Hikvision Addicted To Across The Board Sales

By: John Honovich, Published on Jun 30, 2016

Savvy or destructive move?

Across the board sales / price cuts from the biggest surveillance manufacturers are quite uncommon but Hikvision is proving that they will do it almost monthly.

In this report, we look at these moves and discuss their tradeoffs.

***** ** *********** ****?

****** *** ***** ***** / ***** **** **** the ******* ************ ************* are ***** ******** *** Hikvision ** ******* **** they **** ** ** almost *******.

** **** ******, ** look ** ***** ***** and ******* ***** *********.

[***************]

Cut *** ***

**** *** * ****** the ***** ***** **** over *** **** * months.

******** *** ** **** year:

*** *** *** ** Q1:

*** ******** ***:

*** *** *** ** Q2:

**, ** ** *** two **** ****. ***, the ** ********* *** now **** ******** **** the ***** *** ** Q3:

Update **** ****

**** **** * ***** later, ******* ***:

******

*** ***** ****** ** that *** ******** **** quarter's *******. ****** *** might **** * **** or * ***** *** motivated ** *** ****** the ****.

****, **** **** * lot ** ******** ** competitors ** ****** ***** or **** *** ** Hikvision.

********

****** *** ********. ** one ********** ******:

***-** *** *** ** the *** ** ***** and ***** *** * 15% ******** ** *** ADI **** **** ****. I *** ****** ******* now ** * ** forced ** ***** ** a ***-**** ***.

******* ****** ******** ** sales ** *** *** profits.

** ********,********* **** *** **** to **** ***** *******. *** *** '*******' prices *** ** *** already ************ *** **** * large ***** ***** *** support ************, **** **** **** that ****** ** ***** costs.

***********

********* *** ********** ******* products **** **** ** not **** ** ****** to ******* ****** *** board ***** ****. **** will **** **** ***** profits (** ** ***** case ****** ******) ** stopping ***** ***** ****.

** ***** **** **** be **** ********* ** simply ****** * ******** mistake ** *********** ** meet *********** *** **** growth ****** ** ** could ** **** ** the**** ** ***** *** competitors ** ***** ******** forecasts *** *** **** few *****. *** **** ********* (or ***) **** ** very *********** ** ***.

****

Comments (27)

Avatar

Campbell Chang

06/30/16 10:58pm

Well they aren't doing it here in Aus :(

John Honovich

IPVM | In reply to Campbell Chang | 06/30/16 11:02pm

Campbell, good point. We were talking to someone in Australia who said the same thing. They were actually surprised to hear the US tactics.

Avatar

Campbell Chang

In reply to John Honovich | 06/30/16 11:12pm

I have no idea about US pricing but given where Hik place themselves in the market, I question the need to do things like this?

Surely if you're the largest player in the market AND are competitive in price AND reliable, why erode your margins further for what would have to be minimal gains?

Undisclosed #1

In reply to Campbell Chang | 06/30/16 11:45pm

...why erode your margins further for what would have to be minimal gains?

Dahua.

John Honovich

IPVM | In reply to Undisclosed #1 | 07/01/16 01:00am

If its Dahua, why do the sales / price cuts in the US but not AU?

Undisclosed #1

In reply to John Honovich | 07/01/16 06:11am

If its Dahua, why do the sales / price cuts in the US but not AU?

Maybe because Dahua isn't trying to get business at all costs in that market?

Take 25% off these prices (for AUS $) and they're still much higher than US retail.

Avatar

Campbell Chang

In reply to Undisclosed #1 | 07/01/16 06:41am

Those are retail prices here in Aus though. Trade price is sub 200. Hik prices are similar.

It's not unexpected though since the well known "Australia" tax applies to almost everything.

Undisclosed #1

In reply to Campbell Chang | 07/01/16 07:03am

Agreed, Retail.

Point being that Dahua is not pulling out all the stops in AUS, like in the US.

Therefore HIK has no reason to react.

For instance the US retail on the 3MP 4300C is ~$80 USD where in AUS just the 2MP 4200C is > $200 USD.

Sorry, I only have retail prices to go on.

John Honovich

IPVM | In reply to Undisclosed #1 | 07/01/16 07:16am

1, I do not think you can compare any AUS pricing to USD. As Campbell notes:

the well known "Australia" tax applies to almost everything.

All surveillance products seem to be much more expensive in Australia compared to the USA.

I am not sure of the cause but this makes price comparisons difficult for pretty much any product.

Undisclosed #1

In reply to John Honovich | 07/01/16 03:47pm

It's very simple.

Campbell's points are

  1. Hik is not aggressively cutting prices in Aus like in the US.
  2. Hik prices and Dahua prices are similar in Aus.

Campbell's question is why is Hik cutting prices so much in the US.

My answer is because of the pressure from their smaller rival, Dahua.

You object with

If it's Dahua, why do the price cuts in the US but not Aus?

My answer is because Dahua is not pressuring Hik in the Aus market, unlike the US, as Campbell indicates.

Where's the difficulty?

John Honovich

IPVM | In reply to Undisclosed #1 | 07/01/16 06:40pm

Dahua is not pressuring Hik in the Aus market, unlike the US

I do not see the facts supporting.

Let's start with the US market. Dahua had a horrible 2015 in the US. I don't think anyone could dispute that. Despite that Hikvision ended 2015 with 15% off across the board. That does not make sense.

This spring, Dahua actually increased prices in the US. But Hikvision has since done at least 3 across the board sales. That also does not make sense.

I am not an expert in the Australian market (nor are you) but, from what I know, Dahua is better organized there than in the US.

That noted, again I am not certain why Hikvision is doing what it is doing in the US, but I don't think it's because they are scared of Dahua USA.

Undisclosed #1

In reply to John Honovich | 07/01/16 07:25pm

Let's start with the US market.

To be clear, my original "Dahua" comment was only about the US. AUS was introduced as a counter-argument to mine.

This spring, Dahua actually increased prices in the US.

Ok. I wasn't aware. Was that at the wholesale level, or retail or?

In any event, they *were* lower priced, do we think they are now higher?

But Hikvision has since done at least 3 across the board sales.

Predicted bloodletting. As you know, bloodletting means intentionally spilling your own blood.

That also does not make sense,

Undercutting your competition price, even substantially is a common tactic, and in the absense of a competing theory, remains the most plausible.

IMHO.

Undisclosed #1

In reply to John Honovich | 07/01/16 08:12pm

This spring, Dahua actually increased prices in the US.

Now that ADI carries both Dahua and Hik, perhaps there is a recent mailer showing both? That would be interesting...

Anyone?

John Honovich

IPVM | In reply to Undisclosed #1 | 07/01/16 08:36pm

From the July ADI catalog:

And the 2 week special:

Undisclosed #1

In reply to John Honovich | 07/01/16 09:49pm

Hey, I just wanted to compare Hik and Dahua, and you go and include all these other brands like Flir, Honeywell, W-Box and Digital Watchdog... ;)

Avatar

Steve Beck

07/01/16 12:42am

Another thing to point out. Sometimes the monthly sale price of a particular model is cheaper than if the product is not part of the monthly but you purchase with the 10% discount at a different time. Now things get really cool when get to double dip. 10% off plus the sale price.

John Honovich

IPVM | In reply to Steve Beck | 07/01/16 01:00am

Extreme couponing - Hikvision edition.

Undisclosed #2

07/01/16 01:52am

With this discounting it could in fact be driven by the distributor rather than the manufacturer.

Companies like ADI might be using the Hikvision Promo to get people in the door and then upsell or cross sell them other product lines. It could also be to clear inventory or boost end of month sales.

It would be interesting to know who is taking the cost of this promo. Does Hik give ADI a 10% discount which is passed through or is the 10% taken off the ADI margins?

John Honovich

IPVM | In reply to Undisclosed #2 | 07/01/16 07:11am

With this discounting it could in fact be driven by the distributor rather than the manufacturer.

It could be but since both Tri-Ed and ADI are running it simultaneously over and over again I doubt it's distributor driven. Plus, why would Tri-Ed and ADI cut out most of their margin to help Hikvision and not Axis, FLIR, DW, Samsung, etc., etc.?

And ADI does not do favors to any vendor unless they are getting paid for it. My gut feel is the opposite, Hikvision needs to pay Tri-Ed and ADI to run those fliers in addition to doing the discount.

Undisclosed Manufacturer #3

07/01/16 06:01am

yes, that they will hurt margin by many across the board price cut. however, they have a goal of revenue target to meet, if they don't meet, then they may get a huge inventory and that's even a big problem. They don't have to make a profit in short term, they may quickly get a bigger market share and they may also get free advertisement by the attacks from all of their opponents, and critiques from IPVM.

This may be not a good choice, but if they keep revenue growth, they may get government compensation and tax return , because they keep the employment and help suppliers to clear inventory. This is better than doing nothing.

John Honovich

IPVM | In reply to Undisclosed Manufacturer #3 | 07/01/16 07:14am

get free advertisement by the attacks from all of their opponents, and critiques from IPVM.

I am going to tell that Hikvision next time they object to our coverage ;)

They do not seem to be as happy for the 'free advertisements' such as Hikvision and the China Communist Party, Hikvision Exec Simultaneously Chinese Government Security Leader, Ezviz = Hikvision = Chinese Government, etc.

Avatar

Sean Nelson

Nelly Security | 07/01/16 01:37pm

I agree, no need to go with the aggressive price cuts. The prices are already good and the products are high quality. Running a sale every now and then is good but not all the time. If they need to move products at the end of the qtr, they should instead do sale based incentives for folks who buy volume, buy x amount and get x discount. But what do I know. Hik seems to know what they are doing, they are on fire right now.

Avatar

Jon Dillabaugh

Pro Focus LLC | 07/01/16 01:37pm

I learned the hard way recently not to budget your jobs based on any sales prices. We recently had a project that we quoted and didn't realize the prices quoted to us included a limited time sale price. By the time the client decided and provided the down payment, the sale ended and prices were much higher. We were able to get a medium sized discount in good faith and a promise to make up the difference in the next larger order.

John Honovich

IPVM | 07/13/16 10:15pm

10% Hikvision across the board price cuts at dealer events are also common, example:

John Honovich

IPVM | 07/23/16 01:29pm

And here is another one, less than 4 weeks later, now up to 20% across the board:

Undisclosed #1

In reply to John Honovich | 07/23/16 02:54pm

The whole pallet costs < $4000.

(6x4x3 @ $69) = $4968 save 20% = $3975

John Honovich

IPVM | 01/27/17 03:55pm

These Hikvision sales continue to happen into 2017 though with less publicity / flair than previously.

Today, is 15% across the board Hikvision at ADI:

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Related Reports on Sales

Dahua USA Celebrates 5 Years of Errors on May 22, 2019
Dahua USA is, in their own words, 'celebrating' 5 years in North America or as trade magazine SSN declared: Dahua Technology finds success in...
Bluecherry Open Sources Entire VMS on May 13, 2019
Bluecherry announced they have "released the entire Bluecherry software application open source with a GPL license". We spoke to Bluecherry's...
10 Facial Recognition Providers Review (Secutech) on May 09, 2019
Adding to our 19 Facial Recognition Providers Profiled report from ISC West, IPVM focused on facial recognition technology for our Day 2 coverage...
Dahua and Hikvision Products Illegally Sold To US Government GSA on May 06, 2019
Dahua and Hikvision products are being widely and illegally sold to the US government GSA. The sellers are falsely claiming these China products to...
Knightscope Adds Just 2 Total Customers In Past Year, Yet Raising Money at $300 Million Valuation on May 02, 2019
This is no longer funny. While Knightscope has laughed it up promoting robot selfies, joking about a 'suicidal robot', the man who attacked a...
Verkada Gets Million Dollar Memphis Spec on Apr 29, 2019
The US city, most famous in video surveillance for standardizing on Hikvision, has issued an RFQ for 962 Verkada cameras due Wednesday, May 1,...
Verkada Gets Half Billion Dollar Valuation on Apr 26, 2019
Last week, when we profiled Verkada (The Fastest Growing Video Surveillance Sales Organization Ever - Verkada), we predicted they would raise $40...
Verkada Salesman: IPVM "Stuck In A The Stone Age" on Apr 25, 2019
Verkada is 'tackling dinosaurs' and battling those, like IPVM, who are 'stuck in a the stone age'. Verkada's recent sales recruiting promotion...
Ex-Integrator Now Growth Strategist Interviewed on Apr 24, 2019
For more than a decade, Scot MacTaggart was a security integrator (at PA-based PSX). In late 2018, he left the industry. He is now a Growth...
19 Facial Recognition Providers Profiled on Apr 23, 2019
IPVM interviewed 19 facial recognition providers at ISC West to understand their claimed accuracy, success and positioning. 9 from China, where...

Most Recent Industry Reports

NJ Law Requires Apprenticeship For Public Works Integrators on May 24, 2019
Few integrators do a formal apprenticeship program. However, now a NJ law is requiring any integrator on public works projects (such as state...
Security / Privacy Journalist Sam Pfeifle Interview on May 24, 2019
Sam Pfeifle is best known as the outspoken former Editor of Security Systems News. After that, he was publications director at the International...
Verkada Video Quality Problems Tested on May 23, 2019
Verkada suffers from numerous video quality problems, not found in commercial IP cameras, new IPVM testing of Verkada vs Axis and Hikvision...
Average Frame Rate Video Surveillance 2019 on May 23, 2019
What is the average frame rated used in video surveillance systems? In IPVM's 2011 statistics, the average was 6-8fps increasing to ~10fps in...
Access Control Job Walk Guide on May 22, 2019
Significant money can be saved and problems avoided with an access control job walk if you know what to look for and what to ask. By inviting...
ASCMA / Monitronics Declares Chapter 11 Bankruptcy Plan on May 22, 2019
Monitronics is entering into Chapter 11 bankruptcy. The company, also called Ascent Capital Group Inc., aka ASCMA, aka Brinks Home Security,...
US Considers Sanctions Against Hikvision and Dahua on May 22, 2019
The US government is considering blacklisting "up to 5" PRC surveillance firms, including Hikvision and Dahua, Bloomberg reported, with human...
Dahua USA Celebrates 5 Years of Errors on May 21, 2019
Dahua USA is, in their own words, 'celebrating' 5 years in North America or as trade magazine SSN declared: Dahua Technology finds success in...
Axis ~$150 Outdoor Camera Tested on May 21, 2019
Axis has released the latest in their Companion camera line, the outdoor Companion Dome Mini LE, a 1080p integrated IR model aiming to compete with...
Covert Facial Recognition Using Axis and Amazon By NYTimes on May 20, 2019
What if you took a 33MP Axis camera covering one of the busiest parks in the US and ran Amazon Facial Recognition against it? That is what the...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact