Alarm Expert "Absolutely Floored" About DIY Systems

JH
John Honovich
Feb 14, 2014
IPVM

An alarm expert is 'absolutely floored' to see that DIY alarms systems are a real threat.

My goodness - security alarms are a super low growth, high profit, high sales cost structure, offering with a terrible reputation and questionable effectiveness. This is custom made for disruption for new tech entrants.

Alas, here is what the founder of Barnes Buchanan, the most frequently cited alarm expert, has to say:

"Barnes admitted that he, like many in the industry, had been a bit skeptical about the viability of DIY until he recently worked with a company that specialized in providing these types of systems. In working with that company, he soon realized that one of his neighbors had purchased a DIY system to protect his home and that not only was he able to install it quickly and effectively, he was also familiar with the ins and outs of all of its capabilities. However, Barnes said he was “absolutely floored” when he learned that the customer attrition rates of the company he was working with were lower than those of traditional alarm dealers."

These DIY systems are far less expensive for a service that most people rarely need to use anyway.

In the next decade, there is going to be multiple, multi-hundred million 'DIY' alarm providers that undermine the alarm incumbents. It's an obvious consequence of the growth of core technologies.

JC
Jason Clement
Feb 14, 2014

A lot of tradional Integrators with Central Stations are going to be "floored" in the next 5 years. I worked for one and the only reason I had monitoring because it was super cheap for employees. Since I've moved on I don't bother with monitoring. I can only see that market continue to decline as DIY kits become more prevalent from all the companies out there and become even easier to use and install. One of the many reasons I decided to leave that part of the business.

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