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.
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.
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.
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.
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...