Statistics: 35% Average Product Gross Margins For Integrators

By Sean Patton, Published Sep 28, 2022, 09:54am EDT (Info+)

Margin is, quite literally, the fuel that integrator businesses run on. But broad manufacturer price increases, shrinking supply, and expanding competition from manufacturers and online distributors cut deep in 2022. What is left for integrators?

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170+ integrators answered:

What are the main factors impacting the product gross margin you get?

In this report, IPVM examines the results and highlights common themes, including overall margin data, and dozens of detailed quotes from integrators.

See also Integrators On Labor Only Sales (Statistics), Significant Rising Prices / Product Shortages Statistics Summer 2022

*******

*** ********* *** ******* ******* ** the *********:

  • *********** ******** * ****** ******* ****** of **%, **** **% ** *********** indicating ******* ******* ******* **% *** 40%.
  • ******** ***** ***** ***** ****** **** the *********** *** *** **** ****** factor ********* ******* ******, ********* ** over **% ** ***********. **** *% of *********** ******** ********* **** ****** sales/stores *** * *******.
  • ******* ***-***** ** ********* ******** **** manufacturers ********** ******* ******* *** ********* their ******* *******, **** **** ****** they *** *** ****** **** ** match *** ******** **** ***** *********, thus ****** *** ********** *** ** their *** ******.
  • * ***** ****** ** *********** ******** that ***** ******* ******* **** ******* by ********** ********* ** ***** ********* with ********** ******** ****** ** ******* markups.
  • **** **** *% ** *********** ********* that ********* ******* ****** ** ********* demand *** *** ********* ******** *** having ** ****** ** ******.

Margin ********

*********** **** * ****** ******* ****** of **%, **** *** **** ****** response ******* **%-**%, *** **% ** responses ******* **% *** **%. *******, integrators **** ***** ** ****** ** report ******* **%-**% ******** ** **% - **%.

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***********

*********** **** **** ***** *********** ******** product ******* **** ********** **** **** it *** *** ** *********** ******* lower-cost ******* (*.*. *********) *** "****** deals ****", *** **** **** ********* are ********** ***** ** *****, *** features:

  • "*********** *** *** ************* ** **** with *** ********** *********. **** ******* are ***-*** ******* *** ****** ******** agreements, *** ******* **** ***** **'** bidding ******* ***** *********** *** * huge ********* ** ******** **** *******."
  • "***********. **** ***** ** **** ******* Hikvision, ** ********* ******** ******* ***** vendors **** ***** **** ***."
  • "************* *** ******** **** *** ************* vs *** **** ** *** ** the **** ** **** ** ***** the *********** *** *****."
  • "*********** - ***** **** ** ** cut ** ******* **** ***** ******* to *** ****** ******* * ** 2% ***** ****"
  • "****** *********** ** *** **** ****** impacting *** ***** ******. ** **** to **** ****** **** *** *** to *** ***** *********** ** ***** substitute ******** **** *** ****** **** our ****** ******* *** *** *****, we *** ****** ** ****** ** remain ** *** ****."
  • "*********** *** ****** *********. **** ******* purchase ** *****, **** ** *** competition **** ***** ** *****...*** *** don't **** ******** ** *** ********"
  • "********* ** *** ** **** ** 30% ****** ** ** * *********** bid. **** ** *** ** *****."
  • "*********** **** ***** ******** *** ***** integrators ****** ***** ***** ****."
  • "*********** **** ***** ******* ***** * should ***** ** ******?"
  • "*********** *******, ******** ** **** ***** add ******** **** *******"
  • "***********, ** ** *** **** ***** chinese ****, *** **** ** *******"
  • "***********. *********** *******. **** ***********"
  • "***********. ** **** ** *** ******* price ******"
  • "*** **** *********** ***** ******* ** quote ** *** *****"
  • "***** *********** ** *** ****** *** charging * **** *****."
  • "********* *********** *** ***** **** * decent ******."
  • "********* ** *** *******, *** **** dealers"
  • "***** ******* ** *** **** ******"
  • "***** ******** **** ***********"
  • "***** ***********"
  • "*********** ***."
  • "******* ****** ******"

* ****** ** *********** ********* **** online ***********, *** ********* ******** ****** as ** *****:

  • "** *** ** **** **** ******** which *** ***** ********* ** *** manufacturer *** ****** ** ** ********* online ** ******** *******."
  • "*********** *******, ********* ****** ******** ****** online"
  • "** *** ***** *** *******, *** availability ** ******* ** *** ******** on *** ***"
  • "***** ******* ********* *** ***** ****** sources *** ********* ******* ** ***** margins."
  • "********* *** **** ****** *** **** most ******** ** *** **** ** near ** **** * ***"
  • "****** ***** ***********"
  • "******"
  • "******** ****** *****"

Product ****

*** ****** **** ****** ******** *** the **** *****, ******* ****. *********** frequently ******** *** ********** **** ** goods, *** ** *********, *** ************ price ********* **** ***** *** ** passed ** ** *********:

  • "****** *** ******* ********* **** ************* have **** ******** ***** * **** and ********* ** ***'* ******* *** increase ** *** ****"
  • "*** **** ********** **** **** ** margin ** ***** ***. ** ** is * ****** ***-**** **** ** are ******* ** ** * ****** percentage ** **** ** **********."
  • "******* **** ********* ******- ****** ****** with ***** **** ********"
  • "***** ********* *** **** **** ******** and ** ***'* ****** **** ***** increases ***** ** *** ********"
  • "***** ********* **** **** ** ***** the ******* ** **** ** ***** the *********"
  • "***** ********* **** *************."
  • "********* ***** ** **********"
  • "*** ****** **** *** ********"
  • "*********, *** **** ** *****"
  • "****** **** ** ******** *******"
  • "*** ********* **** ** *********"
  • "****** ***** ** ********"
  • "*** **** **** *** ************."
  • "**** ** *******"

**** ********* ****** **** ******* **** **** **************** **** **** **** ***** ******** (**%) ** integrators ********* **** ******* ********* *** a *******, **** **% ********* **** product ********* **** *** ******* *******, and **% ********* **** **** ******* and ******* ********* ***:

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Multiple *******

**** *********** ******** ******** *******, ****** most ******** *********** *** *** **** of ********, ********* *** ********** *** themes **** ******:

  • "****, *** **** **** ** ***** to ******** *** *******, *** *** high *** ****** ** *** **** particular ******. ** **** ****** ****** Axis ****** * *** *** ****** a *** ***."
  • "*. *** ****** (*** **** ****-***?) 2. *** *********** (** * **** any) *. *** **** ** ******* (Is ** * ********* **** ** a ********* ****) *. *** **** is ** *** *** ****** ** find *** **** *** ******* ****** sell ***"
  • "********* **** (** ** ***** *** any *********** ********** ** ** *** time ** *** ****), *********** (** lack *******), ***** ********** ** ********* products, **** ** ***"
  • "**** ******* ********* *** **** ** the ************, ******* **'* * ************ (school, **********, ***) *** ********** ** installation"
  • "*********** ****** ** ***** *********** *** higher **** ** *********"
  • "**** *** ********/**** ********/************/*** ** **** at ********* ******* ***"
  • "*** **** ** ******** ***** ***** up. *** ************ ** ******** ** limited."
  • "******* ******** ******* *** **** ** equipment *** *****."
  • "***********, ***** ********* **** ************."
  • "***********, ******** ************, ******** ***** *********."
  • "***** ******* ** *** *********** *** competitive ***"
  • "********* *****, ***********"
  • "******* *****, ******* ***********"

********* ** ******** ***********

******* *********** ******** ***** ******* ***** on ******** ** ******** *********** ** how **** ******* ****** ***** ** charged:

  • "*** *********** *** ****** ** ********** work. * ********** ***** ** ********** work, ** ***** ** **, ** a *********** **** *** ********* ** sold **** ****** * **** ***** markup (*%), ** ** ****** ** all"
  • "**** ** *** **** ** ********** with *** ******** ******** ***** ******* the *******"
  • "*********** *** **** ******* *** *********. We **** ********** ** ***** *** material ****** **** **** ** *** larger *********."
  • "********* ** ***** ** * ******* type ** ************* **** ** ****** of *******, **********, ***"
  • "***** ********** **** ******* * ****** lower **** *** ****** ******"
  • "**** ** ******* *** ********** *********"
  • "*** **** ** *** *********** ** getting *******"

Supply *****

************ ****** ****** *** * *** integrator *****, *** ****** ** ********** ******* margin *** ********** *******, **** ** strong ********** **** ** *** ********** impacting *******, **** ********* ****** *** decreased ******:

  • "****** ***** ** *** ******* ******. standard ********* ** *** ********* ** our ***** *** ********** ********"
  • "******* ************ *** ******* ******, **** drive ****** ***** *** ****** *** margin"
  • "****** *****, ******* ************"
  • "************ *********** ****** / ******** ******"
  • "******* ************"
  • "**** ****** **** ******"

Comments (4)

Undisclosed Manufacturer #1

09/28/22 07:35pm

** **** ** ************ ** ******** + ********?

** *** **** *-** ***** **'** seen *** **** ** *****/********/*** ******* that *** **** ******* *** ******** software **** *********, **** *** **** change **** **** ** ****?

Agree: 1
Disagree
Informative: 1
Unhelpful
Funny

Undisclosed Integrator #2

10/03/22 01:01pm

**** ** *** ********* **** ***** pricing, ***** ** **** *** **** able ** ******** *** ****** ******* the ********** **** ******** **'** **** on *** *** **** **** *********. Fortuenty, ** *** ** ***-******* ******* where *** ********* **** ******* *** have ********* ********** **** ** **** provisions ** ******** *** ***** ** up ** *% **** ****. ******* our ******* *** ****** ****** ****** to *** ***** ** ***** **********. As *** *** **** *****, *** cost ** *** *********, ******* ********** our ******* *** ****** ** *** the ********* ******* ** *** **** of ******* *****.

Agree
Disagree
Informative: 1
Unhelpful
Funny

Undisclosed Manufacturer #3

10/05/22 05:15pm

*** ********** *** ******** ******** ** a ************ ****** **** **** ** the **** *****.

***, * ****** ** ******/*********:

** *** *********** ****** ********** *** difference ******* ****** *** ***** ******? Gross ****** **** *** **** ** the *********** *** ****** **** *** price *******. *** ******** **% ****** = **% ***** ******, **% ** = **% **, **% = **% GM, *** ** **. **** ****** mistakenly ****** ****** ** ******.

****, ******* *** ********* ****** *** products **** ******* **** ************ ****, commissioning, *** *******, **** ** ** access ******* ****** ** * ****** camera ** ********* ******. **** ***** factors ***** **** *******?

Agree
Disagree
Informative
Unhelpful
Funny

John Honovich

IPVM | In reply to Undisclosed Manufacturer #3 | 10/05/22 05:26pm

** ***** *** ********* ***** ******* in *** ********:

******* ***** ******: ** *** **** year, **** ** **** *******'* ******* product ***** ******? (*.*., ** *** buy * ******* *** $*** *** sell ** *** $***, **** ***** be * **% ***** ******

Agree: 1
Disagree
Informative
Unhelpful
Funny
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