How DVR Shortage Affects Integrators

When news broke that the catastrophic flooding in Thailand affected hard drive manufacturing and availability of DVRs, most surveillance integrators probably checked with their suppliers.

They most likely breathed a sigh of relief, according to Jack Rainey, GM of Annapolis Junction, Md.-based Chesapeake Systems Service (CSS). Integrators, he says, "checked their prices and saw that they haven't been hit yet. Then, very quietly, it happened."

Rainey says he has seen several of CSS' DVR sources increase prices by an average of about $200 more per unit. As a modestly sized commercial and residential integrator, that hit is "huge when it comes to bottom line profit for us," he adds.

MORE: Read the Full-Length Version of This Article on Commercial Integrator

The question for integrators who provide surveillance systems that include DVRs is, “Who’s going to take the margin hit - the dealers, the manufacturers or the consumers?” according to Adam Levy, VP of marketing for SnapAV.

Levy says SnapAV is committed to the answer not being its dealers. He says SnapAV reacted quickly upon hearing the news of the Thailand floods, “knowing where hard drives come out of” and quickly secured a surplus of DVR inventory.

Rainey says CSS hasn't seen SnapAV raise its dealer DVR prices.

Like many surveillance integrators, CSS had issued quotes with pre-flood DVR prices. "I’m generic enough about my packages that I can be flexible about where I source [DVRs]," Rainey says, adding that he has fulfilled those quotes through SnapAV "to avoid incurring additional costs."

This article stems from coverage on sister site Commercial Integrator. Read the full version of this article here.