Integrators Oppose Labor Only Sales

Author: John Honovich, Published on Dec 04, 2015

100+ integrators told IPVM their views on selling labor only, with the end user buying products direct.

We asked:

"As an integrator, if an end user wanted to buy the products themselves direct and only labor from you, would you do it?" and

"Why did you choose what you did? Any conditions or factors come into play?"

The clear response was negative, with even the minority of those definitely willing to do it consistently citing limitations and penalties for doing so.

These results provide clear insight into the dynamics of the integrator / manufacturer / end user relationship, especially important as more and more products are sold online / direct.

***+ *********** **** **** ***** ***** ** ******* ***** ****, with *** *** **** ****** ******** ******.

** *****:

"** ** **********, ** ** *** **** ****** ** *** the ******** ********** ****** *** **** ***** **** ***, ***** you ** **?" ***

"*** *** *** ****** **** *** ***? *** ********** ** factors **** **** ****?"

*** ***** ******** *** ********, **** **** *** ******** ** those ********** ******* ** ** ** ************ ****** *********** *** penalties *** ***** **.

***** ******* ******* ***** ******* **** *** ******** ** *** integrator / ************ / *** **** ************, ********** ********* ** more *** **** ******** *** **** ****** / ******.

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

Key ********

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

  • **** *********** **** ***** '*****' / ******* **** ******* ********.
  • ** **** ** *** **** ******** **** *****, **** **** raise ***** ****** *** ***** *************.
  • **** ** **** ** ****** **** *** *****, **** / most *** ***** ********* ***** ******** ****** **** ******** ***** bought **********.
  • *** ******* ******** ***** **** **** ** ******* ** *** quality *** *********** ** ******** **** ***** **** ** ** warranties ** ******** *** ***** ** ******** **** *** *** at ***** *** ******** (*.*., *** ** *** ************ ** the ******** ** *****).
  • ******* ** ******** ************* ****** ***** *****, *** ***** **** common ************* *** ******* ***** **** ***** ** ** *** integrator *** **** ** *** **** ****.

*** *** ***** *** **** ** **** ***** ** ****** products ******, ***** ******* **** **** ****** ** ** ** comes **** *********** ***** *** ****** ****** ***** ** *** labor ****.

Money **** **** ********

********** ********** ******** *** **** ***** ********** ********* ******* **-******* products ** **** * ******:

  • "******* **** **** ******** *** ********, *** **** *****."
  • "***** ** *** * ******** ***** ** ****** * ******."
  • "**** *** ******** **********'* ******* *** ***** *** *** ******* on ******* *** *** ********** **** **** ** ***** ****"
  • "** **** *** ******** ******* ** *******. ***** ******* *** subject ** *********** ***** ** ********** ************* ***** *** ******* margins *** ********* **** *** ***."
  • "**** **** **** ******* **** ** ** ******** ****** ** materials ***** **** *** ***** ** *** ********. *** ******* are ***** ** **** ****, ** ******* ***** **** ****** screws **** ************* ** *** ****** ******* *** ** **** with ******* *******. *** ***** **** ** ****** ** **** compensate *** *** ******* ***** *******"
  • "** **** **** ***** *** ********* **** ****** ** **** cases. ******-**** ***** *** ** *********** *** ** ** * business - *** *** ***** **** **** * ***** * day ******* ** ****** ****, ***** ****** *** **** ****** wants ** *** ***."

Higher ***** ******

******* ***** **** ******** ** ** ******* ** **** ***********, the **** ******** ***** ****** ** ******* **** *** ***** who **** ** *** ******** ********** *** ** ****** **** higher ***** ******:

  • "*** ****** ** ***** ***** ** **** ******"
  • "** ****** ****** ** ****** *** ****** ** ******* *** equipment (**** ******* *****)"
  • "*** ****** **** *** *********** **** ** ****** **** *** hourly **** ** ****** *** *********."
  • "*** ***** **** ***** **** ** ** **** ** ** make **** ** *** ******** *** ****** **** *** **** of *********."
  • "****** ***** ** ****** ** **** *** ******** ***** ** substantially ****** **** *** ******** *****."
  • "***** ** * **** * ********** ****** **** * **** turn *** ***."
  • "*** ******** **** **** ** **** **** *** ******** ****** themselves, ***** ***** **** *** ** *** *****, ** *** us ** **** **** **."
  • "** ***** **** ** ** ** * **** ****** ***** rate **** ** ** **** ******* *** ***** ** ****."
  • "*** **** ** ****** * ******* ******* **** ***'* ********* that *** ** ********** *** * ******* **** *** ** support * *********, *********, ********, ****., ***."
  • "** ***** *** **** ********* ***** ** ********** *** **** I ***** ** **, *** **** ** * *** ******* the ***** ** * ****, ****, ****** ******."

Related: ************ *******

** ******* ***** ******** ********** *** ********** ** ******* *********** can ******* **** ********* *************. ******** *******, ******** *** ********* ******* ******, ***** ** * ***** ************ ******* ********** ******* *** the ****** ** ****** * ************ ******* ** ********** ** achieve.

No ********

**** *** ***** ******* ** **** ** ****** ***** ******, the **** **** ********** ***** *** **** ** ******** ***** be ********, ****** **** ***** ** ****** **** *** ********** is ******* ********:

  • "** ***** *** ******** *** ***** ******** ******* *** ** responsible *** ****** ** *********."
  • "** ***** **** ********* ******* ******** ** ****'* ** ******* service **** ** ********"
  • "*** ********* ***** **** ** **** ******** ** **** **** due ** ***'*, ******** ******, ******* *********. ***** **** * release ** ******, ********, *********, ***."
  • "**** ***** ** ** ******** ** ******** ****** ** ***** was **** ***** **** *** ******** ************."
  • "**** ***** ********? ** * ****** **** **** *** **** for *** *******, ******** *** ****** ********."
  • "******** *** ************** *** *** ******* ********* ** ********, ***** can ** ******, *** **'* ********* ******."
  • "** **** *** *** ******** **********, ****'** ** ***** *** after ****. ** ********* **** *****, ** ***'* ******* ** without ******* ***** ***** ** *** ********."
  • "* **** ** *** ****, *** ***** **** **** ******* die ** *** ****** *** ******** **** ***** *** ****"

Bad ****

******, **** *********** ********** **** * ******** **** ****** *** this ** ****** ** ** * *** ********:

  • "*** ***** ***** ********** ** **** *********** *********, ****** ******** direct ** ****** ** ***** ******* *****. ******* ** **** lowest ***** **** *********** *** ******** *** ********* *** ***** to **** **** ***** ***** ******. **** **** * ***** trunkslammer *** **** *************."
  • "** *** ******** ** **** ***** ***** ****** * *** dollars **** **** ******** ***'* *** *** ******* ***** **** we ***** ** *** *****. **** ***** ** * *** flag ** ** ***** ******* *******."
  • "** ******* ** ********* ** ******** **** ***, **** ****** a ****** **** ****** **** **** *** *** ******* ***** either."
  • "**** ******, ** ******* ***** ** **** ***** ** ****** the ******** **********, **** ***'* **** ** *** *** ***** of * ******* ************ ******."

Bad *******

*******, **** *********** ***** **** *** ******** ** **** ******** are *********** *** **** *****:

  • "*** *** ** ******* **** *) ********* ** ***** **** is *** **** ************** ** *) ******* **** ********** ** the ******** **** ** ** *** **** ***** ** **** with."
  • "** ********* *** ***** ********* ********* ******* ********* *** * product ** ***'* **** *** ********** ********* **** ** ******, and ***** *** ******* *****/********** **** ***** **** ******** **** they're *****"
  • "**** ****** ** ***** **** ********* ********* ********** ********* ********** - ********** ** **** ***** *** *** **** ** **** with **, *** *** ********* **** ******** ** *** ************ that **** **."
  • "**** ******* ******** ******* *** ********, *** ********** (**) *** the ******** ********. ** *** ******** ** * *** ****** who ** *********** *** ******* *** ****** ******* ***** ********, the ***** ** ******/******** ** *** *** **** *** *** extra ***** ********. ** ********* **** *** ********'* ********* *** headaches *** ****."
  • "* ***** ***** *** *** *** * ***** ** *********** for ********** ** ** * ******* ***** **** *** ************ or *** ******** *** ** ***** ** ******** *** **** and ***********."

Future ******

* *** ***** **** **** ***** ******** ** ** *** if **** ***** **** ** ******, **** ********** ******** ** the ******:

  • "*** ***** ************* *** *******, *********** *** ******* ********** ** well?"
  • "** *** * *** ************ **** ***** **** ** **** opportunities"

Last ****** / ****

* ****** *** **** ****, ***** **** ** *** **** labor **** *****, **** **** ***** ** ** ****** **** have ***** ***** ******* ****, ******:

  • "***** ** **** ******* ****** *** **** ******."
  • "*****, *** **** ** ** **'** **** ** ******** *** needed *** **** ** **** ****. *********, ***** **** ***'* any ***** ** **."
  • "** ** ***** *** ******* *** **** ******* *** *** installations ****** *** ************."
  • "***** *** ********* ** ****. ***** **** *** **** ** work ****."
  • "********* **'* **** *** ***** ** **** ****"

No *********

**** * *** *********** **** *********** *** ************ ********** ** selling ***** ****, *******:

  • "**** **** *** ******** ******** ******* *** ****** ** ***** to *** ******* *** ***** *** **** **** *** ******** typically *******?"
  • "***'** *** ** ** * ******* ***** ** *** ***'* sell *****-**** ****."

Comments (13)

** ** ****** *** *** ******** **** ****. *** ************ of ****** ********* **** ** *** **** ** ** ******** site. *** *** ** *** *********** ****** **** ** ***** with ** ***** *** ***** ****. ********* ** **** *** parts/pieces ******* ******** ** **** ** **** ******* ** *** job **** ***** **** *** ****** ** *** **********. ** course ** **** ******* ********* ***. **** **** ** *** quite *** **** ** ********* *****. **** ** *** *** pulling **** **** **** **** ********* ** ***** *****/******/******** *** the ***** *** ****** ******* ******* **** ******....

*, ******. ** *** **** *** **** ** **** *** charging **** *** **** ** **** ***** ** ********** *** not ******* *** ********?

**** *** *** ***** ******. ** **** *** ****** **** baked **** *** ********* *** ** ******** (****** *** ***** projects/new ************) *** ***** *** ****. "** **** ** ******* tech *** * ***** ******." ** **** *** **** *** that ****** ** **** *** ******** ** **** ****. **** times ** ** ** * *** **** *** ** **** get **** *** * ***** ** **** *** **** ** something **** **** **** *** **** **** *** **** ***. Our ***** **** ***** ** **** ** **** * **** job ***** ******** **** **** * *** **** ** **** 5 ***** ** *** ** ***** ********.

***** *** **** **** ******** ***** ** *** *** *** the ********* ***** **** ******* *** **********, *** ***** ** know **** *** ***** ** *** ********** (*** ******** ** a ********* *****) **** ***'* **** ** **** *** ******.

* ***** **** *******. ** *** *** *** ****. **** you **** * ********* ********* ********** **** * *** ** and *** *** ***** *** ***** ********* **** **** ** can ********* *** **** ** ****/****. ** ********** *** **** turned ** **** *** ****** ** **** ***** ** **** are ******** * *** ** ***** ****** (**** ***'* ****** contract ***** ** ******** *****) **** ***** **** ******* ** labor/equipment/service *****/***.

**** ** ***** ********* ***** ***** **********. * ***** *********** 1 *** **** ***** **** **** ********* ********. *** ******* willing ** ** * ******* ********* ** ******* ******* **** they *** *** *** **** ** *** ******** ** ***** only *************. *** *** *** **** ** **** ******* *** do **** ******** ***** ********** *** ****, ***** ***** ******* opportunity *** * ************ ** *****. ***** ******* ***** ********** between **** **** *** *** ******** ** ***** **** *************.

********* * ****** ** ******* ** **** ** ****** *** be *********** *** **** ** ******* * ******** *** *** that ***** **** *** ******** ******* ** **** ********. * one **** **** *** ***** *** **'** **** * *** lines, ***** * ****** ** ******* *** *** *** *****, has * **** ********* ***** ***** **** ** ******* ************ with * ******* ********* *** ******** *****.

****, * *** ****** ********* **** *** ******** *** * labor ********** ** **** ****. ** *** ** *** ****** hourly **** ** *** ****** ** ***** **** **** *** doing ** ** *** *********. *'* *** ***** ** **. Elmo's ** **, ********.

** * ********** **** *********, *** ***** *********** *** **** 1 ** ***** ******** ** ****** **** ****** ********** ** the ****** ***** ******** **** ********* ***** **** *** ********** (on *** ********, ******* ************, ** ****** **** *** ************) and **** **** *** ********** ** *** ****, ***** ********** rates, ** ****** *** ** *** ***** ********* ** *******, maintain, *** ******* ******* ****** ******** ** ***** ******** / system **********.

** ** **** ***** ***** ****** *** **** ** ***** cost ******** (*** ** ****** **. ********* ***** ***** ** product ******** *******) **** *** ********** *** ***** **** ******** cost **** ** *** *** ****.

** **** ***** ********* ********* **** *** **** * ** doing, **** * ****** *** ***** ******** **** ****** **** for * ******* **** * ***** *** ***** ******** **** not ******** *** ***** ** ****** *** ****** ******** ***** for * *******, *** ******** *** ********** ***** ***** ** ensure **** ******* ** ************ ***********.

** ** ********** * ********* ******** **** **** ** ** colleagues, ** * ***** ****** **** ***** ** ** ***** allow ** ** ****** ******* ****, ********* *****, ***** *******, and ** ***** ** ********** * ****** **** *********** *** stressful ** ****** ** ********.

*******, * ***** ******** ** **** ** **** *** **** to ******* ***** ** ** ********* ** ***** ** ****** the **** *******.

"* ***** ****** **** ***** ** ** ***** ***** ** to ****** ******* ****"

******, ****'* ** *********** *****. ****** *** *******!

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

  • **** ***** ***** *** * *******, ** *** **** ****** is **** **** ********* ** *** ******, *** ****** **** it / *****
  • ***** ***** *** * *******, ** *** **** ****** ** more **** ********* ** *** ******, *** ***** ***** ** pay ****

** *** ****** *******, * ***** **** *********** ******* **** the ***** ***** ** **** ***** *****, ****** ***, *** selling **** ******** *** ***** ** **** *****.

**** ****, * ***** **** ** * ***** ******** **** buying ***** *** ** ********** *** **** ****** ****, **** would ******* ****** **** *** ***** *** ***** ****** *******.

** **** *** ****** ** *** *** ********. ********** **** is ******* *** *** ******* ******** *** *** ********. ** maintenance *** ******* ****** ***** *** ** ******* (***** **** the ******* ******** ***). **** ****** ** *** *** *** parts/pieces *** ******** ********** ********** *********** *** ******* ****** *******.

** ****, **** * ** ******* ** ** ***** ****** be ** *********** ** *** ******** *** *** ********** ** cover *** ***** **** ** ******* *** ******* "******* ******" if **** *** ********* *** *******. **** ************* ***** ****** the **** ******** *** ********* * ** *** ******* ** this *****. ** ***** ***** ***** ** ***** ** *** perceived ****** / ********* ** *** ********* *** **** ** business ********* **** *** * **** ** **** * ******. Really *'* ****** ** ********* ** ***** ** *** ********* value ** *** *** ** ******* ***** *** ***** ********** initial **********

"***** ****** ** ** *********** ** *** ******** *** *** integrator ** ***** *** ***** **** ** ******* *** ******* "related ******" ** **** *** ********* *** *******."

* ***** ****'* **********, *******, ** **** *********** *****, ** often **** *** **** *** **** ***.

****'* ** *******. ******** **** ***** ** *** **** ** night *** **** ****** *** ***** ******* ** ******'* ****. Customer **** ******* ** ****, ****** ********** ** *** / 'optimize' **. ********** **** ****'* *** *** ******* *** **, refuses.

**'* ******** ** **** **** ****, *** ***** ** **** explicit ** ***** ** ******* ***** ***** ** **** / validate ****** **********, ***. *** ***** ***** ** ****** *** often *** ******* ** *******.

*****'* * ******** **** ** **** **********'* ******** ** ***** the ********'* ******** *** ***** *** **** ** ****** ******** and **** ** *******,********* **. ********* ******** *** ************

* ***** ****** ** ** *** ********* ******* ******* ** a ****** ***** ** ***** ** **** *** *** *** user ** *** **********? ** ** ********** * **** ** consider *** ***** ******** *** ********** ** ** *** ********* service *******. **** ******** ** ** ******* *** **** ***** and ********* / ********* ********* * **** ***** **** *** course ** *** ********. ** **** ********** ******* ** ** risk, * **** ** **** **** * ****** ******* ***** to ***** *** ******** *** ********** ******** *** ***** **** a ******. **** ******* ******* ** * ****** **** *****. I **** ******** *** ********* ******* ******** **** ** **** provided ** *&* ******* ******** *** ** *** **** *** cases *** *&* ******* ******* *** **** ********* *** *** end **** **** *** **** ** *** *******.

*** ***** ** ** ***-********* ********* ** ** *** ************** of *******, *** ** **** ** *** ****** ***** ** cost ************ ** **** ******** ****. *** ****** ******* **** a *&* ********* **** ** **** ********* **** ** *** time, ***** ** ****, **** *** *** *** *** *********** for **** **** **** ** *** ****** **** ****** **** to ****** *** ***. ** ** * ********* ***** *********** and ** ******** ** * ******** ****** ****. **** *** time ***** ** ******* * $** *** *** **** **** $0 ********** ****, **** **** ***** **********. ** ***** **** sense *** **** ** **** *** ***** ** **** *** plan ** ***** *** ****** **** *** ******** ******** ** the **** ********* *********.

*** ********** ****** ** * ******* ******** ******** **** ***** and ***********/****** ** *** ******* ** **** ** ***** *** to ******* ***** ******* **** ********* ********* ** ****. ** my **** *********** ** ** *** ****, ***-**** ****** **** in ***** ****** ***** ***** ***** ********** ******* $ ** other ******** ** *** ********* ** ******** ******* *** ********. Locking ** ***** ***** ** ******** ******** **** **** ************ and ******* ** ** ********** ******** ************ ****** ** ******.

******* ****** ** *********** ****, *******, *** ********** ***** ** doing ** * *****-**** ********. **** ************* ******* **** *** bulk ** *** **** ** ** ********* ** ***** ********* work, **** ** ******* **** *** ******* *******, ******* **** by **** ******* *******.

* ****** ***** ** ** *** ********** *********** ***/** ********** cable *********** ** **** **** *** **** *******, *** *** security ********** ***** "***** & ******", ****** ** **** ****, "smarts" ****. *** ********** ******* ***** ******* ********* ******* ******** integrators *** **********/********** ***** ***** **** ******* **** **********/********** ***** firms **** *** **** ** ***** ***** ** *****, ************* applying **** ***** ******* ** *********, ******* ******** ***********, ** noted ** ******** *****, **** ** ********* ****** *** **** of ***** ******.

******* ****** ** ** ********** ** *********** ********** **** ************ work ** ** ****** *** ******** **** *** *** **** limits ***** ********* ** ******* ********* ******* ** ************ ******* incursions. *** *** **** **** ****** *** **************, ** **** may ** ********** ******** **** ******** ***** **** ** ********** would *****.

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