There are some good reasons to decide to join a Dealer Program.  You get instant name recognition, credibility, guidance, training, special deals on equipment, decals, yard signs, hats, etc.   Sort of like being in the army, lots of business decisions are made for you.  Of course almost all Dealer Programs still leave the running of your business to you, and you have to get out there and make it work.  It's still you and the subscriber sitting at that table getting ready to sign the Contract.

 My opinion regarding the Dealer Program option is influenced by certain business characteristics of the alarm company owner, which if not unique to the alarm industry, are certainly prevalent.  By and large the industry is made up of one or two man owned businesses.  The alarm owner doesn't want to work for a large company, is entrepreneurial by  nature and understand the economics of the alarm industry. 

 So we are on the same page, permit me to offer my opinion on the economics of this industry.  Sales and services are highly competitive.  Subscriber loyalty, while I believe it does exist, is ensured by long term contracts that marry the subscriber to the alarm company.  Irreconcilable differences are not sufficient grounds to break this marriage without monetary consequence.  The competitive nature of business keeps profit margins tight, but there is a pot of gold at the end of this rainbow, provided you are smart enough to grow your recurring monthly revenue.  The growing RMR eventually affords a sizeable annual income and also builds a valuable business which is easily suitable for sale or passing on to the second or next generation.  If this makes sense, then you need to carefully evaluate the Dealer Program you select.

 Not all Dealer Programs are the same.  Two ads in Security Dealer & Integrator magazine [July 2010 issue] caught my attention and they illustrate some glaring differences among Dealer Programs.

 One ad starts out with "Feeling Sold Out?" and adds "Regain your trust in Dealer Programs ..."  The benefits of this program are then outlined:  Up to 36 Multiples; non-exclusive; no holdbacks; 90-day guarantee; weekly funding; equipment discounts; no volume requirements, etc.  [Central Security Group  www.centralsecuritygroup.com]

 The other ad reads "Dealers: Prepare for your sales to takeoff !"  Here are the advertised benefits of this Dealer Program:  Powerful Brand Recognition; 100% Account Retention; Dealers Keep the Recurring Revenue; Branded Alarm Panels; Industry-leading Dealer Support; Account Purchasing & Financing Options Available.  [ Smith & Wesson Security Dealer Program  www.smithwessonsecuritydealer.com ]

 The two approaches by these Dealer Programs are quite different.  One sounds like an opportunity to be a salesman for the Dealer Program by selling your accounts, the other an opportunity to retain the accounts and grow your RMR. 

 There is no doubt that some alarm business owners believe in bundling accounts and selling them.  That model will provide better cash flow, and immediate cash flow.  For these owners Central Security Group appears to offer a viable choice.

 Smith & Wesson on the other hand encourages retention of the RMR, more in line with my business model for the alarm industry.

 There are other Dealer Programs out there, and I think most will fall into one of the two types characterized above.  Which program is more suitable for you may depend on your locale, your competition, your economics, your temperament and independence.  Choose wisely, your financial situation may depend upon it.

 Anyone want to share their experience with Dealer Program - let's hear.  Try not to defame anyone.

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comments on wireless fire

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Ken,

    Please see www.cwsifire.com we are a Distributor of the product. It’s “REAL” wireless Fire Alarm equipment.  It’s the old World Electronics people. Great Product.

    Please feel free to call if you have questions.

Thanks

MARK H GORDON

SYSTEMS SPECIALIST

SYSTEMS DISTRIBUTORS INC.

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Ken:

    I received circulation of the above question and would like to chime in with the following:

    NFPA recognizes and stipulates the performance requirements of “Low Power Radio (Wireless) Systems” in The National Fire Alarm Code Chapter 6 for editions 2007 and earlier and Chapter 23 in the 2010 edition.

    There is no requirement either in the National Fire Alarm Code nor by UL  as to the necessity of having wired component as part of a listed wireless fire alarm system.

    The wired component is a manufacturers choice. Some manufacturers of wireless products utilize receivers for the receipt of information from initiating devices and then the data is transferred via other means such as wire, slc, etc.

    CWSI for instance uses repeaters for the transmission of data from initiating devices utilizing only air as the transmission media.

    Both technologies are sound, but wanted to clarify that a hardwired component is not required for a Commercially listed system.

    I appreciate the opportunity of responding.

Regards,

Scott Barrett, President

CWSI, LLC

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Ken,

    Commercial wireless fire alarms "systems" are code compliant when the devices are listed by UL 864 and installed in accordance with NFPA 72 rules for "low power radio" type systems. Off premise monitoring of  either Central Station or Remote Signaling monitoring can also be achieved with wireless devices only.

    Our company, HB Fire Alarm of RI, has the distinction (according to Honeywell) of having installed more wireless commercial fire alarms (approaching 200) than any other company.

    We have had to overcome stiff opposition from some in the AHJ community but our persistence is finally paying dividends.

John Bourque

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So is the question really about transmission of a fire alarm signal to a receiving station or is it “can the detection and notification devices be wireless”??  There are in fact wireless system products listed by UL and others that are for commercial applications.

Daniel W. Budinoff

Security Specialists