that doesn't allow both CVI and TVI to be offered at the same time?"

Strongly doubt that.

If they were doing a 'fire sale', they wouldn't give Hik all that free publicity, they would quietly have the counter people move it.

We looked at ADI and Tri-Ed here in North America and Hikvision models are on sale at both of them right now.

Tri-Ed flyer:

ADI's sale center, 2 Series cameras listed as "hot deals":

Neither of these show non-sale pricing, but my guess is that the sale isn't a 50% drop here. I'd say 20-30% tops.

It looks like this sale varies depending on the distributor and region, too. ADI UK and France have different models discounted, as well.

Are you seeing that pricing from your distributor? I see your prices in euros. I wonder if that price drop will happen here in North America

Brad, see Ethan's comment directly before yours for info on North America. There are discounts/drops but not at the same level as Europe.