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COMMERCIAL OR RESIDENTIAL?

ALARM DEALERS CHECK IN

Industry trends suggest the tide is turning, but there are still those who believe in the home market

By Madalene Arias

Consumer research, competitive forces, as well as some ongoing trends in DIY and smart home automation, would suggest competing in the residential market has become increasingly difficult for local alarm dealers, prompting them to widen their service offerings.

Parks Associates’ research from 2021

indicates that residential clients comprise an average of 56 per cent of the business delivered by alarm dealers in the United States, but the company anticipates this number will gradually decrease over time as dealers pursue business in the commercial market to remain successful.

According to Chris White, senior research analyst at Parks Associates, one of the ways the alarm sector has responded to this trend is to sell smart home prod-

ucts in addition to providing their security software as a platform for these devices.

Another response has been to expand their focus from home security to providing other devices for various types of home care purposes to compensate for a decline in average revenue per user.

Such devices could include carbon monoxide detectors, smoke detectors and water leak detection devices to create an ecosystem of smart home products that

speak to the client’s security panel.

“Instead of getting more shoppers, you get fuller shopping carts,” says White.

Commercial growth

Parks Associates has yet to release data retrieved for 2022, but White says they anticipate more alarm dealers might make the transition to service small to mediumsized businesses at a smaller scale. Although the experiences of Canadian alarm

dealers do echo the U.S.-based research White discussed, their responses and attitudes to changes in the market may vary.

Tom Oakley, who is president of Winnipeg-based Oakley Alarms Ltd., wouldn’t describe making any sort of a jump to service commercial enterprises.

The vast majority of his clients aren’t rushing to invest in home automation technologies either. However, Oakley installs technology that is compatible with

automation and is prepared to accommodate client preferences in that direction.

Oakley and his brother launched their business 25 years ago. For a long time, they were the company people found in the Yellow Pages. Any commercial opportunities came through residential clients who owned and operated their own businesses, who would eventually invite Oakley to service their shops in addition to their homes.

More commercial opportunities came through referrals, and even more calls from businesses came through after the company launched its own website.

“We don’t do huge marketing. We are not aligned with any building industry memberships. We’re just plugged away at trying to gain respect in the industry,” says Oakley.

Roughly 25 per cent of Oakley’s clientele are commercial establishments, while the remainder are residential.

Moreover, when his company receives requests from businesses, he responds with caution so as to not overload Oakley’s technicians.

“Sometimes there are projects that are a little larger than we want to take on. We understand that. We want to make sure that if we do commit to it, we meet their expectations,” he says.

Roger Barnes, president of Burlington, Ont.-based Roger’s Security Systems Inc. since 1994, has witnessed DIY impinge on his services within the last five years.

His company has since focused its efforts on acquiring more business from the commercial side.

Insurance companies require businesses to install security systems, and this has been helpful to Roger’s Security Systems in pursuing business from the commercial space. Barnes adds that dealing with commercial clients is also a simpler experience for himself and his company.

Smart home trend

At the same time, Roger’s Security Systems has been riding the wave of smart home products through the sale of connective services under the Resideo Total Connect brand.

From 2000 to 2015, Roger’s Security Systems charged a monthly fee of $20 for its monitoring services. The company has since doubled this fee due to the incorpora-

tion of more remote services and cellular connections.

Barnes reports an overall spike of 80 per cent in connective systems sales to clients who have embraced DIY.

He has also noticed that no matter how convenient or easy to use DIY products and services have become, there is still only so much residential or commercial clients can do for themselves in the way of monitoring.

Obviously, clients who opt to monitor on their own may save some funds. However, Barnes notes that people who become monitoring stations for their homes or businesses may soon find the work quite burdensome.

As an example, an operator at a monitoring station will view a car dealership an average of 3,000 times a month in order to stay on top of securing the premises.

Furthermore, many self-monitoring clients faced with security threats act on the impulse to dial 9-1-1. Calling police becomes more problematic for clients who have been monitoring a property while in a different jurisdiction.

“Once they start to understand that the ‘do-it-yourself’ is not really keen, they start warming up to having you come in and give them a quote,” says Barnes.

When it comes to selling home automation products, Barnes says it’s not possible to compete on price against the telcos.

He recalls 2018 as the year things took a turn with Alexa and Google Nest becoming more commonplace. On top of this, larger telecommunications companies

were also pushing their own variation of home security products.

Research at Parks Associates identifies Amazon’s Ring and Alphabet’s Google Nest as being on the cutting edge of the smart home device market, appealing to the notion of DIY monitoring.

“The ability for you to get good information from devices and onto a phone, and to make choices of what to do is getting increasingly sophisticated,” says White, referring to AI-based tools designed to differentiate between actual threats versus false alerts.

Like Barnes and other alarm dealers in the country, Oakley is well aware of the growing DIY trend.

He has witnessed telecoms purchase smaller, local companies he’d once regarded as competitors, but he does not view these acquisitions or DIY as threats.

“Our competition is a lot smaller than it used to be,” notes Oakley.

Newly-acquired companies operating as smaller units within a telecom aren’t shifting their focus towards commercial business either, Oakley observes. Instead, they have continued to compete with local companies for residential business.

Additionally, Oakley Alarms found success in the commercial side at the height of COVID-19 when Manitoba saw an increase in the construction of new buildings.

“We find that we’re aligned perfectly with being that company that is still small enough to care but big enough to support.”

“We’re aligned perfectly with being that company that is still small enough to care but big enough to support.”

— Tom Oakley, OakleyAlarms

Customer service

Oakley believes in maintaining a strong business by nurturing clients by maintaining high service standards, and he is not alone in his stance.

In the neighbouring province of Ontario, Stephen Karchut has owned and operated London-based Alarmtech for over a year. He served as the company’s operations and project coordinator for three years prior, and SP&T News recently recognized him as one of this year’s Top 10 Under 40 award winners.

Karchut, whose commercial clients make up 40 per cent of his business, says he has no plans to leave the residential market.

“People need a choice that isn’t a telecom company,” he says. “While we can’t compete with their pricing structure, we can compete in terms of quality of service.”

Karchut says local alarm dealers typically answer phone inquiries promptly and they function as members of their local communities.

The issue is partly due to an ill-informed consumer base, opines Karchut. “But without an alternative or without being informed, they don’t really have a choice.”

Karchut likes to use his Instagram and Facebook to keep his clients and audience informed.

These sites serve as low-cost marketing platforms where he can share demo videos of his company’s work.

Moreover, social media allows his viewers a quick and easy way to assess whether they truly want to do an installation themselves, or leave it to the pros. Even if they choose the former, Karchut knows Alarmtech has succeeded in getting its brand in someone’s head.

SecurTek At a Glance

Established in 1999, SecurTek is a leading provider of monitoring solutions with nearly 100,000 residential and commercial customers and a strong network of Authorized Dealers providing local sales and service expertise in communities across Canada.

We have two monitoring stations located in Winnipeg, MB and Yorkton, SK, and have achieved and maintain the Five Diamond designation from The Monitoring Association. Our stations are both ULC-listed for the monitoring of commercial burglary, financial and fire as well as for the installation and support of all three.

SecurTek is the only security monitoring company in Canada owned by a Telecommunications Crown Corporation - SaskTel. This means that we are held to the highest standards of corporate governance, privacy, confidentiality, safety, security, and employee welfare. We undergo regular independent IP and Cybersecurity audits and have implemented solutions to detect, prevent, and remove malware, cyber attacks, intrusions, phishing attempts, and other information security breaches.

SecurTek is 100% PCI Compliant and follow the rules laid out by the Payment Card Industry. Our employees follow a formal Code of Business Conduct and are trained to ensure the protec-

tion of personal information.

When it comes to earning and maintaining the trust of municipalities, authorities and first responders, we could not be more serious. Our staff do everything we can to reduce false alarms and minimize the waste of resources and tax-payer dollars by utilizing enhanced action patterns, video verification, 2-way voice and multi-hit verification. We also provide guard response for customers who want it, and where available.

With the stable and predictable financial backing of SaskTel, we continue to grow, and are always ready to enter discussions with dealers who are looking to sell their Canadian accounts. Whether you are looking for a quick infusion of cash or ready to retire and cash out, we are open and available to having discussions with you.

If you find that your current dealer program is no longer meeting your needs, SecurTek has a Dealer Program that it is strong enough to be flexible. If you just opened your security business and are trying to establish yourself in a territory or are looking to sell your business and establish your permanent beachside location, we can be with you at any and every step of the way.

Let’s talk…

Launch Your Business

You acquired a security company or expanded into the alarm industry

Your business is a growing concern and you need cash flow to fund your growth

You need support when loading and servicing alarm customers

You need access to quality security products, reliable suppliers and dealer pricing

Grow Your Business

Your current dealer program is limiting your growth

You need stable and predictable funding

You need to invest in inventory, staff and marketing

You want access to new lines of business

Simplify Your Business

You’ve built a successful business and now it’s time to reap the benefits of your hard work

You need to turn equity into cash for life’s special moments

You need to remove administrative headaches (billing, collections)

You need stable and predictable cash flow but retain ownership of your business

Sell Your Business

You’re ready to live your dreams

You need to maximize your payout

You have a time-line and you need an experienced buyer who will navigate a smooth transition to the finish line

Your customers need world class monitoring with continuing service and support

GardaWorld’s Partner Program, one year later. Spotlight Q&A with Josée St-Jean, Director of Partner Services

One year ago, GardaWorld integrated a fully dedicated account management team to expand on its partner services amongst dealers and third-party security providers, a team that would be led by Josée St-Jean, one of GardaWorld’s senior monitoring service experts with over 30 years of industry experience.

This month, we decided to check back in with Josée to get an update on the program and here’s what she had to report:

How would you assess the success of the program, one year in?

Josée: An astounding success. We have achieved everything we set out to do in the first year, and we have had a lot of fun doing so.

What have been some of the highlights?

Josée: Having boots on the ground and renewing relationships. The security industry is a relatively small one. Our clients are not just clients, they are also friends. While we do see industry consolidation, there remains thousands of independent security companies who continue to deliver important services to their client base, as consumers tend to trust their local security providers in delivering them these essential services. It’s very rewarding to us to play a key role in helping our friends and partners succeed by providing them with quality monitoring services and solutions to help them focus on what they do best.

What have been some of the challenges?

Josée: I think all monitoring stations would agree that, in this day and age, staffing is a major preoccupation. Being an alarm dispatcher is one of the hardest jobs out there. It’s not only very technical, but it’s also an around-the-clock role. It can be very intense. Training and retaining are non-stop concerns. I have nearly 35 years in this business, but the past few years have been some of the most difficult in terms of ensuring complete, fully-qualified and efficient staffing. Another challenge is rapidly changing technology, making the business more complex than ever before.

What does the future look like for the GardaWorld monitoring services?

Josée: Continued growth, that’s the obvious response. And

quality services. Technology is rapidly changing, standards are changing, and we need to remain current. The next 12 to 18 months will see us focusing and investing a lot on our infrastructure as well as on our people.

What keeps you motivated after all these years?

Josée: The relationships with our partners, colleagues, and peers, and the passion that people within the industry have. I am also amazed by how much I have learned over the years, and how I continue to learn something new each and every day. Naturally, there are good days and there are bad days, but what’s important and rewarding is being recognized for the value you bring to the table.

For more information, contact Josée today. 1-877-435-4455 josee.st-jean@garda.com

Introducing Michel Gauvin, Director, Monitoring Centre

GardaWorld Security Systems welcomes a new member to the team to lead its monitoring station operations – Michel Gauvin, Director, Monitoring Centre.

With more than 20 years’ experience in the industry, he learned the trade from the ground up, having worked for some of the largest security system companies in Canada.

His experience in leadership, technical support and client management will ensure a world-class level of quality service to our customers. His strategic input will allow us to continue finding new ways of bringing value to our customers in the core of our business, which is alarm system monitoring.

The GardaWorld Monitoring Centre

Our company-owned and operated GardaWorld alarm monitoring centre specializes in video surveillance, handling alarm signals and dispatching emergency services for security companies across Canada. With over 40 years of experience in the alarm industry, our management team has built a passionate and highly disciplined team of security experts providing a range of services.

To speak with one of our experts, contact GardaWorld Security Systems at 1-833-GARDA-33 (1-833-427-3233) or email prod.sys@garda.com.

A world-class Partner Program experience.

Trust GardaWorld’s 25 years of security expertise.

Hybrid dealer program

Client acquisition program

Third-party monitoring

Here’s what you get when you partner with GardaWorld Security Systems.

• Purchasing power of one the largest security companies in the world

• Access to the newest products and services

• Benefit from the well-known GardaWorld brand

• Competitive multiples

• National coverage

Our experts are ready to contribute to the success of your business.

3 Years ago LANVAC Surveillance inc launched a sister company, NBG Telecom, a wholesale distribution company that sells alarm equipment to Lanvac’s alarm dealers.

NBG Telecom’s mission is to provide the necessary tools to Alarm Dealers to successfully compete against Big Telecom. The Alarm products NBG sells are specially hand picked to meet the dealers needs in the field and in their pockets. The M2M Universal cellular communicator for example, is compatible with ANY panel, connects to ALL providers and has the lowest monthly rates in the industry. This covers the universal communicator market.

The Bosch ULC Fire Kit we sell, comes with our own SIM card, which is priced at $6/month and remains ULC on a 90-second poll supervision. Our cards are also roaming, they will hop on an alternative cellular provider in the event a provider goes down… This covers the Fire ULC market.

Lanvac & NBG will NEVER compete with its customers. The two companies only do business with other Alarm companies and never to the end-user. Their philosophy at the core is quality service and the continued cultivation of its dealers. An intergenerational family business serving all of Canada. We remain 100% CANADIAN OWNED.

OUR VALUES

FAMILY BUSINESS

NBG is a family business and a human-scale organization. This gives us stability and a long term vision of fair competition in the alarm industry.

TRANSPARENCY

We provide transparent advice and always recommend the best solutions and products for your clients’ needs.

QUALITY CUSTOMER SERVICE

We are available for our clients: we support you from the product purchase to the installation, including all the necessary tests to ensure full operability.

EXPERTISE

With over 40 years of experience in the surveillance industry, we offer our expertise in product distribution, sales and technical support.

EMPOWERED ALARM DEALERS

We work tirelessly to make the alarm industry more human and approachable. We provide you with the best tools to maintain your positioning in the market against telecom giants.

Top Lobster Stephanos Georgoudes 1-833-352-6822

Master of Coin Nick Georgoudes 1-866-237-0177

Sales Captain Jerry Korogiannis 1-833-624-8353 Ext. 1

Technical King Jake Bosse 1-833-624-8353 Ext. 2