Hikvision Mass Calling Dealers For Flash Sale - Smart Or Not?

JH
John Honovich
Apr 21, 2017
IPVM

So Hikvision is mass calling dealers for their 'flash sale' on "ALL HIKVISION PRODUCTS". Reports keep on coming in of dealers, even those who have not used Hikvision in some time, getting calls from Hikvision representatives.

On the positive side, call enough people, some will buy that would otherwise have not and revenue will increase, hopefully taking away from dealers who would have otherwise bought Hikvision's competitors.

On the negative side, mass calling people can come off as desperate and annoying, raising concerns about the quality of the company and products.

So what do you think?

Vote / comment inside:

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UM
Undisclosed Manufacturer #1
Apr 21, 2017

This is just sales.  Hik is looking for opportunities to touch their customer base.  Sure, it would be better if they could call and talk about an upgrade or an improvement, but at least they're not calling to tell their customers that Hik was central to a major data breech...

...Again.

I had a boss that would encourage the team to call everyone to tell them our booth number at ISC and ASIS.  Felt like a silly waste of time, but a lot of people I called showed up, and it seemed to create a more friendly meetup.

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JH
John Honovich
Apr 21, 2017
IPVM

Good feedback.

For those dealers getting the calls, are these from a Hikvision person who you have an existing relationship with?

Related, Hikvision did another round of calls last month - Hikvision Customer Relations Cold Calls Asking For Feedback and from the descriptions people gave were from Hikvision employees they typically did not know.

 

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UI
Undisclosed Integrator #3
Apr 21, 2017

It's annoying. If they were better trained and knew what the sale was I wouldn't be annoyed. But these people calling sound like they're just trying to make their 100 call quota every shift. 

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Tony Warren
Apr 21, 2017

Sales tactic,  annoying?......yes.   Bad for business?.......no, it's called sales.  Someone's gonna buy based on the discount.

JH
John Honovich
Apr 21, 2017
IPVM

Bad for business?.......no, it's called sales.

Tony, agreed, good for immediate sales.

However, look at what Longse does. Email everyone everyday, as you say, "Someone's gonna buy". And Longse gets sales but they have a terrible reputation.

And Hikvision's reputation / favorability is certainly better than Longse but Hikvision has their own problems already.

But what about marketing? What about branding? What is the impact to one's brand to call people up like this? What is the impact on future sales to conduct these types of call everyone to buy now for across the board price cuts?

Related: Chris Peterson yesterday tweeted out a link to a post - How are you going to pull that order into this month?

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Tony Warren
Apr 21, 2017

You are right.  Probably not the right move at this time.......they seem to be making questionable decisions on a regular basis lately.......:-)

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Tony Warren
Apr 21, 2017

 

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UI
Undisclosed Integrator #2
Apr 21, 2017

They need to make their money back on the ridiculous dancing theme that made no sense.  That must have been expensive.

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Tony Warren
Apr 21, 2017

Ya, that dancing theme was certainly interesting, not my cup of tea, but whatever....the party was a pretty good time.

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Brian Karas
Apr 21, 2017
IPVM

Companies that I tend to get unsolicited calls from:

  • Car warranty sellers, trying to sell me a warranty for a car I sold 3 months ago
  • Shady outfits offering me a "free GE security system"
  • SEO scammers offering to get my domain name ranked #1 in Google

While cold-calling can work, it takes a finely crafted message, IMO, to get someone's attention and not seem desperate. Pushing sales/discounts, short-term offers, and any call where the caller does not have good insight on the person/company they are calling and how they can help do not signal a company/offer that has the ability to truly help ME.

Trying to look at this in a non-biased way, it comes across that Hikvision's regular deep-discount sales are returning declining results and the company does not have a good Plan B, so they throw phone calls at integrators, hoping to squeeze some extra blood from that rock.

The next step may be guys in white vans...

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Mark Jones
Apr 21, 2017

I have never purchased based on flash sales.  Ever.  It is bad for my business.

Having said that I get about 15 of those per week.  I generally allow one per week to make their entire pitch.  They have to eat too.  It feels a little "used car" like to me and creates doubt in my head.  The ones I absolutely despise are the calls that are set up by appointment and we all get them.  Someone calls and asks for 15-30 minutes to "watch their demo through a webinar".  

The day comes and the person who made the appointment hands me off to another person who is supposedly better equipped to explain the company and all it has to offer.  Maybe they know it, maybe they don't, but I am a no-sale right that minute.  It is just a more polished version of the same old tired pitch.

I sat through one this morning and clearly the sales person did not know who we were, our market, our business model, nothing.  He had a few notes the initial person had jotted down for conversation.  No research at all.  He really did not know his own product that well either to be honest.  He did not even know who Avigilon was or how to pronounce it.  That is a "sales" person that will be selling something else next month.  I don't need it. 

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Steven Kahn
Apr 24, 2017
Private Enterprise

There are two challenges regarding Flash Sale, For the Distributors that are in the need to purchase stock, they can benefit from the Flash Sales.

The Distributor who has just stocked up and bought equipment now sits with a warehouse full of expensive stock.

Flash Sales are not new to sales, the downfall is that distributors will not hold huge stock holdings because the price become volatile for them to decide when to and when not to purchase stock.

Hikvision is disrupting a very controlled industry and creating chaos. I do not think this is a good thing as it creates a bargain basement mentallity.

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FM
Frantz Mathias
Apr 24, 2017

However much some despise Hik and their sales tactics, they're not going away. This move is neutral, not smart not dumb, just ordinary.

The race to the bottom is not productive. The market has limits: People do not continually replace cameras. Once those camera work they stay and for long, in the CCTV ( allow me that term ) industry reliability goes a long way and is an imperative and Hikvision had to become reliable to emerge. They will change, they have to. In the meantime they are growing, increasing brand awareness, mindshare.

In all that the quality of their products should not be dismissed. Their Smart series camera performance is up there with the best and at a consistently better, but not cheap price. Such Performance to Price Ratio sways everyone: dealers and end users at the end..

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JH
John Honovich
Apr 24, 2017
IPVM

Such Performance to Price Ratio sways everyone: dealers and end users at the end..

Literally everyone? 

We are not seeing that. At least in North America, growth is becoming harder and harder for Hikvision. They have done excellent at the low end and for smaller projects but there's a lot more opposition at the mid to high end which Hikvision is challenged to break through.

The race to the bottom is not productive. The market has limits: People do not continually replace cameras.

Btw, I agree with that, especially since surveillance cameras were widely deployed even before the race started. You could literally give cameras away but there's only so many that people need and there's still the factor that even if all cameras were free, they still cost money to install and that's not going down.

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UI
Undisclosed Integrator #4
Apr 24, 2017

I received a call last week from a Hikvision representative that appeared to be based in California, from the caller ID info. She was pleasant and brief. I had not spoken to that representative prior to that call. I think it is a good idea for Hikvision to announce their sales as well as possible. You can still question the need for sales in general and still agree that announcing your sale is good for their business. 

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Christopher Freeman
May 11, 2017

Same here , got emails , calls, But they were not trying to sell direct , like some other company's have done in the past. 

At least they did not circumvent the distribution line like some others have done in the past. 

No names but they go directly to the purchasing dept's and offer Try & Buy promotions with out the dealers in the loop. 

? got to wonder 

Nothing wrong with promoting Products , Race to the bottom well that is another story. 

Support well that is another story

 

U
Undisclosed #5
May 12, 2017

Know who buys security products based on a sale?

 

Trunk slammers.

 

Know who puts products on sale?

 

Manufacturers launching and promoting new products, or manufacturers with garbage products. 

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MC
Marty Calhoun
May 12, 2017
IPVMU Certified

U#5 you must not understand business. Buy quality products with excellent LOCAL support teams for best price and sell at a REASONABLE margin. I have never "slammed a Trunk" as a matter of fact I buy at every sale that HIKVISION provides, many of those 100K + so to accuse those who have decided to purchase product simply because it is on sale inferior is only due to your misfortune by not being a HIKVISION dealer.

NOTICE: This comment has been moved to its own discussion: I Buy At Every Sale That HIKVISION Provides, Many Of Those 100K +

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Christopher Freeman
May 12, 2017

Any Business no matter who has got to pay the overhead and keep a profit on hand for a rainy day or you wont be in business, some times Internet has the best quality and product selection and keeps the distributors from gouging you. 

Keeps Competition , and Checks in balances in Place.

Allows you to compare to see how extreme the markups are. and where to fine tune your pricing.  

Also allows you to compete with the trunk slammers and win the projects 

Many of the same products which are at lower prices around the world are sold in usa at a 500-1000 % mark up and that is ok because they have to pay the cost of doing business.

All the hands in the pot.

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