Dealers often package services and equipment together in one contract, but this structure can cause a handful of problems for both the dealer and the customer. For the customer, this can lock them into equipment plans with devices they may not need, completely hindering any flexibility with the tech that is most suitable for their needs. And for the alarm monitoring company dealer, this type of contract can reduce RMR. In 2017, one company in the security industry separated equipment and services and have been reaping the benefits ever since.
Vivint Flex Pay
Vivint introduced Vivint Flex Pay in 2017. This new plan allowed for qualifying customers to access 0% APR interest through Citizens Bank. Think about it in the way that cell phone providers separate the phone and the service. “By separating the purchase of products and services, we’re providing greater flexibility for consumers as their needs evolve,” said Alex Dunn, President of Vivint Smart Home.
How Does This Change The Way Security Dealers Provide Service?
By separating the two, dealers will no longer lose out on money from tying premium equipment to services. Also, a ton of money is lost on equipment failures and installations, which are generally included in agreements that include both services and products. It costs any security dealer money to send a technician out to a house for an install or repair. So, if that is included in the deal along with equipment, the dealer is automatically losing money for the installation.
How does this help the customer? First, the financing is interest free. Also, they don’t have to worry about paying extra on equipment as interest piles up. So, customers won’t need to come up with the lump some for the equipment from the jump. But if they want to pay for everything up front, they are able to do so as well. Finally, customers are no longer tied to specific equipment. This allows them to add and subtract equipment as their needs evolve.
What Can Other Dealers Learn From Vivint?
Vivint saw a way to help their business and their customers in an unconventional way. They looked for ways that other industries offered electronics and services and applied it to their own. Dealers have to constantly look for ways to stay relevant in a changing security market, or they might find the market moving on without them.
For dealers who want an alarm monitoring company that constantly looks for ways to innovate and stay ahead of the curve, reach out to AvantGuard to see what services we can provide you and your customers.