How Video Surveillance Equipment is Sold & Marketed

Manufacturers with Protected Distributions
This is the "good old boy" network. These companies manufacture all types of equipment but only sell their products though wholesale distribution to security dealers. They rely on local dealers to recommend their products to the consumer. In return they limit access to the products by requiring the consumer to purchase the equipment and systems at large markups though a local security dealer network. Although this substantially increases the total cost of the equipment (as much as 100%), it is the dominant distribution system in this country. As a rule, these companies stay insulated from the consumer and only do business with the dealers. The largest players in this arena are: American Dynamics Honeywell Pelco and Vicon.

Consider this avenue if you want to have a complete system installed by others. Security dealers are going to be hesitant to sell the equipment to you, and will recommend you pay them to install the system. This is usually the most hassle-free option; however, this convenience will cost you. On an average, security dealers on an average work on a 100% mark up. A $5,000 system will cost you $10,000 installed.


Consumer Direct Manufacturers
These companies operate similar to the companies mentioned above, but they have thrown out the "good old boy" network and sell direct to the consumer. This marketing approach requires the manufacturer to invest in customer support systems that the others do not because they let the dealers absorb this expense. This marketing approach is fairly new but the advantage is the systems are much more affordable and the manufacturers sell more. Companies like EZWatch Pro and Sensormatic have sliced off large market shares by providing this type of support and savings to the consumer.


Resellers
These companies buy equipment wholesale and resell to the consumer. They operate on very low markup which makes the equipment low cost. The drawback is that usually no technical expertise or support is available to the consumer. These firms lack the technical experience of the security dealers and the financial muscle of the manufacturers. Because of their low margins they seldom invest in customer support systems. They often stock off-brand equipment that they have little or no experience with, and much of the equipment they sell is considered "consumer grade." This is a term used to describe equipment that the professional security industry would neither recommend nor sell. Most of these resellers are found online. We highly recommend researching any online reseller you are considering. The link below provides a financial and stability review of most of the online resellers. Online Security Resellers Stability Reviews.

One company which successfully resists this negative categorization is a on-line store called Security-Kits.com. This company breaks the on-line reseller mold and is possibly creating a new category of resellers. The company has invested in a in-house support structure which completes with the Consumer Direct Manufacturers listed above. They inventory the products they offer and have a proven performance record. They are certainly worth a look if you are considering shopping online.