Subscriber Discussion

Am I A Truck Slammer Now?

UI
Undisclosed Integrator #1
Aug 06, 2018

Our company was formed in January of 1991, we currently have 9 office employees and some 20-30 technicians depending on the time of year. We are licensed in a dozen states and have done work in high-security buildings and many businesses and homes during that time. We're by no means a new company or a small company. Two of our key employees started in the security industry 10 years before our company was formed.

Seven months ago I decided I wanted to learn more about our company, customers and the equipment we offered. I made the decision to sell, install, program, service, and invoice 2 home security systems each week for the entire year and see what I learned. I wanted to learn about the whole process and find out what was wrong with it and then start correcting it on my own first and then implement it throughout the company after I refined and proved the new processes.

Let me say this, I grew up in the security industry. I've been installing, programming and testing burglar alarm, fire alarm, CCTV and access control since I was a young teen. What I'm about to say goes against what I have believed in for decades. Here's what I found wrong with our company.

  1. A technician can spend anywhere between 20-45 min unboxing and assembling wireless security devices. Installations should only take 45-60 min.
  2. Technicians failed to upsell to customers during the installation, the average install I did (even though I sold the job too) I would sell 30% more than the original agreement during the installation.
  3. Taking over an old hardwired system with a new hardwired system in a home is a waste of resources (unless it's a very large home), I'm referring to smaller homes with no more than 20 zones give or take.
  4. A technicians technical skill set is less important than people skills. The ADT CEO wasn't wrong about what he said.
  5. Consumers don't care about how sophisticated the technology is, they want something that works, that's easy to use, that has an app and hold strong value. That's not to say they're cheap, they just need to see real value.
  6. Customers are not happy with installations that take one or two days.  
  7. Programming should be done by the technician doing the installation.
  8. Every dollar counts when purchasing equipment.
  9. 100% hardwired homes are dead to me. (again I'm referring to homes with less than 20 zones give or take)
  10. Return trips are unacceptable. (this means completing the installation because the tech didn't have a part on the truck or because the install took too long or the customer wanted a part that wasn't on the original agreement)

Here's why I titled this, "Am I A Truck Slammer Now?". This year I have been driving around with a step stool, a small bag of tools and hundreds of security devices in the back of my Jeep. I've been selling, installing, servicing, programming and invoicing residential customers on my own. I've basically been a truck slammer when it comes to my residential sales. I've never been happier, my residential customers have never been more satisfied and most importantly, I've never been more profitable in the residential market. I've continued to sell video surveillance, access control, and larger burg and fire alarm projects this year but have not sold a single residential alarm system through our traditional methods. We're totally changing the way we look at residential and creating a hybrid model for sales and installation. The traditional security industry is outdated and will ultimately lose to companies like Vivint and the dozens of other alarm companies like them based out of Utah and the startups like Ring and Simply Safe. Our company is here to compete (in our local market, I have little interest in going outside of where we are now) and we're doing this by doing something no one else is doing in the industry. When I originally wrote this I gave a response to each point above and explained myself and what I actually learned and how I learned it. I decided that I wasn't in the mood for giving the information away so easily.

I will say this, our company is moving to adopt more "truck slammer", "door to door" and "DIY" type behavior in the residential market and it's making our company stronger and more profitable.

I'm interested to hear what you guys think is wrong with the residential side of your business. My list isn't complete by any means but I think it's enough to get a conversation going.

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JH
John Honovich
Aug 06, 2018
IPVM

#1, this is super interesting. Thanks for sharing!

Question: When you say:

This year I have been driving around with a step stool, a small bag of tools and hundreds of security devices in the back of my Jeep. I've been selling, installing, servicing, programming and invoicing residential customers on my own.

How has that impacted with your office employees and technicians? Do you have the same as before? And if so, are they more productive / profitable, etc.?

One general point I will make it that it is hard to profitability scale up integration businesses since it so heavily dependent on the quality and performance of individual people, ergo why professional service businesses (whether it is law or architecture or plumbing or security integration) tends to be niche / smaller companies.

UI
Undisclosed Integrator #1
Aug 06, 2018

This experiment had little impact on the rest of the the company. Most didn’t know I was doing this. Revenue didn’t struggle. Most of this was done in my own free time. 2 installs a week only takes me 2 hours. 

I wont do this myself for much longer, while I’ve enjoyed it it’s not really worth my time in the long run. I now have a program for new sales/installation people we bring on. 

Our current techs and sales people will be used primarily for larger projects from here on out. I’m not going to waste my time retraining seasoned people. 

The new sales people who come on embrace the business model easily and appreciate why we do it. 

I think our seasoned techs appreciate us using their skills for jobs that require more skill. They’re frankly over qualified for residential installation and I think they don’t preform well on those installs because they know it. But that’s another conversation I need to have with them in the near future. 

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U
Undisclosed #2
Aug 06, 2018
IPVMU Certified

I will say this, our company is moving to adopt more "truck slammer" ... type behavior...

I think that’s fine as long as your truck has no trunk ;)

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UI
Undisclosed Integrator #1
Aug 06, 2018

Lol I’ll need to edit that back to trunk slammed!

SD
Shannon Davis
Aug 06, 2018
IPVMU Certified

You are right with this. To me a trunk slammer is someone who has used car sales attitude, sells the wrong stuff, does a poor install and is just a mess. What you did is how I ran my personal business years ago when it was running. A while back a Honeywell Security rep did a survey with many of his customers on how long it took on average to do a wireless installation and most came back with 3-4 hours typically. Some even more. He would ask why so long and tell them how I (me) used to do a hardwired basic+ system in typically 2 1/2 hours on average. Of course I was much younger back then. These were even installs where no wire was showing either.

I agree the times they are a changing. I have been telling people in our industry if we as true integrators, not residential, don't start having managed services to offer customers then we too will be the trunk slammers of the industry. I see it all the time now where the customer just wants a box sale for cameras as they will install the equipment themselves. We keep getting more and more removed from what we sell so we have to adapt to how the industry is changing.

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UI
Undisclosed Integrator #1
Aug 06, 2018

We used to hammer out several prewires a day back in the 80’s before our company was formed and we were selling hundreds of residential systems each week. I honestly don’t know what happened between now and then. I think a lot of it has to do with technicians not being as skilled as they once were. One of our techs has been with us 30 years now. He used to do a lot of installs. But he’s almost 55 not and just not as physically capable as he used to be. There’s a real shortage of new techs coming in who have the skill and motivation to move quickly. That’s one of the biggest reasons we’ve been moving to wireless. My father told me 5 years ago we would never do wireless. He hasn’t installed a system in 20 years until he did two this year. I told him he needed to experience what I did and sent him out in the field. He hammered out one install from one manufacturer in 3 hours, the other manufacturer he finished in 45 min. I asked him to pick which company we were going to work with from now on. We both came to the same conclusion. Now I’m just rambling. 

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SD
Shannon Davis
Aug 06, 2018
IPVMU Certified

As I said in another post the margins today aren’t what they used to be and we run thin with help so get to the proper training to new people is tough. Also it seems that people don’t want to train others as well. Maybe they think if they train someone younger they will take their job. To me I want someone to learn as much as I do and more, especially if I am a supervisor. A good Supervisor has great people under them. Also there is probably much to be learned from the younger generation if you aren’t up to date on IT stuff. I will say I did my first residential in over 15 years a couple of years ago and let me tell you it gave me a beat down. I started prewiring on the second floor in a house that had no air conditioning on a beautiful 103 degree day. Hard to kick old habits I guess. 

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UI
Undisclosed Integrator #1
Aug 07, 2018

I have to say, with our new business model our margins are stronger and we’re more profitable now. I also think we will be able to scale faster. We still have somethings to workout but afternoon the last 7 months of experimenting on my own I actually know what needs to be done now. Before it was just me thinking I knew what was going on when I really didn’t.

SD
Shannon Davis
Aug 07, 2018
IPVMU Certified

Good for you I must say. We have talked about residential at my work but I am the only one with any experience and it is a completely different model from installation, especially service and billing. Don’t get me wrong the new technology is really awesome. 

UI
Undisclosed Integrator #1
Aug 08, 2018

It is a totally different model, that's why our company failed at it for so long. We are professional integrators, we tried to treat home security systems the same way. Using the same techs, the same salespeople, the same processes and similar equipment. We were never as successful as we could have been because of this. We added hundreds of alarm accounts but they just weren't as profitable or installed as well as they could have been had we taken a different approach. 

LJ
Lee Jones
Aug 07, 2018
Support Services Group

Thanks for sharing….

To continue sharing…. by listening and observing during my semi-retirement, after about 50 years in the “space”….

We often forgot about the customer expectations. The customer still believes “security” is the “product”, not the shiny new “things” throughout the property, or a “monitoring” service.  Millions of current alarm systems have been downgraded by state and local legislation, from “defensive” systems (police notification) to “deterrent” systems (customer notification).  We forget, local police have no obligation to respond to unwitnessed nuisance calls from private monitoring firms, like ADT.  However police have been providing “courtesy response” for decades, which has been abused for decades by the alarm industry.  Slow, or no response, by local law enforcement is now the norm… downgraded service, but not degraded fees. In today’s world, the little blue yard sign, and window decals, could be the most important part of the “deterrent” system, but not @ $4-500 annually, year-after-year. 

Are you delivering your customer expectations, wireless or hard-wired? If not, expect major attrition, and degraded market value of the RMR.

Source: Lee Jones; Support Services Group

 

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UI
Undisclosed Integrator #1
Aug 07, 2018

I have to disagree with your assessment, and the North Carolina Criminology Institute would as well. Yard signs and window decals are absolutely not an effective deterrent. Traditional central station monitoring combine with smartphone apps, and video verification at the central station has increased police response time and increased the likelihood of burglars getting caught, creating more value to the customer and police. Our systems are no long defensive it is true, our systems take on a more offensive approach to protecting homes and businesses with the use of integrated video doorbells, cameras, and home automation. We’re offering stronger security for homes and businesses than ever before. While home automation existed decades ago, it was never user-friendly or truly worked to increase security until recently. The value of our RMR is growing with the sheer amount of data now available to use that allows us strong market penetration enabling us to better market to our customers.

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LJ
Lee Jones
Aug 07, 2018
Support Services Group

You are correct….I fully agree with (most of ) your comments…. Thanks for adding more detail and timeline.

Where our two messages seem to differ is the generational timeline. You seem to be highlighting current and future generation customers (like SimpliSafe & peers). I was highlighting the expectations of millions of existing deterrent type customers, ie motion sensors with remote monitoring, but without any remote witness capability, aka “deterrent type”. Which describes the millions of monitored customers within the portfolio of ADT and Monitoronics/Moni, and their peers all cross the country.

You are correct, law enforcement all across the country is delivering the same message… “you see something, say something”, ie you witness a threatening 911 type event, you will get 911 type response…and slow or no response to “deterrent” type property alarm systems. Statewide legislation, including TX,GA,FL, focused on deterrent systems, has already banned calls from licensed monitoring firms, until interaction with the customer first. Local legislation is leading and following the trend.  

I also referenced declining market value of “deterrent type” RMR. Current examples is the stock price of ADT and Monitronics/ Moni/Brinks. It was said that “the ADT/Apollo IPO was the worst performer of a billion dollar company in last 10 years” (still in single digits). And Monitronics/ASCMA has dropped from $88 to about $2.80 today. Much of their performance is the expectation of long term attrition of deterrent customer/revenue. And the high cost of replacement when historic multiples is not sustainable.

Source: Lee Jones; Support Services Group

 

JH
Jay Hobdy
Aug 07, 2018
IPVMU Certified

I think trunk slammer is more of a mindset/business model versus the qty of people. I think a company of 10 could be trunk slammers if they are stocking this week's ADI camera special on the truck and trying to sell it.

 

On the flip side, I think a 1-2 man operation could be doing an absolutely great job if they are quoting based on the client's needs, performing work in a professional manner, etc.

 

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UI
Undisclosed Integrator #1
Aug 08, 2018

I agree with that. When I am referring to a trunk slammer, I am mostly referring to going fully prepared to complete the project for the customer without a return trip if they request new equipment or you see a need while on-site. Most trunk slammers I know have everything they need. They hate going back and hate having to service the system unnecessarily (some just don't service them but I'm not talking about those guys). This means going in with a totally different mindset from your typical hourly paid technician. 

UI
Undisclosed Integrator #3
Aug 08, 2018

When you mention installations should take 45-60 minutes, are you referring to takeovers or a complete new install? I'm finding it difficult to believe you can properly install a new system with 10-20 zones, program it in the field, test each zone, get all the paperwork signed, and teach the customer how to use the system in less than 1 hour by yourself. There are just too many variables. 

 

UI
Undisclosed Integrator #1
Aug 08, 2018

45-60 min for either a takeover or new install. There's no reason it should take any longer than that when you have your method down. This may not include customer demo if they have a lot of questions. I typically do a demo at the time of the sale to answer most questions before we even close the deal. Unless there's someone new at the install it doesn't take long to give them a refresh of the system.

It's all about the method of installation and equipment used.

I used to be in the boat that it would take 2-4 hours to complete an installation. After some experimentation, sourcing new equipment and coming up with a process for installing systems I got it down to less than an hour. Most installs don't take longer than 30 min as the average install is 5 doors/windows and 1 motion detector. 

UI
Undisclosed Integrator #3
Aug 08, 2018

I could see 5-6 wireless zones being completed in an hour, but that is a pretty basic install. I guess most of my installs are in what you would consider a large home. I am typically at 15-20 zones and I try to spend at least 15-20 minutes going over the system operation with my customers. Covering multiple scenarios and having them do the actual work vs. me just showing them. This confirms they have received the knowledge on how to operate the system and reduces follow up support. 

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UI
Undisclosed Integrator #1
Aug 08, 2018

I agree with you on the customer demo, that's a similar method to mine.

I understand where you're coming from. 5-6 zones in an hour used to be similar to what we did. A change in method and equipment makes a big difference.

As I mentioned above, while I am a licensed low voltage electrician, I would not call myself an experienced or seasoned alarm technician/installer. I started working on alarm systems 15 years ago but haven't logged many hours installing until this year. I had to throw everything I was taught out the window, combine it with what I have learned from friends who own door-knocking alarm companies and my conversations with trunk slammers to come up with a new method of professional/fast installation. In order to accomplish this, I had to change the equipment we were using. Without a change in equipment, this would not have been possible. 

UI
Undisclosed Integrator #3
Aug 08, 2018

*EDIT* replied in wrong spot.

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Mark Jones
Aug 08, 2018

Your efforts are to be applauded and owners and/or managers should absolutely get out into the field frequently.  You plainly stated that you yourself performed these installs in your "spare" time; you are the owner and that is vastly different than an employee conducting this experiment.  Traditionally, technicians and office staff are not compensated beyond their job description and most will not perform beyond those boundaries.  If you want buy-in, you have to ante' up.  Here are some things I take from your results, and again, I do appreciate them.     

Residential Only 

Rule 1 - Wireless systems are not the future of residential alarms, they are the backbone.  There is just plain little money in traditional hardwired systems (since most are less than 20 zones).  Manufacturers know this and have been on the leading edge for some time now.

Rule 2 - A properly stocked vehicle is one of the most essential tools on the job site.  Profitability goes out the window on a return visit. 

Rule 3 - To increase a company's bottom line, you should absolutely share the profits with the installers.  They are and have been the "face" of the company for some time. 

Rule 4 - Proper scheduling of your personnel is still of the utmost importance.  That person or persons who schedule your most important resources are just as valuable as the techs themselves.  Pay them accordingly. 

Rule 5 - You have to make your commitments.  

Rule 6 - We are all, each and every one of us, in the people business from the time we leave our homes until the time we get back, every single day.  People skills are just as essential as technical skills.  If you don't like people, if you don't develop very good people skills, you are going to suffer.

Rule 7 - You, or someone in management, must continually train and emphasize and clearly communicate to your entire workforce.  Everyone takes what they have now for granted eventually.  

As to the original question, are you a truck slammer?  I have always heard the term referred to as "trunk slammer" and it carries a very negative connotation in every industry; someone who has no knowledge of what he/she is doing and is just in it for the money.  They have no skill other than the ability to sell whatever is in their trunk today.  That wears very thin, very quickly.  The customer expects you, the professional, to compete with a trunk slammer on price, but have the complete infrastructure for support later.  It does not matter if that is right or wrong, it just is.  This is a very informed public.  Google reviews, Yelp, etc can help you or hurt you.  You are in the people business.  

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UI
Undisclosed Integrator #1
Aug 08, 2018

Thanks for the feedback. To be clear I do not own the company.

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Mark Jones
Aug 08, 2018

You should.

UI
Undisclosed Integrator #1
Aug 08, 2018

That's the long-term goal. 

RS
Ryan Strange
Aug 08, 2018
ControlByNet Cloud \ Managed Video Surveillance

Trunk slammer means different things....generally I consider it someone who's selling a sub-par solution, and they know it's cheap and there's a good chance it may fail.  They generally are out of the picture once the hardware is sold.  The key there is 'THEY KNOW' it's just a hardware moneymaker.

We have just replaced 3 multifamily solutions around Atlanta where reputable companies did the first install....one within a year.  One with cheap IP cameras (big markup) and a poor wireless connection.  The company didn't want to come back and repair it.  That is fairly common.  So now we will take over those communities, do a proper diagnosis and move them to a managed or full cloud solution for $16-$24/cam/mo acting as a true service solution.

BTW those same companies refuse to believe a managed service or cloud solution for video will ever take off....  

UI
Undisclosed Integrator #4
Aug 08, 2018

You make some good points, but I am not sure everyone can do what you are trying to do.  It requires a company to be much more nimble than most Security Integrators typically are capable of.  Which probably supports your assertion here ... in order to do this, you need to be nimble and efficient.  It sounds like you are retooling and using a workforce with a different skillset than the traditional sales and technical staff divisions.

  1. A technician can spend anywhere between 20-45 min unboxing and assembling wireless security devices. Installations should only take 45-60 min. 
    << This points to efficiency of time, and if you are spending half the job's assumed time budget on unboxing and assembling, you are already losing money.
  2. Technicians failed to upsell to customers during the installation, the average install I did (even though I sold the job too) I would sell 30% more than the original agreement during the installation.
    << This is a very good point, and most security technicians do not see themselves as salespeople.  Your point is that everyone is selling something, and if technicians and installers are not trying, then they are a detriment to the company.  There are both sales 'skills' or training, and people skills that both come into play here.
  3. Taking over an old hardwired system with a new hardwired system in a home is a waste of resources (unless it's a very large home), I'm referring to smaller homes with no more than 20 zones give or take.
    << What is the sweet spot for you?  What is too small or too large to make money on?
  4. A technicians technical skill set is less important than people skills. The ADT CEO wasn't wrong about what he said.
    << see my comments in #2.  You are correct about people skills. Those without them are limiting sales for the company.
  5. Consumers don't care about how sophisticated the technology is, they want something that works, that's easy to use, that has an app and hold strong value. That's not to say they're cheap, they just need to see real value.
  6. Customers are not happy with installations that take one or two days.
    << Are you saying this because of the cost for the 1-2 days, or some other reason?  Do you find this is true for home security systems mainly, or commercial? 
  7. Programming should be done by the technician doing the installation.
    << Are you saying this because you are finding with these small home alarm systems in particular, this is most efficient, or because that should be true in a larger sense?  We find most large jobs are more efficiently programmed off site.
  8. Every dollar counts when purchasing equipment.
  9. 100% hardwired homes are dead to me. (again I'm referring to homes with less than 20 zones give or take). 
  10. Return trips are unacceptable. (this means completing the installation because the tech didn't have a part on the truck or because the install took too long or the customer wanted a part that wasn't on the original agreement)
    << Very good point if you have low labor lines or low labor margins.  Every return trip may double your labor cost.
UI
Undisclosed Integrator #1
Aug 08, 2018

<<This points to efficiency of time, and if you are spending half the job's assumed time budget on unboxing and assembling, you are already losing money.

 We had to make a supplier change here to make this happen. Our supplier has made minor modifications to both our equipment and packaging to make this part of the process more cost effective for us to purchase and more efficient at the install. I had a few more changes I want to make but we're almost there. 

<<This is a very good point, and most security technicians do not see themselves as salespeople. Your point is that everyone is selling something, and if technicians and installers are not trying, then they are a detriment to the company. There are both sales 'skills' or training, and people skills that both come into play here.

For years I have offered the technicians commission for devices they sold while on the job. 99% of the time if a customer wants something the tech will just tell the salesperson what they want. Then the salesperson quotes it and we go back and do it if approved (mostly not approved because of the additional cost of the return trip isn't worth it). I can't wrap my head around why the technicians wouldn't just take the order and do the install at the same time. They could easily make an extra $50-$100 per install. Just goes to show, money isn't a real motivator. This is why we're moving away from using traditional alarm industry technicians in residential security. 

<<What is the sweet spot for you? What is too small or too large to make money on?    

Nothing is really too small or too large to make money on. But typically when we see more than 20 zones we are making a jump to a system with 50 or even 200 zones in the home and in that case we will hardwire. Also once you go above 20 zones and make that leap it's just annoying for the customer to change all those batteries and costly in the long run. It's typically easy to convince these customers to pay the $10,000 or more for the system.

<< Are you saying this because of the cost for the 1-2 days, or some other reason? Do you find this is true for home security systems mainly, or commercial?

Most homeowners we deal with are working every day. To take two days off work and spend thousands of dollars on a security system isn't realistic. We are also able to be more profitable installing 4 or 5 systems in a single day than one system in two days. Just think about the RMR $XX/month times 5 systems or 1 RMR value for two days work. In the long run, 5 systems are worth exponentially more to our company than 1 system. 

<< Are you saying this because you are finding with these small home alarm systems in particular, this is most efficient, or because that should be true in a larger sense? We find most large jobs are more efficiently programmed off site.

It's more efficient in these smaller systems. When we do programming from the back office it ties up one of the programmers for an hour or more while they work back and forth with the technician on-site to get it done. We still program more complex projects from the back office. In those cases, I can get away with charging for the office employees time. I can't get away with that in a home.

<< Very good point if you have low labor lines or low labor margins. Every return trip may double your labor cost.

It's more unacceptable to the homeowner and damages our reputation. Our new program requires whoever performed the installation to guarantee their work for 90 days. There's a holdback in the pay scale until the 90 days is up. If they want the rest of their money they must go back and repair as needed. We have only had one return trip in the last 7 months. Once we get a higher volume we may adjust this policy...we will see how it goes. 

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UI
Undisclosed Integrator #4
Aug 08, 2018

"Most homeowners we deal with are working every day. To take two days off work and spend thousands of dollars on a security system isn't realistic. "

Excellent point about the value of the customer's time.  They don't want to be bothered to have the installation affect their life, job, etc...

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Daniel S-T
Aug 08, 2018

As a technician...I don't want to sell things. Period. I've had bosses try to get me to do up-sell stuff on site, straight up no. Not in my job description, not what I got hired for. If I wanted to sell, I would become a sales person.

Now that being said, if a customer asks for an additional piece of equipment while onsite, I will get the price for them and do it if they approve (and I have parts). But I am not going to go out of my way to start suggesting this and that. That's what sales people are for.

This is not an issue for me anymore, but my previous two employers were always trying to get us techs to up sell clients. The techs that did, the process was they had to phone into the office to get the customer price, and then we relay it to the customer. If they approve, tech installs. Sometimes the tech was told by the office we would have to return, not enough time, already another job booked, what ever.

UI
Undisclosed Integrator #1
Aug 08, 2018

"As a technician...I don't want to sell things. Period...Not in my job description, not what I got hired for."

I'm going to make a pretty generalized comment so please don't take offense, this isn't necessarily directed towards you.

This kind of attitude is all too common amongst technicians. When I approach salespeople about installing the wireless security systems they sell and I offer to pay them per install...most of the time they jump on it. It's easier to train a salesman to install a wireless security system than it is to train a technician to sell.

This is why traditional technicians will no longer be installing residential security systems for our company. We no longer have time to screw around going back and forth between the office staff, salesman, technician and the customer. We need our people to take control of the situation and move forward not wasting any unnecessary time and exceed the expectations of our customer. The customer deserves better than to have to talk to two or three different people to buy another smoke detector or window sensor. 

A salesman needs to be able to install and program these devices and technicians need to be able to upsell on the spot. No questions asked. 

We're not just competing against the big alarm companies anymore. We're competing against dozens of DIY companies that are coming at us swinging. One of my friends runs a team of 15 techs installing home security. Last he upsold $60,000 in equipment personally. That's mind-blowing to me. He's a fully licensed electrician too, not just some college kid slamming in alarm systems. 

During the sales process, most residential customers don't care about equipment or system design. I realized this more and more over the last 7 months. I always knew it but never actually experienced what I'm about to explain. 

During the sales process, all the prospected wanted to talk about was who we were, how the system would be monitored and if they could trust us. That was pretty much it, yes we talked a little about equipment and system design and did a demo of how it all worked but that was not what was at the forefront of their mind. 

Now when we get to the installation (again, in this case, I'm doing both so I got to experience both sides of this first hand). The customer all of the sudden cares about the equipment and what is going where. While we did talk about this device going there or another device here. They typically went with whatever the ultra-basic system was when we signed the contract. Once I got to do the install and brought up this device or that device, they were all of the sudden a million times more engaged than during the initial sales process. For too long technicians and salespeople have been divided. One always blaming something on the other. One or the other saying this isn't my job it's yours. 

I've tried for years to get rid of this division in company culture. I've seen it destroy so many businesses. My solution now is to eliminate the separation. Eliminate finger pointing by putting one person in charge of the sale, programming, and installation for the client. 

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UI
Undisclosed Integrator #4
Aug 08, 2018

I have worn a lot of hats in the past, including installation technician, service technician, service manager, sales, systems engineer, et al.  I am also the child of a salesperson who said most of my life that I never want to do sales ... and now I do sales.  *sigh*

So I understand your attitude and reluctance to add that role.  My employer currently has many technicians that say something similar.  I used to.

What I would just point out here, is that what you communicate and how you communicate to customers tells the customer a lot about you and the company you work for.  That is sales, whether we like it or not.  What you and your company are capable of (competence), what equipment you install (quality and reliability), how you treat them (respect).  Customers and non customers we interact with are always asking questions and evaluating the "why's" behind working with companies.  That is why trunk slammers don't usually keep customers.  They fail to correctly sell answers to the longer term questions in that equation.  The values you communicate either sell what the company wants you to sell, or they don't.  I've seen technicians or other employees let go because they did not or could not properly represent the companies' value.  Essentially, they failed at selling. 

What may end up happening in this industry is those who cannot or are unwilling to be flexible and sell in contexts like what is being discussed here, those who cannot function in an out of the box role, may find themselves going the way of the dinosaurs. 

SB
Steven Burman
Aug 09, 2018

Driven to extinction by meteor-impact related climate change? 

UI
Undisclosed Integrator #4
Aug 08, 2018

"Our new program requires whoever performed the installation to guarantee their work for 90 days. There's a holdback in the pay scale until the 90 days is up. If they want the rest of their money they must go back and repair as needed. We have only had one return trip in the last 7 months. "

This is a really intriguing idea, by itself.

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Avatar
Ron Pullen
Aug 09, 2018

Do you pay them on piece work?

 

Thanks,

Ron Pullen

UI
Undisclosed Integrator #1
Aug 09, 2018

Yes, again this model isn’t intended for seasoned techs. Most wouldn’t be interested in it. These are for young people just getting into the industry. In the long run they will earn far more money and work less days of the year than a standard tech. 

Avatar
Ron Pullen
Aug 08, 2018

Interesting comments.  I agree that the landscape is changing.  Customers don't necessarily want a salesperson coming to their home.  They are more educated because of the internet and they have a better understanding of what devices and features they want.  Also, their time is very important to them. In years past we would never consider pricing a system over the phone.  It was all about the consultative approach and getting into the customers home to show them how important they are.  Times are changing and we have to change with them to stay competitive in the market place.

Ron Pullen

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UI
Undisclosed Integrator #1
Aug 09, 2018

It’s funny you say that. Last year I started pricing over the phone and only go out to about 40% of the homes I sell before the install. Life is easier. Just one more way to save money. Think about the time and gas it takes to go out to do a site survey. This is where techs have to be nimble because it’s almost never 100% accurate. Get the main order down and then adjust accordingly on the spot.  

U
Undisclosed #2
Aug 08, 2018
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UI
Undisclosed Integrator #1
Aug 08, 2018

Shoot. I forgot about that thread. Old one but a good one. 

UI
Undisclosed Integrator #5
Aug 08, 2018

This is a very interesting thread.  I own a small integration company but we do not do residential burg. We've thought about it over the years but never got excited enough to pursue it.  After reading your post, I am very interested in looking deeper into it, particularly with your enthusiasm over wireless equipment and quick installs.

 

Can you share a few more specifics?  

1. Typical selling price for a system for a 3br 2 bath house? $Equipment and $Installation

2. Typical monthly monitoring charge?  % retained by integrator? 

2b. Are you using a traditional Central Station?

2c. If so, are you competitive with the alarm.com's of the world?

3. What type of communication to Central Station? Using Wifi/Internet for central station connectivity?  If so does this require any router port forwarding config type issues?

4.Manufacturers from your experience that that provide the most reliable equipment/install friendly equipment

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UI
Undisclosed Integrator #1
Aug 08, 2018

Up until 6 years ago, we had very few residential accounts. It wasn't until I took a personal interest in it that it started growing. We have doubled the size of our business in the last 5 years. 90% of our business 6 years ago was commercial, now only 60% of it is, both commercial and residential continue to grow consistently. 

1. I can't answer this question. I've spent 6 years coming up with a price that's attractive. 

2. We keep all accounts in-house. Since we are commercial security first we have the capital to keep them in-house without going through a dealer program. I can't answer the pricing question either. Again this has taken a lot of my time to figure out.

2b. We use a contract central station. Even if we had 250,000 accounts I wouldn't monitor our own alarm systems. 

2c. Alarm.com is just an app. They do not provide monitoring or anything like that. I wouldn't trust alarm.com if they paid me. 

3. LTE radios and wifi or network. Port forwarding is a thing of the past. If you need to port forward something you're using the wrong equipment. 

4. I can't say. This is something I have worked on sourcing for years. I've sent hundreds of hours with manufacturers and factory reps for the last 6 years learning, building relationships and negotiating.

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SB
Steven Burman
Aug 08, 2018

What we always referred to as a "trunk slammer" was the unlicensed and uninsured system installers whose "office" was their cell in their car.

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Klay Anderson
Aug 08, 2018
Klay Anderson AVL

"Trunk" slammer, I believe, is the term. Derogatory term for a contractor who has minimal skill, experience and equipment. "Trunk slammer" implies the contractor works out of their car trunk, with no office or licenses and they will likely be difficult to find if the client is not happy with the work.

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