Product vs Labor Sales Breakdown

Author: 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.

**** ****** ******* ****** **** **% ** **% ** *** price ** * ************ ******* **** ** ******* *****, **** the ********* *** *****. ** **** ****, ** ***** **********'* commentary *** ******* *** *** ******* ********* **** *********.

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

Key *******

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

  • ******* **** *******: ******* ******** ********* ********** ****** ***** ***********. ***** ******* ********* is *********, ** ***** ******** **** *************** *** ************* ***** to *******.
  • ******* *************: ******* ********* ***** **** ******* ************ *** *********** *******, software, ** ********* *** **************** ******* ** ***** ******** ** simple ************ ******** 
  • ***** ***** ******: *** ****** ****** **** ** ***** **** *** ********* ******* parts *** ***** ******* ** ***. ****** *** ********* ********* the ***** *********** ****** ******* ********.

Color **********

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

  • "*/* *********, */* *****"
  • "******* ** - ** *****/***** *** ** ******* ***** ***"
  • "********* **% *******, **% *****."
  • "*'* *** *** ******* *** ** ********* **** **/**, ******** with * ****** **** ** *********"
  • "****** *** ******* ********* ******** *** ***** *** **** ** 75% *********, **% *****"
  • "****** ******** *** ***** **-**, *** ******* ******** *********** *** go ** **% ***** ******."
  • "** **** **** ** *** ***** *-* ****** ************* ****** can ** ** **** ** **-**% ** ***** ****/******* ******** is ******** ******** ** ** ***********."
  • "**/** *******/***** ******* **** ***** ******** ***** ****: ******** *******, mounted ** *****, **** ** *********, ********* ****** **** ***** runs, ************ ****** ******** ***** *********/******* ******* ****** ** ********,*********, *******,"
  • "*** ******** ************** ******* (****, *******, ********, ** ***** ********** ********) it ****** ** ******* ** ******* *****. ** ******* ** is **% ******** *** **%> *** *****."
  • "*** ***** *** ******** *********** *** **** ******* ********* **** the ************ ***********. ****** **** * ***** **** *** **** will ****** *** ******* ** *****. ***** ** ****** **** pick ***, **** ** ****** ******** *** **** *** *** product *** ***** ** *******/********* ** ********** **********."
  • "**** **** ***** ***** ** * ****** ************ ** *** example, * ********, *** **** ** ********* ******* ** ***** rules ********* ********** ******** *********, ***** ***** ****, ***."
  • "**** ***** ****** ***-* *** ******* *** ******* ** ***** ** **** a **** ****** ******** **** **** **** ******* ***-** *** budget *** *******."
  • "** **** ****** ** *** ***`* ****, ** ****** **** i.e **** *** ******* + *******+***, ***, ***** ***** ** around **% ** **% ** *****, ******* ** ******* *** technically *********** ********* (*.* **** **** ******) **** ****** ***** ** 50% ** ****"
  • "*** **** ****** **** ****** ** ** **** ** *** type ** ******* *** *** **** ************ ******* ************ ** needed."
  • "** ** *** ***** **** **** ****** ***** ****."
  • "** ***** *** **** ***'* ** ***** ********* ***** **** **** increase ********"
  • "****** ****** ********* ** **** ** ***** *** ** ** outcome. ********** * ****** ** * **** ** ******. *********** virtual *******, ******* ********, ********** ******** *** **** ******** *********** takes ****."

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

**** ********* **** *** ********** *** ********** **** ******* **.  As ** ***** ** *********** ********** ****** ***********, *** ****** **** ** ***** ** ****** **** ******* compared ** *** ****** ****** ******** ** *** ****** ******* cost.  

** *******, ***** ** * ******* ***** ** *** ****** project, *** ** ********* **** ************ ******. *******, ***** ** often ******* **** ******* ***** ** ***** ********* ******* ****** full-time ********* ** ******** ************** ***** ******** *** ** **-**** on ******, ******* ********* ****.

*** **** ********** ** ******* ******* ***** ** ******** *** the ************ ** *********** *** **** ****** ***** * ******* ******* *** ***********. While ******** ***** ***** ** * *** ** *** '*** line', ***** ************ ** ******* *** ****** ************, ******* *********** to ** *** **** ******* ** ****** ******* *********.

****'* * ****** ***************** ** ********** ********** *************.

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.

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

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...
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...
Integrator Laptop Guide on Oct 16, 2018
This 18-page guide provides guidance and statistics about integrator laptop use. 150 integrators explained to IPVM in detail about their laptops,...
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...
Honeywell Hides Selling US Gov Banned Chinese Video Surveillance on Oct 10, 2018
Honeywell hides selling US government banned Chinese video surveillance as their own 'Honeywell' products, deceiving buyers and putting US security...
Security System Health Monitoring Usage Statistics 2018 on Oct 09, 2018
How well and quickly do integrators know if devices are offline or broken? New IPVM statistics show that typically no health monitoring is...
IP Camera Installability Shootout - Avigilon, Axis, Bosch, Dahua, Hanwha, Hikvision, Uniview, Vivotek on Oct 08, 2018
What are the best and worst cameras from an installation standpoint? Which manufacturers make it harder or easier to install their cameras? We...
UTC Merges Lenel and S2, Creates LenelS2 on Oct 03, 2018
UTC has completed the acquisition of S2, launching literally Lenel's2 LenelS2 with UTC declaring that "LenelS2 unites two world-class teams with...
ASIS GSX 2018 Mixed Manufacturer Reviews With Declining Overall Attendance on Oct 02, 2018
ASIS GSX 2018 show drew 9% fewer total registrants, however, it gained 15% more paid registrations, according to ASIS. In this note, we look...
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...

Most Recent Industry Reports

Hanwha Dual Imager Dome Camera Tested (PNM-7000VD) on Oct 18, 2018
Hanwha has introduced their first dual-imager model, the PNM-7000VD, a twin 1080p model featuring independently positionable sensors and a snap-in...
Camera Height / Blind Spot Added to IPVM Camera Calculator on Oct 18, 2018
IPVM has added camera height and blind spot estimation to the Camera Calculator. This is especially helpful for those who need to mount cameras up...
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...
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...
Video Quality / Compression Tutorial on Oct 17, 2018
While CODECs, like H.264, H.265, and MJPEG, get a lot of attention, a camera's 'quality' or compression setting has a big impact on overall...
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...
Integrator Laptop Guide on Oct 16, 2018
This 18-page guide provides guidance and statistics about integrator laptop use. 150 integrators explained to IPVM in detail about their laptops,...
Huawei Admits AI "Bubble" on Oct 16, 2018
A fascinating article from the Chinese government's Global Times: Huawei’s AI ambition to reshape industries. While the Global Times talks about...
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...
Dahua Face Recognition Camera Tested on Oct 15, 2018
Dahua has been one of the industry's most vocal proponents of the value that AI creates: As part of this, Dahua has released a facial...

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