Hikvision Desperate And Destructive Slashing

No, because the sale is on ALL products, not limited to aging or discontinued models. Also, this is the third month in a row that ADI has run an across the board sale for Hikvision.

With a company that sells the same SKU for a year or two, sure. For Hikvision, which changes and upgrades constantly? What is Hikvision going to do with months-old stock?

Dahua will survive regardless. They have a deep war chest.

Yes, Hikvision wants to beat out Dahua but who do they really want to crush.

The People's Republic of China wants to crush the Japanese, Korean and Taiwanese manufacturers but more importantly to crush America. They want to dominate in America, all facets of manufacturing. They win in cameras, they win next in whatever they want. The country supports the loss of revenue while they capture our markets.

You have a country that is running out of room, too many people, 1.4B people, about 4X the number in the US, about 1/4 the water we have in the US. Due to these reasons and many more, several leading analyst say that China within 10 years, will go to war to gain more area for their people. Maybe a key reason why India has put some major guns along 1 of their borders ( fact not fiction ), why India has started building up their Air Force and buying planes from Europe.

But yet, systems integrators don't care "NOW" if they buy from the Communists.

What about tomorrow when Americans realize how little they control in their own country?

I think this is being orchestrated by ADI in attempt to gain share from other distributors.

Tri-Ed has offered a number of the Hikvision across the board sales this year, though I do not believe this current one (members, please correct me if I am wrong).

That noted, having such big sales is certainly a boon for the distributor running it.

From what I understand, they dont stock a large amount of products at each branch

Our analysis of ADI's in-store stocks show Hikvision as being the top stocked video surveillance offering (whether you count just Hikvision branded and don't count the OEMed W-Box products).

If you can buy a Costco Q-See 16 camera kit with DVR for $499, then I'm pretty sure the manufacturer and the distributor are making money off 16 x $100 HIK cameras at $1600.

That's a flawed comparison.

This kit is at Costco right now selling for $479:

A few things worth noting:

• 720p analog HD is essentially being discontinued, so this is an end-of-life blowout price, which generally are not profitable sales.
• Also, 720p HD analog Hikvision OEM cameras are being sold individually right now at Supercircuits for ~$17. Likely same reason, being discontinued.
• $100 Hik cameras (factoring in this ~20% discount) are 1080p IP domes, which are significantly more expensive than 720p HD analog mini-bullets.

The other big difference in cost / profits is the sales and support structure that Hikvision has. Q-See has no field sales people or SEs, Hikvision, just in the US, has way over 100. And Hikvision markets at almost literally every event from huge booths at ISC West to tabletops at random small fairs throughout the continent. All of this adds to the cost.

You can't sell at consumer big box price points when you have a cost structure built for B2B.

Finally, from everything we hear about the Big Box OEMs / distributors, they are struggling to make money too, because of this downward spiral.

Just curious, how is Hikvision pricing comparing to, for instance Sony, in the US?

Let's focus first on the entry level because that is where Hikvision dominates.

The SNCXM631 is listed as Sony's lowest cost / entry level dome. US online pricing for that camera is in the $270 - $300 range.

Hikvision's lowest cost 1080p IP dome is about half that price (under $150 even without special sales) and includes integrated IR.

Now, Sony may be better in some areas (maybe WDR) but that's a price gap that will motivate most smaller end users to go with Hikvision.

This line may be a clue as to who is responsible for the FLIR slashing, given the three suspects, the Manufacturer, the Disty or the OEM.

Based on the looks of the TCX line, I would say it is Mr. Dahua in the wiring closet with a crimp tool.

Why did you leave Hikvision considering there were huge margins and that it was soo easy to undercut any competitors? Seems like the dream sales job

9, thanks for the feedback.

I agree with you that the prices and gross margins are likely higher, on average, overseas than in China. Of course, the difference is the cost structure for sales, marketing and support is way higher overseas than it is China. Hikvision both has far less scale and far higher per employee costs overseas.

Australia may very well be different than NA. We regularly hear from Australian integrators how much more expensive every surveillance product is in Australia than the US. I am not sure why but if that is true, it certainly helps all the manufacturers.

Prices are quite low in the US, and Hikvision's team in NA is fairly massive and extremely expensive. That's the combination I question.