I 'm just curious how many of you have started offering security (prewire if nothing else) along with your a/v and automation wiring. Most builders I've been approaching say that they would like to use my company, but that they prefer being able to write one check for all low voltage work.

Nothing against security installers, but most that I have seen know as much about structured wiring, speaker placement, etc as I do about security.

The problem here is that in order to be licensed for security, you have to work under a licensed installer for TWO YEARS. Sorry, but this sounds like a scam to me.

Is anyone subbing out security to another company, or has anyone hired someone just to handle security..

Thanks for your input

Mike,

Talk with the guys from your local ADI branch. Find a local "small" guy that's just getting started, and see if you can work out a deal of some sort. He qualifies a "division" of your company, and the two of you become partners in that division.

You become licensed via him, he gets an "instant" in to the market.

Make the right choice and this will most definitely work out.

We are at that piont as well. For better or worse, no special license or sertification is needed for security in PA. We are looking to hire a guy to handle security pre-wires, anmd will bring him up to speed on the AV stuff.

If your going to be handing off security work dont forget about the fee's collected every month / year.

Several thinks to take into account when offering security:

#1 Licensing: In some states, this all but weeds out the small companies due to the associated costs.

#2 Technology: If you're well versed in electronics, there's no reason why you can't do security. It's pretty much all basic electronic theory.

#3 Insurance: If you're doing security, you should look into a special type of insurance called "Errors and Omissions". This is pretty much a blanket policy that covers everything that your basic liability won't cover. For instance, if one of your people forgets to program a wireless panic device and someone gets injured, killed, etc. as a result you could be sued and your liability policy probably won't cover it.

#4 Availability: If a speaker in someones bathroom suddenly stops working, chances are that they'll be willing to wait a day or week for you to fix it. If someone's alarm panel stops working, you'd better be prepared to drop what you're doing and fix it pronto.

#5 RMR's (Recurring Monthly Revenues) It's great to have RMR's coming in every month, but make sure that you partner with a monitoring facility who will give your customers good service.

#6 The ADT's of the world: Be prepared to compete against people who are willing to put in crappy, under-sensored systems just to obtain the RMRs. It's not unusual for one of my bids to come in at 5-10 times the price of an RMR seeker. Make it clear what the differences are in your system vs. there's.

Ahem hit it right on the head. I grew up in the security business (my father owned a company) I was going on prewires with him when I was a kid. (That was our"together" time) but that's a different post.

When I look back on the security industry now, I am thankful that it taught me how to fish wire with skills that most guys don't have any longer.

Here is the problem(s) with the security industry:

ADT will always beat your price (customers recognize ADT, they don't recognize you)
(they will install a bell on a string if it beats your price!)


I'm going to get a little philosophical here so stand back.

There are two types of security customers:
1. The person who is waiting to get broken into.
2. The person who has already been broken into.

YOU CAN'T MAKE THESE PEOPLE HAPPY!!!!!!!!!!!!!!!!

All you are doing is separating them from their hard earned money. You have never went to someone's house and had him say " Check out my sweeeet alarm system"

Now, you have heard this: "Have you seen ICE AGE in 5.1"

Don't get me wrong, if you have a reliable security guy that you KNOW will take care of business, by all means recommend him. That's great.

But remember this. Security is the reason that I'm in A/V.

Since you have brought up the subject..............

Security systems can make or break the bottom line of any small custom a/v installation company. Our company started in built-in vacuum, then intercom, then phone/tv prewires, then alarm(giving all prewires and monitoring to another subcontractor), multi room speakers then home theater.

After realizing that security systems did not require some sort of secret science, we got our alarm license back in the late 80's and have been able to offer complete low voltage packages. Thankfully we chose some rock solid panels to start with DSC, GE interlogix, and Radionics. We presently use DSC 95% of the time with the remaining 5% going to GE Interlogix.

Why not offer a little more than the other joe installer? If you can offer QUALITY custom a/v installations, go for it and get the experience/license. The monitoring fees per month will help your bottom line greatly. Yes, you will have to get a re-occuring billing program and someone to lick the envelopes. Yes, you will get service calls and a few headaches, but I like to think of the growing number of accounts as a retirement fund. Is a little extra work worth the $15+ net revenue per account each month worth it?

Lately, most home insurance companies are REQUIRING monitored smoke detectors in their customers homes or else the policy will be cancelled. We now even offer cell backup in case the phone lines are cut.

Just my 4 cents....Gary

I did this, and am very happy. Doug and Walt get all of my security, survailance work, I get all their video, and we keep our own customers for audio, data, voice.

We don't make money off of each others products and services, but the customer/contractor is happy because we are one-stop shopping. I show up as an a/v pro and he shows up as a security pro.

This costs nothing and takes very little time to arrange. There is no learning curve and no need to spend evenings staying up to date on security issues.

One word of caution though. Be careful whom you crawl in bed with. They have to be of your caliber.

Mike where are you in TX? I'm in Sugar Land (Greater Houston Area) and I was doing what you did and it sucked hearing how I needed security. Well I went off and got security and boosted my builder and custom install work.. Of course the average per install dropped but I have techs that do all the labor work now so I'm not running all over town pulling 22/2 for track homes.. Email me maybe we can work something out.. I've been tossing the idea of going to other cities for the builders I'm with now.

I think it's important to make a distinction between "secuity" and "surveillance" I wouldn't touch a security pre wire with a ten foot pole. most of the ADT types do have that market sewn up, and their profit comes from their monitoring fees. Their pre wire guys typically are quite talented at getting their sensors and peripherals into the locations that they want them in, and for next to nothing. There is however a good opportunity in designing, selling, and instaling surveillance systems. This isndustry is starting to blosom right now thanks to innovations in digital recording and IT interfaces that are affordable. You will find at the moment that the securituy guys are not up to speed in terms of the cutting edge of this technology. They are still doing the stuff that is tried and true and that they are familiar with. This won't be for long as they make the swithc. So, now is the time for opportunities in that niche

I'm not so sure about that. I get two security trade mags and 90% of the content and ads are about CCTV and or access control and not conventional security/fire projection.

Plus, CCTV is still a video product and carries with it video margins.

Maybe it's different in your part of the country?

What ADT charges has absolutely NOTHING to do with what we charge, same as when we get under/over priced on A/V systems pricing.

This complaint (what the OTHER guy sells the system for) seems to be a common theme in many of the posts here. And it shouldn't have ANY effect, other than to force you to do a better job of selling yourself and your company.

Why are we at a higher cost? We use better products, better engineer the systems, have better work ethic, etc, etc, etc.


With regards to the security side of this business, I won't quote profit margins, or numbers, but will let it be known that our company does very, very well with security systems as well as central vacuum systems and those old nasty intercom systems.

Never say never......

I had the opportunity to price out a retrofit/replacement of a Westec System that ended up under an ADT service agreement. Given the configured status of the old system (3 keypads, 2 motion sensors, 1 Smoke detector and misc screens) and the addition of more motion and smoke detectors, we were able to compete head on with the quote ADT provided. ADT's systems if configured to the specification of the client (builder or homeowner) will be close to yours.

The differnence is the fact the an entry door and motion sensor system is acceptable by ADT standards, and probably by most unacustomed (uneducated/uncaring) tract production builders. The other real problem with the ADT basic system is the homeowner that has never had a security system in the past or is too cheap to spend the money (and maybe sorry for it later) on your expert designed system. With market saturation and crime rates, I believe the latter situation lessens each year.

Needless to say I would not give up on the pre-wiring for a security panel, even if it is just that - a pre-wiring. Pay attention to what the ADT's and others are doing and follow local or AHJ (Authority Having Jurisdiction) codes regarding the wiring. By The Way - ADT will in most cases pickup a contract that you offer to them as long as the job is of a quality they can service. It is also recommended by several trade associations that the security panels location be as close to the Distribution Panel as possible. This is a customer benefit in the long run if ADT or the others lose the contract later on and your company (who is providing a great AV or network experience) can pickup the contract. It does happen.

As far as I can tell the fat lady is not even in the building..