Online Video Surveillance Store For Sale

Author: 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.

**** ** *** * *+ **** *** ****** ***** ************ store?

*** ***** ** *** ********* **, ******* ** **** ** was *** ****. ******** **** ******* ***** **** ***** ******** ******* interesting *** ******* ******* ***** **** ** ***, ** *** sharing *** ******* ******.

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

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

*** ******* / ***** **************.****** **** ****** **********, ****** ********** *** ********* ************ *** have *********** ** ******** *** ***** ************. **** ****** ********, Axis, *******, ****, **********, ***.

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

*** ******* ****** $***,*** ** **** *******, **** **** $***,*** in ****. ***** ******* *** ******** ** ** ** *** 25-30% *****.

~*,*** ****** ** *** **** * ***** *** *********, ****** all **** ******. *** ******* **** *** * **** **** number(***) ***-****

** *** **** * *****, **** ******** ~*** ***** ******** and ** ******* ***** ***** ** ~$*,***.

*** ******* *** ** **** **** ***** *** *** * few ****** ******* **** ****, ** ******. *** **** ** run ** ********* **** ************** ******

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

*** ***** ** ******* $***,*** ** **** *** ********. **** ***** be **** *** ***** ** **** / ***********.

** **********, *********** ***********@************.***

********

*** ***** ** *** **** ****. ** *** ***** ****, you *** *** ******* * ***. ****** ******* ** ****** minimal, ******** **** ** ***** *** *****'* *** **** ** a *****. *****'* ********* **** ******** ** ****** **** / effort ** ******* ******* *** ***** ** *** ********* ** getting *********** / **** ********* **** *** ******** ********* ** visitors.

** **********, ***** **** *** ******* ********* *** *** ******** much **** *** ******** ********, ***** ** ********* ** ******* the **** / *********.

*******

**** **** ** ** *** ********** ** *** ******** ****** this ** *** ********, ********** ** ****** ********* *** *********** claims. ** *** **** ******* **** ***** *** *************** ******** ** **** ****.

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 Obviously, the VideoIQ reference is no longer valid, since the acquisition.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

Kogniz Silicon Valley AI Startup Profile on Nov 07, 2018
Kogniz is a Silicon Valley company that aims to bring AI analytics to security and surveillance, centering on their own smart cameras: We spoke...
Resideo IPOs, Then Plunges on Oct 31, 2018
ADI and Honeywell Homes management have been touting their spinout and IPO for months, including appearing on Wall Street as they widely shared on...
Axis Strong US Growth, Flat EMEA - Q3 2018 Financials on Oct 18, 2018
This spring, Axis had its best financials in many years (see Axis Strong Q2 2018 Results). However, over the summer, Axis had many products sold...
Knightscope Winning Investors, Struggling With Growth on Oct 16, 2018
While Knightscope's new financials show the company only winning 11 new customers in the past 12 months, the company continues to win new...
ADI's Financials Revealed + W-Box Growth Priority on Oct 15, 2018
  ADI is one of the most powerful distributors in the security industry but how big are they? How much profit do they make? How much do they sell...
Ascent / MONI Faces Lender Lawsuit and Debt Crisis on Sep 13, 2018
ASCMA, aka Ascent, aka Brinks Home Security, aka MONI, aka Monitronics is being sued by a group of their lenders who allege: As of June 30,...
Ligowave Wireless Profile - Ubiquiti Competitor on Aug 27, 2018
Ubiquiti has become the most common choice for wireless in video surveillance (see Favorite Wireless Manufacturers) but not without controversy and...
Directory of Video Surveillance Startups on Jul 18, 2018
This directory provides a list of video surveillance startups to help you see and research what companies are new or not yet broadly known entity...
FST Fails on Jul 17, 2018
FST was one of the hottest startups of the decade, selected as the best new product at ISC West 2011 and backed with tens of millions in...
Arecont Acquisition By Costar on Jul 11, 2018
Arecont Vision acquisition by Costar Technologies has been approved by the court, concluding the bankruptcy process triggered by Arecont's...

Most Recent Industry Reports

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...
Axis 2N Intercom Tested on Nov 08, 2018
Axis expanded its video intercom business buying Czech-based 2N in 2016. Despite competing against owner Axis' intercoms, 2N recently registered as...
Haven Targets School Security with Lockdown Lineup on Nov 08, 2018
Haven, a US startup founded in 2014 as a residential-focused company, has now raised funding and is offering a lineup of commercial grade locks for...
Ubiquiti Protect Video Surveillance Profile on Nov 07, 2018
Ubiquiti has now been in the video surveillance market for 7 years (see our first coverage back in 2011). In that time, the company's revenue has...
Kogniz Silicon Valley AI Startup Profile on Nov 07, 2018
Kogniz is a Silicon Valley company that aims to bring AI analytics to security and surveillance, centering on their own smart cameras: We spoke...
Dahua Dual Imager Dome Camera Tested (HDBW4231FN-E2-M) on Nov 07, 2018
Dahua has introduced a dual-imager dome model, the HDBW4231FN-E2-M, with two independently positionable sensors including integrated IR, not found...
Directory Of Video Doorbells on Nov 06, 2018
Video doorbells are one of the fastest growing categories in video surveillance, especially among residences. The optimal placement of these...
Avigilon Opens Up Analytics And Cameras on Nov 06, 2018
Avigilon is opening up. The company historically famous for advocating its own end-to-end solutions and making it harder for 3rd parties to...
Favorite Video Surveillance Hard Drive Manufacturer 2018 on Nov 06, 2018
Who is the favorite hard drive for video surveillance use? 150+ integrators answered: What is your preferred brand/model of hard drive for...

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