Integrator's Top 6 Sources For Losing Money
140+ integrators told IPVM the most common areas in which their company loses money.
In this report, IPVM examines the results and we highlight 6 main themes, including detailed quotes from integrators. In particular, we examine various labor issues that integrators most commonly cited.
Related, in this series, see Integrator's 5 Most Significant Long Term Risks.
*******
*********** **** *** * **** ****** areas ** ****** ***** ****:
- ******* ***** ************: *********** *** **** ******** **** money ** ******** ** *** ******* out ******** ** **** ** *********** having ******** ****** ********.
- ******************** *****: ***** **** ***** ******* *** agreed ********, "***** *****", ***** ************ and ***-********, ***** *********** ********** ******** and ***** **** ***** ******.
- ****** *********** ******* *********** ** ******** ****; delayed ******* ******* ******* ***** ********** challenges, *** ********** ******** ********* ******* additional ***********-*** ****** *****.
- ************* ***********: ****** *** ******* ******* *********** is * *********** ******* *** ********** projects *** *********** ******* *********.
- ************ ***** ************ **** ***** ****** ** ******** periods **** ** ********* *** *********** to ******** ********** *******.
- ******** / ******* ******** ** ************ ****** ** ************ equipment ******* *** ********* *** *********** to ***** *****.
Scope *****, ******* ******* ******
*********** **** **** *** **** ****** areas **** **** ***** **** ***** overages, ****** ***** ***** *** ************ closing *** ****:
- "******* *** ******* **********. ** ***'* really ***** *** **** ******** ******** take ****** **** ** ********* *** sold. ** ************** *** ***** ****** too **** ** * *******."
- "*************. *********** ***'* ***** ********** *** scope ** ****, ***/** **** ***** scope *****. ****, ****'** ******* *** good ** ************* ****** ***** **** to ***** ******* ******** ** *** customer **** ** ******* **** **** for ****."
- "*** ******* ***** **** ** ******** do ** ***** ******* *************. *** sure *** *** **** *** ******* to ****** * ****** ***** ***** past *** *****."
- "*. ******* *** ********, *** **** 10% ** * ******* ********* **** to **** ***. *. ******** ************ often ****** **** **** * ******* is **** ** **** ** ** delivered *** **** ****** ** ******* on ****** ******"
- "****** ******* ****. ********** *** *** have ** **** **** *** *** parts *** ******* ** ******* *** are ** **** ****** ******** * project. ** **** **** ******** *** stopping **** ******* ** *** ******* on *****."
- "******* ********* *** *** ****** ****** installers ********* **** *** ******* ** available. "
- "*** ******** *** ***** *****. ** feel ** ****** ** **** *****/**** the ******** ** ** ***'* **** them ********** ***** **** **** **** more **** *** ******** ******* ** we **** **** **** ** **** cost **** ****"
- "***** ***** *** ****** *********** *** to ****** ** ***** **** ******* planning ** *********"
- "******* ******** ******** ** ******* ** not ********** *****."
- "************ ******** *****. ***** *** ***** due ********* *** **** ** * hurry ** *** ****"
- "*********** ** ********. **** *** ******* is ****, *** *** ******** ******* by ***** ** ****** ******** ******* those *** ** *** **** ****** the ***********."
- "*** ****** ** ****** ***** *** beyond. ********** ** **** **. *** while **** **** *** *** *** this *****, ** **** ** **** camera?"
- "******* *****. **** ** ****** ********** to *** *********** ******** **** *** owner/g.c./e.c. *** **** ************ **** ** discover *** ********"
- "*** *** "***** *** ****" ******** from *** ******** ***** ** *** gets **** *** *** "*****" **** in *** **** ** ******** *******"
- "*****. *********** *** **** *** ** being ****"
- "************** *** ***** *****"
- "**** ** *******/************ ** *************"
- "******** ***** *** *******. *** ******** costs *** **."
Return *****
*********** **** ******** ******** ****** ***** costs, *** ** **** ******* **********, customer ******** ******, ***/** **** ********** project *********:
- "*****- ******** ***** ** ******** * job ** ***** ****-***** *** ** customer ***** ** ****** ** ********."
- "****** ***** ****** **** **** ** have ** ** **** ******** ***** and ***** ** ******** **** ******* chunks ***** ***** ******* ********."
- "*** ** ********** ********, *** *** up **** ******* ***** ******* **** experience *** *** ************* ****'* ******** in *** **** ********* ***. ***** trips ** ******** *** ** *** delays ** ******* ************."
- "****** ***** *********** ***** ********* ****** project *********** *** *******"
- "*** ** *** ********** *** * proposal *** *** *** ***** ***** modules ** *** *****. *******, ** caught **** *** ****** *** ******* date. **** * ******** **** ** wrong *** **** *** *** **** anything **** ****** ** ** ***** we *** *** ****. **** ***** he **** **** ** **** * second ****, *** **** ** *** jobsites *** ** **** ** **** away."
- "******** ****** *** *** *****… ********** for ************, ******* **’* ******* *****, site ****, ***. **** ********** ******* scheduling *** ********* **-******* ***** *****."
- "****** ******. **** ** ****'* **** to ******** * *** ** *** allotted ********* ****"
- "** *** ** * ***** **** and ****** ***** *** **** *** significant. **** ***** ** **** **** to ****** *** ******"
- "****** - ******** ******* **** *** project *********"
- "********* ** *** **** *** ****"
- "******, ********* ** *******, ***** *****"
- "****** *****/******** ****"
- "****** ****"
Labor ************ - ********
********** ******** *** **** ***** ** multiple ***********:
- "**** ***** **********, ***** *** ********** every **** ** ***** ***, ***** integration **** **** ******"
- "**** ****/**** ****. ******* *********** ** is *********** ** ****"
- "************** *** ** *** ****** *** the ***** ***** ** *********. * lot ** **** *** ** ** with ****** ***** ****** *** **** is ****** ** **** ********."
- "******, ****** *** ******. ** ** 50% ** *** ******* ******** *** preventing ****** **** ******* **** ** tantamount ** ******* **** ** ******* waves **** ******** ** *** *****. "
- "************. *** ********* *** ***-*********, ******--******* employees ** ***** * *** ** time ** ***-********** **** *** *********"
- "******* *** ************, ********* ** *** working ** *** * ****** ******* management *********"
- "********** *** ********** *********** ******* ****** them ** *** ***** ******* *** info/ ************"
- "*********** **********, ***** ******** *** ****** warranty ***** "
- "************** ** ******* *** ********** ****"
Inexperienced *****, *** ********
****, *********** ******** ******* ** ********* complexity, ******** **** *** ** ************* technicians, **** ****** ***** ******:
- "** **** * *** ** **** in * *****, ******* *** ********. In *******, ** ** *********** **** do *** ***** ********** *** ********* and ** *** ******* *** ***** on *** ***** ****. ** ********, it ** * *** **** *******. We **** **** *** ** **** planning, ******* ** ***** ********, *** estimates/designs **** ** *** **** *** the ******* *** ******* *****."
- "**** **** *** ******* *********** *** new **** ***********. ***** *** * lot ** ******* ****** ** *** trade *** ****** **** ******* **** to *******, *** ***** *** ******* to ** ******* *** ******* *********** to **** ***** ***."
- "*********** *** ************* **** **** *** doing *** ** **** ** *************** skills ** ********* *********** ** *** to ************."
- "** ********** **** ** *** ***** due ** ********/***** **** ********** *** products **** ** *** ******** **. We *** ** ***** *** ****** of *** ******** **** ** ***** to ******** ***** *****"
- "*** *****. *** **** *** ***** that ******* ********** **** ******* ******** with ***** ** ********** ******* ** hours ***** **** * ***** ** site *** * *** **** ***** require *** ******* ****."
- "******** **** **** **** ****** ******** installations ** ****** *** ***** *********."
- "**** ***** *** *** ****** ********* techs ** ***** *** *** ******** business.
- "**** ***** *** ** ******* ********, due ** **** ** ********"
- "*** ********** ** ******* ***** **** or ****** **** *********."
- "*********** *********"
Sales *************** *****
*********** **** ***** *********** *************** ***** because ** *********** ****, **** ** knowledge, ** *** ********* ****** ***** were ****** ***** **** **** *****:
- "***** ** ***** ** *** ***** to **** ***** **** ** *** time ** * *** *** ** under-estimated ***** ** **** ********** **** the *** **** ********* **** ** originally ***********. ********* ************ **** ***** subcontracts ** *** **** **** *** also ** ****** *** ***** *** go **** ** * ***"
- "***** ********** - *** **** *** the ***** ****, *** ********* *** the ***** ****."
- "*** ******** *** ***** **** ****** be ******* *** *** ****** ******** between ****** *** ********"
- "*************** ************ *** ****** *****. *******, rental *** *** ***** ***** **** increasing ** ** ******** *****."
- "*** ******* *** ****** ** ***** a ******* **** **** ********* ** the ********. *** ******* ****** *********** about *** ********, ******* ** ***** trades ** *** ************."
- "****** ** **** *********** *** ****** companies *** ******* **** ** **** lower **** *** ******."
- "************"
- "**** **** ****, ***** *** ******** is **** *** ****** ** *** the ****, *** *** ****** ** cover *****."
- "****** ** **** ***** **** ** competitive *** **********. ****** ** *** costs ** *** * *** ******* ends *****. ** ***** **** **** time ********* *** ********* ********* **** need ***** ******* ** * **** price."
- "********** ** **** *** ***** *****. Misc. ***** **** ****** ***-*** ***.
- "** *** **** ** ** *******, it *** ****** *** ******** *** accounting *** ******* ********* ** ************* something."
- "********** ******** ** ***** ************* **** the ****** ** *** ** ******* the ************"
- "** ****** **** ** *** ******** of ******** **** ** ******** **** built **** *** *** *** ********** unforeseen *****"
- "*** ****** ***** ** **** ** work. ******* ****** *** ***** ********** installed ** ** ****** *** *****. Getting ** ** ******** *** **** working ** *** *********."
- "*** ******* ****** ***** **** * job *** ** ** ********** ******* that ***** **. **** ***** **** is *** ** **** ** ********** on *** ***** ****"
- "*************** *** ********** ** * *** or, ** * ******* ****, ******** the *********' ************"
- "***** *******, ******** ***** ** **** without ************, **** ******** *** ********** cost ********* (*******, ***, ***.)"
- "*************** **** ** ******** * ***. "
************ ***** *********
***** ********* **** ************* *** **** sales ******/******** ******* **** ********* ** common *****-****** ***** *** ***********:
- "********* ** ***** ***********, **'* **** to *** ** ******** *** ******** pricing **** ** ** *** **** lead ***** *** *****."
- "** *** ****** ****-**** ********* *** the ******* ******, ** *** ****** of ***** *** **** **** ** so **** **** ** ***'* ***** the ********** **** *** ****** *******. Just **** ******* * *** *** information **** *** ***** ** *** Cisco ****** ** ********** ****** *.* years *** **** ** ***%. ** one ***** ******* ****. * ****** how *** ****** **** **** ****"
- "***** ******** **** *** ************* ******** good ***********. *************, ******** *********** ** almost ********** ** ** ******** ** we **** ********* ****** **** ***** by ******* *** ** ***** *** trying ** ******* ******** ********"
- "********* ************* *** *** ******** *** same ***** *********** ** *** ** the ****. **** ** *** ******** have ********* ** ***** ******* *** bid **** *** *** ***** ****. Also, ***** ******** ** ********* *** lead ** * *** ** **** time."
- "***** *** ** ***** ********* **** manufacturers, ** **** **** **** ****, the ******* ***** ** ******* ******* issues ******* ** ****** *****"
- "*** ****** ******* ******* ** **** to *** *** ****** ******* *** material, **** *** *** ***** ********* this **** ** **** ** *********."
- "****** **'* **** ******* ****** ** cost ********* *** ********* *** ***** able ** ****** *** ******* ********* accordingly"
- "********* ********* ****** **** ****** ** years ***** ******** ********** ********* ******** price ** **********"
- "********* ****** ******** **** **** ** quoting ** ************ ******* ****** ** years *****
- "***** ****** *** **** ******** ********"
- "********** ********. **** ********* **** *************"
******** / ******* ***** - ******* and ******* ******
******* *****, *** ** ******** ** product ******, **** ********* ** ******** integrators, ****** **** ********** **** ***** labor **** ********:
- "******* ***** ****** *** ******** ******. Try ** **** ***** ******* ******** to ******** **** *** *** ******** have **** ********* *******."
- "** *** ********** ******* **** ************ issues ** ******** ***** ** ******* us * *********** ****** ** **** and *****. * **** **** ** are ****-******* * **** ******* ** the ******** ** **** *****. ** are ******** *** *** **** **** trying ** ****** *** *** ******** really ****, **** **** ****'* **** you ** *** ******* ******* *** what **** ******** **** *** ***'* do"
- "******** ** *********, ** ******* *** quality ** ********* ******* ******, *** only ***** **** *** ***** **** in * *****, ***** ** ***** for **** ****** * ******."
- " **** ** *** **** ******** and ******* ******* ** **** ******* for **** ** *** ** *** their ******."
- "'**-*****', ****** ***** ** *** ***** issues. ***** ***** ***** *** ****** by ***-***** *** **'* ********* ** recoup ** **** *****."
- "********** ******* ***** ******* ** ****** or ******** ******* *****"
- "***** *** ******* ******, ***** ********* and *** ******** ********"
** * ******** ** **** **** I ******* ** ***** ********** **** when ** ********** *** ****** *******, we ********* *** ******** *** ******** them *** ***** ** **** ****** us ** ****** ** (***** *** a ***). **** **** *** ******** at *** **** ** *** ********** costs ******* **** ****** **** *** possibility ** **** ****** ** *** complicating *** ***. ** *** ** we **** ********* **** *** *** information ********** ** *** ******** **********; an ********** ******** ****'* ********* *** the ******** *** ******* *** **** done, *** ********** **** ** ***** $600 ** ***** *** *****.
*********** *******.
********* **** *********** *********** *** *** mentioned ** ****** ** * ****** for ****** *****. ******** ***** **:
- ******* ** ******** *** ******* and ** ******** *** * ********
- ******* ** *** ** *** project ************ *****
- ********** ***** *** "**** ** time" ******** *** ****** ********* ******* expenses
- *** ******** *** ******* ******* distributors *** ** ******* ************ *** slimmer ******* ** ***** **** *** large *************
** **** ** ******** ***** ****** regarding ********** ** ******** ********.
***********, ***** ******* *** *********, *** from ** ********** ** ** **********, regarding ******* *********, * ***** **** is ******* ** * *** *******.
*) *** ** ***** ***** *** time-consuming, *** **** ** ********* *** most ******** ******** *** **** ***********. Project ************ *** ******** ****** ******* 2 ************ *** ***** ** *** pre-sales *****. ******* *** *** *****, calls **** ****, * ******-** ****** when **** ** *** *******; *** of ***** *** **.
*) ******* ********* *** ***** *-**% on *** ** *** ******** *******-***** discount, ***** ** * *******-**-******* *****, may **** ******* *** * *** hundred ** ** * *** ******** dollars *** **** ********. **** *** time ********** ********, **** *** **** not *** *** ***** **** ******** periods ** ****, ******** ** **** they **** ** **** **** ***-**-***.
*) *********** *** ** **** **** challenged **** ****** ***** *** ***** issues, **** "******" ********* ********* ** nearly **********.
**** ***** ***** ** ****.
**% ** $*,***,*** ** $***,***
****** **** ****** $***,*** ** *** worth ***** ****…
**** *** *********** *** ***** $* million ******** ** ** **** ******* $5 ******* ** *****/********/********, *** ***** $5 ******* ********. *** **** ******* regarding ***** ******** **** ** *** qualify *** ******* *********.
*** **** ** **** *** **** straightforward. *********, *** * $* ******* project, * ***** ****** **** *********** will ***** *** ****** ******* **** that ********.
*** ** * **** * $**,*** MSRP ********-**** ****, ***** ** **** discount ***** * *** *** ******* and ** *** *** $**,***. ** I ******** *** *******, * *** an ********** *% *** ****, ***** on ** ***** $**,*** (***** ***** be ******** ** *** * *** discount **). ****'* ** ***** $*,*** discount ($**,*** * *.**). ********* ***** a ****** ***** ** ***** *** the *******.
*******: ** * ***********, * **** get **% ** *** ******** ***** of *** ****** ****. ** **** means * **** ** ***** $*** on *** ** ** ****** $*,*** commission, *** * **** ************** * hours ** ***** **** ** ** to **** **** ** **** **********, purchased, *** ********* *********.
********: **** ******* **** ** *** registration/purchasing/processing. *******, *** **** **** ** employ ******* ** ** ****, *** the ***** ******** ***** **** ** cover **** ******'* *****, **** ******/******. Many *********** ** *** **** *** resources ** ** ****.
** *****, ***** **** ******* **********.
**** *** *** *** ********** ** planning * *******, ***** *** *** should ** **** ** *** *** cost ******** *** **** *** ****** be **** ** **** * ******* discount.
******, **** ** *** ******** ********** from *********** ******** ******.
***** **** *** *********** *** *** only ****** ******* **** ***** *** dont **** ** ***** ***** ****.
***** **** ** **** ******* ** particular ****, *** * ***** ******* to *** **** ***** *** **** small ******** *** ***** **** ***** ones ***** *** *** ******* *** registration *********. *** *******, *** ******* vendor ***** ** *** * $*,*** spend ** ******* ****** ****** ******* pricing, ***** ***** *** ***** ******* cost ** **** **** **** *******.
*** **** ***** *********** **** ***** be * ***** *******, *** *** us ** ***** ** ********** *****. A *** ** *** *** ******* want ** ***** **** **** *****. Luckily ** **** * ***** ***** rep *** ********* *** ********** "***** ask" *** **** ** * *** extra ***** *** **** *** *****.
*****, *** * ***** ***:
** ******** ** "**********" *** *** just ******-******** ********** **** * ****** mfg ** *****, **** ******** ******** will **** ********* ****** **** ******** sources.
**** **** ******* ****** *** ******* spend, ***** *********** *** ************** ****.
** ******, *** **** ****** '************' is ******* ** ** **** *** supposedly-independent ********** **** * ******** ******, isn't **?
** **** ******* ** ***** ******* in *********** ** ******* ********* *** scope *****. *** *******, *** *** we *** ******** ******* * */*" underground ******* *** *****. ***** *** it *** ****** *********** *** ** had ** *** ** *** ***** took ***** **** *** *****. ** recommended ** *** ******** **** ** also *** ** ********** */*" ******* for **** *** **** ******.
**** ** **** **** *** *******, the ***** **** *** ***** ** the *******. *** ******** ********** **, but ** ******* *** **** ** explicitly ****** ** *** ******** **** digging *** *** ******** ** *** scope ** **** *** *** *** cost (** **** ******* ******** * fair *** ** *** *********** ******* we *********** ** ***** ****** ** issue). **** ****.