We warranty almost everything in-house. We have found that when we rely on a manufacturer to warranty something, it can take too long to get the device repaired and then reinstalled. Relying on a manufacturer warranty often leaves the client without a component of their security system for an extended period. For us to provide this in-house warranty, we increase our margins on equipment sales and charge more every month if there is RMR associated with the account.
When clients ask me about our markup, I tell them we charge what we charge to stay in business and deliver the best customer service we can, 90% of new business is referrals; I ask them to speak with their friend again and ask about how good our service is. When they get back to me, I explain the only way for us to provide that service is to charge what we charge. We've been in business for 30 years. We know what it costs our company to deliver exceptional service. The price of equipment is only one factor in our pricing.
I should also mention, most of the time when we are providing warranty service it's not due to a failure of the device. We often warranty mistakes our clients make, we don't want them to feel stupid, sometimes it's better just to fix it, let them know what happened and tell them it's on-the-house. You've also got to consider the cost of maintaining appropriate licenses, pulling permits and keeping up with codes. I have in the past spent more time working with fire marshals than it took the technicians to install the fire alarm. This time is something someones got to pay for, I'm not going to do it for free so I often build it in to the cost of equipment. These are things companies like ADI or Amazon don't have to worry about. All of these things and more factor into the cost of the equipment to the end user.