Product vs Labor Sales Breakdown

By Brian Rhodes, Published Jan 07, 2014, 12:00am EST (Info+)

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.

Key *******

*** **** ****** ******* ********* *** costs ***** *******:

  • ******* **** *******: ******* ******** ********* ********** ****** ***** percentages. ***** ******* ********* ** *********, it ***** ******** **** *************** *** configuration ***** ** *******.
  • ******* *************: ******* ********* ***** **** ******* integrations *** *********** *******, ********, ** analytics *** **************** ******* ** ***** compared ** ****** ************ ******** 
  • ***** ***** ******: *** ****** ****** **** ** ***** that *** ********* ******* ***** *** labor ******* ** ***. ****** *** responses ********* *** ***** *********** ****** between ********.

Color **********

**** *** **** ******** **** *** collected *********:

  • "*/* *********, */* *****"
  • "******* ** - ** *****/***** *** it ******* ***** ***"
  • "********* **% *******, **% *****."
  • "*'* *** *** ******* *** ** somewhere **** **/**, ******** **** * slight **** ** *********"
  • "****** *** ******* ********* ******** *** shift *** **** ** **% *********, 25% *****"
  • "****** ******** *** ***** **-**, *** complex ******** *********** *** ** ** 80% ***** ******."
  • "** **** **** ** *** ***** 4-8 ****** ************* ****** *** ** as **** ** **-**% ** ***** cost/quality ******** ** ******** ******** ** be ***********."
  • "**/** *******/***** ******* **** ***** ******** labor ****: ******** *******, ******* ** poles, **** ** *********, ********* ****** Long ***** ****, ************ ****** ******** Fiber *********/******* ******* ****** ** ********,*********, *******,"
  • "*** ******** ************** ******* (****, *******, airports, ** ***** ********** ********) ** ****** on ******* ** ******* *****. ** general ** ** **% ******** *** 50%> *** *****."
  • "*** ***** *** ******** *********** *** vary ******* ********* **** *** ************ environment. ****** **** * ***** **** job **** **** ****** *** ******* of *****. ***** ** ****** **** pick ***, **** ** ****** ******** and **** *** *** ******* *** labor ** *******/********* ** ********** **********."
  • "**** **** ***** ***** ** * simple ************ ** *** *******, * hospital, *** **** ** ********* ******* of ***** ***** ********* ********** ******** processes, ***** ***** ****, ***."
  • "**** ***** ****** ***-* *** ******* 5MP ******* ** ***** ** **** * **** higher ******** **** **** **** ******* Cat-5e *** ****** *** *******."
  • "** **** ****** ** *** ***`* size, ** ****** **** *.* **** 100 ******* + *******+***, ***, ***** could ** ****** **% ** **% of *****, ******* ** ******* *** technically *********** ********* (*.* **** **** tuning) that ****** ***** ** **% ** more"
  • "*** **** ****** **** ****** ** to **** ** *** **** ** project *** *** **** ************ ******* installation ** ******."
  • "** ** *** ***** **** **** reduce ***** ****."
  • "** ***** *** **** ***'* ** ***** expensive ***** **** **** ******** ********"
  • "****** ****** ********* ** **** ** asked *** ** ** *******. ********** a ****** ** * **** ** simple. *********** ******* *******, ******* ********, enterprise ******** *** **** ******** *********** takes ****."

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

**** ********* **** *** ********** *** profitable **** ******* **.  ** ** noted ** *********** ********** ****** ***********, *** ****** **** ** ***** is ****** **** ******* ******** ** the ****** ****** ******** ** *** actual ******* ****.  

** *******, ***** ** * ******* piece ** *** ****** *******, *** it ********* **** ************ ******. *******, labor ** ***** ******* **** ******* sales ** ***** ********* ******* ****** full-time ********* ** ******** ************** ***** products *** ** **-**** ** ******, without ********* ****.

*** **** ********** ** ******* ******* going ** ******** *** *** ************ ** *********** *** **** ****** ***** * serious ******* *** ***********. ***** ******** still ***** ** * *** ** the '*** ****', ***** ************ ** profits *** ****** ************, ******* *********** to ** *** **** ******* ** making ******* *********.

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

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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