Statistics: 35% Average Product Gross Margins For Integrators
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?
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 ******* **%-**% ******** ** **% - **%.
* ***** ****** ** **% ** equivalent ** * ****** ** ~**%. For *******, *** ********** **** * widget *** $** *** ***** ** for $***, ***** ** ***** ** a ***** ****** ** **% ((***-**)/***) and * ****** ** ~**% ((***-**)/**).
***********
*********** **** **** ***** *********** ******** 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 ******* ********* ***:
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"
- "****** *****, ******* ************"
- "************ *********** ****** / ******** ******"
- "******* ************"
- "**** ****** **** ******"
**** ** *** ********* **** ***** pricing, ***** ** **** *** **** able ** ******** *** ****** ******* the ********** **** ******** **'** **** on *** *** **** **** *********. Fortuenty, ** *** ** ***-******* ******* where *** ********* **** ******* *** have ********* ********** **** ** **** provisions ** ******** *** ***** ** up ** *% **** ****. ******* our ******* *** ****** ****** ****** to *** ***** ** ***** **********. As *** *** **** *****, *** cost ** *** *********, ******* ********** our ******* *** ****** ** *** the ********* ******* ** *** **** of ******* *****.
*** ********** *** ******** ******** ** a ************ ****** **** **** ** the **** *****.
***, * ****** ** ******/*********:
** *** *********** ****** ********** *** difference ******* ****** *** ***** ******? Gross ****** **** *** **** ** the *********** *** ****** **** *** price *******. *** ******** **% ****** = **% ***** ******, **% ** = **% **, **% = **% GM, *** ** **. **** ****** mistakenly ****** ****** ** ******.
****, ******* *** ********* ****** *** products **** ******* **** ************ ****, commissioning, *** *******, **** ** ** access ******* ****** ** * ****** camera ** ********* ******. **** ***** factors ***** **** *******?
** ***** *** ********* ***** ******* in *** ********:
******* ***** ******: ** *** **** year, **** ** **** *******'* ******* product ***** ******? (*.*., ** *** buy * ******* *** $*** *** sell ** *** $***, **** ***** be * **% ***** ******
**** ********* *** *** **** ****** online, ** **** ** ***** ********* in *** ****.. **'* **** ** compete.
********* **** ****** ***'* ********** ***** margin *** ******; *** ****** *** deal **** ***'* **** **** ********** where ** * ***** ********** **** ourselves *** ***.
* **** ** ******* **** **** of ***** ******* **** ****’* **** at ****? ****** **** **** *** integration ***** * ***’* **** * single ******* **** *** **** ***** 65% ******, **** **** **-***% ****** (even ** **** **** ** *********** and ****** ******/********** ********), *** **** how **** ** ***** ********* *** reporting **** **** ******* **% ** 90%+
**** *** ** ********, *** *** total ****** ** *********** ****** **** 60% ** **** *% ** *** respondents ** ** ***'* **** * material ****** ** *** *******:
** **** ** ************ ** ******** + ********?
** *** **** *-** ***** **'** seen *** **** ** *****/********/*** ******* that *** **** ******* *** ******** software **** *********, **** *** **** change **** **** ** ****?