It now looks like ADT is going to be buying Broadview during the second quarter of 2011 which will give them a combined market share of
35% of the residential US market for alarm systems. See the following link.
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Seems to me, in the long run, this is probably good news for smaller, established companies to fit in the market where ADT and their ilk are not present, or not very good..ie: full systems, quality after sales service, lower prices and less expensive monitoring rates. On the other hand, it's probably also going to increase the "free system" nonsense, as well as the presence of more shady selling "door to door", as the new mega-monster company tries to keep it's revenue growth increasing exponentially.....
IMHO, Brinks/Broadview I guess did not want to keep pace with changing technologies. VoIP telephone services was the beginning of their downfall. Not being flexible towards their customers needs was another. They were hitting double digit attrition rates as far back as 2006. But their stock holders never got wind of that.
RHC:No doubt; you tend to remember those who screw you...:)) Once this merger happens, there will be loads of people being screwed. ADT typically raids the resources of those whom they buy and lets the rest go as they did with the SecurityLink merger. There are loads of people at Broadview worried about their jobs, and rightly so.
I spent most of my life inside a large corporate organization and saw firsthand what can and will happen. To my shame, I was part of it (although unwittingly in those days). Those at the bottom and the middle, who are the glue holding an organization together, will be largely sacrificed on the alter of "reorganization". Those at the top have the goal and obligation, to set things up for the best overall bottom line for the company. While the better executives will do their best to keep the pain to a minimum, bottom line, lots of people will be let go in the name of improved organization and profit ! Middle management has "fat" that can always be eliminated. Upper management too; however, no one there will ever "fall on their sword" in the name of improved bottom line...:))
On the technical side, this will not be so extreme, since ADT is bringing on board loads of panels they know nothing about, and will need expertise to keep things running. At leaset initially, customer service will slip badly, leaving lots of opportunity for independants to target millions of accounts from both companies. Many Broadview dealers will try to jump ship as well, since this was not their agreement with Broadview.
The end result for us will be one mega-monster company to compete against rather than two. If independants do their job right, it should be a much easier market to compete in, given the failings of all large companies.
We have more to worry about on the short term from independant "startups" giving away systems to get RMR, not realizing until it is too late, they are largely cutting their own throats in the process. Up here, we are starting to see HVAC companies selling DSC wireless systems to go along with their HVAC services, under the guise of protecting customers against failure of the very systems that they are installing....??? Their pricing is ridiculously low, so I have to wonder how they will end up charging for service to make up the difference. Once the initial service term of 3 years is up, they too will lose large chunks of this business to lower priced companies, making them wonder why they got in this business at all.....:))
RHC: Hmmm....very pessimistic view of your brethren in the business ! I know lots of small dealers that are sharp businessmen, and who can see very clearly what's going on, and where opportunities lie. Guess we're smarter up here, that's all....:)) (ducking behind any cover as all sorts of crap flies overhead )
RHC: Graham, I don't think Jim was directing his remarks towards me. I think he was referring to our industry as a whole, and the independants in particular. I happen to disagree with his assessment. There are lots of small guys who couldn't manage their way out of a wet paper bag; however, I also know lots who are as sharp as tacks when it comes to seeing opportunities and taking advantage of them. The stupid ones usually buy into the dealership programs thinking that they can ride on the coattails of an established company because they aren't smart enough to go it on their own. The truly smart ones usually are adept enough to see down the road and know what it takes to succeed over the longer term and end up going on their own.
No different than in any other industry when it comes right down to it....
RHC: No, I don't thnk so Graham. The only thing we TOTALLY disagree on is the need for a long term contract for alarm monitoring. I just don't discuss it anymore because I seem to be alone in that view (in spite of the fact that I see endless horrors occuring almost weekly with the abuse of long term contracts that have made me believe it even more strongly). However, I see no reason to bring it up anymore if the newsgroup is going to remain a place to discuss security matters without it degenerating back to what it used to be.
Gotta admit, it's a far more boring place without RLB and all the controversy his presence generated.....
Its the same old story the sales guys for the bigger company's around me can never figure out why I get bids and work they can never get, or if they do get then loose it. It does not matter what you charge it comes down to service and treating people properly. If you can not back up what you say your going to do then the customer will not stay with you.Period.
I can charge $5000.00 for a job walk away with $2000.00 profit same job they charge $5000.00 and walk away with only $300.00 so they need to sell 10 more jobs to break even or beat me for the week then you need to figure out what your doing wrong when you spec your job and who is putting it in. So many commercial jobs I see being done and I wonder what they hell where they thinking when they specked it out.
Naw, I know what you're saying. To clarify my point, ..... Sure ... there's a lof of "aware" guys out there but it's the mass majority that decides where a trade goes in it's quests for recognition and equalization among other trades. Through the years, this trade has had ample opportunity to pull it's self up by it's own bootstraps and has not done so..... due to lack of organization. The majority is out there " being independent". Part of the reason this is so, is why I feel as I do about the NBFAA (who has recently taken on an alias .... as well it should ) This is an organization that's been around for over 50 years and hasn't done a damn thing to orgaize the massive power that resides in the small and independent alarm companys. Instead it has legioned with the big and powerful and hasn't accomplished shit in making any headway towards ligitimatizing the trade. The little guys far out number and out-install the Nationals. They consist of thousands of voices yet they have no unified power. The NBFAA has totally ignored this power and failed to organize it through the decades, because ,in my opinion, they know that once they give the little guys the power, it will be the demise of their cadre of "good ol boys"
So it's not my "Total" opinion that each and every indepented it a dummy ..... it's just that "apparent" attitude that is generated by lack of orgaization, recognition and mandated rules ..... that provides the over all picture of the trade as ..... inept.
My example that I've give here before is.
There were two doctors who met at a party and one asked the other how much he got for an apendectomy. He said $8,000.00 .... why? How much do you get. The second doctor says .... Well, I've only been asking $5000.00.
The next day the second doctor would increase his price to $8000.00.
In the alarm trade, the first doctor would reduce his price to $5000.00.
It's this mentality that degrades a trade and without organization, training, and mandated installation codes (that it's obvious by this time are never going to be self adopted by the "independents" ) that needs to be put in place if this trade EVER wants recognition and the power to govern it's overall direction.
RHC: Damn! For once,you and I are TOTALLY on the same track ! I feel exactly as you do about our version of your trade organization called CANASA up here in Canada. They are in bed with the multi-national alarm companies and only play lip service to the thousands of independants here (although they would be quick to take my money if I was foolish enough to offer it ). They are an "old boys club" too. It seems to be a natural tendency of all associations to end up that way, just as has TAOL (The association of Ontario Locksmiths), which I belonged to for many years, until they too showed their true stripes !
Your reasoning is sound; however, I don't have a clue how to affect the problem in any meaningful way
Naw, I know what you're saying. To clarify my point, ..... Sure ... there's a lof of "aware" guys out there but it's the mass majority that decides where a trade goes in it's quests for recognition and equalization among other trades. Through the years, this trade has had ample opportunity to pull it's self up by it's own bootstraps and has not done so..... due to lack of organization. The majority is out there " being independent". Part of the reason this is so, is why I feel as I do about the NBFAA (who has recently taken on an alias .... as well it should ) This is an organization that's been around for over 50 years and hasn't done a damn thing to orgaize the massive power that resides in the small and independent alarm companys. Instead it has legioned with the big and powerful and hasn't accomplished shit in making any headway towards ligitimatizing the trade. The little guys far out number and out-install the Nationals. They consist of thousands of voices yet they have no unified power. The NBFAA has totally ignored this power and failed to organize it through the decades, because ,in my opinion, they know that once they give the little guys the power, it will be the demise of their cadre of "good ol boys"
So it's not my "Total" opinion that each and every indepented it a dummy ..... it's just that "apparent" attitude that is generated by lack of orgaization, recognition and mandated rules ..... that provides the over all picture of the trade as ..... inept.
My example that I've give here before is.
There were two doctors who met at a party and one asked the other how much he got for an apendectomy. He said $8,000.00 .... why? How much do you get. The second doctor says .... Well, I've only been asking $5000.00.
The next day the second doctor would increase his price to $8000.00.
In the alarm trade, the first doctor would reduce his price to $5000.00.
It's this mentality that degrades a trade and without organization, training, and mandated installation codes (that it's obvious by this time are never going to be self adopted by the "independents" ) that needs to be put in place if this trade EVER wants recognition and the power to govern it's overall direction.
I don't totally agree... I believe there is some truth to the statement that the ESA cares more for the nationals than the small guys, and I think I know why... It's simple math, take Sacramento, there is around 250+ companies in my area, out of that 250 how many do you think belong to SAAA/CAA/ESA... Here's a hint
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and another hint
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... The nationals & Large regional players far out number the small companies... If the small companies want a louder voice, then maybe they need to join to be heard... You know the old saying, " Money talks, and Bullshit walks"...... Just my
1/2 cent.........
In situations like this, going back for thousands of years, history shows us that what usually unifies a movement is a hero who becomes a sacraficial messiah. ...... Ummm but for some reason I'm thinking that ... that doesn't apply here. Unless you'd like to volunteer. ;-)
I would do it but in recent years I think my legs are getting longer. It's getting so damn hard to get up from a kneeling position so I don't think I could run with a banner.
I think that somewhere down the line, some far reaching law is going to be proposed .... or .... some judge is going to set a precedent and decide a case that pronounces the superceeding of the limited liability clause in our contracts ....... Something that will profoundly change the entire industry .... that will affect manufacturers, along with big and small alarm installation companys together. Something like this could unify the trade if there are the right people, in the right positions who will take up the banner and lead a crusade. It only happens occasionally and not always successful but I think it will have to be something like this that will have to happen that could ultimately lead to unifying the trade.
The NBFAA doesn't have enough pull to pull this off now because they enlist only the larger companys which are comparitively few in number compared to the independents. If they were smart ( yeah, sure) they'd be doing everything within their power to enlist the co-operation of the small companys, simply to garner their grass roots capability to make things happen. But they're too blinded by the good ol boy razzel- dazzel to realize that their missing the boat entirely. Let them eat cake is their attitude. So .... it's been status quo for all these years. Stupid, stupid, stupid.
I'm getting nearer to the end of this every day. No more fight left. I've been saying it for too many years to deaf ears. Most agree but ............. it has never changed in all these years.
The independents are just that ..... independent. The only way they're going to unify is if there's something in it for them. It's the NBFAA's job to give them that ..... what ever it is .... to get them to join so that as a massive organization they can make things happen. ... The orgainiztion of the small companys isn't going "just happen" spontaneously. It's got to be made to happen. After 50 plus years and they've done little to nothing to organize this trade?
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