Security Dealer & Integrator

AUG 2018

Find news and information for the executive corporate security director, CSO, facility manager and assets protection manager on issues of policy, products, incidents, risk management, threat assessments and preparedness.

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30 Security Dealer & Integrator / August 2018 Republic Elite recently began a partnership with a Northern Califor- nia homebuilder that will lead to the installation of security/automation sys- tems in about 500 new homes; in fact, new home installations make up about 80 percent of Republic's business. Motheral concedes his firm, founded in 2013, doesn't make as much money per new home as it does installing sys- tems in existing residences, but he sees payback in another way. "Our goal is to make long-term cus- tomers," he says. "We install systems that are programmed by our techni- cians in these new homes, so whenever the buyers want anything for the next 10 years, they will be calling us." Early and frequent contact with homeowners is one of the big attrac- tions for both Motheral and Page. Typically, Page says, his team meets with homebuyers several times while their home is being built. Each meet- ing provides a chance to sell more equipment than the builder's standard package includes. KPS, which is almost a pure residen- tial integrator, helps its homebuilder partners create the standard. Page says that usually includes a base hub, a few security sensors, a thermostat and a front-door lock. In a competitive mar- ket, builders are careful not to add too much to the price of their homes; how- ever, they are open to integrators sell- ing from an optional equipment list. "We work with the builders to iden- tify choices that fit with the budgets of likely buyers in each new community," Brian Motheral is general manager of Sacramento, Calif.-based Republic Elite Integration. Page says. "Light switches, indoor and outdoor cameras, video doorbells and garage door openers are the most pop- ular optional choices." Voice control, such as with Amazon Alexa, is also popular; in fact, Echo Dots have become a common move-in gi from many developers. "It is a cool idea because buyers are getting some- thing that is useful and they didn't expect it," Page says. Page also says he likes to use command buttons – small wired or wireless units that can be placed throughout a house to control individ- ual connected devices and/or trigger multiple device automations. The RMR Hunt Once homeowners move in, how do these integrators create recurring rev- enue? Professional system monitoring is an obvious choice; however, most developers do not want to saddle their customers with an additional monthly payment. Also, most security/automa- tion systems include smartphone apps that enable homeowners to self-moni- tor alarms from cameras, video door- bells and security sensors. Both integrators use problems such as misplaced phones and dead batteries as sales examples that can leave a home and family at risk. ey say it has helped them to sell more than a few monitoring packages. Page adds that he is most successful selling to older, move-up homebuy- ers who generally have more dispos- able income. Motheral has looked into selling maintenance contracts. He says an industry colleague sells agreements that include a home visit every six months to "dust off and realign the cameras and things like that." Page thinks the new big source of RMR in the residential market will be network monitoring. KPS uses soware to constantly monitor the status of a customer's net- work, ensuring security and automa- tion equipment is always working. If there is a network problem, KPS can remotely reboot it. Page sees network monitoring becoming a mainstream offering for most residential integra- tors within the next few years. Residential Security We work with the builders to identify choices that fit with the budgets of likely buyers in each new community. Light switches, cameras, video doorbells and garage door openers are the most popular choices." — Kirk Page, president of Ontario, Calif.-based KPS Alarms

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