Security Sales & Integration Magazine July 2012 by Bobit Business Media

2012

best of

THE BEST ISSUE INSTALLERS OF THE YEAR Bates, Per Mar Crowned for Making Customer King

INTEGRATED INSTALLATION OF THE YEAR

THE REBIRTH OF RESIDENTIAL REVENUES

GIANT SPECIAL SECTION

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New N ew M Market arket R Research esearchh Latest Analysis Latest TTrends rends A nalysis Sales Guidance Sales G uidance aand nd TTips ips Hottest Hottest TTechnologies echnologies And Much More! And M uch M ore!

Inside Massive Manhattan Project, Plus 3 Others

July 2012 Vol. 34, No. 7

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CONTENTS

July 2012 Vol. 34, No. 7

THE BEST OF THE BEST ISSUE 26 PEOPLE MAKE PER MAR A STAR

Like a highly disciplined athlete, Per Mar Security Services executes business fundamentals to near perfection. Having finely honed its methods during the course of almost six decades, the Midwestern provider celebrates its first recognition as a SSI 2012 Installer of the Year. Plus, two other finalists are profiled. by SCOTT GOLDFINE

2012

best of

THE BEST ISSUE INSTALLERS OF THE YEAR Bates, Per Mar Crowned for Making Customer King THE REBIRTH OF RESIDENTIAL REVENUES

32 A BATES WITH DESTINY

Bates Security is finding first-rate customer service, quality personnel, savvy management, smart marketing and industry involvement are making the Kentuckybased company destined for greatness. Freshly rebranded and on a growth fast track, this SSI 2012 Installer of the Year is already well on its way. Plus, two other finalists are profiled. by SCOTT GOLDFINE

GIANT SPECIAL SECTION

48 MEGA USES FOR HIGH DEF VIDEO

Applications that utilize the high definition imaging of megapixel cameras and IP-based video surveillance solutions are popping up all over the place, pushing the boundaries of security ever further from its core. The varied uses offer unique market niches for dealers and integrators to consider. by WENDI BURKE

INTEGRATED INSTALLATION OF THE YEAR

Inside Massive Manhattan Project, Plus 3 Others

38 ON THE COVER

COLUMNS

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8 BETWEEN US PROS

WITH SCOTT GOLDFINE

This year’s ‘Best of the Best’ explain their top challenges.

38 MAMMA MIMA! N.Y. PROJECT STEALS THE SHOW

One of the best productions in New York took place off Broadway in 2011 when ESCC wrapped up a security and communications solution for Manhattan’s MiMa complex. Bringing together IP video, access and elevator control, and other systems to garner Integrated Installation of the Year kudos, it’s no wonder the client is shouting, “Encore! Encore!” Plus, three other great projects are profiled. by SCOTT GOLDFINE & ASHLEY WILLIS

New N ew M Market arket R Research esearch h Latest Analysis Latest TTrends rends A nalysis Sales Guidance Sales G uidance aand nd TTips ips Hottest Hottest TTechnologies echnologies And Much More! And M uch M ore!

16 LEGAL BRIEFING

Sales Manager Bryan Bates (left) and General Manager Jeremy Bates at Thoroughbred Park in Lexington, Ky. Photography by Jamie Bates

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WITH KEN KIRSCHENBAUM

When to insist your insurance carrier engage knowledgeable defense counsel.

18 THE BIG IDEA WITH RON DAVIS

Where are your loved ones when you’re at work?

20 CONVERGENCE CHANNEL WITH PAUL BOUCHERLE Your competition, strategy and a chess board.

24 FIRE SIDE CHAT WITH SHANE CLARY

Do you toe the line of a true fire/life-safety practitioner?

DEPARTMENTS 4 SECURITY EXCHANGE 11 INDUSTRY PULSE

74 AD INDEX 76 MARKETPLACE

52 72% SAY SALES WILL RISE IN 2012

The residential market is shaking off the recession to emerge with greater upside than ever. Consumers want new technologies and services associated with home controls and remote access, and security companies are positioned to deliver them. With the latest trends, sales tips, technology and more, SSI’s Rebirth of Residential Security Revenues special section tells how to cash in. First up: New market research. by TRICIA PARKS

58 HOMEOWNERS DEMAND INTERACTIVITY

Mobile apps and Web-enabled services that allow consumers to control security and automation devices are fueling revenue growth in the residential market. by JAY KENNY

60 SAFETY IN THE PALM OF CUSTOMERS’ HANDS

THE THE REBIRTH OF RESIDENTIAL REVENUES

Customers are demanding additional services that complement traditional home security and fire offerings. Leverage new opportunities like wireless technology and other services. by MORGAN DOBIAS

64 WHY YOU SHOULD ENTERTAIN STRUCTURED WIRING

It will be increasingly difficult for dealers to retain customers selling alarm systems only. Protect your customer base from competitors with multiple product offerings for the home. by DARREL HAUK

66 BUILDING YOUR BUSINESS: How one traditional security provider implemented its new remote services program.

68 MONITORING MATTERS: Many security professionals may not fully realize the impact remote services are having on the industry.

70 TECH TALK: After many years, promises and false starts, the vision of home automation technology is coming to fruition thanks to Z-Wave.

72 THE ESSENTIALS: Residential Showcase 80 HOT SEAT: Verizon discusses its entrance into the home monitoring and controls market. 2

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Security Exchange Web Watch

Have You Checked Out … securitysales.com

PRODUCTS / securitysales.com/products

Looking for the perfect item to add to a project proposal that

Publisher Peggy Onstad: (949) 305-5541

will put you over the top and in line for the winning bid? There’s a good chance you’ll find it in the Products section of SSI’s site. Simply click on the Products tab at the top of the homepage or scroll down and click on the Products link in the middle of the homepage and presto! There you will find dozens of pages of the industry’s hottest technology from the most innovative manufacturers. Hundreds of items are featured dating back

to 2006, each with a vivid color photo, description of features and specifications. Newly added reader product reviews and an advanced search tool makes the process that much easier. Handy hyperlinks are included at the end of each product listing to provide more information and direct readers to the appropriate supplier. And while you’re on the site, be sure to sign up for SSI’s products newsletter, Security Equipment e-lert.

Audio Detection Technology Foils Break-in at Motorcycle Dealership

2 3

4 5

Byerly Leaving Top Post at Stanley CSS; Successor Appointed AT&T to Test New Home Security Service This Summer

Managing Editor Rodney Bosch: (310) 533-2426 Associate Editor Ashley Willis: (310) 533-2419 Contributing Writers Paul Boucherle, Shane Clary, Ron Davis, Bob Dolph, Peter Giacalone, Jay Hauhn, Ken Kirschenbaum, Bob Wimmer, Jeffrey Zwirn Art Director Ajay Peckham Sr. Production Manager Sarah Paredes: (310) 533-2497 Administrative Assistant Abril Calderon: (310) 533-2413 Audience Marketing Manager Katie Fillingame Staff E-mail addresses are firstname.lastname@ securitysales.com (e.g. scott.goldfine@securitysales.com) Contributors‘ E-mail addresses are secsales@bobit.com.

WEB-O-METER 5 most-viewed news stories during May

Editor-in-Chief Scott Goldfine: (704) 663-7125 114 Chatworth Lane Mooresville, NC 28117 Fax: (704) 663-7145

Public/Private Partnership Formed to Promote Video Intrusion Alarms Brivo’s New Program to Help Dealers With Web Marketing

HOW TO CONTACT ADVERTISING & MARKETING EAST WEST Dynise Plaisance Peggy Onstad 3520 Challenger St. 3520 Challenger St. Torrance, CA 90503 Torrance, CA 90503 (760) 519-5541 (949) 305-5541 Fax: (310) 533-2502 Fax: (949) 305-5549 ADVERTISING SALES TERRITORIES

SECURITY SCANNER® WEB POLL

25% What does ‘the cloud’ mean to me and/or my company?

25%

22%

Not much, it is overhyped!

Still not clear what the heck it really is

6% Paradigm shift for entire security industry

Tremendous recurring revenue opportunity

Compromises true security

While it has been receiving the lion’s share of buzz the past couple of years, the industry is split almost precisely down the middle as to what ‘the cloud’ means both in general and specifically to electronic security businesses. Five in 10 respondents (50%) view cloud-based services (a.k.a. hosted/ managed services) as a paradigm shift for the industry as well as a tremendous recurring revenue opportunity. However, an equal number look at it as being overhyped, undefined and problematic. Log onto securitysales.com to view SSI’s Security Scanner archives as well as cast your vote for the July poll: What is your opinion of our industry’s major trade associations (ESA, CSAA, SIA, NFPA, ASIS, etc.)? BLOGS www.securitysales.com/blog

Some of the things we’re talking about … Improving Perimeter Intrusion Detection With Multiple Technologies Supervising Employee Conduct in Company Vehicles The Right Time to Discuss Technology Migration With Customers Perfecting Outdoor Perimeter Protection Installations With Video How Are You Selling the Business Value of a Solution? Engage in the conversation!

/ SECURITYSALES.COM / JULY 2012

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FREE INFO www.securitysales.com/freeinfo Get free info about companies and products featured in this issue of SECURITY SALES & INTEGRATION. eCONTROL PANEL For the latest news as it happens, sign up for SSI’s eControl Panel at www.securitysales.com

Classified-MarketPlace Ads Peggy Onstad: (949) 305-5541 EDITORIAL ADVISORY BOARD Ed Bonifas Alarm Detection Systems, Aurora, Ill. Bill Bozeman PSA Security Network, Westminster, Colo. Shandon Harbour SDA Security, San Diego Jim Henry Henry Bros. Electronics, Fair Lawn, N.J. Michael Jagger Provident Security, Vancouver, British Columbia, Canada John Jennings Safeguard Security and Communications, Scottsdale, Ariz. Sandy Jones Sandra Jones and Co., Chardon, Ohio J. Matthew Ladd The Protection Bureau, Exton, Pa. Mike Miller Moon Security Service, Pasco, Wash. Joe Nuccio ASG Security, Beltsville, Md. Alan L. Pepper Mitchell, Silberberg & Knupp LLP, Los Angeles Eric Yunag Dakota Security Systems, Sioux Falls, S.D. HOW TO GET YOUR NEWS TO US E-mail: secsales@bobit.com Mail: 3520 Challenger St., Torrance, CA 90503 Fax: (310) 533-2502 FOR SUBSCRIPTION INQUIRIES (888) 239-2455 BOBIT BUSINESS MEDIA Edward J. Bobit, Chairman Ty F. Bobit, President & CEO

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Industry Divided on AT&T’s Security Prospects

These comments were posted on SSI’s Web site and LinkedIn page regarding the news item, “AT&T to Test New Home Security Service This Summer” (securitysales.com/atthomesecurity).

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As a veteran of more than 50 years in the security industry, I, too, have seen the telecoms and cable companies come and go. However, this is 2012 and technology and market knowledge have evolved considerably since the past failures. My advice to the industry is not to try to determine if AT&T will succeed or fail, that is their challenge. Your challenge is to focus on strengthening the skills of your own company. Product knowledge alone is not the answer to success. We all have that knowledge, including AT&T. I suggest you ask yourself, “What am I doing to strengthen the personal selling skills of my salespeople, strengthen my customer retention and customer service programs?” And then answer, “Why should they buy from me?” Being aware of competition is clearly necessary; however, your success is a result of investing your time and energy in your own company rather than someone else’s. Harvey Eisenstadt Sales consultant/trainer

I think this is a big problem for small security companies. To not worry about a “big box”-type of company coming into the market is a big mistake. Small security companies need to prepare for people moving to AT&T. Thomas Callarik , Hitek Security Solutions

AT&T had a disaster for the brand with their last entry into the home security business. It seems like they attracted every ethically challenged alarm dealer in the country who preyed on the elderly and uninformed buyer with bogus sales tactics. They will also find out that security is far more labor intensive than they will like. Bill Glover , ADT Security Services

It’s only a matter of time to see if the business consultants at AT&T have done their homework since their last venture many years ago. The labor-intensive effort it takes to keep long-term clients as happy clients requires a foundation of customer support that can be challenging. And for the amount of recurring monitoring revenue, it can be questionable. Rick Ingalis , City-Wide Electronic Systems www.securitysales.com/freeinfo/17252

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12 CHALLENGES THAT PUT THE ‘BEST’ TO THE TEST Between Us Pros

by Scott Goldfine

Editor-in-Chief Scott Goldfine has spent more than 13 years with SECURITY SALES & INTEGRATION. He can be reached at (704) 663-7125 or scott.goldfine@securitysales.com.

scott.goldfine@securitysales.com

elcome to our annual Best of the Best Issue, where we honor and profile several of the best-run and most highly skilled installing security systems contractors for their business and project management excellence. This year, we have 10 companies featured. Competition in the Integrated Installation of the Year category was so strong that it was expanded from three to four finalists. Indeed, there are so many outstanding organizations in our industry today that the Installation and Installer of the Year winners are often decided by the slimmest of margins. Showcasing these fine operations is not just about placing them on a pedestal to stroke ownership’s egos, boost company morale or provide a powerful marketing vehicle, although these businesses certainly do enjoy all those perks. It’s just as much about exposing their successful methods and practices to enable their peer group to better gauge their own procedures and aspire to a comparable level of achievement. Regardless of how solid your business is, there are always opportunities for improvement and new challenges to overcome. This is true even for the Best of the Best. I asked this year’s Installers group to identify their top three challenges … Jeremy Bates, GM, Bates Security: • Company efficiencies — maintaining as we grow. • IP and technology — staying on top of newest technology. • Customer retention — the larger we become, the harder we have to work to do all the things that made us successful in providing good service. Mark Recene, VP Sales & Marketing, HS Technology Group: • Conversion away from POTS lines to nontraditional methods of communication. • Creation of apps and the integration of wireless home automation technologies. • Keeping our staff and clients educated and informed on all the new technology. Mike Duffy, CEO/Owner, Per Mar Security: • Government and its effects from taxes and health-care legislation, and its continued intrusion into our everyday lives. • Technology and the rapid changes, and how we must continually adapt. • Other industries coming into security wholesaling services or bundling them in ways that will reduce profitability and cloud the understanding of what we provide customers. Shawn Mullen, President/Chief Energy Off., Protex Central: • Continuing transformation of our enterprise to a sales organization that happens to be a specialized protection so-

Showcasing these fine operations is not just about placing them on a pedestal to stroke ownership’s egos, boost company morale or provide a powerful marketing vehicle. It’s just as much about exposing their successful methods and practices to enable their peer group to aspire to a comparable level of achievement. lutions integrator from a specialized protection solutions contractor that happens to sell. It’s a 180° internal change. • Continuing the effort to reduce expenses is always a priority. For example, effective use of our existing fleet through the installation of GPS vehicle tracking. • Attraction of talent remains as a focus in order to capitalize on new opportunities and expansion. So how do you go about being among the Best of the Best? For starters, you have to be associated with an exceptional organization based in the United States or Canada, and you have to take the time and effort to enter. It’s that simple. While we’ll prod you with reminders in print, E-mail and online, we are not going to come knocking on your door or inappropriately submit an entry on your behalf. It does require some initiative on your part, and you have to be in it to win it. But it is free, and I believe well worth the effort. In particular, the process can prove beneficial as a means to objectively assess how your business is measuring up in several critical areas. Try out the following questions to evaluate the present state of your operation: 1) How does your company provide exceptional service to its customers? 2) What business practices and marketing strategies does your company use to ensure its success? 3) How does your company make sure its personnel are properly trained? 4) How does your company keep its employees motivated and fulfilled? 5) How does your company contribute to the communities it serves? 6) In what ways does your company contribute to the security industry?

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GENERAL MANAGEMENT

THE REBIRTH OF RESIDENTIAL REVENUES

HOMEOWNERS DEMAND

Interactivity Mobile apps and Webenabled services that allow consumers to control security and automation devices are fueling revenue growth in the residential market. by Jay Kenny

he past 10 years have seen dramatic change to the residential security system. Today’s systems can communicate wirelessly, telephone lines are a thing of the past, security panels have color touchscreens, users can interact with their system and security sensors can even be used to optimize energy use. These advances have created fresh opportunity for dealers and integrators to offer additional services, reduce attrition and increase recurring monthly revenue (RMR). New services, driven by technology innovation, are projected to fuel overall growth in the number of homes that have security systems. Upcoming in this article, we’ll focus on several key technologies transforming residential security today and poised to have a significant impact in the future. Plus, we’ll discuss consumer trends driving technology development, share how installing security contractors can effectively generate new revenue opportunities and grow their businesses by delivering these in-demand residential security services. SOON TO BE ‘MUST-HAVE’ SERVICES The emergence of interactive services has been driven by a steady drumbeat of technology innovation during the past 10 years. What began as the core ability to send commands to the security panel from a computer interface and get notifications has given way to today’s systems that are far more sophisticated, offer better security and have made it easier to service and support customers. The evolution of interactive services from early adopter phase to a ‘must-have’ technology can be

attributed to multiple factors. First, explosive growth of mobile devices has led consumers to rely increasingly on their iPhones, iPads, BlackBerrys, Android phones and other Internet-enabled mobile devices for day-to-day activities such as monitoring and securing with their property. The quantity and quality of interactive services continues to evolve from basic real-time text notifications to today’s set of home energy management, integrated video, and new locationbased capabilities. Also, the rise of interactive services reflects the extent to which consumer perception of what security means has progressed from traditional arming and disarming to an expectation for day-to-day property awareness and peace of mind. Notably, the price point for many interactive services has come down to a level that many consumers can afford and are willing to pay for. Interactive services technology has also driven great advancements in the service and support of customers. Interactive services has made it possible to access and change most panel settings from a Web site, greatly reducing the need for a truck roll and increasing customer satisfaction with the ability to address request almost immediately. This has resulted in decreased customer support costs for accounts with interactive services and reduced attrition due to higher engagement and overall customer satisfaction. MOBILE APPS IMPROVE RETENTION When the first Alarm.com app was released in the spring of 2009, the overwhelming majority of logins to an Alarm.com interactive account were through the company’s Web site. One year later, 50% of logins were through a mobile device and now more

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FIND IT ON THE WEB The online version of this story includes information about monitoring external conditions, such as weather and power outages. Also, a sidebar provides tips on how dealers can position themselves against telecom entrants. Visit securitysales.com/ResiOpps.

than 75% of remote access events for those interactive service accounts are through a mobile app. Nearly all of the other key technologies referenced in this article are either enhanced or enabled by the ability for consumers to access these features via mobile apps. The traction mobile apps have gained for controlling and monitoring security, video, lights, thermostats and locks reflect their ability to keep customers engaged with the system on a regular basis. This has, in turn, proven effective for security dealers and integrators in improving retention of existing customers, driving new customer acquisition, and delivering additional revenue-generating services. Mobile apps have also proven transformative for the ability to change how customers interact with their home systems. Not only have mobile apps been relied upon by users remotely (at work, on vacation, etc.), but customers also are drawn to the ability to change thermostat settings, lock doors or arm the security system from the living room couch or bedroom rather than having to do so from the physical keypad. This behavioral shift positively impacts dealers, who could see equipment costs go down as customers use products they already own — for example, smartphones and tablets — to get more out of their systems. VIDEO IN THE HOME IS MORE COMMON Video as a service (VaaS) has added a highly disruptive element to traditional home security, as much for the price point as the technology itself. Video monitoring is no longer relegated to high-income individuals willing to spend tens of thousands of dollars for a custom installation of video equipment. Everyday consumers can now take advantage of wireless IP cameras for a few hundred dollars, and because video can be stored remotely in a cloud environment there is no need for consumers to incur a local storage device. For security dealers and integrators, affordability, higher quality IP cameras and the ability to deliver live or motiontriggered video clips directly to the customer translate into expanded RMR opportunities. At the same time, the ease at which some video monitoring solutions can be installed and compatibility with analog security cameras eliminate historical hurdles around the upgrade process. This unlocks a broader set of potential customers who have video cameras, but need interactive monitoring features Interactive services that can be controlled via Web-enabled mobile devices, such as smartphones and tablets, allow homeowners to remotely control security and automation devices.

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that can lead to greater revenue. Mobile apps have served as a true catalyst for generating greater value out of video for the customer by allowing for live video feeds, motion and alarm-triggered video clips, and the ability to remotely adjust pan-tilt cameras. This has transformed video from an experience that required poring through hours of video in front of a screen to being able to receive video clips to a mobile device exactly when the customer wants it and how they want to receive it.

TAPPING INTO ENERGY MANAGEMENT By 2017, an estimated 90 million homes worldwide will employ home automation systems. These projections by ABI Research hint at where this market is headed, but the fact is home automation technology is already making its presence felt with residential security today. The flood of products and technologies dangling before security dealers and integrators, ranging from smart thermostats to wireless keypad door locks, offer multiple paths to consider when creating customer solutions for consumers. While the full potential of home automation and home energy management is not close to being realized, evidence suggests the greatest perceived consumer value to be when home automation is tightly integrated with an underlying security platform. Research by Parks Associates backs this up, finding that 40% of consumers with security systems are interested in energy management compared to 25% of those without. By integrating home automation with the security platform, data becomes a valuable asset for customers to make more informed decisions on their use of lights, thermostats and locks for energy savings and improved security. By leveraging sensor data from the security system and setting sensortriggered optimization rules, customers gain insight on activity in the home and can more accurately control home thermostats via ‘smart schedules’ or automating lights to turn on when a customer disarms the security system at night upon returning home. The whole is greater than the sum of its parts — an end-toend integrated solution delivers significantly enhanced value to the customer compared to a set of standalone products unable to communicate with one another. DEALERS ARE WELL POSITIONED The bottom line is that technology is changing the residential security market — with or without the security dealer. New entrants in cable and wireless are bringing these new products and services to market, but security dealers and integrators still hold a powerful position as the provider that consumers trust to deliver security solutions. By thinking strategically on how new technologies can positively benefit the consumer, security dealers and integrators can generate new revenue opportunities and foster a stronger relationships with their customers. Jay Kenny is Vice President of Marketing at Alarm.com, a provider of interactive security solutions. He can be contacted at jkenny@alarm.com.

JULY 2012 / SECURITYSALES.COM /

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SAFETY IN THE PALM OF CUSTOMERS’ HANDS

SALES MANAGEMENT

THE REBIRTH OF RESIDENTIAL REVENUES

Residential customers are demanding greater protection, and many want additional services that interact with and complement traditional security and fire offerings. Learn how to leverage new opportunities like wireless home security technology, smoke and heat detectors, and other services and enhancements to remain competitive. by Morgan Dobias

n the security and fire/life-safety industries, technology is moving at a fantastic rate. Now more than ever, customers have the ability to completely control their homes, from anywhere. However, protecting lives and property is still the No. 1 goal of this technology. And now is the time for dealers and contractors to capitalize on customers’ new demands and expectations — while helping them to stay grounded in reality. THE INFORMED CONSUMER Today’s consumers expect a lot from their technology, especially when it comes to protecting their families and property. They want reassurance — and convenience — from their home security systems, personal safety devices, smoke and CO detectors, panic and duress sensors, and more. For each individual consumer, the role of security and fire/lifesafety products is different — and expectations can vary greatly. “The ‘sphere of concern’ of end users has always varied from one person to the next,” says Jim McAward, director of market research for Honeywell Security Group. “One customer may be concerned about their baseball card collection, another may be concerned about their pets, another may be concerned about their teen driver on the road, or their elderly parents in another state.” To achieve that reassurance, consumers are no longer content to protect their home solely with traditional technology, such

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as motion sensors, glass-break detectors and smoke detectors. Instead, demand is moving toward technology that will keep them informed 24 hours a day, no matter where they are. “The technology for security and home awareness has evolved from a gadget that protects a house into a full-on digital communications backbone, which protects against a variety of threats, that can be accessed remotely and controlled using mobile devices,” McAward says. Kirk MacDowell, residential sales leader at Interlogix, has also seen an uptick in demand for “lifestyle safety” products. For example, activity sensors can be set to notify the user via E-mail or SMS that a certain event has taken place at home. “Lifestyle events, such as a medicine cabinet being opened, or a snapshot of who disarmed the system, can be delivered to the consumer without central station notification,” MacDowell says. “Environmental sensors can also give homeowners peace of mind in knowing that water detection sensors or freeze sensors can detect a problem and notify the homeowner before serious problems develop.” Dealers and integrators should be prepared to pitch these remote capabilities to prospective customers — especially those with children, pets or elderly parents. “Today, people are more likely to demand that 24/7 comfort of being able to look in on their home, their kids, or even their pet, just to make sure everything is OK,” says Bruce Mungiguerra,

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RESIDENTIAL SALES TIPS

vice president of sales and dealer development at Monitronics Int’l. “More and more, they’re wanting the capability to check video feeds on their smartphones, receive alerts via E-mail or text message when a certain door is opened, and more. Dealers need to be ready to offer these products and really explain their value to customers.” THE ROLE OF CENTRAL STATIONS Customers are now more aware than ever of what security and fire/life-safety products can do to safeguard their homes and families, thanks in part to advertising and greater market penetration. And with 44% of Americans using smartphones, according to PC Magazine, more and more people are seeking remote safety and security apps. But experts warn that the remote capabilities of certain products do not supersede the need for professional central station monitoring. “Although consumers love to be connected to their home remotely, we believe that critical event monitoring, such as fire, life safety or CO detection events, need to be sent to a central station where trained and experienced personnel can dispatch the proper authorities,” MacDowell says. The traditional approach for clients included a few unmonitored fire and CO detectors placed in the home. In the best cases, the detectors would notify them there was smoke, excessive heat, or CO present. But without professional monitoring, the risk from these sources is ever-present. For example, what happens to an elderly parent or the family pet when a fire breaks out at home during the workday? “Remote awareness of fire and life-safety information is a matter of reassurance: a nervous homeowner can check to see that their house is safe. But, no mobile device can replace a professional central monitoring station,” says McAward. Even as user-monitored products become more popular, it’s important for contractors and dealers to remind FIND IT ON THE WEB The online version of this story includes additional information about municipal mandates and licensing. Visit securitysales.com/ResiSales.

Professionally monitored fire and life-safety products, including smoke and CO detection, provide installing security contractors opportunities to expand their portfolios.

customers that most lack the central station element. A video feed or personal safety device that routes alerts directly to the user’s cell phone can only inform him or her — not dispatch professional help. While the draw of remote-enabled safety and security applications continues to grow, remind your customers that it’s vital to investigate which apps have professional monitoring services attached to them. For example, of the 10 most popular personal security apps available today, eight send alert notifications to a user’s emergency contacts; only two are professionally monitored. “Without central station monitoring, consumers are putting themselves at risk,” says Mary Jensby, director of the Monitronics Central Station. “With a monitored smoke detector or personal protection device, help can be on the way in a matter of seconds. If the safety of your home and even your family is on the line, you want the police and fire department to know as soon as humanly possible.” OTHER HURDLES & OPPORTUNITIES Despite the challenges, now is a great time for the security and fire/life-safety industries. As consumer awareness and demand grows for these products, dealers and contractors have an opportunity to grow their business in new ways. McAward agrees that fire and lifesafety products provide the dealer or contractor with many opportunities to expand their business. For consumers,

a fire or life-safety add-on can be the difference between saying yes and walking away from a contract. “If a security-only buyer is ‘on the fence’ about signing a contract, adding a life-safety component may convince them to proceed; protecting the lives of their family and pets is a very impactful message,” McAward says. “However, the contractor needs to overcome a number of objections: although it costs more to add fire and life-safety devices, the benefits are very real and can be priceless.” MacDowell agrees that adding a lifesafety option can help seal the deal with prospects who are on the fence, leading to more revenue and “stickier” customers. “The life-safety add-on to an intrusion system can be a simple sale,” he says. “Not only is the consumer better protected with life-safety products, such as smoke and heat detection, many manufacturers also offer wireless heat detectors and new seven-year life CO detectors. This provides dealers with opportunities for additional revenue and a longer lasting and satisfied account base.” At Honeywell, internal studies have shown that a sizeable portion of security rejecters still find a life-safety message appealing. That’s why some contractors lead with the life-safety message: their core offering is monitored fire, and the burglary features are secondary. With this approach a dealer can reach those consumers who are less concerned about crime, since the threat of fire, CO poisoning and personal injury exists in every neighborhood, regardless of burglary rates. If a dealer is considering expanding their product offering, it’s important to remember that consumers expect providers to be well-versed on even the newest products. “Really, the largest challenge is keeping up with consumer expectations of technology,” McAward says. “The customer is looking to you to be the expert on a much wider range of technologies, which means the contractor or dealer needs to be recruiting the best talent and investing in their training.” Morgan Dobias is a dealer marketing coordinator for Monitronics Int’l. She can be contacted at mdobias@monitronics.com.

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SS0512webnewsanalysis

NEWS. ANALYSIS. RESEARCH. www.SecuritySales.com

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GENERAL MANAGEMENT

THE REBIRTH OF RESIDENTIAL REVENUES

WHY YOU SHOULD ENTERTAIN

STRUCTURED WIRING

It will be increasingly difficult for dealers to retain customers selling alarm systems only. Protect your customer base from competitors with multiple product offerings for the home. by Darrel Hauk

word of advice for security dealers that operate a one-dimensional business model based on selling alarm systems to create recurring revenue with monitoring contracts: If you have the expectation to keep these customers for life, you will be doomed by attrition at the hands of integrators that provide a wide range of technologies and services to the residential market. Many systems integrators have made the transition to multiple product offerings and services that cater to rising consumer expectation and demand. Included among a new breed of clientele is Generation Y, which comprises one of the largest population segments in a 20-year span. This generation is as large as the Baby Boom population; integrators have found success in capturing their attention and retaining them as customers for the long term. The Gen Y segment has started buying homes, raising families and has the largest amount of disposable income with the understanding, appreciation and knowledge of high-tech products. Consider that for many people discretionary spending begins to fall off, and serious saving for retirement begins, at about 48 years old. The Baby Boomers offer a great market for personal emergency response systems (PERS), but for substantial revenue growth over the lifetime of your customer, the Gen Y clientele can produce revenue for another 30 to 40 years. Based on the current return on investment (ROI), each account could be worth upward of $30,000 to $100,000, which is a substantial increase compared to the alarm industry business model of $10,000. Let’s take a look at how dealers can continue providing their core security systems while increasing their customer base by offering new technologies that deliver a fully integrated solution in the home. EXPAND YOUR PORTFOLIO Low-voltage services to the home include cable TV, distributed FIND IT ON THE WEB This month’s special residential coverage includes a story available only online that details how home automation systems with a security backbone are proving to be the best solution for growth. Visit securitysales.com/HomeAuto.

audio, telephone, computer network, intercom, home automation, fiber optics, plus many add-on products such as DVRs, IP-based video, even iPods and iPads. For those of you who haven’t ventured into this area, the technology delivery methods are amazingly similar to the products you are already installing. Cable TV, antenna and satellite communication is all distributed by RG6U cable, similar to RG59U for your camera systems. Computers are distributed with Cat-5e wire, similar to alarm wiring and the same as IP camera wiring. Telephone is similar to alarm wiring, and audio is similar to both using RG59U, 16-18 AWG speaker wire and Cat-5e wiring. STRUCTURED WIRING EXPLAINED Structured wiring consists of an enclosure between 12 inches to 50 inches with expansion capabilities, which provide the capability to place products in a uniform, organized and easily maintained manner. Product modules are contained in an all-in-one low-voltage distribution location. The cable TV, in many cases, has cost installers hours to locate a hidden wire in the wall, only to have outdated and defective splitters and tap systems. Alternatively, in a structured wiring system, you’ll home-run the RF cable using RG6U to send the signal to the other rooms. This same infrastructure will be used for cable TV, satellite TV and antenna TV services. Telephone wiring to each room for a landline has become a standard for many parts of the nation. Many people don’t realize the value of a landline and the importance of educating customers. For example, the only telephone service in much of Louisiana after Hurricane Katrina was the landline infrastructure system. The cell phone towers were down and out of service for most of the state, but the landlines were still working and operational. Being connected during a natural disaster can be a key selling feature. In addition, telephones in the home can be used as an intercom to the front door, paging throughout the house and over the audio system, adding additional value. Distributed audio systems will use the same type of wire and have a different approach. Now we’re talking about lifestyleenhancement technology and how the customer can enjoy

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PHOTOGRAPHY ©ISTOCKPHOTO.COM/PICTAFOLIOPICTAFOLIO

FIND IT ON THE WEB The online version of this story includes additional information. Visit securitysales.com/ResiEnt.

newfound benefits. Entertainment has so many values from a mood and health perspective, to the benefits of social gatherings, better known as the party! By pulling a Cat-5 wire from the distribution point to each room, the kitchen and entertaining areas of the house for volume control, and by using 16/4 speaker wire from the distribution point to the in-wall or in-ceiling speakers in each zone, you now have a distributed audio system. As a bonus, the customer’s iPad can be added to the system and be used as a controller throughout the house. The user can control the alarm system along with their multiroom audio, security cameras, etc. Mounting options are one area that several companies have addressed with a docking station to power and secure the iPad as a wall-mounted controller. Assisting your client with their existing technology and bringing the sizzle to the sale adds value they’ll remember. Installers may not make money on selling an iPad, but the time

to set it up and the accessories that are offered will create the value clients see in an installation company. ADD REVENUE TO YOUR BUSINESS Installation companies earning $25 per month for contract monitoring services have the opportunity to double that amount with a minimal investment of time and product knowledge. This could result in a turn-around in your business by selling at double the 10x that you would typically get for contracts today. If you now earn $75 per month, by extending the cost of the product plus installation over time, you’ve tripled the value over the life of the account. Let’s take a closer look at the numbers for a typical project: • Four-room audio system: parts, $647; labor, four hours • Structured wiring for eight rooms with video, telephone, computer, wall plates: parts, $145; labor, eight hours • Intercom over existing phone line: parts, $275; labor, 1.5 hours The total parts cost is $1,067. The total labor cost, calculated at 13.5 hours X $30

Structured wiring refers to various types of wiring installed in a home for the distribution of audio, video, telephone and data signals.

per, is $405. The total amortized over three years is $40.88 per month. Many business models would calculate the cost and value received after the three years while other models would look for immediate return. It is best to review these numbers with your accountant and banker to meet your financial objectives, both long term and short term or your cash flow may limit your growth. Providing tremendous value to your client by delivering a package that captures all of their business not only greatly increases account retention, it also keeps the competition out of your core security business. Articulating to a customer that structured wiring increases a home’s resale value is key to securing the sale. A “wired home” allows the customer to increase their resale price while saving service call time and labor costs in the future. Finally, another related revenue idea would be to offer a “trade-up” program and make monthly revenue by selling a “never-out-of-date” technology product. There’s ROI opportunity from audio, video and structured wiring technology in the form of upfront cost, plus a buyback program for active customers under contract. The objective is to keep them for life! Darrel Hauk is President and CEO of Costa Mesa, Calif.-based Channel Vision Technologies. He can be contacted at darrel@channelvision.com.

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ADAPTING TO THE NEW SALES PARADIGM Building Your Business

THE REBIRTH OF RESIDENTIAL REVENUES

by Russ Ackerman

Russ Ackerman is District Sales Director for Vector Security (formerly Certified Security Systems) in Jacksonville, Fla. He can be contacted at rackerman@vectorsecurity.com.

rackerman@vectorsecurity.com

A Florida dealer overhauled its traditional business to begin selling IP-based products and interactive services for the residential market. Learn how the extensive project was carried out successfully.

he door of opportunity is now wide open for installing security contractors to sell new technologies and services like never before. Finally the right products are available that provide homeowners the connectivity they desire, allowing them to keep an eye on their residences with IP cameras, control thermostats, receive alerts and much more. Some security professionals are taking a waitand-see approach to better understand how this market will play out before committing to sell any of these new products and services. That could be a risky approach. You can either carefully watch others to see how they made it down the trail to success or you can lead the way and be the one that others are watching. To better serve our customers — and secure their business before the competition does — we became very proactive to compete in this new arena. What follows are the chains of events that helped us make the transition from a company focused on a portfolio of traditional products and services to now meeting customer expectations and demand for new and expanded ways to interact with their home security systems. REFUSING TO BE LEFT BEHIND For some dealers and integrators that have been selling security systems for more than 20 years, the new technology can be really scary. Some traditionalists in the industry are of the mind that we don’t need all this “stuff.” I even had one sales manager go as far as to tell me he thought small IP video packages were simply a fad that would burn out in a few years and we’d be back to selling basic alarms. Quite the opposite, the new interactive home security and au-

tomation technology is exciting, easy to use, practical and affordable. We are not a company that jumps from product to product. We have been using the same product manufacturer for almost 15 years. We typically find a great product line and figure out the best way to sell it and stick with it. We will change our marketing strategies, but otherwise we are very loyal to what made us successful. But time and technology marches on, and we recognized it was high time to secure our place in the market. We realized last year that we did not want to wait and try to play “catch up” with all the other companies in our markets. We wanted to lead the way. Not just in the new technology but in making sure our sales teams were the best prepared in the industry. Our goal was to find the new products that our customers would want and then give the sales teams the tools they needed to close every sale. And, we wanted to do it in a big way. Giving a sales team new products can be challenging, especially if you want them to buy in and sell with enthusiasm. You can’t just “put it out there” and expect your team to figure it out for themselves. Your managers must have complete confidence, without any reservation or hesitation, before they can motivate the sales team. Managers must be more excited than the sales team. It is like

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Sales representatives at Vector Security (formerly Certified Security Systems) in Jacksonville, Fla., went through an extensive training course in preparation for the launch of the company’s interactive services offering.

making a sale. If the salesperson is not excited about the product it is unlikely the prospect will be either. So if the leadership is excited and promotes the product, the sales team will likely follow their lead. GROUNDWORK IS PARAMOUNT Our first order of business was to talk extensively with other alarm companies around the country. We discussed what was working for them and what was not working. We knocked around various ideas with some of the best marketing people in our industry. There were several conference calls and lots of notes taken to develop what we thought would be the right approach. Next, we very carefully made a plan that included what product we would be selling, what training we would need, who would attend the training, and who would conduct the training. We even went as far as establishing a timeline to make all this happen. We established goals. We had the attitude that after we made the commitment that there was no turning back. We were “in it to win it.” After we made the commitment to embrace the new technology, we began to discuss some of the products with our sales teams in sales meetings. We did tell them a few weeks ahead of time that we would be making a significant change to our products portfolio. A week before we had our first training class, we made sure that our sales managers were up to speed and understood the basic features and benefits of these products. That same week we distributed collateral material, such as brochures and users guides for the products to the sales teams. LEARNING A NEW LANGUAGE We then invited the manufacturer to send its best trainers in to instruct our salespeople. If your company is about to undertake a similar process, be prepared: This portion of your journey could be the toughest. It certainly proved to be the hardest part for us, but also the most important.

We spent an entire day in training. Every salesperson was required to attend the daylong class. The first half of the training was dedicated to teaching them about features and benefits. After lunch each salesperson was given a live working demo kit on the products and asked to do a complete presentation on that product to their peers. We even gave a written test to each sales consultant. The most challenging part of this training was getting them comfortable with some of the new terminology. It was very important to us that before any one of our salespeople left the training class that there were no unanswered questions. Our salespeople must be able to do a dazzling presentation. They had to know how to get the prospect excited about these new technologies and services. For the next several days we spent time in our daily sales meetings reviewing the training and discussing the sales results from the previous day. FINE-TUNING THE SALE The results were almost immediate. The very first day, after the training class, our sales team was selling new products that they had never sold before. We are now selling more additional products and services to existing customers, and have more to offer new customers. Our average recurring monthly revenue (RMR) rate has increased by several dollars. We have had a few sales consultants increase their monthly rate by almost 25% per sale. One of our biggest fears was that some of our veteran sales consultants would not buy in to the new products. Not only did they embrace the new offerings, a few of them are leading the team in new product sales and interactive services. It is very exciting to see sales consultants who have been selling traditional alarm systems for more than 20 years now selling residential IP cameras and interactive services. Because all of our initial preparation and training helped put us on a path to be successful, we have only had to make a few simple adjustments to our sales presentation. The fact-finding portion of our presentation had to be adjusted to make sure we were asking the right questions so we would know what products to offer. We are now asking questions like, “Would it be important for you to keep an eye on your home or business when you are away?” and “Would you like to be able to arm and disarm your protection when you are away?” Here’s another important tidbit we learned right away: To properly demonstrate the new technology, we had to allow more time for each presentation. You can expect to have to do the same. Our sales teams now go out on every sale with that NO FEAR attitude. They know that when they do a sales presentation they are going to win. They have more knowledge, more tools and are better prepared to make the sale than the competition.

JULY 2012 / SECURITYSALES.COM /

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6/22/12 1:23 PM

REMOTE SERVICES ARE MORE THAN JUST AN UPGRADE Monitoring Matters

THE REBIRTH OF RESIDENTIAL REVENUES

by Peter Giacalone

Peter Giacalone is President of Giacalone Associates, an independent security consulting firm.

peter@petergiacalone.com

here is a lot of buzz lately surrounding remote applications and the variety of technologies and structures that are available as add-on’s for security systems. Yet many security professionals may not fully realize the impact these benefits are having on the industry. Much continues to be touted about how remote applications provide lifestyle enhancement upgrades to security systems and other supplementary bells ‘n’ whistles. Some installers are even myopic about it and view these benefits as being only for those high-end residential clients who are early adopters of technology and willing to fork out the additional cost. This could not be further from reality. The availability, usability and benefit of structuring a system that allows homeowners to stay connected to their security systems around the clock from anywhere is rapidly becoming the rule and not the exception. Many industry professionals state that video was a catalyst for remote services. While that may be true, the benefit of controlling everything from the arming/disarming of a system, to lighting to climate control, has been noticed and well received in the marketplace. Furthermore, as these services become more robust, the enrollment by commercial clients is growing as well. EDUCATE YOUR CUSTOMERS, OR ELSE I still see some push back from traditionalists who are very concerned remote services that allow end users to stay connected to their systems will erode their recurring monthly revenue (RMR). Again, a reality check is in order. Consumers see the value in staying “plugged in” and are willing to pay for it. What separates the markets is simply education. The dealers that are taking the time to educate potential and existing clients on the many features and benefits of accessing and controlling a security system via Web browsers and mobile devices are accelerating in this area. In many cases they are re-establishing and extending legacy relationships and building new client relationships with their competitor’s clients who were unaware of how far a security system can be taken. A very simple example of a market channel that’s accelerating in the utilization of remote access and control

The availability, usability and benefit of structuring a system that allows homeowners to stay connected to their security systems around the clock from anywhere is rapidly becoming the rule and not the exception.

are the “door knocker” programs. These salespeople cold call and pitch an entry-level, yet comprehensive system. The basis many of these companies utilize is the value and justification of the core of the system, and benefits the added features deliver. Offering this as a baseline system with basic intrusion and building from that point is a meaningful path toward success. Taking this concept and utilizing it in a traditional security company model in both residential and commercial makes this proposition even better. Removing the stigma of the cold call and pitching a consumer who is actually interested in a system allows this path to succeed at a greater rate. Building that basic system and folding in fire safety, energy management, lighting control, etc. — and demonstrating these features based on how the value escalates through the availability of remote access — allows you to accelerate your conversation into a close and signing up a new client. It doesn’t matter if it’s a small residential client or a large commercial client; most, if not all, clients can benefit from these platforms. These systems come in a variety of different forms from a variety of manufacturers; it’s up to you to choose the structure that best fits your client. Above all, it is essential to keep pace with marketplace developments and advances. Don’t wait for your customers to ask for these new services and applications. If you wait, it will be too late to deliver. It cannot be stressed enough how important it is to communicate this message to all of your clients. For certain, if you are not educating your customers on remote applications, your competitors certainly will be happy to.

/ SECURITYSALES.COM / JULY 2012

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TECH THE REBIRTH OF RESIDENTIAL REVENUES

TALK

IT’S TIME TO RIDE Z-WAVE

by Bob Dolph

Bob Dolph has served in various technical management and advisory positions in the security industry for 30+ years. To share tips and installation questions, E-mail Bob at bdolph.ssi@gmail.com. Check out his Tech Shack blog at www.securitysales.com/blog.

bdolph.ssi@gmail.com

After many years, promises and false starts, the lofty vision of home automation technology is coming to fruition. Although it has gotten to where automation is almost a bad word, often replaced with controls, there are a number of newer technologies and associated products opening up exciting opportunities for security contractors willing to give it a go.

hen you sell a residential security system these days do you offer the customer the option of home automation? Not interested in complicating your security installation? I can understand, but what about adding to your residential RMR base? Now that I have your attention, you are ready to enter the “Z-Zone.” Z-Wave is wireless home energy management technology rapidly gaining in popularity and will be a primary focus for us this month. Sure, we have been talking about new wireless automation technology for some time. I know that many dealers and integrators do not like to work with leading-edge, sometimes referred to as bleeding-edge, technologies and that is often a smart decision. However, wireless residential automation technology is out of the gates and ready for realistic offerings by security integrators. It has been projected that 90 million homes worldwide will employ home automation systems by 2017. Surveys have shown the security integrator to be the most trusted professional for applying new technology to the residential market. New data from the Department of Energy’s Automated Home Energy Management (AHEM) Strategical Technical Committee (STC) indicates the professional trade is needed to both educate and apply new residential automation technology (see sidebar). Don’t let this exciting opportunity bypass your organization.

10 TIPS FOR DEPLOYING Z-WAVE According to the Z-Wave Alliance (z-wavealliance.org) the industry has just certified its 600th product, an indication the trend is now a mainstream movement. One Z-Wave application area that excites this alarm old-timer is the integration of

TECH TALK

Want to get your feet wet with controlling Z-Wave devices at little cost? I have selected the InControl FREE REE mobile Z-Wave ave Controller App.. The InControl Console e is an application that runs on your our PC. It allows you to use your iPhone and Android application on to control Z-Wave devices from anywhere with Internet access. You will need to get the he ThinkStick Z-Wave USB adapter ter and ThinkEssentials software to make this app configuration work. Read further in the ControlThink forums at controlthink.com.

TOOL

TIP

InControl home automation software can be downloaded online to achieve capabilities that include: controlling lightss and other Z-Wave devices from an Android or iPhone, setting up scenes, programming events, and more. Photo courtesy Moonlit Software LLC

wireless locks into alarm controls. In fact, you may have seen these products available for the DIY market from the big-box stores. But integrating them into alarm controls will still be a place for the security pros. I have been picking Z-Wave experts’ minds for some overall tips to help you get started: • Apply the three Ps (Planning, Planning, Planning). While overall the technology is based on a standard, manufacturers have proprietary means (why am I not surprised). Check and double check with manufacturers on products and services you plan to use. • Systems consist of controllers and slaves. The controllers initiate transmission and also hold all routing schemes. The slaves are system end devices with input/output functions that follow controller commands. • The operating frequency of Z-Wave is 908MHz in the United States, which helps avoid interference with other popular gigahertz technologies. • These are mesh networks and all devices need to discover which nearby devices they should report to. If you change or remove a device, the network needs to be updated. (Tech Talk Tip: Make sure your customers understand this and don’t unplug devices. Better yet, install plug-in devices where your

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STUDY IDENTIFIES ENERGY MANAGEMENT MARKET CHALLENGES In an effort to better understand the challenges of residential automated home energy management (AHEM), the U.S. Department of Energy’s “Building America AHEM Strategical Technical Committee conducted a trade survey (see table) and put together its Strategic Plan, v22011c February 2012. The survey collectively identified barriers to achieving widespread energy savings (see the full report at https://sites.google.com/site/ bastcahem/file-cabinet). The organization thusly addressed the four top ranked barriers: 1. Energy savings / ROI insufficiently quantified — People can use AHEM to reduce energy consumption and costs, but need reasonably predictable energy cost savings to make a cost-benefit calculation. For many AHEM product classes, rigorous studies of their energy savings potential are lacking. 2. Lack of consumer awareness and interest in AHEM systems — Most consumers are not aware AHEM systems exist, and even fewer people are aware of the full range of products available. The relatively immature state of the AHEM market and relatively common “vaporware” create market confusion for interested consumers. 3. Low interest in managing energy use — A large portion of households have a very limited interest in managing their energy costs, even if they like the idea of reducing energy use. AHEM technology that provides relevant, personalized and actionable information can help bridge this gap. 4. Complexity of AHEM use and deployment — The complexity of AHEM systems and/or their installation and use impedes their acceptance and effective use by consumers due to: 1) deployment complexity; 2) complexity of use; and 3) complexity of information presented.

Barriers to Widespread Energy Savings Rank

% of Respondents

Description

Energy savings/ROI insufficiently quanitifed

50%

Lack of consumer awareness of AHEM systems

44%

Low interest in managing energy use

44%

Complexity of AHEM use and deployment

39%

Design, quality, functionality and individual preferences

28%

Lack of interoperability standards/different manufacturers for different appliances and controllers

22%

For controllers, need to “smarten” existent appliances/outlets or purchase smart appliances

17%

Lack of dynamic electricity pricing (flat rate limits AHEM advantages for utilities

17%

Potential conflict with utilities

17%

Information provided is not actionable

11%

Too many controls already in household - confusion, info overload

For controllers, only partial solutions (e.g. AHEM for lighting only) are available

Table courtesy AHEM STC, Department of Energy

customer cannot easily unplug them.) • Many modules are repeaters as that is how a mesh network works. However, lock and thermostat modules may not be repeaters and have to be located close (30 feet maximum) to the system controllers. • Newer modules may have a “beaming” feature that allows

communicating with locks and devices to activate them. • The mixing of modules by different manufacturers is not recommended, especially for beginners. • Use caution when mixing technologies such as universal powerline bus (UPB). • The technique of “grouping,” which

is handy for light schemes, typically does not apply to locks and thermostat modules. • Setting up modules will typically need a laptop or portable controller that must be within inches of the device. Once the device is configured, (as mentioned) maximum range is about 30 feet. Try to have alternate paths in the Z-Wave network for reliability of service. WHAT FELLOW INTEGRATORS ARE SAYING I asked members of our trade community for comments and suggestions on applying Z-Wave technology. Following is what some of them had to share: “I have set up a couple of favorites to trigger Z-Wave devices. An entry trigger from inputting your code in a Kwikset lock turns off the alarm and turns on the footer light. If there is a fire alarm, it triggers all Z-Wave lights to turn on, shuts off the AC and heat, and unlocks the lock.” — Rodney Hassett, service manager, Dallas Security Systems, Dallas/Fort Worth “I would like to be able to turn lights on and off based on a schedule rather than a panel event. I hope these features will be added in the future. I think this would go hand-in-hand with offering a customer a security system because they can make the house look occupied even when no one is home.” — Bob Gamble, central systems operations manager, Security Instrument Corp., Philadelphia “All Z-Wave devices have to comply with the same standard so different systems from different manufacturers shouldn’t be a problem. One thing to remember, there can only be one primary controller and any number of secondary controllers. Use a primary controller with firmware that is user upgradeable and portable. If going into an existing installation, you should be able to transfer the device info and create a new primary controller. The old primary controller will no longer be valid once you do this.” — Eric Josue, project manager, 1676887 Alberta Inc., Calgary, Canada

JULY 2012 / SECURITYSALES.COM /

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HE ESSENTIALS THE REBIRTH OF RESIDENTIAL REVENUES

RESIDENTIAL PRODUCTS

STI Entry Alert Chime

Safety Technology Int’l (STI) of Waterford, Mich., introduces the STI32600 entry alert chime, a wireless device that chimes when a protected door is opened. Offering 13 selectable sounds, the ETL-listed and FCC-certified product does not require any wiring. Installers can mount the small transmitter and magnet to any door and plug the remote receiver unit into any 120VAC 60Hz outlet. The chime operates up to 150 feet and includes an 6V alkaline battery. securitysales.com/FREEInfo/17400

Visonic KP-160/MKP160 Touchscreen Iconic Keypads

Visonic of Bloomfield, Conn., a Tyco Security Products company, releases two wireless touchscreen iconic keypads — the KP-160 and the MKP-160. The keypads support most of the daily user security functions, such as arming/disarming fire and panic alarms, initiating emergency response, controlling home appliances and reviewing system status. The products offer two-way, wireless communication with the panel allowing users to receive confirmation that the commands have been successfully executed. For enhanced security, the keypads can be used in hidden panel architecture to prevent intruders from locating and then disabling the control panel.

GreenField Direct Automatic Security Valve

GreenField Direct of Greenwood, Neb., releases the automatic security valve for flood protection, which integrates with most home automation and security systems. Controlled remotely by a home security system, the NEMA 6P- and 7D-rated product integrates with existing control systems and sensors. The valve helps to reduce water damage and conserve water. It is approved for drinking water in all 50 states and offers a two-year warranty. securitysales.com/FREEInfo/16402

securitysales.com/FREEInfo/17401

Sperry West SW2600IR Covert Camera

Honeywell LYNX Touch 5100 Security System

Honeywell of Melville, N.Y., releases the LYNX Touch 5100, a self-contained security system. The product, which integrates with Z-Wave-enabled thermostats, locks and lighting systems, offers Wi-Fi capability and an alarm radio that can communicate via 4G networks. The system also includes an optional Android tablet with a preloaded LYNX Touch 5100 application that serves as a mobile Internet device allowing users to control the system from within their Wi-Fi coverage area. securitysales.com/FREEInfo/16403

Sperry West of San Diego releases the SW2600IR passive infrared (IR) detector, which works as a video camera, a working motion sensor, and provides high-resolution images in both total darkness and lighted areas, according to the company. The built-in IR array turns on automatically and is focused to the lens angulation providing perfect pictures regardless of the light, according to the company. securitysales.com/FREEInfo/16404

For the latest products, sign up for SSI’s Security Equipment E-lert at securitysales.com.

/ SECURITYSALES.COM / JULY 2012

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HAI MicroControl Integrates With Kwikset ZigBee Door Locks

Home Automation Inc. (HAI) of New Orleans has integrated its MicroControl standalone wireless energy management system with Kwikset ZigBee wireless door locks. The MicroControl will serve as a standalone remote control for ZigBee wireless door locks, allowing users to wirelessly lock or unlock individual doors with a push of a button. The MicroControl can also be used to coordinate all of a home’s wireless energy management devices, including thermostats and more. The MicroControl and ZigBee wireless door locks can be fully integrated into an HAI Omni or Lumina home control system. securitysales.com/FREEInfo/17405

Total Home Control is here— integrating RadioRA® 2 wireless light, shade, temperature, and small appliance control with a security system enriches your customers’ lifestyle, enhances their security, and increases their energy savings. Email ra2training@lutron.com about FREE online or in-person RadioRA 2 trainings.

Linear VMC1 Video Security Intercom

The VMC1 video security intercom system by Linear of Carlsbad, Calif., integrates complete intercom functionality with live video and home automation control, according to the company. The product combines security video, lighting control, E-mail notification and active camera viewing — all with hands-free response capability. The VMC1 integrates point-to-point, point-to-group and wholehouse intercom functions. The system supports up to 20 remote stations and controls multiple output switches that automate home security.

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Ad Index Go to www.securitysales.com/freeinfo to request FREE product info.

PAGE

FREEInfo#

PAGE

FREEInfo#

AES Corporation............................................................................. 19

17199

Kirshenbaum & Kirshenbaum, PC ............................................. 74

17253

Affiliated Central, Inc. ....................................................................C2

17272

Linear Corp. .................................................................................. 41

17127

All American Monitoring ............................................................... 49

17204

Lutron Electronics Co., Inc. ........................................................... 55

17175

Altronix ............................................................................................. 6

17245

Lutron Electronics Co., Inc. ........................................................... 73

17210

Arecont Vision ................................................................................ 23

17276

Micropower Technologies ............................................................... 6

17252

ASIS International .......................................................................... 69

17229

National Monitoring Center (NMC) ........................................ 15,53

17314

Axis Communications ................................................................... 10

17308

Nissan Commercial Vehicles........................................................ 21

17109

Bolide Technology Group ................................................................ 7

17193

NVT...............................................................................................

17184

Chamberlain Group, Inc. ............................................................... 31

17194

Security Central ............................................................................ 17

17171

CNB Technology, Inc ................................................................... 61

17321

Speco Technologies........................................................ CoverSnipe

DAKOTA ALERT ........................................................................... 43

17236

Speco Technologies.......................................................................... 1

17142

DSX Access Systems, Inc.................................................................. 9

17231

SSI -Free Info .................................................................................. 75

EasyLobby, an HID Global Business ............................................ 47

17185

SSI -Social Media ............................................................................ 74

EMERgency24.............................................................................. C3

17136

SSI -Website .................................................................................... 63

Fike Alarm Systems ........................................................................ 45

17268

Telular Corporation........................................................................ 35

HID Global ........................................................................................ 5

17234

Telular Corporation........................................................................ 37

17172

HIKVISION ..................................................................................... 13

17233

Tyco Security Products (DSC) ....................................................... 29

17120

Honeywell Security ....................................................................... C4

17103

Vitek Industrial Video Products, Inc. ............................................ 57

17281

Company listings are provided as a courtesy — publisher assumes no responsibility for errors or omissions.

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In which markets is the Home Monitoring & Control [HMC] offering available ? HMC is currently available to existing Verizon broadband customers, both FiOS and DSL high speed Internet. We are considering extending the offering to non-Verizon broadband users but have not set a timeline for that expansion. Why has Verizon elected to offer the HMC platform as a do-it-yourself only installation? We believe that customers are willing and able to install the services themselves to save money and avoid the coordination required to schedule professional assistance. Customers are free to use a handyman or contractor of their choice, or our HMC kits include some marketing materials with information on installers in their area. In addition, we are exploring the use of technical support services to assist the customer through the installation if they determine that they are not comfortable in the DIY arena. For certain elements of the service, the energy reader, we recommend that customers hire a licensed professional to install the device. If we find greater demand for installation services, or if we add more complex elements to the offer, we may explore additional options in the future. The current HMC solution does not involve professional monitoring. Does Verizon have plans to offer it, including monitoring for intrusion?

As Verizon ramps up its new Home Monitoring & Control (HMC) service, it joins a growing list of telecom and broadband providers that are vying to gain a foothold in the home security/ automation and energy management market. Verizon’s Z-Wave-enabled platform is available for $9.99 per month, plus the cost of equipment kits that start at $89.99. Devices, such as door locks, lighting modules, door and window sensors, smart thermostats and more, can be purchased a la carte. Dan Flagler, who oversees Verizon’s product development, discusses the offering and this burgeoning market sector.

We continue to explore options for expanding into the monitored home security market but have not made any decisions regarding the specific elements of the service. By offering the wireless thermostat and lighting and appliance modules, plus a free energy reader, is Verizon more focused on energy management and control than the security aspect? We believe there is a broader market for monitoring, control and energy management, and do not want to be restricted to only those homes that want monitored home security. We will continue to explore options to serve those customers as well in the future. Telecom and broadband providers in years past have attempted to enter the residential security market without much success. Why is now the right time for these products? HMC is not a residential security service. We believe that home automation services are a new and evolving market that fits very well with our core Internet services. The proliferation of residential broadband and smartphones has created an environment which allows these services at much lower costs, and with fewer technical obstacles than in the past. What are some of the market indica-

tors that has Verizon bullish on home control services? Our primary research indicates that customers are quite interested in the offerings we brought to market last October. We think the time is ripe for a low cost, self-install service, enabled by the great technology the customers already have in their hands — smartphones — and their in homes, Internet and FiOS TV. Our model of a low monthly cost, easy installation, no contractual commitment, and a 30-day money-back guarantee on the equipment, is very different from the available offerings that include monitored home security. How has Verizon prepared to handle customer service-related issues? Verizon uses technical support vendors that are specially trained to support the unique elements of HMC. The underlying broadband services continue to be supported by our excellent customer service employees. Many security dealers remain dubious that telecom/broadband entrants will be able to provide a necessary level of customer care. Your thoughts? We recognize the complexity of the home security market, and have positioned HMC to provide lifestyle management and control, not monitored burglar alarm and perimeter security.

SECURITY SALES & INTEGRATION (ISSN 1539-0071) (USPS 511-590) is published monthly by Bobit Business Media, 3520 Challenger Street, Torrance, California 90503-1640. Periodicals postage paid at Torrance, California 90503-9998 and additional mailing offices. POSTMASTER: Send address changes to Security Sales, P.O. Box 1068 Skokie, IL 60076-8068. Please allow 4 to 6 weeks for address changes to take effect. Subscription Prices - United States $96 per year; Canada $96 per year; Foreign $140 per year. Single copy price - $8; Fact Book - $35. Please allow 4 to 6 weeks to receive your first issue. Please address Editorial and Advertising correspondence to the Executive Offices at 3520 Challenger Street, Torrance, California 90503-1640. The contents of this publication may not be reproduced either in whole or in part without consent of Bobit Business Media. All statements made, although based on information believed to be reliable and accurate, cannot be guaranteed and no fault or liability can be accepted for error or omission.

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LYNX Touch—now with first-ever 4G and Wi-Fi alarm communications, compatible Android™ tablet and Z-Wave® automation! Make more money with Honeywell’s innovative new LYNX Touch 5100—the newest version of the industry’s most popular self-contained wireless control. Z-Wave® connectivity lets you integrate security and cameras with lighting, thermostats, locks and more—all MID-7H Android™ Tablet with built-in L5100 Connect

controlled locally from a brilliant, high-resolution graphic touchscreen. Add Total Connect™ and your customers can perform these functions remotely—giving them extra convenience while you earn extra RMR. Our groundbreaking Wi-Fi solution lets you enjoy the lowest cost alarm communications with remote services—all without having to run a CAT5 wire. The first-ever 4G communicator helps give your installations longevity, and it’s advanced technology finds the best signal in the area to make installations a snap and save you time and labor. No other system can touch it!

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www.securitysales.com/freeinfo/17103

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6/22/12 1:30 PM