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Comments (27)
Campbell Chang
Well they aren't doing it here in Aus :(
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Steve Beck
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.
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Undisclosed #2
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?
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Undisclosed Manufacturer #3
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.
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Sean Nelson
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.
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Jon Dillabaugh
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.
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John Honovich
10% Hikvision across the board price cuts at dealer events are also common, example:
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John Honovich
And here is another one, less than 4 weeks later, now up to 20% across the board:
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John Honovich
These Hikvision sales continue to happen into 2017 though with less publicity / flair than previously.
Today, is 15% across the board Hikvision at ADI:
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