Hikvision Leads Multi-Manufacturer Sales Promo

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Brian Karas
•Published Feb 21, 2017 18:03 PM

Earlier this month, Hikvision launched new 'super value' kits, with 40% discounts, and now Hikvision is offering another promo, but this time they are not alone.

Multiple manufacturers are now discounting their products alongside Hikvision, but Hikvision has increased the aggressiveness of their promo, extending it to a wider audience, with deeper cuts.

In this report we highlight the manufacturers that are offering competitive discounts, and a notable absence.

15% ******** - ****, *********, ********* **** ***********

******* ** ******** ********* *********, **** is ***** **** ** *********** **** ADI. ***'* ***** ******** ******** ****** besides *********. *** *********** **** *** Honeywell *** ********, *** **** *********, who ***** ***** *** *********-*******% ******** **** *** ** ********* ****.

** ********, ********, *** ************ ********/******* ***** **** ******* ** ADI** **** ******* *** ******** ****.

Hikvision '****** ***' ********

******* ********* ***** ******* **-**% ***, *** could *** ** ******** **** ***** dealer *********, **** *********** **** *********'* largest ******* **** ****** *** ********.

***, ********* ******* *** "****** ***", and **** **% *** ******** ******* they ******* *** **** ***/*********. *** example, *********'* *** ******* *** ***** the **% ******** ** *** ** their ******** **%.

 

*** ************, ********* ******* *** ***** though **** ***** ** * ******* cut ** *********'* ****** **** ********* **** most ****** ***** **** **** **** regardless by their *******.

Other Manufacturers Less **********

****, *********, ********* *** ******** *** less ********** **** ***** *********. **** of *** ****** *** ******** '****** dipping'. ********* ** ******* ** ************ products ****, *** **** ** ********* ******* cameras *** ***** ********** (**-*****) ******** from ***** ********:

**** *** ********* ** ********** *** common *********** ** *** ***-**** ****** market, *** **** ****** ****** *** to *** *** ***** *********'* ********* to ***** ****** ***** ** **** segment.

Pressure ** *****

******** ************* **** ********* ** ** that ***** ******* ********** ****** *** board ***** **** ****** **** ******* and **** * *** ** *******. Moreover, *** *** ******** *****-******** **** to ********* *************, ****** ** ***** that *** ***** **** ****** **** or ******* ****. **** ** ***** manufacturers *** ********* **** ** **** do *** ***** / ****, **** will **** ***.

Manufacturers ********

****, ****** *** ******* *** * notably ****** ************* ****. ******* ***** to ***** ********* ******** **** **** are ********* ***** ********* ***** *****, encouraging ********* ** ****** / **** on **** ***** *** ******** ** ****** who ***** ********** ******** ** ** sale **** ***.

Dahua ******

***** *** ***** ************-***** ******** ** ******** ****, *** ** ****** **** **** promo ** ****** ****** ******. * source ***** ** ***** **** ***** will ****** *** * ******* ******** promo ** *** ****** ******.

Expect **** *********

********* *** *** * ********* *** dealers ** ****** **** ******* ***** like ****. *** '****** ***' ***** shows ********* ** ******* **** ********** with ***** ****** ******* ** ******* off *** ******* ******* **** ** paying ******** *******. ** ********** ********* continuing ***** ******* ********** ** **** the ******** ** ***** ************* ********** to ***** *****-**** ********. 

Comments (6)
JH
John Honovich
•Feb 21, 2017
IPVM

Here's a poll:

UM
Undisclosed Manufacturer #1
•Feb 21, 2017

So far the poll shows 100% of the respondents think Manufacturers are racing each other to the bottom. The video market has become insane.

JH
John Honovich
•Feb 21, 2017
IPVM
In reply to Undisclosed Manufacturer #1

So far the poll shows 100% of the respondents think Manufacturers are racing each other to the bottom. The video market has become insane.

I know many people disagree, that's why I added the poll. I've recently heard a number of people say effectively, "Hey if they keep cutting prices it must mean they were making tons of money and if they are still cutting prices, it must mean they are still making money!"

What we have heard from manufacturers engaged is effectively, "Hey we either need to take the short term losses, hope this bottoms out soon or get out entirely, which for now would be an even bigger loss."

(1)
U
Undisclosed #2
•Feb 22, 2017

A couple of questions:

How much of the discount is being passed to the end-user?

And if it is -

How do integrators/installers feel about losing more margin on end-user sales?

How do end-user salespeople feel and what are they doing when their commission targets are tied to revenues that drop when prices drop?

 

 

JH
John Honovich
•Feb 22, 2017
IPVM
In reply to Undisclosed #2

#2, those are really good questions.

How much of the discount is being passed to the end-user?

I don't think much or any is being passed on, from what we have heard. To that end, I can understand why Hikvision dealers would be so happy, it is a pure cash transfer from Hikvision to dealers.

How do end-user salespeople feel and what are they doing when their commission targets are tied to revenues that drop when prices drop?

That's a good question. I'd like to know that myself. I suspect one part of it would be that even though average sales price declined, total revenue rose as more people sped up or switched orders during the sale. 

Related, a question I am interested in knowing, if you cut your prices 15% across the board, do the sales people get the same commission rate? I have seen instances, in other companies, where commission rates were lowered during such aggressive promos / cuts. Anyone with any insights here?

JH
John Honovich
•Feb 23, 2017
IPVM

ADI has now sent 4 emails on this sale, now emphasizing you can order until midnight.

But don't worry, at least for Hikvision, I hear other distributors are running the sale tomorrow as well.