TELCO / CABLE CO competition
March 9, 2011
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Comments
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Ken,
Thanks again for a great format for these conversations.
The letters from Dusan and Winger [Feb 28, 2011 email] seem to have similar points. We might all wish for the comfort of competing in an industry so compartmentalized that everything is known and static. But Winger is correct about technology relentless transforming our industry. As he says, our journey from analog central station monitoring technology unfettered the small business opportunities even more than tube to solid state or solid state to microprocessor controls and sensors.
On the other hand, Dusan's comment about "nobody complained when GE bought small security manufacturers.." is inaccurate from my experience. We quit purchasing GE equipment and I'll bet others did to. I know others that transitioned away from DSC when Tyco purchased the company. How can we know this doesn't effect mammoth corporations? How can we know that Verizon does not have a similar fate? Dusan is right though, it won't bring back the small manufacturers. Like Michael Douglas's character Gordan Gecko in the original "Wall Street" movie, these companies are absorbed, stripped down and gone. But others will spring up if, as Dusan states, we can prevent the government from over-regulating and over-taxing.
The point to focus on is the one unique item even the smallest company can provide that will always trump the large companies entering the market; the ability and determination to provide professional service well.
Think about what that means. Good service can overcome endless marketing dollars and national name recognition. GE, and before them Honeywell, had very quantifiable name recognition as a trusted brand. But for a variety of reasons that didn't translate, even with deep pockets.
So enjoy and embrace all the variables, the new technology and the large competitors. Both stir and invigorate our business opportunities for those that can service well.
Zeke Lay
Oklahoma
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Mr. M Winger is right in the premise about the evolution over the past 35 years. ((OK 40+)) As the industry continues too evolve we have the opportunity to create new paths so to speak. However almost all paths have a reliance on either TELEPHONE COMPANIES or CABLE TV Companies. We can transmit over hard wire digital phone lines, or broadband provided by the above giants, or we can evolve to RADIO COMMUNICATIONS not affiliated with CABLE or TELCO. The big GSM providers are your TELEPHONE OPERATING COMPANIES. Even if you go toa third party provider, guess who owns the infrastructure you are leasing.
THERE ARE EXCEPTIONS to the above.
As an educated consumer ( Yes we are consumers when we contract out some services that we provide.)))it is up to us to do our homework. There are RADIO providers that operate independent of the utility services. We should patronize those carriers that want to provide the dealers with the product to resell without becoming our competition.
If your contract central station started to provide alarm installation and repair services in your area ((Not necessarily to your customers)) Would you stay with them? If you remember your history there was one such company that did that. They are no longer with us.
Our best allies in business today are EDUCATION, HONESTY and ETHICS.
EDUCATION. Know your craft, products and services and stay abreast of codes and requirements.
HONESTY. Give your customer good honest service. Charge your rates but provide the services requested in a competent and professional manner.
ETHICS. You can compete without "trash talking" the competition. If you are BETTER than your competitor, be specific in your COMPARISON not criticism. Show your customer what you will provide and then follow through.
Remember professional trade associations like your STATE ALARM ASSOCIATION or the ESA Nationally are intended to promote the above without price fixing or other anti consumer activities.
Joel Kent
FBN Security Co LLC