Subscriber Discussion

Be Aware The RMR Booby-Trap.

U
Undisclosed #1
Jul 16, 2017

Be aware of the RMR booby-trap.

Market value of RMR in the alarm industry has been very stable, very predictable, and very rewarding, for many decades.  However, it now is expected to deteriorate from historic values…WHY? 

What is the “RMR product and what gives value to the product?   The product is not the alarm system…. the product that can be monetized is an add-on service… 24-hour remote monitoring with the expectation of emergency response if the monitoring firm determines a site emergency. Key word is “expectation”.  Without probability of emergency response, the historic value disappears.

Decades ago, the alarm industry off-loaded the role of voluntary emergency response to the local police. Due to the near total failure, over 98% unnecessary response, and unsustainable costs, law enforcement is saying… no more.   Now the expectation can be low priority, or no police response to private monitored deterrent alarm systems…. the RMR booby-trap.

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JH
John Honovich
Jul 16, 2017
IPVM

Due to the near total failure, over 98% unnecessary response, and unsustainable costs, law enforcement is saying… no more.

While there are certain a number of law enforcement agencies saying no more, it seems to me that those are still the minority of municipalities. Am I wrong about that?

U
Undisclosed #1
Jul 17, 2017

Thanks John for helping to connect the dots…  I could have been more specific. This topic is a bottomless pit of controversy due to decades of tradition and evolution.  And legislated fire alarm systems are not commingled with police services.

 

We forget, local police are not a party to the private contract for these private services. Local ordinances and policy provide guidelines, however local police retain near total discretion at time of dispatch to determine the response priority. They have no obligation to private citizens or the overall community to respond to requests for response to nuisance alarms. It is a voluntary public service.  In some states, they could even lose their sovereign immunity.

 

Most of the millions of imbedded remote monitored RMR alarm systems can be considered “nuisance” alarms.  Due to outdated business models, most of the existing systems are divided into two groups…. “deterrent type” (primarily motion sensors at the site); and “security type” (audio, video, analytic witness sensors at the site). Deterrent types can be considered nuisance alarms, not qualified for emergency response.  Whereas “security type” are witnessed events that do qualify for 911 type response under basic 911 rules and protocol.

 

John, lots of documentation suggests the majority of imbedded deterrent systems (millions) do not qualify for emergency response.  For example, Florida is one of several states that have already legislated statewide restrictions against monitoring firms calling the police first, customer or private witness must be called first; aka ECV/C.  And several dozen cities have totally banned alarm companies from calling for police response to deterrent alarms, aka VR-Verified Response, like court tested and street tested Fontana CA.  Hundreds of communities practice de-facto response, wherein they simply lower the priority to slow or no response, like Los Angeles other major metro areas. Law enforcement has done a good job of disclosure, but alarm associations have done a better job of non-disclosure.  Fortunately, all communities everywhere deliver 911 response to witnessed 911 type emergencies.

JH
Jay Hobdy
Jul 16, 2017
IPVMU Certified

Are there any cited sources for this? Police not responding to alarms?

 

And the way we look at it is, we are offering a lifestyle enhancement. Today's security systems are offering much more than basic intrusion. (can you tell I just signed up with alarm.com and have been reading their materials?)

 

One might argue the RMR  value could go up as users become more engaged and more dependent on their system, thus willing to stay longer.

 

 

 

 

U
Undisclosed #1
Jul 17, 2017
Jay... see reply to John above. We agree, RMR will probably go up in the future, under different business models.
U
Undisclosed #1
Jul 23, 2017

Jay… additional reply.   See excerpt from news article last week, July 2017, about seeking solutions to their false alarm problem in St. Paul MN.  “…..the department recently downgraded alarm responses to a “P3,” or low priority that may remain in a queue for 15 minutes or more…”.

UI
Undisclosed Integrator #2
Jul 16, 2017

Today, alarm monitoring is more than the expectation of police responding to a burglary, panic, or hold-up alarm.  Installing smoke, heat, carbon monoxide detectors, flood sensors, temperature sensors, etc., is an important part of monitoring in the alarm industry. 

I sell alarm monitoring by pointing out how monitored smoke detectors can alert the Central Station early in a fire, and get the fire department rolling, as opposed to the neighbor calling the fire department when they see someone's house engulfed in flames.  Decades ago, residential fire alarms were out of reach for most people, and were mainly for commercial and industrial sites.   To my knowledge, there has never been a "no response" or low priority on a fire alarm signal.  

I remember reading, in various trade magazines years ago, about "no-response" policies by some police departments in terms of burglary signals, but never on panic or hold-up alarms.  And, those no-response policies are no longer talked about with the implementation of alarm ordinances and false alarm fines.

The transition of alarm monitoring away from police departments to private firms has improved a lot of things such as preventing a lot of unnecessary dispatches on alarms caused by user error, and calls to additional responsible parties, which the police were not going to do. 

Today, most of the calls I get are inquiries about monitored systems rather than local, non-monitored, systems.  Years ago it was not that way as about 50 percent wanted only a local bell and not monitoring. 

 

 

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U
Undisclosed #1
Jul 17, 2017
Agree.. lots of special services have value that can be monetized. As usual, the natural process of evolution applies.
U
Undisclosed #3
Jul 23, 2017

U
Undisclosed #3
Jul 23, 2017

I used that Marv Albert proxy in agreement with the OPs stated position:

"Decades ago, the alarm industry off-loaded the role of voluntary emergency response to the local police."

Alarm monitoring agencies want the RMR - not the work involved in response.

U
Undisclosed #3
Jul 23, 2017

The only company I know of in N America that uses a business strategy that doesn't rely on LE as their uncontracted response component is http://www.providentsecurity.ca

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