Subscriber Discussion

Residential / SMB: Buying Knowledge Or Price?

UI
Undisclosed Integrator #1
•Aug 08, 2017

John your observation has value after reading ADI and their lack of knowledge, conversely are we selling price or technology? This certainly got me interested in trends. Most sales are driven at price point in my residential market, there are exceptions. Many of ADI customers 25% still purchase 1080P kits. I have witness when kits are on all sale, they fly out the door.  Does this indicate sales people may lack advanced knowledge? In the end "what it's going to cost me" ask the customer, so I propose both kit's and pieced solutions. I did not have an advanced understanding of what was behind the lens. I was one who thought I knew a lot and found out I knew very little. After taking your online course I began to piece more of my systems together. Based on a better understanding and having to meet clients expectations, buying the kits was plan "B".

On a similar subject it would be an interesting study on "kit sales" vs. pieced together, what percentages are sold? HikVision is selling kits now and what the trends are going forward?

JH
John Honovich
•Aug 08, 2017
IPVM

Good topic! Btw, I compacted the title. I think it still represents your question but in an easier to grasp way.

In terms of numbers, I don't know the breakdown between kits and individual components (cameras, recorders) but I am pretty sure that even at the branch level, individual components sell far more. I base this simply on how many cameras and recorders they have on the shelves vs far fewer kits. Of course, the components they are stocking / selling tend to be the lowest cost tier.

Which leads to your residential / SMB question. My theory is those buyers know little about video surveillance and have little incentive to learn about video surveillance (as say I would about a garage door opener) given the time and opportunity cost of doing so. To that end, they appeal to people who sell on price and the people who sell most on price are typically less likely to spend time and money increasing their knowledge. Other thoughts? Curious to hear.

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UI
Undisclosed Integrator #1
•Aug 09, 2017
In reply to John Honovich

You are correct the ADI kit sales are about 25% of IP sales. In my own observation most integrators come in knowing what they need. I did not consider the lower cost tier, I have always assumed they attracted a more diverse audience. Their stock does not reflect this as you mentioned. 

I do sell technology per say in most cases, I have to dumb it down. My most recent sale involved a large grass farm property. Using 1080P, 4k camera and 4k TV in my demo, I was able to show differences in image quality.  As it applies to residential sales, my customer had been at (Sam's Club). He purchased an 8 camera wireless system, home had a metal roof, you know the outcome. I sold the 4k system with the TV, my client was impressed, they purchased 16 cameras.

How many potential residential sales perform an actual live demo? It doesn't make sense to sell 4k cameras and display them on a 1080P screen, I just used some common sense. 

Involving myself with this forum increased my confidence and my closing rate went up. I'm not sad to hear you say the typical price point sales will not invest in themselves to gain knowledge. It was a wise investment in my case paid for itself already. Selling on price alone I do without those customers.  

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JH
John Honovich
•Aug 09, 2017
IPVM
In reply to Undisclosed Integrator #1

Involving myself with this forum increased my confidence and my closing rate went up. I'm not sad to hear you say the typical price point sales will not invest in themselves to gain knowledge. It was a wise investment in my case paid for itself already.

Glad to hear that!

I did not consider the lower cost tier, I have always assumed they attracted a more diverse audience. 

If you factor the people who buy online or via phone, surely it's more diverse. Even if, for example, you are ordering the most expensive Axis cameras, there's only so many distributors to do so, and ADI is big, etc.

But ADI is particularly strong in the low end of the market due to their combination of lots of local branches and strong sales / discounting program.

 

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UI
Undisclosed Integrator #2
•Aug 08, 2017

Kits sell well.  

For every kit there are 4 or 8 cameras inside.  HD has made kits possible as they don't rely on varifocal lenses as much to deliver a decent image.

The ease of remote connection allows the average tech to install a very good image and remote connection.  This has reduced the requirement for network trained techs or much knowledge of views and higher technology.

It's mostly about managing the expectations and any upgrade from 540TVL to 1080p or higher usually impresses. 

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