comment on Manufacturer getting into monitoring September 18, 2025

KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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comment on Manufacturer getting into monitoring
September 18, 2025
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comment on Manufacturer getting into monitoring from article on August 20, 2025

Ken,
   More on the above referenced subject.
   We do see every once in a while a manufacturer decide they want the direct relationship with the end user. One recent case has been that of Butterfly. Unless you trust your manufacturer, and really consider them a partner, I would be careful with Project Registration programs. We registered a project with Butterfly, and the next thing we know, they are calling the end user directly, asking them for timelines on when we were supposed to close the deal, etc. It really upset my customer (who we have a very good relationship with) and needless to say, it really upset us!
   Manufacturer’s should focus on the relationship with a dealer, which is essentially a force multiplier for them.
Regards,
Diego del Pino, President
APS, MCG and AVX
Miami, FL
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Response
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   ButteryflyMX manufactures video intercoms and access control systems. While customers can buy equipment direct from Butteryfly it doesn't install, and installs are performed by authorized dealers [and perhaps by the customer itself]. The products require an ongoing annual or monthly software subscription fee per apartment unit or controlled access point, in addition to the one-time cost for hardware. This subscription fee is necessary to operate the system and includes features such as cloud-based access management, live video, remote management capabilities, software updates, and customer support.
   I don't know why this manufacturer would contact a customer or dealer direct to inquire about job completion except that it might be eager to start the subscription service RMR. Though the authorized dealer installs the system it's the customer, property manager or property owner, who pays the subscription directly to the manufacturer.
   This does not seem like an ideal way for a dealer to grow its RMR. I suppose the product and service has some redeeming qualities, but I am not familiar with this manufacturer or the service.
   I agree with Diego that security equipment manufacturers, even those who have developed systems that must transmit through manufacturer's network, should work through the dealers, not compete with the dealers. So far manufacturers have not ventured into the installation and service area, only manufacturing and staying in the communication loop to generate RMR for itself. Dealers may want to consider that when selecting product and dealer programs.
   Since I am not familiar with ButterflyMX if I've misstated any information about it I'd appreciate any correction from knowledgeable sources.

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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301
ken@kirschenbaumesq.com
www.KirschenbaumEsq.com