Online Video Surveillance Store For Sale

By: John Honovich, Published on Feb 04, 2015

Want to own a 5+ year old online video surveillance store?

The owner of one contacted us, letting us know it was for sale. Thinking that members might find their business details interesting and perhaps someone might want to buy, we are sharing the details inside.

**** ** *** * 5+ **** *** ****** video ************ *****?

*** ***** ** *** contacted **, ******* ** know ** *** *** sale. ******** **** ******* ***** find ***** ******** ******* interesting *** ******* ******* might **** ** ***, we *** ******* *** details ******.

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

************

*** ******* / ***** is************.****** **** ****** **********, remote ********** *** ********* applications *** **** *********** in ******** *** ***** applications. **** ****** ********, Axis, *******, ****, **********, etc.

Financial / *********** *****

*** ******* ****** $***,*** in **** *******, **** from $***,*** ** ****. Gross ******* *** ******** to ** ** *** 25-30% *****.

~*,*** ****** ** *** site * ***** *** estimated, ****** *** **** search. *** ******* **** has * **** **** number(***) ***-****

** *** **** * years, **** ******** ~*** total ******** *** ** average ***** ***** ** ~$8,000.

*** ******* *** ** full **** ***** *** has * *** ****** working **** ****, ** needed. *** **** ** run ** ********* **** the*********** ******

Sale ***** - $***,***

*** ***** ** ******* $***,*** to **** *** ********. This ***** ** **** and ***** ** **** / ***********.

** **********, ******* **** Sandine [**** ** ****** available], ****@************.***

********

*** ***** ** *** that ****. ** *** other ****, *** *** not ******* * ***. Search ******* ** ****** minimal, ******** **** ** small *** *****'* *** much ** * *****. There's ********* **** ******** in ****** **** / effort ** ******* ******* and ***** ** *** potential ** ******* *********** / **** ********* **** the ******** ********* ** visitors.

** **********, ***** **** the ******* ********* *** not ******** **** **** the ******** ********, ***** is ********* ** ******* the **** / *********.

*******

**** **** ** ** due ********** ** *** consider ****** **** ** any ********, ********** ** verfiy ********* *** *********** claims. ** *** **** passing **** ***** *** have*********** ******** ** **** deal.

Comments (14)

And are they officially sanctioned distributors for these big name brands they sell?

Yes, that's what they said. Obviously, the VideoIQ reference is no longer valid, since the acquisition. Again, verify if interested with copies of current dealer agreements.

What would the Shark Tank guys do? "Hi; my name is Jeff and I am seeking $100k for a 100% stake in my high tech business."

And then Mark Cuban would roll his eyes and turn away.

"Year over year, revenue is down 50%"

.... and for that reason, I am out.

This is more of a fixer upper.

Not expecting you to necessarily know John, but wondering out loud

Do they own inventory, or is everything pass-thru?

Sample product:

Their response: "Not much inventory or demo gear worth talking about or including."

The reason the owner wants to bail is probably because it has become increasingly difficult, if not impossilble, for small online resellers of security products to compete with the major online resellers who have enormous purchasing power and have the scale and efficiency to operate on narrow margins. There are certainly not 25-30% gross margins available to this type of operation. I take onboard that this company may provide specialized knowledge that is not available from the large online resellers but the market is very limited for those who are prepared to pay a big premium for this.

Good points. I certainly can see the difficulty.

Btw, the gross margins are possible so long as they are willing to trade higher margins for (potentially much) lower total revenue. But the metapoint remains, if one wants more market share / revenue, prices will have to be cut, impacting margins.

There are easily hundreds of these small online surveillance stores. I wonder how many of them are in a similar shape / situation as this one.

I reckon 10-15% margins are more realistic if they are buing well. But with no employees, operating costs are next to nothing net of owners compensation. With sales averaging less than $1000 a day there is not much time/work involved so this can be a nice side gig for someone to make a little extra cash...but impossible to grow. It is the small online resellers that have 3+ employees that have the real problem.

Margins are in the 25-30% range due to the nature of our business which is about 50% custom build complete systems, which can include solar electric power, cellular or wireless communications, motion sensors, audio, etc.

Margins are in the 25-30% range...

Have you considered pushing Pelco? ;)

In any business there is margin where there is mystery.

For security parts, getting anything over 10% right now would be tough. I own a Ecommerce company, and we transitioned away from alot of these items as its a commodity now. We stick with a few brands that fit our projects that we build, thats about it

I know small stores that mark the products 2-3% above cost since they have little overhead. Online sales is tricky to run, and unless you really know the products, and are experts at Google PPC and SEO then its almost impossible to make any decent amount of sales. In order to be sustainable you have to be in the $1 million to 1.5 million range for 1-3 FTE. For additional employees you have to hit $750k in sales per FTE to expand.

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

Verkada Paying $100 For Referrals Just To Demo on Jan 22, 2020
Some companies pay for referrals when the referral becomes a customer. Verkada is taking it to the next level - paying $100 referrals fees simply...
Vivint Valuation Falls $1.5 Billion on Dec 19, 2019
Residential market struggles continue. Now, Vivint's valuation has fallen $1.5 billion in its impending merger. Inside this note, we examine...
"Good Market, Bad Business Models" - Residential Security on Dec 11, 2019
Industry banker John Mack, at his company's annual event, took aim squarely at the problems in the residential security...
Resideo CEO To Step Down on Dec 03, 2019
Resideo's CEO, Mike Nefkins, is stepping down, just 18 months after being brought in to lead the now plagued spin-out. Inside this note, we...
"Stress in the Residential Market" - Major Lender Exits on Nov 06, 2019
The residential security / 'alarm' market is getting worse, at least for traditional players. Now, one of the biggest lenders in the industry has...
Anyvision Aims For 2022 Revenue of $1 Billion on Jul 17, 2019
Only 3 video surveillance manufacturers do a billion dollars or more in annual revenue - Hikvision, Dahua, and Axis. Now, Anyvision plans to join...
OpenALPR Doubles Prices on Jun 06, 2019
There is no 'race to the bottom' in cloud / AI video surveillance. In May, Verkada increased their prices. Now, OpenALPR is doing the same with a...
Closed Cloud Cameras Trashed on May 13, 2019
When you buy a camera, do you own it? Not anymore. In the world of closed cloud cameras, you may think you are buying a camera but all you are...
Verkada Gets Half Billion Dollar Valuation on Apr 26, 2019
Last week, when we profiled Verkada (The Fastest Growing Video Surveillance Sales Organization Ever - Verkada), we predicted they would raise $40...
The Fastest Growing Video Surveillance Sales Organization Ever - Verkada on Apr 17, 2019
Verkada has the fastest growing video surveillance sales organization ever. In less than 2 years, they already have more salespeople in the US...

Most Recent Industry Reports

IPVM's 12th Anniversary - Thank You! on Apr 07, 2020
IPVM is proud to celebrate it's 12 anniversary expanding our commitment to providing the industry independent and objective information on video...
Mobotix Thermal Body Temperature Detection Examined on Apr 07, 2020
Mobotix has jumped into the Coronavirus temperature detection market, but how do they compare to thermal incumbents like FLIR or ICI who have been...
Verkada Coronavirus Response: Free Temp Systems For Government and Health Care on Apr 07, 2020
Verkada has built a reputation on giving away things for free - free Yeti Tumblers, free trial cameras and now free temporary systems for...
Hikvision USA Refuses, Dahua USA Drives Forward With "Coronavirus Cameras" on Apr 07, 2020
Both have been federally banned, both sanctioned for human rights abuses but only one - Dahua - is taking aim at the booming "coronavirus cameras"...
China Surveillance Vulnerabilities Being Used To Attack China, Says China on Apr 07, 2020
While China video surveillance vulnerabilities have been much debated in the West in the past few years, China is now saying those vulnerabilities...
USA ICI Elevated Skin Temperature Detectors Examined on Apr 06, 2020
Infrared Cameras, Inc. (ICI) is aiming to help slow the spread of COVID-19 with "pinpoint accurate skin temperature measurement" using their...
Trade Groups Request NDAA Blacklist Delay Citing Coronavirus on Apr 06, 2020
Two trade groups representing government contractors have asked Congress to delay implementation of the NDAA's 'blacklist' clause from this August...
Coronavirus Hits Manufacturers, Standing Now, Worse To Come on Apr 06, 2020
Coronavirus is hitting security manufacturers, though overall modestly for now, with worse expected to come, new IPVM survey results...
FLIR New Coronavirus Prioritized Temperature Screening Camera Examined on Apr 03, 2020
FLIR has announced a new series of thermal cameras "prioritized for entities working to mitigate the spread of COVID-19 virus", the A400/A700...
ADI Branch Burglary on Apr 03, 2020
A security systems distributor branch is an odd target for burglary but that happened this week at ADI's Memphis location. Vehicle Smash &...