Top Metrics For Ensuring Integrator Profitability - Statistics

By: IPVM Team, Published on Mar 20, 2019

How do integrators ensure the profitability of their projects? As part of our profitability study, 100+ integrators answered the following question:

What is the most important metric(s) your company uses for ensuring profitability? Why?

Inside this report, we examine the top 3 metrics from integrators, we share dozens of comments to show the key themes and importance of each metric.

Key Themes

The following key themes were highlighted in the comments:

  • Tracking labor accurately and keeping installers efficient is the primary concern for most integrators. Related, see IPVM's Surveillance Install Labor Guide.
  • Material cost is a secondary concern and does not impact profitability nearly as much as labor
  • Monitoring individual project's margin is used as a way to track overall business profitability
  • Less than 5% of integrators cited specific operational metrics (e.g. EBITDA, ROCE)

*** ** *********** ****** the ************* ** ***** projects? ** **** ** our ************* *****, ***+ integrators ******** *** ********* question:

**** ** *** **** important ******(*) **** ******* uses *** ******** *************? Why?

****** **** ******, ** examine *** *** * metrics **** ***********, ** share ****** ** ******** to **** *** *** themes *** ********** ** each ******.

Key ******

*** ********* *** ****** were *********** ** *** comments:

  • ******** ***** ********** *** keeping ********** ********* ** the ******* ******* *** most ***********. *******, *** ****'* ************ ******* ***** Guide.
  • ******** **** ** * secondary ******* *** **** not ****** ************* ****** as **** ** *****
  • ********** ********** *******'* ****** is **** ** * way ** ***** ******* business *************
  • **** **** *% ** integrators ***** ******** *********** metrics (*.*. ******, ****)

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

Labor ** ***

*** **** ******** ***** metrics **** ******* ** labor *********** *** **********. Labor ** * ***** percentage ** **** ********, can ** ********* ** track, *** *********** ***** pressure ** *** ******** are ***** ******* ** undersell ***** *****.

****** ***** *******, ********** estimating ***** *** ********* to ****** ***** ****** was ***** ** * way ** ******* ******* sales/bids ** ***** ****** (our **** ************ ******* ***** Guide *** **** *****).

  • "***** **********. *** *** only **** ******."
  • "***** ************, **** **** robbery, ****'* ***** *** money **"
  • "***** **** ** *** compared ** ***** ****** for *** ************* **** we *** ** ******, letting *********** ********** **** budget **** **** *** working ** * **** to ******* **** ****** is ********"
  • "****** *** ****. *** limiting ****** ** ********. There ** * ***** to *** **** ***** we *** **** **** the ***** ** ****, there ****** ** ** limit ** *** **** stuff ** *** *** to ******. "
  • "*****. ******* * *** return ***** *** **** your ******."
  • "****** *** *** *** also ***** ****** ********** on *** ***. ****** per *** **** ** $1500 *** *** *** a **** ** *** techs. ***** ****** ********** on * ******* ** >34%. **** ***** **** there *** ****** ** projects ***** *** *** day ****** ** **** like *** *** *** percentage ** ** **** 20's."
  • "***** ***********. ***** ** by *** *** ******* expense, *** *** **** unprofitable **** **'** **** had **** *** ** labor ******** ** **** project **********, **** ** not ******* ****** ****** orders."
  • "****** ** **** ***** working - ** ** are ****** * *** of ***** *** ******* in **** **** *,*** hours *** ****, ** may *** ** ***** it ** *** *** of *** ***. ** try ** ****** ****** vs **** ***** ******* is *********"
  • "************ **********. **** ** we **** * *** at ** ********* ****** margin *** *** ************ team ***** ******** ** end ** ****** ***** left *** *****."
  • "******* ***** ***** *********** and ********. ******** ******* shouldn't ********* ****, *** anyone ******** **** **** 20% ****** ** ***-******* manufactured ******* ******'* **** the **** *********** ** me"
  • "******* ***** ***** ** go **** ********* *****, we **** *** ******* and **** **** ** put ***** ** *** ground ** **** **** our ********* *** ********** under *******. "
  • "** ******* *** **** taken ** *** **** allowed. *** ****** ********* is *** ******** ****."
  • "********* ** *** **** it ***** ** *******. Accurate **** ******* ** our *** ******** ********. Ensuring ******* *** **********."
  • "***** ****** ** **** to *** ****** ******** operational. (**** ************ **** takes **** **** ******* profits)"
  • "**** **** ****** ********* on ******** - ******** changes/extra ********/****** ** **** time - ********* ******** approval *** ****** ***********, not ***** * *** is ********"
  • "*** **** ********* ****** we ***** ** *** changed **** ****, *** we *** ********* ************* focused ** *** ***** +/- (*** **** ***** over/under *** ********* ***** are *** ******** ****** up **"
  • "****** ** *** ***** per ****: **** ** mount * ***** ***** vs *-*-*, **** ** program * ******, ******, workstation. *** ***** *** task "

******

*********** **** ******** ****** monitoring ***** ******, **** specifically, ******/****** ******* ** individual ******** ** ** indicator ** ******* ******* profitability. ** ***** ********, many ***** **** ****** related ** ********* *** a *** ************* ** addition ** *****, ******** the ******* ***** **** specified *** **** ******* and **** ****** *************:

  • "******* ***** ****** ******* on **** ********* *** labor. ***** **** ***’* enough ** **** * profit."
  • "* ******* ******* ****** Ratios *** ****** ******. For * ******* ****** company **** ** ***** are ***** ***** ****** or ****** ** ******** becomes ********* ** ******** our ******** *** *********. There ***** ******** ***** we **** **** ****** to ******** * **** margin. **** ** *** we ******* ****."
  • "******** ** ****** ****** during *** ***** *******"
  • "** ** *** *** of * ***. **** metric ***** ** *** we ********* ** *** job ** ***** *****. Was ** ****** *********? Were ***** ******* *** the **** *****? *** the **** ******* ********* in *** *****. * low ** ***** ** to *** ******* *** understand **** ** *** wrong."
  • "** **** *** **** monitoring ******** **** ****** all ***** *** ******** associated **** **** ***."
  • "****** ** *** ******** of **** ***. ****** is **% ******* ** >20% *** ****** ****."
  • "******** ***** * ******* GP ** ******** ** each ****. *** ******** has ********** ******** ***** costs, ** ** ** keep *** ** *******, we're **********."
  • "** *** ******* ****** (estimated *** ******) *** company ********. ** **** as ** ******** * reasonable ******** *** *** projects ** **** *** expected ** ** **********, we ** **."
  • "*** ******* ** ****** driven **** ******* ** all ************. ******* ****** is ******* *** ********."
  • "** *** * ****** of *******, *** **** important ** ***** ** gross ****** ** ***** which ** ******* ** not ******** ********* *** ensuring ******** *******"
  • "***** ****** - ****** estimating *** *********** ******* of ******* ******* *** GM ****** ****** ****** - ******* ***** ***’* be ***** *******"
  • "*** ** *** ***** are ******* ** ****** materials+labor *** ********* ** the ********."
  • "** ****** ***’* **** any ****** *** ******** profitability ***** **** ********** our ******. ** *** metric ** ******* * good ****** ** ********."
  • "*** ****** *** *** we **** ** ** can ******* *** **** that **** **** ***** we *** ****** **** (add **** ** *** allowances) *** **** *** work."
  • "** ***** ** *** margins *** **** *******. Trying ** ******** ************* 40% - **% ****** on *** *********** ** labor *** *****."
  • "***** ******. **** ** the ******** ******* ** profit ** ** ******* to *** **** ** easy ** **** ***** we ***** **** * costing *** * **** job ******** **********."

Reported ******** ****** *** *******

**** * *********** ********* with **** ******** ******* for ********* * *******'* performance (******,****, *******):

  • "****** ** ******* ******** (ROCE). **** ******* *** a ***** ******* *** most ****** *** **** comparing *** *******'* ******* ROCE ** **** ****** from ******* ******.** * result ,******** **** **** for **** ** **** trends ** * *******'* ROCE, ** *** ********* that *** ******* ****** is ** ** *** improving *** ******* ** earn *********** **** '*******'"
  • "** ******* ************* ** various ****** *** ***-****** and **** *** ** those ******** ******* *** examined ******* ** “*******” profitabiliy *** **** ** adjust ***** ****** ****** the ****** ** ***** to ******* ******* *************. There ** ** *** single ****** **** ******* profitability ************ ** *** degree **** ** ***** sink *** ****. ** have * ****** ***** metrics ****, ** **** started ** **** *** at ****, ***** ****** overall ************* *** ****, but ** ***** *** that ** *** *******."
  • "******"
  • "****, ***** *** **** numbers"

Comments (1)

***** *******, **** ***** metrics ** ****. 

 

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

Acquisitions - Winner and Losers on Dec 10, 2019
Most major manufacturers have been acquired over the last decade. But which have been good deals or not? In this report, we analyze the...
IP Camera Installability Shootout 2019 - Avigilon, Axis, Bosch, Dahua, Hanwha, Hikvision, Uniview, Vivotek on Dec 09, 2019
What are the best and worst cameras to install? Which manufacturers make it the hardest or easiest to install their cameras? We tested 35 total...
Viisights Raises $10 Million, Behavior Analytics Company Profile on Dec 09, 2019
Viisights, an Israeli AI analytics startup marketing "Behavioral Understanding Systems", announced $10 million Series A funding. We spoke to...
Security Sales Course 2020 - Last Chance Save $50 on Dec 05, 2019
This sales course is customized for the current needs and challenges specific to professionals selling video surveillance and access control...
Ireland National Children's Hospital Chooses Hikvision End-to-End With Facial Recognition on Dec 05, 2019
The world's most expensive hospital project ever, the New Children's Hospital in Ireland, has chosen an all-Hikvision surveillance system including...
Freebie Face-Off: Rise of ~$30 Giveaways Examined on Dec 02, 2019
The freebies are growing. Verkada started this (see The Fastest Growing Video Surveillance Sales Organization Ever - Verkada) and now has given...
Directory of Access Reader Manufacturers on Nov 27, 2019
Credential Readers are one of the most visible and noticeable parts of access systems, but installers often stick with only the brand they always...
Vunetrix Health Monitoring Company Profile on Nov 26, 2019
Vunetrix boasts that they make the integrators the 'HERO' by using Vunetrix's monitoring. We spoke to Vunetrix to better understand their...
Top 2020 Trend - AI Analytics on Nov 22, 2019
170+ Integrators answered: What do you think will be the top industry trend in 2020? Why? For the 4th year in a row, AI/video analytics was...
Glass Doors and Access Control Tutorial on Nov 21, 2019
One of the biggest access challenges are locking and securing glass doors. Unlike wood or steel doors that can be modified to work with...

Most Recent Industry Reports

IP Camera Browser Support: Who's Broken / Who Works on Dec 10, 2019
For many years, IP cameras depended on ActiveX control, whose secure flaws have been known for more than a decade. The good news is that this is...
Acquisitions - Winner and Losers on Dec 10, 2019
Most major manufacturers have been acquired over the last decade. But which have been good deals or not? In this report, we analyze the...
IP Camera Installability Shootout 2019 - Avigilon, Axis, Bosch, Dahua, Hanwha, Hikvision, Uniview, Vivotek on Dec 09, 2019
What are the best and worst cameras to install? Which manufacturers make it the hardest or easiest to install their cameras? We tested 35 total...
Viisights Raises $10 Million, Behavior Analytics Company Profile on Dec 09, 2019
Viisights, an Israeli AI analytics startup marketing "Behavioral Understanding Systems", announced $10 million Series A funding. We spoke to...
Disruptor Wyze Releases Undisruptive Smartlock on Dec 06, 2019
While Wyze has disrupted the consumer IP camera market with ~$20 cameras, its entrance into smart locks is entirely undisruptive. We have...
Bosch Budget 3000i Cameras Tested on Dec 05, 2019
Bosch has long had a hole in its lineup for, as it describes, "competitively-priced cameras". Now, Bosch has released its 3000i series cameras...
Anixter Resisting Takeover From Competitor on Dec 05, 2019
Mega distributor Anixter is going to be acquired but by whom? Initially, Anixter planned to go private, being bought by a private equity firm....
Security Sales Course 2020 - Last Chance Save $50 on Dec 05, 2019
This sales course is customized for the current needs and challenges specific to professionals selling video surveillance and access control...
Ireland National Children's Hospital Chooses Hikvision End-to-End With Facial Recognition on Dec 05, 2019
The world's most expensive hospital project ever, the New Children's Hospital in Ireland, has chosen an all-Hikvision surveillance system including...
AVTech ~$70 IP Cameras Tested Vs Dahua and Hikvision on Dec 04, 2019
Taiwanese manufacturer Avtech is taking direct aim at low cost leaders Dahua and Hikvision with ~$70 starlight and white light illuminator...