Did you know that DIY systems now make up the majority of installed residential security systems? According to Parks Associates, DIY home security is more popular than ever. But this isn’t exactly unexpected, nor is it necessarily new news — we’ve written about the DIY surge a number of times in this blog. But this shouldn’t scare dealers away. In fact, dealers should look at this as an opportunity to evaluate their business model, and make adjustments to stay relevant in an ever changing market.
Monitoring and Equipment
Three years ago, Vivint announced a flex play option that essentially split up the equipment and monitoring agreement for customers; in the same way that cell phones are separate from the service. This separation helps both customers and dealers simultaneously.
For dealers, untying equipment with service can save money. There are scenarios where premium equipment is packaged with a service and the customer might not want particular pieces of equipment, which keeps them from purchase intent. The customer can pick what they want and need, and the service can be completely separate — a win, win for both parties.
Potential customers might not be ready for the upfront costs combined with the fees to pay for professional monitoring services. And security alarm monitoring companies shouldn’t worry about people completely foregoing professional monitoring services, as the security benefits of professional monitoring still completely outweigh self monitoring. Like Vivint, other security alarm dealers should look into partnering with a financial institution to offer lending options beyond up-front payment. This gives the customer more freedom and flexibility when it comes to their service and equipment. In fact, a study from Parks Associates states that 61% of alarm customers would prefer to finance the equipment.
This gives dealers the ability to have more refined “pricing sensitivity.” Price, in most facets in life, is often the determining factor in purchase intent. When dealers are able to hone in pricing to meet customer’s needs, especially because the number that jumps out to the consumer doesn’t have equipment and service bundled together, it gives the dealer a better shot at making a deal, especially since a smaller price tag will likely raise consumer’s buying intent.
Also, installation and repair costs dealers money. Rolling a truck is not necessarily cheap. DIY helps in that regard — the customer is responsible for their equipment. Dealers will only need to supply the equipment and provide the service. When you remove repair from the picture, dealers can potentially save a ton of money.
This is only one way that dealers can improve their businesses. Staying agile is the name of the game, especially in the security industry. That’s why it is important to partner with a central station that always looks for innovative ways to improve service, whether that be through technology or internal processes. Reach out to AvantGuard to see how we can improve your monitoring services.