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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42 Security Dealer & Integrator / August 2018 In all, a $199 basic package includes a base station, keypad, contact sensor (for a window or door), PIR motion detector, and range extender. Addi- tional equipment – including a $30 First Alert combo smoke/CO detector – adds to the upfront cost. Ring plans to release additional products in the coming months, including a "Smoke and CO Listener" that enables mobile alerts; Flood and Freeze sensor; and a Dome Siren, which includes different chimes and volume levels that can be assigned to specific events. "We don't dispute that there is a market for cheaper, typically retail DIY-oriented security alternatives," President and CEO Steve Trundle said during a recent earnings call. "is market is very competi- tive, and the (DIY) customer tends to be less interested in a comprehensive security system or a relationship with a service provider. ey tend to be more price sensitive and interested in solv- ing a specific, narrow monitoring or automation need. Because the lifetime value of these customer relationships is much lower, if positive at all, the retail market is generally not appealing for our service provider partners." Aer making its acquisitions, the first major aspect of the Amazon Effect comes in the form of marketing. ey obviously want consumers to know the Ring brand, with the goal of making them believe a Ring system is just as good – if not better – than SimpliSafe or the ones being offered by local and national residential security dealers. "Don't assume that the Ring product is apples-to-apples compared to what you can sell," warns Philip Pearson, President of the Smart Home Consult- ing Group and former executive with DIY security company Frontpoint. "(Amazon) wants the consumer to think that, but it is your job when speaking to consumers to remind them that it is not," Pearson continues. "Regardless of who your interactive service provider is, your feature set will be better than what Ring will launch with – perhaps with the excep- tion of the video doorbell. Don't let (your customers and prospects) buy into that false equivalency." One need only stroll through a typi- cal mall in America – where just about every Sears is closing up shop and other big and small retailers are hold- ing going-out-of-business sales – to see the potential impact that Amazon can have on an industry; in fact, its ongoing evolution and disruption of various retail markets has its own fore- boding moniker: e Amazon Effect. When Amazon exerts its "effect" on a market segment, it can reshape the entire dynamic of an industry from a consumer shopping standpoint, while at the same time, creating tremendous pricing and margin pressure. Cover Story The Ring Alarm Security Kit has occupied a prime spot in Best Buy's lineup (above) of smart home and security options in its stores. The self- installed, $199 basic system includes: base station, keypad, contact sensor (for a window or door), PIR motion detector and range extender. Consumers can add additional equipment, including a combo smoke/CO detector. With "Ring Alarm" – which was made available for consumer purchase on July 4 – it seems on the surface that DIY mainstay SimpliSafe is the first target; but traditional home security providers have been put on notice. Amazon even says in its announce- ment that the system represents "inde- pendence and freedom" – presumably, from more costly traditional systems. Inside The System As a DIY product, Ring Alarm obvi- ously does not require professional installation. Consumers need only connect the Base Station and Keypad to a home Wi-Fi, install contact sen- sor(s) on doors and/or windows, and appropriately place motion detectors. Coupled with monthly monitoring for just $10, alarm signals will be sent to a central monitoring station. Photo: Photo: Paul Rothman

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