Product vs Labor Sales Breakdown

By: Brian Rhodes, Published on Jan 07, 2014

IPVM survey results reveal that 50% to 75% of the price of a surveillance project goes to product sales, with the remainder for labor. In this note, we share respondent's commentary and explain the key factors impacting this breakdown.

**** ****** ******* ****** that **% ** **% of *** ***** ** a ************ ******* **** to ******* *****, **** the ********* *** *****. In **** ****, ** share **********'* ********** *** explain *** *** ******* ********* this *********.

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

Key *******

*** **** ****** ******* affecting *** ***** ***** include:

  • ******* **** *******: ******* ******** ********* constitute higher ***** ***********. ***** cheaper ********* ** *********, it ***** ******** **** troubleshooting *** ************* ***** to *******.
  • ******* *************: ******* ********* ***** that ******* ************ *** configuring *******, ********, ** analytics *** **************** ******* of ***** ******** ** simple ************ ******** 
  • ***** ***** ******: *** ****** ****** **** it ***** **** *** breakdown ******* ***** *** labor ******* ** ***. Nearly *** ********* ********* the ***** *********** ****** between ********.

Color **********

**** *** **** ******** from *** ********* *********:

  • "*/* *********, */* *****"
  • "******* ** - ** parts/labor *** ** ******* every ***"
  • "********* **% *******, **% labor."
  • "*'* *** *** ******* job ** ********* **** 50/50, ******** **** * slight **** ** *********"
  • "****** *** ******* ********* projects *** ***** *** cost ** **% *********, 25% *****"
  • "****** ******** *** ***** 50-50, *** ******* ******** integration *** ** ** 80% ***** ******."
  • "** **** **** ** the ***** *-* ****** installations ****** *** ** as **** ** **-**% as ***** ****/******* ******** is ******** ******** ** be ***********."
  • "**/** *******/***** ******* **** would ******** ***** ****: External *******, ******* ** poles, **** ** *********, difficult ****** **** ***** runs, ************ ****** ******** Fiber *********/******* ******* ****** to ********,*********, *******,"
  • "*** ******** ************** ******* (port, *******, ********, ** other ********** ********) ** ****** on ******* ** ******* basis. ** ******* ** is **% ******** *** 50%> *** *****."
  • "*** ***** *** ******** allocations *** **** ******* depending **** *** ************ environment. ****** **** * found **** *** **** will ****** *** ******* of *****. ***** ** always **** **** ***, such ** ****** ******** and **** *** *** product *** ***** ** install/configure ** ********** **********."
  • "**** **** ***** ***** is * ****** ************ in *** *******, * hospital, *** **** ** expensive ******* ** ***** rules ********* ********** ******** processes, ***** ***** ****, etc."
  • "**** ***** ****** ***-* and ******* *** ******* ** ***** to **** * **** higher ******** **** **** will ******* ***-** *** budget *** *******."
  • "** **** ****** ** the ***`* ****, ** larger **** *.* **** 100 ******* + *******+***, etc, ***** ***** ** around **% ** **% of *****, ******* ** smaller *** *********** *********** endeavors (*.* **** **** tuning) that ****** ***** ** 50% ** ****"
  • "*** **** ****** **** causes ** ** **** is *** **** ** project *** *** **** construction ******* ************ ** needed."
  • "** ** *** ***** that **** ****** ***** cost."
  • "** ***** *** **** ***'* or ***** ********* ***** that **** ******** ********"
  • "****** ****** ********* ** what ** ***** *** as ** *******. ********** a ****** ** * wall ** ******. *********** virtual *******, ******* ********, enterprise ******** *** **** complete *********** ***** ****."

Revenues, *** *******

**** ********* **** *** illustrate *** ********** **** portion **.  ** ** noted ** *********** ********** ****** ***********, *** ****** **** of ***** ** ****** much ******* ******** ** the ****** ****** ******** to *** ****** ******* cost.  

** *******, ***** ** a ******* ***** ** the ****** *******, *** it ********* **** ************ margin. *******, ***** ** often ******* **** ******* sales ** ***** ********* entails ****** ****-**** ********* or ******** ************** ***** products *** ** **-**** on ******, ******* ********* risk.

*** **** ********** ** overall ******* ***** ** products *** *** ************ ** *********** *** **** ****** shows * ******* ******* for ***********. ***** ******** still ***** ** * lot ** *** '*** line', ***** ************ ** profits *** ****** ************, forcing *********** ** ** far **** ******* ** making ******* *********.

****'* * ****** ***************** ** ********** ********** profitability.

Comments (1)

Interresting results. When I analyzed approx 100 invoices for projects in North America where there was access control + video, on average 10 doors and 6-8 cameras, I found the split to be as follows:

20% Access Control Hardware and Licenses

10% Video Hardware (cameras only)

13% Miscelaneous (contacts, strickes, closers, mounts etc)

57% Installation/project management

Even if the project was larger the percentages would stay in the same range. Now this was back in 2007 so maybe I need to do another audit to see if these percentages have changed since technology has improved and product costs have come down.

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