Small alarm company vs BIG

I have had my own alarm company now for over 10 yrs. I'm just a one-man band. I recently had a good friend of mine partner up with me as we bought out another small alarm companies accounts. As a very small company, it blows me away as to how the bigger companies keep getting so much business.

The ADT's and other national companies will cut my throat just to get another account, as if it's the last one out there. I'll do a house (1500 to 1700 sq. ft.) for about $700. A hard wired system, DSC 632,

3 doors, 2 pet proof motion detectors, 1 smoke detector, 1 LCD keypad, 30-Watt exterior siren. Monitoring is $25 a month with a 2 yr contract. Most people stay on for years, so I would rather make my money on long term monitoring than up front on the system. I give great 24 hr service, and stop and see my customers 2 or 3 times a year just to test it and chat with them a while.

The big companies usually charge near $2,000 with $35 a month monitoring, and if they run across one of my jobs I have bid on, they will offer to do it for $100 or free just to make sure I (or any other small alarm company) doesn't get it. Yet they lie about their systems, charge out the wazoo for a service call, give bad service taking 3 or more times to get it right, and never see the customer again once they get a check unless it's for more money! But I keep seeing more and more of their signs popping up all the time.

Don't get me wrong, I make a good living, and to be honest, making a customer happy is just a rewarding as the check at the end of the day. Knowing I hard wired a house and the customer is dumb founded as to how you did it without them seeing any wires is a great feeling. But most people, after they sign those contracts with the other companies usually call me and say "can you take this crap out and put your system in" because they can't get service or have it working. Too late then, call me 3 or more years!

Are these big companies so hard up for business they will do anything for a buck! Is anyone else having this same problem? Just curious. My site is

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if anyone is would like to see.

Reply to
AlarmWV
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Now that you're done advertising, please feel free to contribute something to the group. I happen to work for a large company and, while I agree there are problems, your perception is skewed because of your viewpoint. I have, sitting on my desk, a 2500 page manual that details every aspect of our business. All of the issues you describe in your original post are violations of company policy. For instance, branch management cannot discount more than 35% off list no matter what the circumstance. No one in my organization, to the VP level, can discount as deeply as you describe.

In todays world, most consumers are very savvy. We rarely encounter a customer who buys on name. Every sale has competition. However, I can match anyone in my area on service, design, installation, value, etc. Our techs are factory certified on every type of system we install. I've got five NICET II or better in my office alone. We are currently delivering same or next day service, although this may change as spring approaches. We were two to three days out the same period last year for non-essential calls. However, calls are handled on a priority basis, and people who really need service the most, get it first.

I'd argue most of the small companies in my area are incompetent, poorly equipped, and perform shoddy work in an effort to keep labor costs low, so they can compete on price. I know of only two private companies that operate the way you describe your business, and they probably have the smallest market share in the area.

I always encourage potential customers to compare us fairly to the competition, both large and small. More often than not, they agree we are the best choice. However, we are rarely the least expensive.

Reply to
J. Sloud

I believe that is true, Mr. Sloud, but keep in mind that this gentleman is probably dealing with these so-called "authorized dealers" who have done so much to destroy the reputation of your company. I have no doubt that ADT corporate jobs are done to a much higher standard than many of these "dealers." Don't you agree?

Reply to
Robert L Bass

Robert,

FYI: In California a sub-contractor is sometimes legally considered an employee of the Prime contractor... If ADT is subbing work out and not checking on the quality of the finished product, and the product is substandard, they are at fault... Just my 1/2 cent :^)) Russ

Reply to
Russ Brill

Could be. Of course, ADT only provides monitoring and repair service to these accounts, and if they are found to be faulty, the dealer is charged back. This was a bigger problem until ADT revamped the dealer program a year or so ago. I've noticed far less dealer issues since then. It's really all a product of the low down/ zero down mentality which, thankfully, ADT corporate has decided to abandon. They are now competing using the same strategy as many of the local guys. Sell a good quality product, do a good installation, and provide good service, and charge more for it. Corporate is no longer doing zero or low down lease deals. They're trying to incease revenue per user by upselling more equipment and more services. They're also pushing employee retention and training salespeople and techs like never before. It used to be only commercial salespeople got any training, but in my area alone, I've seen two trainers in the last month teaching residential salespeople.

Reply to
J. Sloud

I understand what you're saying, Russ. However, in the ADT "Authorized Dealer" program the installing dealers are not sub-contractors. These are actually independent dealers who get to use (and unfortunately sometimes abuse) the ADT name. ADT is not the contractor on the installations.

Reply to
Robert L Bass

That's good news, J. Hopefully they will eventually weed out the remaining bad apples. FWIW, although as you well know I've no patience at all with some of the fast-buck operators in the "dealer" program, you have consistently demonstrated professionalism and what I take to be a sincere desire to see your company improve. I've no problem with ADT corporate anyway, although they do beat me on government sales from time to time. :^)

Reply to
Robert L Bass

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