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MORE ON DIY AND MIY FROM FEBRUARY 9 AND 10, 2015 ARTICLES
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Ken
    This topic is the “elephant in the room”.  Thanks for bringing it to all your readers.  And…I expect the discussion has just begun. 
Dave
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Ken
    There are a couple of considerations regarding DIY monitoring. One you have covered (MUST BE LICENSED) and another is to meet the insurance requirements that the installation must meet the required standards & must be monitored by a U L listed Central Station. 
Walter Tutor
Tutor Security, Inc
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Ken,
    Responding to the DIY and MIY string:
    The train has already left the station on this one.  The market will continue to be flooded with alternatives for the end user consumer.  Under the broad heading of the “Internet of Things” (IoT) analysts have predicted that the majority of homeowners will have some form of connected devices in their homes within the next 3 to 5 years.  To put that in perspective, in the U.S. there are approximately 20M to 30M homes today with an alarm system.  Based on the analysts’ predictions which are certainly on track according to the latest data, 75M to 85M home in the U.S. will have some form of connected devices in the near future.  Now the questions become what types of devices and where did they get them from, who installed them and how do they operate?  With approximately 100M to 110M homes in the U.S., you have to imagine that the answers to these questions come in a wide variety as there is huge market potential here.
    Given that these “connected devices” require one thing in common, a broadband connection, the analysts have predicted that the providers of broadband connectivity, i.e., phone and cable companies, are in a unique position to take advantage of the impeding explosion.  AT&T, Comcast, Time Warner Cable, Cox, Bright House Networks, Mediacom, CenturyLink and numerous others have already jumped into this business.  All of these companies have come at it from the primary position of a professionally installed, central station monitored service with a monthly recurring fee.  These companies already have local sales and installation capabilities associated with the primary video, voice & broadband data business and their business models are built on recurring monthly fees.  In my mind, this is the major competition faced by the independent Alarm dealers today.  Verizon tried a DIY MIY product and pulled the plug.  Comcast has a DIY MIY version but it represents a relatively small component of their sales.  Most of these entities only sell their “home security/home automation” product/service in their territories and most require their customers to purchase their broadband connection from them as well.  It is likely only a matter of time before they allow a customer to “bring their  own broadband” and where they consider selling outside their established territory as there isn’t much preventing them today.
    Device/Equipment manufactures as well as thousands of other entities (e.g., Lowes, Home Depot, Best Buy, Smart Home Ventures, Amazon, Google, Apple, Microsoft, GM, Nissan, Ford, Toyota, Subaru, Nike, Under Armor) across several major categories are all jumping on the bandwagon as this new opportunity (e.g., connected home, connected car, connected life) emerges in the marketplace.  Many of these are standalone devices with or without standalone apps or what is commonly referred to as point solutions (e.g., Nest, Honeywell Thermostat, or Yale, Quickset, Schlage Door lock).  Others have an integrated platform (e.g., Lowes IRIS, Smart Home Ventures PEQ) which can control various devices through a single user interface & app.  This is the major DIY MIY competition.  It too will grow and flourish.  The market is predicted to be so large that many providers and business models will coexist and a few will thrive.
    The challenge for the independent alarm dealers is to stake your claim and to do it in a way that provides you with the best chance of survival.  This means you must be smart and pay attention keeping current and examining alternatives.  Recognize that there is a portion of the market that is always driven on price while others are driven on convenience, quality and value.  Whatever you do, keep the customer first.  Excellent customer service can win out in many situations.  While having manufactures going direct to the consumer either through the web or through the retail channels (e.g., Home Depot, Lowes, Best Buy) does facilitate the DIY model, not all consumers are willing to go the DIY route.  You may want to become the installation & service arm.  In fact you can also broker the professional monitoring service as some may see the benefits over MIY.  Having the equipment available in the retail channel also relieves you of some of the overhead of carrying equipment and parts.
    Independent dealers also may have the opportunity to engage as the local subcontract installation & service providers for the major new players (e.g., Comcast, AT&T) as they set their sights on the monthly recurring revenue and are willing to forego the equipment, installation & service revenue.   Heck, the current dealer models with the local dealer handling sales, install & service are still attractive going forward.
    In summary, my point is the environment that had been relatively stable for the last few decades is changing, you cannot stop it so you must adjust to it and there are avenues for you to also grow and not just survive.  I have only addressed the residential market in my comments above.  I feel that on the business side, the opportunity is even greater for the independent dealers and the market place is not as developed with new alternatives as of today.  
John M. Flanagan, Senior Vice President
U.S. Communications, Media & Entertainment Industry
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Ken,
      In regards to the DIY and MIY alarm systems, it is evident that there is a movement to these kind of systems. But in my opinion this will not dominate the industry.  There are to many people that do not want to mess with it.  I have started seeing a trend where insurance companies are wanting to verify that the alarm system has been installed by a licensed installer before providing a discount.   In my opinion the DIY and MIY market is coming from the lower end of the alarm installs, this being the people that are wanting the free installs and pay the bottom of the monitoring spectrum.  I could make an analogy between shopping at IKEA for furniture and buying premade furniture, yes IKEA makes tons but so do all the other furniture stores.    We do not try to compete in this market, we tell our clients that you get what you pay for.       Also I cannot tell you how many times we have been contacted by clients that bought a DIY system and could not make it happen, most have become clients.    Companies will need to start adapting today like they did in the 90’s with the introduction of the free installs. 
John Barney
TriStar Commercial LLC
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RESPONSE
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    Just a reminder that DIY entails a retail sale of goods, in this case security equipment, and then a monitoring agreement [otherwise what's the point].  Your customer base is nationwide.  You should not be engaged in this model business without a proper Contract.  You will need our "Nationwide" form which addresses the various legal requirements in the 50 states.  You can inquire about and order the Nationwide DIY and monitoring agreement by contacting our Contract Administrator Eileen Wagda at 516 747 6700 x 312.  The Nationwide Agreement is designed as an On Line form since your sales are most likely going to be Internet sales or telephone soliciations with Internet sign up.  There are companies that can assist you with On Line agreements and managing the sign up process.
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