CCTV pricing strategy: how to set prices that win work and protect your margin

Pricing is the decision that affects your profit more than any other. A small change in price moves your margin far more than the same change in costs or volume. Yet many installers set prices by copying a competitor, guessing what the customer will accept, or adding a fixed percentage to the equipment cost.

This guide looks at pricing as a strategy, not just a calculation. It covers the main pricing approaches, how to set a labour rate, how to present options and how to stop being dragged into price-only competition. For the step-by-step mechanics of building up a single quote, see our guide on how to quote CCTV installation jobs.

Start with your real costs

You can't price well without knowing what a job really costs. That means more than the equipment on the invoice. Include:

• Equipment and materials, including cable, connectors, brackets and boxes.
• Labour, including travel time, at a fully loaded rate.
• Vehicle costs, including fuel and wear.
• Overheads, such as the office, software, insurance, phones and tools.
• Warranty and aftercare, such as return visits and support calls.
• Payment costs, such as card fees or the cost of waiting for payment.

Our guide on job costing and profit per job explains how to calculate a fully loaded labour rate and allocate overheads.

The main pricing approaches

Cost-plus pricing

Add a markup to your costs. For example, equipment at cost plus 25%, and labour at your hourly rate.

Pros: Simple and transparent. Easy to explain to commercial buyers.

Cons: It ignores the value to the customer, and it encourages customers to compare equipment prices with online stores.

Package pricing

Offer fixed packages, such as a four-camera home package or an eight-camera shop package, at set prices.

Pros: Easy for customers to understand. Faster to quote. Good for marketing.

Cons: Real jobs vary, so you need clear rules for extras such as long cable runs or difficult mounting.

Value-based pricing

Set the price based on the value to the customer: the losses prevented, the time saved or the risk reduced.

Pros: Can support higher margins, especially for commercial customers with clear risks.

Cons: Requires good conversations about the customer's needs, and confidence in your offer.

Hourly or day rates

Charge for time, plus materials. Common for service work, repairs and small additions.

Pros: Fair when the scope is uncertain.

Cons: Customers dislike open-ended costs, and you are not rewarded for working efficiently.

Most successful installers use a mix: packages for standard residential work, cost-plus or value pricing for commercial projects, and hourly rates for service work.

Setting your labour rate

Your labour rate should cover more than wages. It should include:

• Wages and benefits for the technician.
• A share of vehicle, tools and training costs.
• Non-billable time, such as travel, training and waiting.
• A share of office and management overhead.
• Profit.

A common mistake is dividing a technician's wage by the hours in a month. In practice, technicians only spend part of their paid time on billable work. If a technician is paid for 200 hours a month but bills 120, your rate must recover the cost of all 200 hours from those 120.

Good, better, best

Offering three options is one of the most effective pricing techniques. For example:

Most customers choose the middle option. Having a higher option makes the middle look reasonable, and having a lower option keeps price-sensitive customers engaged rather than walking away.

Make the differences meaningful. Each option should solve a real need, not just add more cameras.

Pricing equipment

Customers increasingly check camera prices online. That doesn't mean you must sell at online prices, but it does mean you should think about how you present equipment:

• Show the system, not individual prices. Price the solution, including installation, rather than itemising every component with a markup that customers can compare.
• Use professional-grade models that aren't sold in consumer stores, where appropriate.
• Explain your value: choosing the right model, warranty handling, configuration and support.
• Be transparent when asked. Commercial buyers may require itemised quotes. Provide them, but include labour and support properly.

Pricing for different customer types

Homeowners

Package pricing works well. Keep options simple and clear. Include app setup and a short period of support.

Small businesses

Show how the system protects stock, staff and the business. Offer packages, but be ready to customise. Small businesses often appreciate monthly payment options or maintenance contracts.

Large commercial and industrial

Expect detailed specifications, itemised pricing and competition. Price carefully, include project management, and don't forget the cost of documentation, meetings and commissioning.

Government and tenders

Read the tender requirements carefully, and price to the specification. Include the cost of compliance, security deposits and slow payment. Our guide on bidding for commercial tenders has more detail.

Recurring revenue

One-off installation work is unpredictable. Recurring revenue smooths your cash flow and increases the value of each customer. Options include:

• Annual maintenance contracts (AMCs). Regular service visits, priority support and discounted repairs. See our AMC guide.
• Extended warranties. Cover beyond the manufacturer's warranty.
• Cloud storage or remote monitoring. Where you can offer it reliably.
• Support plans. A monthly fee for priority remote support.

Price recurring services to be profitable on their own, not as a loss leader.

When to discount

Discounts should be a deliberate decision, not a reflex. Reasonable reasons include:

• A large or multi-site order that reduces your cost per camera.
• A customer who is likely to bring repeat work or referrals.
• Filling a quiet period in your diary.
• Securing an important reference customer.

When you discount, get something in return: a larger scope, faster payment, a longer contract or a case study. And always know your floor price, below which the job isn't worth doing.

Competing against cheaper installers

There will always be someone cheaper. Rather than matching their price, focus on what makes you different:

• Quality of installation. Show photos of your tidy cable work.
• Reliability. Explain your warranty and response times.
• Experience. Mention similar jobs you have done.
• Professionalism. A clear quote, on-time arrival and proper handover.
• Aftercare. Many cheap installers disappear after payment.

Ask the customer to compare like with like: camera resolution, lens choice, storage days, cable quality, warranty and support. Often the cheaper quote leaves things out.

Reviewing your prices

Review your prices at least once a year, and whenever costs change significantly. Look at:

• Your win rate. If you win almost every quote, your prices may be too low.
• Your margin on completed jobs. Compare quoted margin with actual margin.
• Your mix of work. Are you busy with low-margin jobs and missing better ones?
• Equipment cost changes. Update supplier prices promptly.

A win rate of 30% to 50% is often healthier than 80%. Winning every quote usually means you are leaving money on the table.

Using software to stay consistent

Consistent pricing builds trust. If two salespeople give different prices for the same job, customers notice. A shared item list with current costs and selling prices, and quote templates for standard packages, keep everyone consistent. In CamVerion, items and templates let you build quotes from your own price list.

Common pricing mistakes

• Pricing from the equipment cost alone, forgetting labour, travel and overhead.
• Using an unrealistic labour rate based only on wages.
• Discounting to match every competitor.
• Forgetting aftercare costs in residential packages.
• Not reviewing prices when supplier costs rise.
• Offering only one option, so customers must accept or reject.

A quick pricing checklist

1. Know your fully loaded costs, including overhead and aftercare.
2. Set a labour rate that covers non-billable time.
3. Choose the right pricing approach for each customer type.
4. Offer good, better and best options.
5. Price the solution, not just the boxes.
6. Build recurring revenue through maintenance and support.
7. Discount deliberately, and get something in return.
8. Compete on value, not just price.
9. Review prices and margins regularly.
10. Keep pricing consistent across your team.

Good pricing doesn't mean being the most expensive or the cheapest. It means charging a fair price for good work, explaining that value clearly, and making enough profit to keep doing it well.