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.

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