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alarm companies witout ethics

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  • integrator97
    replied
    Yes, they have effectivly made the value of a security system, in the consumers eye, to be between zero and $99. Like Rooney, when people call asking what kind of "deals" we have, I send them on their way. I explain first, what they do, and mostly don't, get for $99. I also tell them to do the math. Buy my system, and my lower monitoring (about $18) x 36. It generally equals about what they would pay the other guy over 36 months. Then my price is $18, and theirs is 29 or 35 or 39. Smart people choose us. Cheap people choose them.

    I say what they are selling is peace of mind. We sell real security.

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  • Vegas Tech
    replied
    Sad but true when it comes down to profit margins.....

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  • Silva Consultants
    replied
    The name of the game for most of the large alarm companies these days is recurring revenue, i.e., monitoring fees. In previous years, an alarm company would expect to make a reasonable profit on the sale and installation of the alarm system itself, and the monitoring was just a bonus. These days, many companies are willing to just break even or even lose money on the initial installation in order to get a monitored account.

    A home that has a "$99 special" pays the same (or more) monthly monitoring fees than a home that has a full perimeter system. Most of the major alarm companies would rather have their installation crews knocking off five "$99 specials" per week (5 monitored accounts) instead of tying them up on one large residential installation (1 monitored account). This mindset explains the minimal hardwired systems that are being installed in many homes, as well as the popularity of wireless systems which can be installed quickly and easily.

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  • Rooney
    replied
    Even though we don't do alarm installations anymore (except for long time clients), I get calls all the time asking me if we do the $99 deal. I just laugh and send them on thier way. If a person is looking for a good security system that will work when needed they should be willing to pay for it. I think the problem is the fact that most people don't understand the design and operation of a system. If a salesman sells them 5 motion detectors, the front and back door contacts, and a keypad, the person doesn't realize that they are not very well covered at night when they arm the system in stay mode. If someone goes through a window it won't set off the alarm. Cellular or IP communication backup is also a feature people should look into. A burglar that knows what he is doing will also know the first thing to do is cut the phone line. Either install a backup communication device or armor the phone line going into the house.

    The alarm installation business is a cut throat endeavor. Either undercut your competitors (which is hard if not buying systems in bulk), Or add a specialty that other alarm companies in your area don't do, i.e. home automation, audio, etc. to give perspective clients a "one stop shop".

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  • txinvestigator
    replied
    About 15 years ago the alarm industry was attacked by these $99 three doors and a motion detector systems.

    Now, it seems that salespeople are afraid to ask for the money for a full system. The $99 was a gimmick to get sales people in the door. Once a presentation was made, the sales person was supposed to design and offer a full system. When the customer balked at the price, you simply asked which doors or windows they did not wish to cover.

    I sold alarms for a while, and never sold less than a full perimeter system. I have never had less in my own house.

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  • sideshow
    started a topic alarm companies witout ethics

    alarm companies witout ethics

    I see this all to often in our industry, they sell these packages that include 2 doors or 1 motion and sign them up to a contract for monitering there junk for years. They made a sale, but how much protection did they get for 35.00 a month? and if there panel goes bad for an extra 10.00 a month maintenance fee and adding an extra couple years to their contract they will replace it. Then the stand alone, out of a box, plug into a phone jack systems. and the simple fact that nobody gets cellular or radio back-ups is beyond me, you cut the phone line and no signals are sent, I worked as a tech and I told so many people about features they didn't even know they had, like ambush, panic, stay mode etc. sometimes they weren't even programmed. I hate seeing people taken advantage of, I turned down a job that would have made me good money, because I felt the customer would be getting a subgrade product that offered little to no protection. What are your thoughts on these practices?
    Last edited by sideshow; 05-29-2008, 08:16 PM.

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