Low Cost, Low-End Competitors Challenge SMB Surveillance Market

Author: 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.

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

**** ****'* *** ****** ******* ** *** ********** *********, ** have ********** *** *** ********** ****.

Cost ** ****

*** ********* *** ********* ***** *********. ***** **** * **** challenges ******* ** **** **** *********** ***** **** ******* *** systems:

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

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

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

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

**************, *********** ****** **** ****-**-***-****** ***** ****** **** **** ***** business **** *** ********* ***********. ********* **** ******* ** ****** (which *** *** ****** ** *********, *.*.:****** ***** ** ********* ***** *******) ** ******, *** ****** *********** ** ******* **** ***** prices.

  • "****.... **** ****** ******* **** **** *** ****** *** *** why *** ****** ** ** **** ****."
  • "****. ** *** **** ****** ******* ******* ****** ** **** Costco **** **** ***** *********** *** **** **** ***** **** a ************** ********* ****** ***** ****."
  • "*********** ******* ************, ************ ** *** ***** ****."
  • "******* ***** ******, **** **** ** *** ********** ** **** limited *****"
  • "****** *** ******* ** ************."
  • "* ***** **** *** ******* ***** ******* **** ** **** our ****** ******* *** **** **** ***** *** ******** *** advantages."
  • *****. ***** *** ** ******* *** ***** ** *****/****** ********** where **** **** *******, *** ****** ***** ** * ******** instance *** **** *****'* ***** **** *** ***** ***."
  • "**** ******** *** * ****** **** **** **** ****** ****** pricing. ***** ***** *****"
  • "***** **'* *** ***** ***** *** **** ***'* **** ** it's ********* ** * **** **."
  • "****. ******* ********* *** *** ***** **** * *** *** do ** **** ****-*** ****."
  • "****, **** *** ****** ********* ******* *** ******** ** **** every *****."
  • "**** ** ******."
  • "**** ** ********. ***** **** *** ******* ** ****** *** costco *** ******* **** ** **** **** ** **** **** surveillance."
  • **** *** ******* **** *****"

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

***-**** ****, *** ********* ********** **********, **** ** **** *** small *******, ** ***** **** ** **** ******** **********, ** become "***********". **** ***********, **** ****** ********, *** ********* ****** paid *****, **** ** *********** ** ******* **** ***** ******* on *** ****.

  • "*********** **** *** ***** ***** **** ********"
  • "**** ** ********* ** ***** ************* *** ****** (*****, ***, lighting, *** ***), ** **'* **** ** *** **** ********** why **** ******** ***** * ***** **** * ***********'* *****/********* 2series."
  • "*** ******** ********, ***** ** ** ********* ****** ** *** the ************."
  • "******* ********* ** ***** * **** ********** * *** ** times ** *** ***** **** ** ****** ** **** ** our *******. **********'* **** * *** ** **** *** ******** your ******* ******** ****** **** ***."
  • "***** ****** ******* *** ** **********"
  • "***********. **** ** **** ***** ** ******* ******* **** ** many *********** *** ****** ****"
  • "*** **** *********** **** ****** ****** **** *** ****** ************"
  • "*********** **** ***** ******* ** *** ******."
  • "***********. ***** *********** ** **-*** *** ** **. ** *****, that's **** **** *******."

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

***** *******, **** ***-**** **********, ***** *********** ****** **** *** error ** ********** ************* ** *** ************. ****** ** **-***** users, **** **** ******* ********, ** **** ****** ******* ****** quickly *** **** ********** *******.

  • "**** ** **** *****. *** **** *** ****** *** ** a ***** ******** ** ***** **** **********. **** **** **** up, ** **** ****/*****."
  • "******** ****** ** ******* **** * ******* ****** ** *** project ** ***** ********* ****'* * *** ** ***** ***** into ***** ********.
  • *** ***** ********* ********"
  • "*** ******** - **** **** ** *** *** ***** ** mobile ******* *** ** ****. ***** ******* ** "********" *** no *** ****** ***** *********."
  • "*********, ** **** ** ******* *** ******* ************** ** ******* IP *** **** ***'* **** * ** *****, ** ** end ** ****** ** ********* ***** ******* *** ** ******."
  • "****´** ***** ****** ********, ** *** ***** ******* ** *** installation ******* ***** ** * *******. **** ************ **** ** 1/2 *** ** ** ***** * *** ** ****."

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

********* ********* ***** ****, ***** ********** ********* ***** *****. *** larger **** **** ** **** ** * *******, *** ** low-cost/low-margin **** **** *** **** *** **********'* ******* ******** **** profitable.

  • "******* *** *** **** ** ********** **** ** *** ** to * ***** **** ******, **** **** *****."
  • "*** ******* ******* *** *********** ************ ** *** *********. **** expect "*** ****" ** ***** **********."
  • "**** ****** **** ****** ********, *** **** ****** *******; **-******. Arguing **** *** ** '*******' *** *** **** ******* ******** and **** * ****** ** ****** ** ***** ******* ********."
  • "******** *** ********'* ************ ** *** ******'* *******. *** ***'* get *** ** ***** ** *** ******* ****** ** **** property **** * $*** **** ****."
  • "****** ********** ** **** *** ****** ***********. **** *** *** looking *** * ****** ***** $*,***, ***** ** *** **********. And **** ****** ** **** ******** *** ************."

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

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

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

*** *** ****** *** **** ****** **** *** **** * years ** *********** ************ ***** ****. *** *******, **** ** 2013,** ********:

** **** $*** ****** *** (*) **** ** ** ** cameras **** * * ** *** **** * ***** ** PoE ******, ** ** **absurdly ***********. [emphasis added]

***, ** ****, **** **** ***** *** ******* *** ***** the ********** *** ********* *** **%+ **** (*.*., $*** (*) 1080p ****** ****).

**********, *** *** ****** **** ******** **** ***** ** **** as ********* *** ******* ** **** *** ***** ******. *******, IPVM ** ****** ********** ************ *** ********* (**** ******* ****** and *** ***** ****) ** ******* **** **** *** ********** probability ** ******* ** **** *** ******, ***** ***** ******* this *****.

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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