Fighting Back Against DIY, DMP Opens OnDemand Monitoring and Company Store

By: Brian Rhodes, Published on May 17, 2016

The popularity of DIY intrusion alarms has become a real threat to the traditional safe haven residential market of alarm dealers. DMP has felt the pain and is adjusting its offerings to appeal more to a DIY-centric market, yet still honor dealers.

In this note, we examine DMP's new DIY-targeted on-demand monitoring and web portal plans.

*** ********** ** *** intrusion ****** *** ****** a **** ****** ** the *********** **** ***** residential ****** ** ***** dealers. *** *** **** the **** *** ** adjusting *** ********* ** appeal **** ** * DIY-centric ******, *** ***** honor *******.

** **** ****, ** examine ***'* *** ***-******** on-demand ********** *** *** portal *****.

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

Two ********* ** ****** ***

****** **** **** *** growing ******-**-****** ******** ****** of *** ******* **************,*****, *********, *** *** ********* new ******** ********* ** minimize ****** ****** *********** in ******* ** *** general ******:

  • "*** ******* *****": *** *** **** purchasing ****** ***** *** public *** ******** *** panels *** ***** ******* dealer-branded ********, *********** ****** pre-programmed ********* ****** ******* and ****-********* ******* ******** a ****** ****** ** all.
  • ******** **********: ***** *** *** central ******* ********** ** an **-****** *****, ****** for ******** ***** ** days ******* ******* * long-term ********* ********, ********* 36 ****** ** ******.

*** *** *********** *** is ****** ** ****** to **** ***** ********* are '****** ***********' *** have ******* *********** ***** companies ** *****, *** tend ** ** **** technologically ***** ** *********** computer ********, **** **********, and ***** *********. * key ****** ** *** success ** *** ***** offerings ** **** ** middleman ****** ******* ** present *** *******, ********* obligatory ********** ********* *** not ****** *********.

Offering ********

** ***** ** *********, both ********* *** ****** to *** ***** ** DMP's******** ******-**** ***** ********** **** *** ******* like ******* ** ******** pricing. ********* **** ** billed ** ******** *******, who ** **** *** invoiced ** ***.

On-Demand **********

"******** **********" **** * new ****** *** ********* to ***** ****, ** addition ** *********** *********. Rather **** **** * contract ********** *** **** concurrent ******, ***** *** essentially *** *** ******* on ** ***-*** ***** with ****** ** ****** service ******* *** ** select ******** ***** ** even **** ** *** week ** **** ***** systems *********. ******* ********* final ******* **** ***, but *** **** ** that ******* **** ********* cost **** ** * per-day ***** **** ******** versus *********** ******** ***** monitoring *****. *** ******** to ***** ******** ****** on ********* ********** ******, but ******** ***** ****** expect ** *** * modest ******* **** *** typical $** - $** per ******* **** *** traditional ********.

Store *** ******* ******

*** "*** ******* *****", customers **** *** **** a ****** ****** ******** from * ******'* ********, fully ******* ** *** dealer *** ****** ** DMP's *******, ***** **** will ** **** ** custom ***** *******, *** equipment ******* * ******** cart, **** **** ***-********** by *** ** *** factory, *** **** **** to *** ******'* ******** or *********** ****** *******. Depending ** ****** *******, customers **** ****** ** able ** *** ************ labor *** ****** ********** from *** **** ******. In ***** ** *******, the ************* ****** **** decide ******** ******* ****** offered ** ********.

*** ***** ** *** portals *** ** **** now, *** **** **** to **** *** *** option ** *** ******* this ******.

Immediate ****** ********

*** ***** ******** ********* by *** **** *** user ********* *** ****** pages **** ** ********* daily **** ****** ********* bank ******** ** *******'* 3rd ***** ******* **** merchant. *** **** ******** to ******* ******* *** reimbursement ** ********* ********* and ******** *** ****** monthly *******.

Market ******

*** ***** ** ***** - *** ***** ****** appeal *** *** ******* the ***** **** ********* brands, *** ***** *********, are ****** ** *****. DMP *** ********** ****, and ** ***** *** first ********** ** ******. With *******, ********** **** customers ********* ******* *** traditional ******-****** ******* *** mandatory ********** ***** **** have **** *** ******** of *** ****** ******, DMP ** ********** *** they *********** ***** *********.

*** *** **** *** solid ***** ** ****** its ********* ** **** changing ***********. ******* ** not ***** ******** ***** to ** ********* ****** to ** ********** *** yet ** ** ****. However, ********* *** ******* are ****** ***** ** be ******* ***** ***** system ****** ** ***** of *** ******* ** try *** ********** *** still ***** *** ****** channel.

*** ***** ** ********** adapting ** * *** affinitive ******** **** ** one ** **** ******** to *******, ** ** represents * *********** ***** in *** *** *** RMR-driven, ****** ********* ********* alarms ****** *** ******** for *******.

Tougher *********** ******

** *** ****** **** DMP ******* ***** **-****** monitoring, ** ***** **** the ***** ****** **** more ***********, ** *** traditional ******** ***** ********* will **** **** **** competitors *** ***** ********* to *** ******* * contract.

****

Comments (8)

Great idea for the market, unless you're that 70 year old alarm company owner that is stuck in the 1970's with that outdated business plan.

They are actually NOT moving away from their dealers, but rather using their dealers as the gateway to these DIY clients

If that was unclear in this post, let me know if something needs an edit. This point is made repeatedly, starting in the intro:

"DMP has felt the pain and is adjusting its offerings to appeal more to a DIY-centric market, yet still honor dealers."

Great article, Brian. It's encouraging to see a traditional manufacturer recognizing that the refusal of millennials to be encumbered by the traditional contract-only alarm industry model means we have to adapt as providers, not the other way around. DMP is the first to develop a way to keep the dealers in the revenue stream without a contractual relationship to the customer. We need to recognize the sea change that is upon all of us in this industry.

I am not sure I would agree entirely with all of the characterizations here, but I am not looking for a debate either. Older dealers are not all stuck in the 70's. But we will not put our reputations and our brands that we worked hard to build on equipment that is subpar. We have standards and expectations. There are in fact codes and laws that govern what we do and how we do it. If "millennials" want to pay for "junk", let them. They were likely never going to buy from a dealer anyway.

If you want to measure the reliability of some of this equipment that is being sold on the market, just google it and read reviews. Performance is intermittent at best and totally unreliable at worst. Yes, there are those that will install it and continue to tinker with it ad nauseam. After a few weeks, they begin to understand that they don't have the bandwidth they thought they did, or that you can't stream NETFLIX, XBOX, HBO and a CCTV camera with audio all at the same time with any reliability. Let them play with their routers for hours. I can't tell you how many friends I have when someone finds out that their DIY project is not quite as easy as it looked on YOUTUBE. Their wives allow it because it keeps them busy and they themselves are of the opinion that "this is not that hard". At the end of the day, you get what you pay for.

Can I fix my car?? Yes, for the most part, I can. Do I want to spend my time under the hood every weekend doing it?? No. I have other things I would rather do. I am not a motorhead and I know auto repair people that are really really good at what they do - better and a lot faster than I am. My time is worth something to me and my free time is invaluable.

I applaud what DMP is doing. The are addressing a market that is growing and arguably untapped as of late. They are also doing their best to keep their dealer channel happy, and make their own lives easier (DMP is not fielding all of those calls from customers). I would also add that I am a DMP dealer and have been one for nearly 30 years. If all manufacturers had their loyalty and integrity, our industry would not be in the shape it is in today.

End of rant and I have to go now. I need to rotate my tires. But I don't have a lift or an impact wrench so it will probably take me most of the afternoon.

If all manufacturers had their loyalty and integrity, our industry would not be in the shape it is in today.

Is it something about manufacturers in particular that makes them less virtuous than the others in the industry?

I have thought about your question for several days not U1. Something about it nagged me. Was my characterization fair? Were my words sloppy or written in haste?

Is it something about manufacturers in particular that makes them less virtuous than the others in the industry?

After carefully considering your very fair question in the context of this discussion (DMP), my answer is yes.

After carefully considering your very fair question in the context of this discussion (DMP), my answer is yes.

Perhaps they received a defective moral compass at birth, and are awaiting an RMA#?

:)

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