March 20, 2012
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Comment on RMR opportunity with video March 10, 2012 article
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And another comment. Young generation has fewer "valuables" in homes and apartments. There are no more $1000 VCRs and electronics in general is considered disposable. People don't keep "color TV" for 25 years anymore. Paying alarm subscribers are mostly older people, or people who need PERS. Our business is changing.
Dusan
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Response
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The times are changing. They always are. And businesses that don't change with the times will find competing difficult and the business depreciating rather than growing. The comment above was in regard to opportunity for RMR growth with CCTV and monitored video. Growth in the alarm industry is certainly not focused on PERS. In fact, although that may be a growth area, the expulsion of CCTV products and services is going to be, perhaps already is, the primary growth area.
Can you look back and image how many in the security and protection business resisted changing with the times, which in many ways means not willing to learn and grow with developing technology. The nightly patrol services probably didn't think much of the electronic alarm with outside bell. Businesses with local alarms may not have embraced the dialer for monitoring. Moving to digital monitoring required a new learning curve too. Why bother, the RMR is coming in.
I doubt that younger or older people have less valuable property in their homes, and they are certainly as concerned with guarding against burglary, home invasion, smoke and fire as any generation. Now because of technology electronic protection is affordable and available. Younger people want the bells and whistles; every new electronic gadget available. Video and audio. Legal and not so legal. Useful and sometimes more of a gimmick. Do I really need to be able to see every room in my house or office on my IPhone, just because I can? Do I really need to be able to control every electric appliance and system in my house from across the country?
Well, you really don't need to ask yourself those questions, because those are questions for consumers. You are in the business of selling RMR contracts [which you bought from me]. So the question you need to be asking yourself is what additional product and service can I offer consumers that will provide RMR.
I am not technical, but last time I checked an alarm system still protected openings, maybe motion detectors for when no one is home, smoke or heat detectors, maybe temperature control, communicating by POTS, VoIP, cellular or radio, monitored by a central station; maybe guard response or runner service. OK, you know how to install and handle that line of business, and seems like new consumers are coming on board all the time. Nice as that is, there are more aggressive [not all of them younger] alarm business owners [they prefer to be called integration specialists] who have ideas on fast tremendous growth - get rich ideas - and they are not the traditional alarm business model described in the first sentence of this paragraph. These entrepreneurs are usually focused on PERS or CCTV interactive systems [by which I mean subscriber remote access to the system].
So, focus on RMR, learn to sell contracts that call for RMR, and be sure to get those contracts from me. As you growth you can check that growth at Whatsmyalarmcompanyworth.com ?? I may have to change the pitch for that service to what is my full electronic integration system empire worth ?