Let me try to explain without using specific brands and prices.

One vendor I buy from sells their branded camera for, let's say $100 (for easy numbers), and wants me to sell it for $180. For this example, we'll say it's a 4MP turret style camera.

I also have a local supplier who sells another (yet very popular) brand, also a 4MP turret, for $75. Plus, when I go in there, the rep from the manufacturer is sometimes there. He's helped me out before, gave me his card and said to get in touch if I needed anything at all. Great!

Ok, so looks like I have an alternative, right? So I check online to see what the customer might find if they did a search. Just want to be sure!

And it's on Amazon. Same brand, same specs, same color, same lens - same exact part number - for $45.

So I'd love to hear from some of you guys on how you manage this, the cross shopping, where you source parts from (or avoid sourcing from). I've noticed this with other products as well: mounts, speakers, etc...but cameras are the worst, it seems.

Thanks

Hmmm, the IP cameras I sell are $1200

Basically how you deal with it is you don't sell cameras that are rebranded Chinese junk.

You DO realize I used made up prices, right...?

The price of cameras seems to halve at alarmingly regular rates.
A quotation that may be in the market for 6 months needs to be double checked because cameras can fall like a stone and put you off the money / at the mercy of a number crunching client.
I remember seeing a 360 degree camera come to market and sell 'okay' for a while, but when Samsung launched theirs, the market price fell through the floor to match that camera. Of course, they weren't like for like, but people just saw the 'Samsung' word and assumed it would be better than say, HikVision etc as they've heard of the brand before.
Of course, if you're line listing prices on quotes - expect to be in for a world of hurt anyway...

To directly answer your question: it is about the backend expense for the seller.

A kid in mom's basement, moving boxes on his 3rd party site from Amazon.com, is NOT going to give someone with a problem ANY support what-so-ever. You get a 30 day warranty (the time amazon will step in and take it back with a refund). Beyond that it's "good f^ luck"

A distributor/rep that is good at supporting its customers, are going to have a LOT higher expense and will need to mark up the product accordingly. This can be up to 2x higher than you find it elsewhere.

So pick your poison:
Spend 2x as much to have support and a place to get immediate replacements on DOA units.
Or if you are an expert and never need tech support; and don't mind dealing with a defective unit once in awhile on your own. Then you can save the money.

As far as the customer's view point:
They have the same choice to make. Get it from you at 2x the cost and have an expert install and take care of it.
Or they can get the cheapest price and take their chances.

ADI sells various brands of cameras and some of them are sold online by B&H Photo for less than ADI's dealer cost. In one case, B&H had been on the manufacturer's list of unauthorized re-sellers, so B&H started buying them through a distributor who then negotiated a better price through their volume of purchase and that allows B&H to sell below ADI's cost and still make money. It's not only people selling out of their garage or basement- look at the manufacturer's unauthorized re-seller list and if someone questions your pricing, show it to them.

BTW- read the new NDAA changes WRT security systems and cameras- some well-known brands are no longer authorized by the US government for government use.

Unauthorized sellers, and also amazon is know to have fakes.
Just like you can buy a fake rolex.

Roger that for sure. Learned that one early on.



Thanks for the insight, fellers - it is some helpful food for thought!

When something breaks, it's a question of who eats the product?
Client, Installer, Distributor, Vendor, Manufacturer.

And each also looses something more in the process.
Client - enjoyment they paid for and expected.
Installer - time, both onsite and inhouse, freight, future business with Client
Distributor - time, shipping, future business with Installer
Vendor - cost of product, future business with Installer
Manufacturer - future business with Vendor

If you're supplying the cheap version to the client, without all the markup of the supported version, you loose if it breaks not the client. Bet the clients money with 'the house' ie the vendor, buy the one with support, you make the money without the liability.

Now if the client doesn't want to buy the supported version from you. You could tell them to get the product themselves, you'll install it, and it's all on them. BUT, you still will loose if it breaks, cause they'll lie to their friends, you sold them/told them to buy junk.

So pick brands that aren't online for less. Then the conversation is why is your brand is more than xyz, different conversation. But more work!

The client ultimately NEVER looses!
Be sure you're always 'the client' when sourcing products, otherwise you're the vendor, and you eat it.

I doubt they are exactly the same. I know wbox is made by big X, and big x's regular line is cutting edge technology. but then there are other companies like big Y, who make ip cameras and have competitive models at better prices, more value. so just use what you like b/c at the end of the day, most ci clients are not checking model numbers

1. Lens quality
2. Sensor quality

For comparisons sake, I just purchased Sony A7iii mirrorless SLR camera body, retail $2000. For an additional $200 I could have purchased the "kit lens" marketed for it, but why use a cheap lens on a nice camera? Instead I ordered the 24-70mm f2.8 GMaster lens (you can look it up - pricey).

Gorgeous images, worth every penny.

Right. But that doesn't match the issue in Post 1. What sbout that issue?