Subscriber Discussion

Integrators: Have The Lower Prices Now In Our Industry Affected Your Geographic Footprint?

UI
Undisclosed Integrator #1
Sep 06, 2017

I know many of you are in larger cities, so this may be moot, but I'm in a mid sized town in a fairly rural state.  When I started in this industry over 15 years ago, we went where the business was.  Typically chasing bids for camera systems: pd's, schools, jails, airports, etc.  Most jobs were over $50k (some many times that) and very profitable.  We thought nothing of driving 150-200 miles for a job/project that might take weeks and involve several thousand $$ in lodging and meals while on the road.  

Of course then they became your customers and you had to service them.  A school district with 100+ cameras 150 miles away  becomes an issue to go troubleshoot a single camera out, but we did it, when it called for it.  It was just a cost of doing business, and we seemed to be rolling along just fine.

But then a few things happened: Prices dropped and projects therefore got much smaller revenue wise, techs got tired of the road and quit, and most prime customers more or less got "camera-ed", (meaning the large scale projects got fewer and far between).

What I've evolved to is a reluctance to even consider an opportunity that is over 50 miles from our base, and we've drastically lowered our internal head count.  I've relinquished many of the formerly large installations that were just too far to service properly, and I rely much more on contract cable pulling, with us handling the connection/installation and integration.  

(1)
GF
Giancarlo Favero
Sep 06, 2017

It is a matter of fact that margins on the mere provisioning of cameras are thinning , so you must search profit elsewhere.

I know of integrators that have joined the foray of ANPR (plate recognition) cameras, where margins are considerably higher, and developed their own software platform, gaining decent profit from software licenses.

And I know of other integrators that have moved towards Intelligent Video Analysis, where between consultancy, software licenses and maintenance you can make decent profits.

But you must be creative. I am making good profits extracting logs from ANPR cameras and physically writing, printing and mailing the fines for vehicles without insurance, without car review etc. As I said, we must be flexible and creative !!

UI
Undisclosed Integrator #2
Sep 06, 2017

No, as we have never marketed actively.  We have no Facebook page, no blog, no marketing budget, no Linkedin, no Twitter, no sales commission structure, a web page that looks 15 years out of date, and no sales people.

 

UI
Undisclosed Integrator #1
Sep 06, 2017

#2 I would edit my subject title if I could, and substitute "geographic" for "marketing" as it applies to the word footprint.

I was more interested in the market geographical/physical area coverage of integrators in these days of lower priced projects.

JH
John Honovich
Sep 06, 2017
IPVM

Note: I changed the title to geographic, thanks for the suggestion.

New discussion

Ask questions and get answers to your physical security questions from IPVM team members and fellow subscribers.

Newest discussions