While you have likely seen marketing for various temperature tablets, you most likely do not know the actual manufacturer behind more than a dozen of these.
We spoke to the company, Guangzhou Bems, and in this report, we examine:
The Bems temperature measurement kiosk
14 Western relabellers we have identified
The similarities between the products sold by Bems and western relabellers
Western relabeller's markups of the Bems kiosk
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I wonder which model and specific variation-of sensor they are using. Obviously at this cost it is infrared sensor and a supplier out of Belgium like Melexis has 10 different variations at minimum. Typical for microwaves, defogger, cattle, environmental, etc. Field of view varies widely and usually single pixel though they also offer IR arrays. Cost for TO39 format is around $7. Cheaper in higher quantities.
"The average Western relabeller is adding a ~400% markup. While the sample price is $550, relabellers are charging ~$2,500, generating high profits per unit."
I don't think that the 400% markup is necessarily driven by greed and opportunism. Most of the channel players i've met make a modest living, the ones that make big bucks make it cause they nailed a specific niche where the price is not the major issue but service and reliability are or since they run a very efficient and lean business. You know that there are many other factors that go into product pricing, depicting it as a 400% mark up is a very narrow perspective.
A lot of us end users know close to the price paid by integrators for camera equipment and licensing already. Well at least my company does. The manufacturers don't really hide it from us, some have even told us flat out partners get 35% off MSRP, and if they do your competitors don't.
I would argue that all of these are published prices. I dug into these units a few months ago for one of my customers, and found the manufacturer via Alibaba... There is no confidential contract, distributor agreement, or other relationship between the resellers and the manufacturer. If there is, than they would be purchasing at an ADDITIONAL discount, making the markup even higher.
The only concession I had for my customer was that the end resellers MAY be customizing software or GUI. It did not look to me like they were, but that could definitely provide a better value proposition.
Ultimately the decision to not recommend from this solution is based on the fact that this is not a US (or similar country) product being manufactured under contract in China, but it is 100% a Chinese product that is being sold through resellers with significant performance, accuracy and privacy issues that I would personally not wish to pass on to my clients.
I don't begrudge companies making a profit margin. Typical distributor and reseller rates though via someone like Synnex/etc is more like 35% and 18%. Generally reselling Chinese products becomes race to the bottom with margins in single digits for qtys less than 25. Pretty painful stuff.
Biggest problem is execution and that is the bad apples in the market who misrepresent the product basis especially on the regulations side. aka opportunists. We now have temperature screening with sanitize dispense and zero UL compliance. I get 2-5 emails a day from Chinese and American companies wanting to sell me temperature kiosks. Attached is one from today. Availability is another interesting factor as generally availability is good from China but that brings shipping into play. the good news for them is that generally the ultra low price means they get to hold the money longer before delivery. See RapidScreen Temperature Screening Kiosk - An Interactive Digital Agency
From our research, Bems (and, logically, its relabellers) are mainly using a chip from a smaller Chinese company called Rockchip. Rockchip seems to be providing the SoCs for many of the fever tablets on Alibaba, although, as you pointed out, TVT does use Huawei HiSilicon. As we do more fever tablet research and are able to see the devices for ourselves, we should be able to get an even better sense of what chips are being used.
I don't know why anyone is buying them. After looking at your research, the margin of error is too high to be reliable. Requires secondary screening and that's only on the ones you catch. All it takes is one person that gets through and your plant is closed and your in remediation to get opened back up. Seriously, why waste the money on these?
There is a fear vs reality gap to fill. People refuse to believe there isn't some silver bullet solution. Various marketing BS to reassure people from places like casinos does not help. As long as there is that reality gap someone will step in to fill the reality gap.
IPVM recently had a sample report on a clearly suspicious product. The end-user school district was briefed on the issues. Still, the school district spent the money and did not pull back. That is a combination of fact rejection, willful ignorance, and escalation of commitment I do not see often.
Thanks for the post Lynn. I shamed them on LinkedIn. Outdoors is over the line. I notice too that will the Education cycle winding down, they are now discounting.
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Comments (21)
John Honovich
Isabella, good work on your first post!
Isabella is continuing to research this space do if you have any recommendations, let us know.
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Steve Stowe
Looks like I should be in the business of reselling Chinese products rather than electronic security to end users - the mark-up is much better.
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craig keefner
I wonder which model and specific variation-of sensor they are using. Obviously at this cost it is infrared sensor and a supplier out of Belgium like Melexis has 10 different variations at minimum. Typical for microwaves, defogger, cattle, environmental, etc. Field of view varies widely and usually single pixel though they also offer IR arrays. Cost for TO39 format is around $7. Cheaper in higher quantities.
Nice report. Thanks!
Craig
craig@kma.global
720-324-1837
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Undisclosed #1
"The average Western relabeller is adding a ~400% markup. While the sample price is $550, relabellers are charging ~$2,500, generating high profits per unit."
Is it good idea to post cost and end-user prices?
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craig keefner
I don't begrudge companies making a profit margin. Typical distributor and reseller rates though via someone like Synnex/etc is more like 35% and 18%. Generally reselling Chinese products becomes race to the bottom with margins in single digits for qtys less than 25. Pretty painful stuff.
Biggest problem is execution and that is the bad apples in the market who misrepresent the product basis especially on the regulations side. aka opportunists. We now have temperature screening with sanitize dispense and zero UL compliance. I get 2-5 emails a day from Chinese and American companies wanting to sell me temperature kiosks. Attached is one from today. Availability is another interesting factor as generally availability is good from China but that brings shipping into play. the good news for them is that generally the ultra low price means they get to hold the money longer before delivery. See RapidScreen Temperature Screening Kiosk - An Interactive Digital Agency
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Undisclosed Manufacturer #3
Considering the TVT devices use Huawei HiSilicon, should one assume these devices also use Huawei?
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Undisclosed Integrator #4
Good to have an interesting and informative article that is not sinophobic in tone.
I hope this is a sign of a change in journalistic defaults for IPVM staffers.
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Michael Votaw
I don't know why anyone is buying them. After looking at your research, the margin of error is too high to be reliable. Requires secondary screening and that's only on the ones you catch. All it takes is one person that gets through and your plant is closed and your in remediation to get opened back up. Seriously, why waste the money on these?
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abraham lieberman
Do you know what hs tarrif code was used to bring in the items? That can add 25 percent to the true cost. The margins are still very high regardless.
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Lynn Harold
Here's another BEMS relabeller called TempCheckIn. It's scary that they show it being used outdoors on children wearing masks.
tempcheckin | TempCheckIn - Keep the doors open. Safe Simple, Temperature Check
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craig keefner
Thanks for the post Lynn. I shamed them on LinkedIn. Outdoors is over the line. I notice too that will the Education cycle winding down, they are now discounting.
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