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.

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

Top Manufacturers Gaining and Losing 2019 on Nov 18, 2019
2019 has been an explosive year for video surveillance, with the world's two largest manufacturers, Dahua and Hikvision, being sanctioned for human...
ADT Stock Surges - "Leading The Commercial Space" on Nov 15, 2019
Don't call it comeback... but maybe call it a commercial provider. ADT, whose stock dropped by as much as 2/3rds since IPOing in 2018, has now...
Open vs End-to-End Systems: Integrator Statistics 2019 on Nov 11, 2019
Preference for open systems is on the decline, according to new IPVM statistics. We asked integrators: For video surveillance systems, do you...
Biggest Low Light Problems 2019 on Nov 08, 2019
Over 150 integrators responded to our survey question: "What are the biggest problems you face getting good low-light images?" Inside, we share...
Hikvision USA Fights LTS on Nov 04, 2019
Hikvision's USA subsidiary is fighting with LTS, having recently quietly dropped LTS as an authorized distributor amidst ongoing face-offs between...
IP Camera Mount Shootout - Axis, Bosch, Dahua, Hanwha, Hikvision, Vivotek on Nov 04, 2019
Which manufacturers offer the best or worst mounts? We bought and tested ~50 IP camera mounts and related components from Axis, Bosch, Dahua,...
Axis Cracks Down On Illicit Channel Sales on Nov 01, 2019
Axis has stepped up efforts to crack down on illicit channel sales according to various industry sources, though, Axis denies this. Online sales...
Milestone XProtect 2019 R3 Tested on Oct 30, 2019
Milestone has had problems over the last few years releasing significant new software. Now, in XProtect 2019 R3, Milestone is touting "one search...
Struggling Arcules Changes Chief Revenue Officer on Oct 29, 2019
Canon / Milestone spinout Arcules has struggled, now changing their Chief Revenue Officer, just a year after he came on board. The issue is not...
nFlux AI Startup Profile on Oct 28, 2019
nFlux, an Amazon, Google, and Microsoft funded AI startup told IPVM their mission is to build the most intelligent video analytics platform in the...

Most Recent Industry Reports

The Cowardly, Greedy "Leaders" of Video Surveillance - SIA on Nov 19, 2019
The video surveillance industry suffers from cowardly, greedy 'leaders' who are focused on maximizing easy money while undermining trust with the...
Hikvision Dual Lens Face Recognition Camera Tested on Nov 19, 2019
Hikvision's Dual Lens Facial Recognition camera, claims that it "adopts advanced deep learning algorithm and powerful GPU to realize instant face...
Top Manufacturers Gaining and Losing 2019 on Nov 18, 2019
2019 has been an explosive year for video surveillance, with the world's two largest manufacturers, Dahua and Hikvision, being sanctioned for human...
Hidden Camera Detectors Tested on Nov 18, 2019
Hidden cameras are a growing problem as cameras become smaller, cheaper and easier to access. However, some companies claim to be able to detect...
Wyze Fires Back at JCI - Your Patents Are Invalid, Pay All Of Our Costs on Nov 18, 2019
Goliath JCI targeted startup Wyze this summer alleging the fast-growing consumer startup was violating a slew of JCI's patents. Now, Wyze has...
ADT Stock Surges - "Leading The Commercial Space" on Nov 15, 2019
Don't call it comeback... but maybe call it a commercial provider. ADT, whose stock dropped by as much as 2/3rds since IPOing in 2018, has now...
Gatekeeper Security Company Profile - Detecting Faces Inside Vehicles on Nov 14, 2019
Border security is a common discussion in mainstream US news and politics, as is the use of banned Chinese equipment by US Government agencies....
Hikvision CEO And Vice-Chair Under PRC Government Investigation on Nov 14, 2019
In a surprising and globally covered move, Hikvision CEO Hu Yangzhong and Vice-Chairman Gong Hongjia are being investigated by China's securities...
Camera Field of View (FoV) Guide on Nov 13, 2019
Field of View (FoV) and Angle of View (AoV), are deceptively complex. At their most basic, they simply describe what the camera can "see" and seem...
UK Big Brother Watch: Hikvision Is 'Morally Bankrupt' on Nov 13, 2019
UK civil liberties advocate Big Brother Watch has condemned Hikvision as being 'morally bankrupt' following IPVM exposing Hikvision marketing...