How Manufacturers Compete Against Low Cost

Author: Brian Rhodes, Published on Jul 29, 2014

"I'll take whatever's cheapest" is perhaps the most hated phrase any salesman could hear.

Yet high cost is the biggest complaint of many security buyers.

So how do manufacturers successfully sell against low cost options? We asked a panel of manufacturers:

"How do you deal with low cost competitors, especially very inexpensive ones? What tactics or countermeasures do you use?"

Manufacturers emphasized 3 key themes in how they counteract low cost options.

"*'** **** ********'* ********" ** ******* *** **** ***** ****** *** salesman ***** ****.

*** **** **** ** ********** *********** **** ******** ******.

** *** ** ************* ************ **** ******* *** **** *******? We ***** * ***** ** *************:

"*** ** *** **** **** *** **** ***********, ********** **** inexpensive ****? **** ******* ** *************** ** *** ***?"

************* ********** * *** ****** ** *** **** ********** *** cost *******.

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

  • ****** *******:*** **** ******* ****** ** ******* **** ***-**** *********** ** to *** ****** **** ** ********** *** ********* ** ***-***** ********* their *********.
  • ********* **** *******: ************* ********** ********* **** ****** ***** ******* *****, ***********, and ******** **** ** **-********* *** ****** ** ********** ******** only ** *** ***** ** *** *****.
  • ******** *****:*** **** **** ** ********* **** ******* ** ********** *** risk ** *** ******* ** *********** ** *** ***** ******* are **** ** *** *** *** ****.

** **** ** *** ******** *****, ** ****** ** ***** keys **** ************ ********:

Better *******

****** ****** ** *** ****** **** ****** *******, * ***** that ************* ****** **** ********** ***** ******** ***** ********* *******, warranties, *** ***-***** **********:

  • "** **** ***** *******, ********, ********* *******. ******* ******** ************ can *** ****** ** * ***** ****** *** *** ** these. ** **** **** ***** *********** ********** *** **** ** the ********."
  • "*** ******* ** **** ****** ** * *****- *************, ***********, and *** ***** ***** ***** *** **** ********- *******. *** of *** ***** ******* ******** ******** **** **** *** **** support. ************, **** ******** ** ** ********* **** *** ***** business, **'* * ************ ********. *** ** *** **** *** relationship *** *** ******* / *** *** ********* ***** ** support ** *****'* ****** **** ** *****."
  • "* **** **** ******* ****** **** **** *** ********* **** 2 *** ** * ******: **** *******, **** *******, ** best *****."
  • "#* ******** ******** *** *******."
  • "******* ********** ****** *** ***-**** (*.*. ***-***** *********** ** *********** management ******)."
  • "*********** *** ****** ******* ************. *** ***'* **** ** ** the *** ** **** ** ** **** ** ********** ***** 1-2 ***** *** **** **** ** *** *** ** ** replaced */* *** ******* ** ***** ** *** ** ********."
  • "**** *******, ********, ******** *******, ***."
  • "*********** ********** (* ** * *****) / ** ********* ***** Warranty ******** *********** ********** **** ********** ******** ***** ****** ********* to ****** ***** ****** ***** ***** ******* **** **** * proactive ******** ******** **/* **** ******* ******* ************ ******** *******"

Emphasise High *******

******* ****** ******** ************* ******** ** ******* ********* ** *** superior *********** ** ******** ******** ** ***** ******** ******** ** cheap *******.  ********* ********* *** *** ***** ********** *** ********** of ******-****** ******* ****** **** *** *********:

  • "*** ******* ******** *******' **** ***** ******* *** ******* ********* take *** ******** *** ** *** ****** **** ** **** when ** ***** ** *** **** ***********. ***** ***** **** always ** * *** **** ******* ***** ******** ******, ** is ****** * ****** **** ** ** *** **** ** compete **."
  • " ** ****** ****** ******* *** ******** ********* *** ******* ** the *********** ****."
  • " * ***** ** *** ******** ************, *******, *** ***********."
  • " * ******* **** [*** ****** ****** *****'*] ***** *******, * **** ******** and ****** *********** *** ***********."
  • "** *** ** **** ******** ** ******* *********** *** *** fact **** ***** **** ****** ** ******* ** **** ** cheaper ** *** ******* *** ********. *** *** *********** ****** be ***********, *** **** ** ************ *** *** *** ** home ****** ********* **** *** ***** **** ****. *********** **** there *** **** *** *** *** ******* *** *** ******* control ** ******* *** ** ****."
  • "***** ******* ******* ** *********, ** ** *** *********** ** the ******."
  • "********* ******* *********** & *******."
  • " *********, ***********, ***********."
  • "** ******** ******* ** ** ********** ************ *** *** ************** goes ****** ****** *** ***."

Question ***** (** *** *****)

*** **** ****** *** *** ** ***** *** ********** ** ******** ********* wisely ******* ***** ******** ***** *** ** ********* *** *** margin *** *********** ** ********** ****:

  • "****** *** *** ****** *** ******** - "***** *** *** this ******* ** **** **** ******** ** **?"
  • "** *** ******** ** **** ******* *** *** ***** *** not *********** **** ** ** ******* *** * ********. **** performance."
  • "********* ********** *** ***** ** ****-*******. ***** *****-***********."
  • "**** *** **** ******* ** *** ** **** ** **** a *** *******?  **** **** *** ***** ***** ******* ** **** their ******."
  • "**** ** **** *********** ***** ********* *** ***** *** *******."
  • "* ******* **** **** **** *** ***'* ***** **** *** cost ** * ****** ***** *** ********* ****** ** **, and ** * **** ***** ** *** *** **** ** the ***** ** ***** *** ****, *** ********** ** ***** is ****."
  • "** *** *** ******** ** ****** **** **** ****** **** ****** what *** *** **** ********** ******. ** ***, * **** me *****, ******* ***** ******. *** **** ******* ** ******* without *** ************."
  • "* **** ***** *** *** ************ ** *** *********** ****. Things **** ******** ** **** ******, ********* ******** **** **********, etc..."
  • "***** *** ***** ** *** *** ** *** ******** ***'* only **** ** *** *****. * ***'* *** ** ******* here. ***** *** ***** ** *** ***** *** ** *** spectrum *** **** ***** **** *** ********* ** ***** *******. They *** ******* *** ***********, **** ********** (******* ****, ** thousands ** *******), ****** ****** *** ******* **** *** *** of *** ****** ** ********* *** ******** ** **** ********'* department (*.*. **** **********). ** * *******, ****** ***********, ***** like ***** ************ *** ****** ******* ** *** ***** ******** and ***** *****, **** ******* **** ** **** ******** ** your ********* **** ****** ** *** **** ** *******."

Comments (1)

Another factor an owner should consider, is that the camera cost is what, about a 1/3rd of the cost for a fully installed system? The owner will spend twice again on head end equipment, software, licenses, training, cable, installation and commissioning. This whole investment is highly reliant on the performance of the camera. A degraded camera performance (poor image quality, high failure rate, poor product support) will jeopardize the entire investment. The decision maker should ask themselves if an overall savings of 10 to 15 percent, even 20 percent, is worth acquiring a system that can become a longtime headache. Especially if the total cost of ownership is higher with the cheaper camera from the higher service costs due to the shortened warranty and higher failure rates. It should not be too hard for a sales rep to build a case that higher quality on the initial sale, can be the most cost effective solution.

A missed criminal activity due to a camera outage, will make the sweet music of the low price turn sour, when he or she has to explain to the boss why their expensive system didn’t catch the bad guy!

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 Low Cost

Network Cable Shootout - Belden, Hikvision, Honeywell, NavePoint CCA, Windy City Wire on Nov 05, 2018
Every IP camera install needs UTP cabling. But how much of a difference is there between dirt cheap generic cables found online and the bigger,...
Best Alternatives to Banned Dahua and Hikvision on Oct 17, 2018
With the US government ban and a growing number of users banning Dahua and Hikvision, one key question is what to use for low cost? While Dahua and...
Network Cable Testing Guide on Oct 02, 2018
Proper cable installation is key to trouble-free surveillance systems. However, testing is often an afterthought, with problems only discovered...
Hikvision 4MP Camera Tested (DS-2CD2345FWD-I) on Sep 27, 2018
Hikvision's latest Performance Series / EasyIP 3.0 4MP model, the DS-2CD2345FWD-I, was the top performer in our 4MP shootout, besting rivals from...
4MP Camera Shootout - Axis, Dahua, DW, Hanwha, Hikvision, Uniview, Vivotek on Sep 24, 2018
4MP usage continues to climb, especially for low cost fixed lens models. To see who was best, we bought and tested seven 4MP models from Axis,...
Vivotek 4MP Camera Tested (FD8379-HV) on Sep 13, 2018
Next in our series of updated 4MP testing, we bought and tested Vivotek's FD8379-HV, and entry level 4MP model claiming "top-notch quality video in...
Dahua Low-Cost 4MP Camera Tested (N44CL52) on Sep 10, 2018
4MP use continues to increase, especially in low-cost models, according to integrators in our 2018 Resolution Usage Statistics. We bought Dahua's...
Hikvision Value Express IP Cameras Tested Poorly on Sep 05, 2018
Even lower cost Hikvision products? Their new Value Express line is marketed for applications where "budgets are limited and performance is...
Hikvision PanoVu Mini Tested (Multi-imager + PTZ For ~$500) on Aug 07, 2018
Hikvision has released their first PanoVu Mini multi imager, the PanoVu DS-2PT3326IZ-DE3, with four 1080p imagers, including a PTZ and integrated...
Uniview Super Low Cost 4MP Tested on Jul 25, 2018
Even lower cost than Dahua and Hikvision, China's self-proclaimed 3rd place company, Uniview / UNV, is offering aggressive pricing including for...

Most Recent Industry Reports

Hikvision Silent on "Bad Architectural Practices" Cybersecurity Report on Nov 14, 2018
A 'significant vulnerability was found in Hikvision cameras' by VDOO, a startup cybersecurity specialist. Hikvision has fixed the specific...
French Government Threatens School with $1.7M Fine For “Excessive Video Surveillance” on Nov 14, 2018
The French government has notified a high-profile Paris coding academy that it risks a fine of up to 1.5 million euros (about $1.7m) if it...
Integrator Credit Card Alternative Divvy on Nov 13, 2018
Most security integrators are small businesses but large enough that they have various employees that need to be able to expense various charges as...
Directory of Video Intercoms on Nov 13, 2018
Video Intercoms, also known as Video Door-Phones or Video Entry Systems, have been growing in the past decade as more and more IP camera...
Beware Amazon Go Store Hype (Tested) on Nov 13, 2018
IPVM's trip to and testing of Amazon Go's San Francisco store shows a number of significant operational and economic issues that undermine the...
Magos Radar Company Profile on Nov 12, 2018
Magos America General Manager Yaron Zussman admits when he first came across Magos, he asked himself: "What's innovative about radar?" Be that as...
Genetec Privacy Protector Tested on Nov 12, 2018
Genetec has built Kiwi Security's Privacy Protector into Security Center, an analytic which anonymizes individuals in cameras' fields of view...
Chinese Government Increases Hikvision Ownership on Nov 12, 2018
The Chinese government - Hikvision's controlling shareholder - is increasing its ownership of the video surveillance giant amid sharp stock price...
Axis: "No One Wants To Buy A Camera" on Nov 09, 2018
Axis has, in its own description, made a bold declaration: The industry is changing so rapidly that the following statement might seem bold but...
Video Surveillance Hard Drive Size Statistics 2018 on Nov 08, 2018
What is the most common hard drive size for video surveillance? 150+ integrators answered: What size hard drive do you most commonly use? What...

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