Low Cost, Low-End Competitors Challenge SMB Surveillance Market

By: Brian Karas, Published on Sep 01, 2017

SMB video surveillance systems are a tough market.

From IPVM's new survey results of 135 integrator responses, we have identified the key challenges here.

Cost Is King

SMB customers are extremely price sensitive. There were 4 main challenges related to cost that integrators found when selling SMB systems:

  • Low price products
  • Low-end competitors
  • Low margins
  • Unrealistic customer expectations

Additional detail on these is found below.

*** ***** ************ ******* are * ***** ******.

**** ****'* *** ****** results ** *** ********** responses, ** **** ********** the *** ********** ****.

Cost ** ****

*** ********* *** ********* price *********. ***** **** 4 **** ********** ******* to **** **** *********** found **** ******* *** systems:

  • *** ***** ********
  • ***-*** ***********
  • *** *******
  • *********** ******** ************

********** ****** ** ***** is ***** *****.

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

Low ***** ********

**************, *********** ****** **** race-to-the-bottom ***** ****** **** made ***** ******** **** SMB ********* ***********. ********* find ******* ** ****** (which *** *** ****** be *********, *.*.:****** ***** ** ********* China *******) ** ******, *** expect *********** ** ******* with ***** ******.

  • "****.... **** ****** ******* Sams **** *** ****** and *** *** *** system ** ** **** more."
  • "****. ** *** **** people ******* ******* ****** or **** ****** **** sets ***** *********** *** cost **** ***** **** a ************** ********* ****** would ****."
  • "*********** ******* ************, ************ on *** ***** ****."
  • "******* ***** ******, **** want ** *** ********** on **** ******* *****"
  • "****** *** ******* ** expectations."
  • "* ***** **** *** usually ***** ******* **** so **** *** ****** clients *** **** **** about *** ******** *** advantages."
  • *****. ***** *** ** systems *** ***** ** small/medium ********** ***** **** want *******, *** ****** there ** * ******** instance *** **** *****'* match **** *** ***** tag."
  • "**** ******** *** * system **** **** **** costco ****** *******. ***** price *****"
  • "***** **'* *** ***** price *** **** ***'* care ** **'* ********* or * **** **."
  • "****. ******* ********* *** the ***** **** * big *** ** ** your ****-*** ****."
  • "****, **** *** ****** comparing ******* *** ******** to **** ***** *****."
  • "**** ** ******."
  • "**** ** ********. ***** they *** ******* ** amazon *** ****** *** believe **** ** **** cost ** **** **** surveillance."
  • **** *** ******* **** cheap"

Low-End ***********

***-**** ****, *** ********* simplified **********, **** ** easy *** ***** *******, at ***** **** ** true ******** **********, ** become "***********". **** ***********, with ****** ********, *** typically ****** **** *****, find ** *********** ** compete **** ***** ******* on *** ****.

  • "*********** **** *** ***** china **** ********"
  • "**** ** ********* ** video ************* *** ****** (night, ***, ********, *** ecc), ** **'* **** to *** **** ********** why **** ******** ***** 2 ***** **** * electrician's *****/********* *******."
  • "*** ******** ********, ***** or ** ********* ****** to *** *** ************."
  • "******* ********* ** ***** a **** ********** * lot ** ***** ** our ***** **** ** higher ** **** ** our *******. **********'* **** a *** ** **** end ******** **** ******* security ****** **** ***."
  • "***** ****** ******* *** by **********"
  • "***********. **** ** **** money ** ******* ******* with ** **** *********** and ****** ****"
  • "*** **** *********** **** really ****** **** *** sloppy ************"
  • "*********** **** ***** ******* in *** ******."
  • "***********. ***** *********** ** IT-guy *** ** **. At *****, ****'* **** they *******."

Low ******* ***** ****** **** *** *****

***** *******, **** ***-**** components, ***** *********** ****** room *** ***** ** unforeseen ************* ** *** installation. ****** ** **-***** users, **** **** ******* networks, ** **** ****** cabling ****** ******* *** into ********** *******.

  • "**** ** **** *****. you **** *** ****** fat ** * ***** estimate ** ***** **** challenges. **** **** **** up, ** **** ****/*****."
  • "******** ****** ** ******* have * ******* ****** on *** ******* ** there ********* ****'* * lot ** ***** ***** into ***** ********.
  • *** ***** ********* ********"
  • "*** ******** - **** want ** *** *** video ** ****** ******* and ** ****. ***** network ** "********" *** no *** ****** ***** ownership."
  • "*********, ** **** ** provide *** ******* ************** to ******* ** *** they ***'* **** * IT *****, ** ** end ** ****** ** configure ***** ******* *** IP ******."
  • "****´** ***** ****** ********, so *** ***** ******* to *** ************ ******* could ** * *******. This ************ **** ** 1/2 *** ** ** least * *** ** more."

Uneducated / *********** *********

********* ********* ***** ****, which ********** ********* ***** costs. *** ****** **** this ** **** ** a *******, *** ** low-cost/low-margin **** **** *** make *** **********'* ******* business **** **********.

  • "******* *** *** **** to ********** **** ** get ** ** * level **** ******, **** cost *****."
  • "*** ******* ******* *** unrealistic ************ ** *** customers. **** ****** "*** type" ** ***** **********."
  • "**** ****** **** ****** features, *** **** ****** pricing; **-******. ******* **** the ** '*******' *** has **** ******* ******** and **** * ****** of ****** ** ***** peoples ********."
  • "******** *** ********'* ************ of *** ******'* *******. You ***'* *** *** at ***** ** *** darkest ****** ** **** property **** * $*** mini ****."
  • "****** ********** ** **** and ****** ***********. **** SMB *** ******* *** a ****** ***** $*,***, which ** *** **********. And **** ****** ** like ******** *** ************."

Cyber ********, *********** *** *********

**** ** *** ********* mentioned ***** ******** ** a ******** ****** ** these *******. ** ****, factors **** **********, ***-***** performance, ** ******** ****** basic ******* ** ****** and **** **** ***** were *** ****** ** key ** ***** *********.

Driven ** ************ ***** ****

*** *** ****** *** been ****** **** *** past * ***** ** significant ************ ***** ****. For *******, **** ** 2013,** ********:

** **** $*** ****** for (*) **** ** IP ** ******* **** a * ** *** with * ***** ** PoE ******, ** ** anabsurdly ***********. [emphasis added]

***, ** ****, **** with ***** *** ******* and ***** *** ********** are ********* *** **%+ less (*.*., $*** (*) 1080p ****** ****).

**********, *** *** ****** will ******** **** ***** as **** ** ********* are ******* ** **** for ***** ******. *******, IPVM ** ****** ********** difficulties *** ********* (**** Chinese ****** *** *** their ****) ** ******* this **** *** ********** probability ** ******* ** exit *** ******, ***** could ******* **** *****.

Comments (7)

Undisclosed Integrator #1

09/01/17 01:13pm

*** ******* **** ** **** ***** ** **** ***** ** have **** *** ** *** *** *** ****** *** ******* years *** (************).

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

"**** ****** "*** ****" ** ***** **********."

"**** ****** **** ****** ********, *** **** ****** *******; **-******"

.... **** **** *** **** *** *** **** ***....?

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

**** *** ** **** **** ***** *** **** * **** business ******* ***** * ***** ******* ** ** **** **** SMB ** *** **************. ** **** ****, ** **** ************, ** **** ******* for ***** ******* ** *** *** **, *** **** ** it ****** ** **** ********* **** ** **.

John Honovich

IPVM | In reply to Undisclosed Integrator #1 | 09/01/17 01:32pm

*** ** *** *** *** ****** *** ******* ***** *** (subjectively).

***, ********* ************ **. ****'* *** ** ** ******* *** run ********** ** ****** **** *** ****** ****** ******* (** not) ********** **********.

Undisclosed Integrator #1

In reply to John Honovich | 09/01/17 01:37pm

***, *** ***'* *** ** *****. * ****'* ****** ** say *** ****** *** ** ***. **** *** **** *** both ********* *** ******, *** ********* ********* *** ******, ** what *** ****** *** ********* ***. * **** *** *******, and *** **** ******* **** **** ** * *** ******* on ** ************. :)

Thumbnail brk1

Brian Karas

IPVM | 09/01/17 02:18pm

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

Cyber ********, *********** *** *********

**** ** *** ********* ********* ***** ******** ** * ******** factor ** ***** *******. ** ****, ******* **** **********, ***-***** performance, ** ******** ****** ***** ******* ** ****** *** **** back ***** **** *** ****** ** *** ** ***** *********.

Undisclosed Integrator #2

09/01/17 03:52pm

*** ** *** ********* * **** **** **** ********* **** challenged ** *** ******* ** *** ****** ********* ** ***** Security *** " * ***'* **** ** *** ******* ********** want ** *** ***** ******** ** *******!"

* **** ** ****** ** **** *** ** ***** **** their ** ******* ** **** **** ** ** **** ***** Surveillance *******. * ***** *** ******** *** * ***** ******** to ***** ** ******* *** ********* ** *** ******** ** a ****** **** ********* ***** ******** *** ****** **** **** of ********* ******* ********** ******** ****** :

******-******-*********-*************** * ************* ***** ********** ** *** ********** , * wonder ** *** ******* **** **** *** *******?

Undisclosed Integrator #1

In reply to Undisclosed Integrator #2 | 09/01/17 05:44pm

* ***** *** ******** *** * ***** ******** ** ***** to ******* *** ********* ** *** ******** ** * ****** that ********* ***** ********

**** ** *** ********. **** ****.

Thumbnail ca flag

Daniel Tyrrell

In reply to Undisclosed Integrator #2 | 09/03/17 06:08am

* ***** **'* ** ** *** ********. *** *** **** part, ** ** *** ******** *******, ****** **** ***** ***** security **** *** ** *****, ******* *** ** ****** *** trained ** **** ***** **.

******** * *** ** **** ****** ******** ** **** ********, there *** ***** **** ** ** ******** ** ***** ********. I **** **** **** **** ***** *** ***** ***** ** the ***** *'** ****** **, *** *** **** ******** **** the ********** **** ******* ****. **** **** ****** **** ***** you **** ****** ** **********, ***/******, ****** *****.

* ***** *** ******** ** * ***** **** ** *** to **** ******** **** ** *** **********, **** *** **** standards, ********, *******, **** ***** ******* **** ******.

*** * ** *** ***** **** **** **** ******, ***** as **** ** ****** ***** *** ********, **** ** *** caring ***** ***** ******** *** ********* *** ****, **** **** with ****. * ***** ** **** ** ******* *****, *** after * *** ****** *** *********, ** **** *** ******** they *** **** ******* **, ** *** ******* *** ******** with *** *** ********* ** * **** ******** ******* *** and **** ***** ** *** ******* *** *** ****** ******, you **** ******* **** **** ***** ****** *** **** *** to ** * *******-**-*** ******** **** * *** ********* *** remember, *** *** *******.

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