ADT's Terrible "Business Video Special"

Author: John Honovich, Published on May 06, 2016

ADT is special.

Pricing for HD video has gone down sharply, but not for ADT whose "less than $2 a day offer" is quite impressive.

*** ** *******.

******* *** ** ***** *** **** **** *******, *** *** for *** ***** "**** **** $* * *** *****" ** quite **********.

[***************]

Special *****

*** ** ******* **** ****** **:

** ** '**** **** $* * ***' ****?

***'* ***** *** *** **** *****:

***** *****: $*,*** ** ****, ********* *** $*,*** ******* ************ price *** *** ** ***** ******** ** $**.** *******.

Real ****

** ****, * ** ***** ******* ******* ****** ******* *** a ***** *** ***** *** $***, ********** ** ********** ****** margin *** ***.

Kicker - *** ***** **** **

** *** ** ***, ***** ******** $*,***, *** ** *** **** own **:

"****** ******* ******** ** ***"

** *** *** ********************, ********** *** ***** **** ** ****** **** $**.** *** that ***** *** * **** ********.

** ********, *** **** *** ***** ****** **** ** **** a * **** *** ** *** ******, **** *** *** buy * *** ***** *** ** * *** *** ***** for */**** *** ***** *** *******.

Vote - **** ** *** *****?

** *** **** **** *** ** **** ****?

Comments (19)

Approximately $500-$600 a camera installed doesn't seem outrageous to me, and I'm not. A big fan of ADT.

Prime example of value selling done wrong.

Also should be noted it says NVR in the fine print, it's possible this is for a 720p ip kit, which would qualify as hd.

The contract and system ownership is another thing altogether.

Cams in the ad appear to be dahua, street price around $100 each, but probably not what will be installed, so it's irrelevant.

I can't believe I just defended ADT.

Lol, good feedback!

With Costco selling better full HD kits at $300 for 4 cameras and $700 for 8 cameras, that's what I think will make it a tough sell.

ADT has brand, huge sales force, etc., so they will sell some obviously but that is going to make it a hard sell for any 'business' that can do basic math.

Indoor HD cameras (let's assume they are 720p, since otherwise they likely would have labelled it 'full HD') are, at ADT's price, going to be somewhere in the sub $50 range from Dahua (or less).

I hate having to defend adt...

That said, companies pay a premium to place their trust in someone else's expertise. The time it takes to educate yourself on something unrelated to your business is not insignificant. This is part of the value equation.

Where they screwed up is using value based pricing then trying to lead with price.

Again, the $500 per camera range is not uncommon for small systems in turnkey installs.

My favorite analogy is that an alternator may cost $100 at autozone, but a good auto repair shop will charge you $4-$500 after all is said and done. And it's worth that all things considered.

It's not $500, it's $720 and you need to return it after the 3 year term or continue to pay them money.

$3,600 minimum / 5 cameras = $720 per camera

$720 per camera for a 3 year rental of entry level Chinese kit.

You have to defend that?

Not at all. The contract is silliness.

Notwithstanding the contract and term... There's a cost to spreading payments out. Do we deride ford credit when we pay 38k for that 31k ford transit after 5 years?

For some reason I read that as 6 cameras. Still, I'm not the guy to criticize for charging too much.

There's plenty to criticize ADT on aside from their pricing.

There's a cost to spreading payments out.

So they are charging $2,000 over 3 years for (and let's be generous here) $700 street value equipment. That's the equivalent of 50%+ interest rate. You could get a loan from the mob at better terms.

You could get a loan from the mob at better terms.

Yes, supposedly the Mob is more competitive these days due to the bad economy hitting them hard; just last week I heard they had to layoff several judges, so I believe it.

Nonetheless and for obvious reasons, the Mob is not a good choice for actually installing intrusion/surveillance systems, therefore its not a direct replacement for ADT.

So we can compare apples to apples, what other established provider will come to your house and install such a system with no money down and just the monthly payment, and what do they charge?

I think some cable companies are offering deals like this, other residential alarm companies obviously, anybody else?

what other established provider will come to your house and install such a system with no money down

Installation is charged separately and up front from the service contract.

So ADT is 'loaning' you $700 and charging you $2000 over 3 years for it. The worst credit card company would be a far less expensive option. And, with the credit card approach, you own the equipment, not rent it from ADT.

Installation is charged separately and up front from the service contract.

Ah, good point.

Bait and Switch!!

What's the 'switch'? The install minimum?

You could do better on Amazon, but you could do a lot worse as well.

2$ a day to me means I don't own it.

The 3yr min subscription?

Yes, a bit shady there, is that what part you are referring to?

At most, 5 of those cheaply looking indoor cameras and a small NVR costs ADT $300, delivering an incredible profit margin for ADT.

Your cameras still need to be installed, to compare fairly.

I think they will do well with this offering, though I agree with u1 that leading with price is a mistake.

This is an item best sold right after the intrusion system, ideally in response to their inquiry.

Psychologically, there is no better time to come at them with the moneymaker; after all they've just said yes, and this 'special pricing' is only available to someone when buying an intrusion system, so...

For installation they are charging over $1400 which is quite a lot for just five cameras. In addition, the three-year price for the products is over $2000 compared to their cost of about $300, which is an incredible profit margin however you segment it.

Yes, it's good margin either way, no doubt.

For instance the The Company The Industry Always Feared Would Arrive charges $1800 for 8 cameras installed and you get to keep the cameras.

Btw, I'm sure it exists but I couldn't find an integrator survey with a average install price per camera, do you know of one?

We don't have "average install price per camera" exactly but the big thing with this 'special' is that ADT is pricing the labor / install separately (ergo 'the minimum installation charge of $1,445') means they are going to make money here as well.

Also, note these are all indoor cameras so the install price is going to be much lower than 'average' business prices since outdoor installs are regularly exponentially higher than indoor ones.

It's a schlocking for the end-user, but good news for everybody else, no?

A lot more fun than watching the latest Sam's club kit go under $200, right?

Not that it really matters, but those look like Dahua domes, which are all outdoor ready. They may restrict the install to indoor only though.

Now if the system includes the Dahua PTZ cams shown in the photo then this may change perspective a little bit. Otherwise, the image would be false advertising:

I think there's value in what they are trying because it's a low threshold to get into an HD system. However, it's really a disservice to approach a business with a one camera fits all model. What if WDR is required? Dahua makes a lot of accessories now for their cameras. Are those provided or are we going to foolishly wall mount the dome outside because we can't source the proper mount or pay for it.

Now if the system includes the Dahua PTZ cams shown in the photo then this may change perspective a little bit. Otherwise, the image would be false advertising.

They'll probably get away with it since there are approximately zero people in the known Universe who both can distinguish Dahua's Mini PTZ from their nearly identical fixed dome models at 100 yards AND at the same time are thinking this is a good deal.

5 indoor PTZs would make the install go quicker; throw 'em up and let the homeowner do the rest...

good eye!

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Related Reports

Dell Launches IoT for Surveillance on Sep 05, 2018
Historically, Dell has been a PC and server provider (e.g., "Dude, you're getting a Dell") and widely used for surveillance storage. However, in...
Hikvision FIPS 140-2 Cybersecurity Certification Examined on Aug 27, 2018
A week after the US government passed a law banning Hikvision, Hikvision announced it had obtained a FIPS 140-2 certification from the US...
$25 Million US COPS SVPP School Security Funding Examined on Jul 24, 2018
The US Congress has authorized the School Violence Prevention Program (SVPP) to fund various security measures and training to mitigate active...
Fail: Dahua "Didn't Check The Lux Levels but It Was Dark" on Jul 20, 2018
Dahua UK has been promoting their camera quality on LinkedIn: I, and others, asked what the lux level of the scene was. (background: Lux Rating...
Directory of Video Surveillance Startups on Jul 18, 2018
This directory provides a list of video surveillance startups to help you see and research what companies are new or not yet broadly known entity...
Drops Dahua, Fenner Becomes ISS CMO on Jul 09, 2018
Hired to improve Dahua's miserable marketing just last year, Janet Fenner has quit Dahua, joining VMS manufacturer ISS as Chief Marketing...
Pelco Is For Sale on Jun 27, 2018
Pelco is for sale, being shopped by an investment bank, IPVM has confirmed from multiple sources. The company, acquired by Schneider Electric in...
Snap Surveillance Profile on Jun 26, 2018
There are not a lot of video surveillance companies that survive 9 years with only one feature that makes their product stand out. In the case of...
Hikvision Covers Up Racial Profiling And AI Error on Jun 25, 2018
Faced with global scrutiny, led by the US government-funded Voice of America (VOA), Hikvision has covered up evidence showing their racial...
IFSEC 2018 Final Show Report on Jun 20, 2018
IPVM attended the IFSEC show for the first time this year. The Chinese took over the show, centered on Hikvision, flanked by Dahua, Huawei and a...

Most Recent Industry Reports

Alexa Guard Expands Amazon's Security Offerings, Boosts ADT's Stock on Sep 21, 2018
Amazon is expanding their security offerings yet again, this time with Alexa Guard that delivers security audio analytics and a virtual "Fake...
UTC, Owner of Lenel, Acquires S2 on Sep 20, 2018
UTC now owns two of the biggest access control providers, one of integrator's most hated access control platforms, Lenel, and one of their...
BluePoint Aims To Bring Life-Safety Mind-Set To Police Pull Stations on Sep 20, 2018
Fire alarm pull stations are commonplace but police ones are not. A self-funded startup, BluePoint Alert Solutions is aiming to make police pull...
SIA Plays Dumb On OEMs And Hikua Ban on Sep 20, 2018
OEMs widely pretend to be 'manufacturers', deceiving their customers and putting them at risk for cybersecurity attacks and, soon, violation of US...
Axis Vs. Hikvision IR PTZ Shootout on Sep 20, 2018
Hikvision has their high-end dual-sensor DarkfighterX. Axis has their high-end concealed IR Q6125-LE. Which is better? We bought both and tested...
Avigilon Announces AI-Powered H5 Camera Development on Sep 19, 2018
Avigilon will be showcasing "next-generation AI" at next week's ASIS GSX. In an atypical move, the company is not actually releasing these...
Favorite Request-to-Exit (RTE) Manufacturers 2018 on Sep 19, 2018
Request To Exit devices like motion sensors and lock releasing push-buttons are a part of almost every access install, but who makes the equipment...
25% China Tariffs Finalized For 2019, 10% Start Now, Includes Select Video Surveillance on Sep 18, 2018
A surprise move: In July, when the most recent tariff round was first announced, the tariffs were only scheduled for 10%. However, now, the US...
Central Stations Face Off Against NFPA On Fire Monitoring on Sep 18, 2018
Central stations are facing off against the NFPA over what they call anti-competitive language in NFPA 72, the standard that covers fire alarms....
Hikvision USA Starts Layoffs on Sep 18, 2018
Hikvision USA has started layoffs, just weeks after the US government ban was passed into law. Inside this note, we examine: The important...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact