With all the hundreds of alarm companies out there, I just thought I’d let the general public know about some things. And as a consumer myself, I can appreciate this, although many do not really care how many hardships companies go through to get them a GREAT deal. But there are lots of sacrifices alarm companies encounter to give you, the consumer, a great deal on Security equipment.
I won’t go into specific details about our company’s woes with profit margin, but I will tell you this. Alarm equipment is not cheap. Alarm equipment needs to be reliable and not break down, and therefore that comes at a price. Because of competition, many alarm companies try their very best to give away the bare basics of what a home needs to be protected. Some alarm companies have more flexibility than others. Usually a basic system without all the bells and whistles consists a Keypad, 3 – 4 door contacts. a motion sensor, master control panel, siren and a yard sign and decals. And that is just a hard wired systems. Wireless Equipment is even more costly, not to mention a cell radio.
This is why alarm companies want you to sign up for a contract, usually 2- 3 years, in some cases 5 years for certain companies. They want to recuperate some of the overhead cost including paying the installer to put the system in and activate it. There are some larger and more established alarm companies out there that will charge you full boat on equipment. It varies.
On top of the equipment cost, alarm companies sometimes go even beyond that and throw in remotes, and other accessories to sweeten deals. This is great news for the consumer, but alarm companies take a lot of hits, and that includes the sales reps too, as they subtract give away losses out of their commissions. Many consumers do not realize that (nor do they care).
So please consider and understand when alarm sales reps give you a Free alarm system, it really is Free for you as someone else is picking up the tab. Please consider that when you sign the agreement. For the average alarm company, it takes about 2 years of monthly monitoring income before they even see a profit.
The typical consumer has no idea about what is involved. I think it is important that alarm consultants such as myself really point this information out to potential buyers so they can understand and appreciate the value they are getting. No folks, this stuff isn’t “free”…. Unfortunately When an offer is presented like that, there is no special value attached to it. It’s taken for granted just like a cable box / equipment seems like its Free with your cable. Oh no cable equipment isn’t free either. Believe it’s not. I pay $40 a month for TWO DVR HD Boxes with DVR service from my local cable company. It’s definitely not FREE.
For a majority of alarm companies, (not all) there is not a lease payment on your equipment. Your local alarm company / provider is eating the cost on your equipment up to a certain level. I personally no longer offer a “FREE system ” at the customer’s doors (at least not right away). I declare the value of it first, then offer an incentive. That way my potential customer understands the value. This is just food for thought for aspiring sales reps and new people in the alarm business.
ADT authorized dealers have been known to give away quality alarm equipment with a $99 Installation fee. It is required that the $99 installation fee is charged according to the ADT authorized dealer program. Sometimes, alarm companies have some pretty good incentives that make paying the $99 installation fee seem very painless. As always, certain restrictions apply.
If you are in Texas and in need of alarm service, we can help get you connected with ADT Security. Just Visit our website so you can email or call me. I will give you our current offers on alarm equipment. We will do our best to give you the best deal possible.
This BLOG is written by Jimmy Maddox, employed by America’s Ultimate Security. The opinions and advise are strictly his and do not necessarily reflect the opinions of the company, AUS Inc., ADT Security or any other company that may have been implied.