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Why Security Dealers Rely on Third-Party Monitoring

Aug 31, 2020 11:00:00 AM

In SSI’s “2019 Intallation Business Report”, it revealed that only 28% of security dealers take care of monitoring in-house. Why do so many installers rely on third-party monitoring?

The Requirements

To be blunt, monitoring is a demanding aspect of the industry. Not only does it require an endless amount of certifications, but it is impossible to be successful without highly trained and extremely dedicated staff of operators, most of whom have to be available 24/7, 365 days a year. While this may seem overwhelming, and finding great operators is a difficult task, we have compiled a list of some attributes that we think make up the ideal candidates for the job.

And let's not forget about a dedicated facility that is also a fully redundant central station. From building secure networks, to backup networks, to server design, emergency protocols for every possible scenario, everything has to have multiple failsafes. This aspect is by far the most important. But what else does being redundant include?

Most people want to pair with a company that stands out. No one wants to go with just an “average” monitoring company, especially in a matter that is so grave. Now a dealer has to factor in the resources and time spent applying, accepting, and maintaining awards or certifications that separate you from the rest.

The Costs

While you won’t retain all of your customers’ incurred cost, you will obviously save on everything mentioned above. Dealers already create enough cost on their own, from maintaining fleet vehicles, a constantly changing inventory, and their offices. As being a dealer is already complex enough, why add the further complexity that comes with a monitoring center? Is the extra revenue worth the strain, upkeep, and initial investment? While that is clearly a decision that you alone can determine, it is a question that demands serious evaluation before deciding to jump in.

According to one of AvantGuard’s own, Troy Iverson, “The benefit to anyone contracting monitoring comes down to focus and cost.  A third-party monitoring partner sees monitoring as a ‘profit center’ as it is the engine that generates revenue. As a profit center the people and technology should see the investment needed to provide great service.”


Another potentially debilitating factor: your focus. If you have too many facets of business, it is extremely difficult to continue the service you once offered. While larger companies with seemingly infinite resources can do this with ease, most security dealers would find themselves spread too thin. It’s better to focus on sales, installation, and customer relations than it is to worry about the monitoring side of the industry. More focus on a single aspect allows the business owner to create more opportunities for increased RMR and profit margins without falling behind and biting off more than they can chew.

Hopefully, this article provided you with some insight on just how intense and complex running a monitoring center can truly be. While our goal isn’t to deter anyone from participating in this portion of the industry, being transparent allows others to make informed decisions. Outsourcing your monitoring is a much more cost and time effective way to focus solely on your business. Reach out to AvantGuard today to see what all we can provide.

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