The security business is booming. Both residents and businesses want security cameras and other monitoring devices to keep an eye on their property when they aren’t there. Everybody with a wireline network should be considering offering security services of some type. There are a number of different ways to approach the security business, as follows:
Security Cameras. Your customers are interested in security cameras. They may want them for the traditional purpose of watching their business. But they now want them for a whole lot of other reasons. Farmers want them to keep an eye on livestock and on expensive farm machinery. Residents want to keep an eye on the babysitter, the pets or the kids when they aren’t at home. People want to be able to see who is at the front door before they answer it.
Your customer can go to Walmart or Radio Shack and pick up a run-of-the-mill camera. But given a choice, your customers probably want a quality HD camera, professionally installed. There is a huge difference in the picture quality between an older analog security camera and the new HD cameras. It’s the difference between being able to see that there is somebody in your home and the ability to read the name tag on the pocket of their shirt.
Most of your customers are not going to be comfortable with or have the knowledge needed to install an HD camera properly. Ideally cameras ought to be installed on coaxial cable rather than using WiFi so that it will work if the WiFi gets knocked out. To be effective a camera also ought to be on some kind of backup power if the customer wants to be able to see what is happening if the power to the premise is cut. You will want to choose cameras that come with the ability to let the customer see what the camera sees using their cell phone.
Why is this a business opportunity? I have been advocating in this blog that telecom businesses need to decide if you are going to be a full-service provider or a dumb-pipe provider going into the future. If you are going to be a full-service provider then you should look for opportunities to go into customer’s homes and businesses. Services like installing security cameras are not going to drive a lot of revenue. Instead, it will pay for a few hours of your installer’s time, but it will give you a chance to get to know your customers better, to upsell them on other services and to create loyalty since you are the provider who will take the time to visit and listen to them.
Recording. While there isn’t a lot of money to be made in installing cameras, you can sell a monthly service to record what the cameras see. This requires you to establish a high-speed connection to the camera and to have recording devices capable of storing and retrieving video. Ideally you will only record a camera when there is something to record. This can be done by including a motion detector that will trigger the recording. Any recordings you save should also record a time stamp so that you know when the recording was made.
There are off-the-shelf systems for recording video in this manner and you don’t have to reinvent the wheel. But investing in this kind of product line means that you will need to do the math and figure how many customers you will need to justify getting into the business. The normal pricing for this service would consist of a monthly fee to record the images plus a fee when customers want to retrieve recordings over some set limit of times.
Monitoring. The next level of security involves monitoring and this gets into the area of more traditional burglar alarms. There are a number of well-known nationwide brands of security monitoring like Frontpoint, ADT, Vivint, Pinnacle and Life Shield.
How can you compete against the nationwide firms? The burglar alarm business has two components – selling / leasing the hardware and the monitoring function. You can buy the same security system hardware used by any of the nationwide firms. There is a wide array of different systems available. The nationwide companies make a lot of money on the hardware and the installation. They generally advertise a low price but then quickly try to upsell customers to get additional hardware. You should be able to compete and beat the pricing that these firms offer on hardware. And you can offer this without the somewhat sleazy sales tactics that many of them use. Tout yourself as the ‘honest’ firm and many people will be interested.
Second, you can now buy monitoring services on a wholesale basis. There are security monitoring centers that will act as your back office to monitor the alarms and dispatch fire and police as needed. You can easily mark-up their fees and still make a nice monthly margin for monitoring a customer.
Many customers have been through the mill with the nationwide firms since many of them deploy high-pressure sales tactics. Customers are going to prefer to go with somebody they know and trust and who gives them what they need for an affordable price without the high-pressure sales.
The Full Deal. There are also upper-end security systems available that come with the latest high-tech monitoring devices. There is a wide array of different sensors available today that let a business test for all kinds of events. The upper end systems typically are for businesses that want to do a better job of monitoring both security and safety at their premise.
Any carrier can obviously get into the high-end security businesses because anybody can buy the systems used. But my word of caution is that this business line requires a lot of research and the companies you will compete with know what they are doing.