Going To Market

Back in the day when the security industry was still maturing, the typical sales channel for the manufacturer consisted of a rep organization with assigned territories and dealers in the region, national account partners, distribution organizations and occasionally a buying club.

THE WAY IT WAS

The small reseller or alarm dealer could usually only purchase from the distributor or through the buying club and neither choice gained them any benefit from being loyal to one brand over another. Product training, technical support, marketing materials and so on were provided by the supplier, with some organizations significantly better than others. If a dealer or installer wanted to improve their knowledge of a product or learn about new technology, the obligation was on them to pay for participating in a training session at a manufacturer’s road show—providing of course one was held in their region.

Leads were usually distributed by the manufacturer to the rep organization and the small dealer or installer seldom, if ever, received any leads. Other manufacturer perks such as co-op funds, dealer trips and so on similarly were never pushed through to this segment of the sales channel.

A CHANGING MARKETPLACE

As the industry matured, security and surveillance products changed. Technologies became more sophisticated to meet demands of a changing market; pan/tilt units with timed rotation were developed to provide better coverage of an area with fewer cameras; monitors with a built-in four camera switcher developed; tube cameras changed over to chips and the notion of a digital system was on the radar with the first DVRs.

These changes had a significant impact on market growth. For example, over the last five years the market has grown by a compound annual growth rate of 8.2 percent according to Memoori’s 2016 Annual Report. A robust market also attracted new players from Asia with lower cost goods and a surge of mergers and acquisitions, including some from outside the industry, additionally helped drive growth and bring attention to the industry.

Without a doubt, the increasing demand over the years for security and video surveillance solutions have presented a solid opportunity for the small dealer/alarm installer to expand their business models and revenue prospects. The attraction however was not lost on those who quickly came to market with a do-it-yourself surveillance solution.

These systems were sold on-line or in box stores and created considerable competition for the professional security dealer/ installer.

SALES CHANNEL EVOLUTION

With the adage “if you can’t beat them, join them,” in mind, a unique sales channel was introduced to the marketplace in the spring of 2016. Launching under the brand name of Security Dealer Network (SDN), the new business venture offers alarm dealers the opportunity to become part of their sales network and receive recurring monthly income by offering DragonFly Security System DIY video surveillance and monitoring services to customers. There are no start-up or recurring costs associated with joining SDN’s dealer network, making this a no risk proposition for alarm dealers to expand their business models and revenue potential. End-users make all purchases and monitoring arrangements via a powerful on-line ecommerce platform, and dealers have no direct interaction with customers other than to drive them to the site.

Dealers are provided with individual websites which are built, branded and targeted to consumers with DragonFly Security System’s extensive marketing and messaging. Using SDN’s e-commerce platform, consumers purchase video surveillance products directly through the website. Orders are shipped for free directly to the consumer and SDN provides the central station monitoring. Dealers promote the product to their communities and receive RMR generated by the consumers’ monthly monitoring fees.

The company’s web site features a state of the art responsive design that makes it easy for alarm dealers to learn about and sign up. The site walks prospective dealers through the product lineup and answers questions about how the program works, plus it features short videos that talk about DIY video surveillance and monitoring in an informative and engaging way.

For consumers, DragonFly Security System is equally simple. Cameras are wireless and battery-operated and can be placed virtually anywhere inside or outside quickly and easily. Several different systems and monitoring plans are available to suit users’ budgets and needs. The system can be viewed and multiple actions including police dispatch can be taken through the DragonFly Security System smart phone app.

This type of service offers something the consumer systems do not—central station monitoring—which is a tremendous advantage over systems like Nest. With DragonFly Security System, not only can they view cameras at their homes and businesses through a smartphone app, they can also have the confidence of knowing that their cameras can be monitored by security professionals if they chose the enhanced monitoring plan.

The evolved go-to-market strategy covers products and services and is easy for partners and end users to understand, use and elicit value. Choices are available for both partners and end users further adding to the benefits of this new sales channel. In the end, the industry as a whole benefits.

This article originally appeared in the March 2017 issue of Security Today.

Featured

  • Mall of America Deploys AI-Powered Analytics to Enhance Parking Intelligence

    Mall of America®, the largest shopping and entertainment complex in North America, announced an expansion of its ongoing partnership with Axis Communications to deploy cutting-edge car-counting video analytics across more than a dozen locations. With this expansion, Mall of America (MOA) has boosted operational efficiency, improved safety and security, and enabled more informed decision-making around employee scheduling and streamlining transportation for large events. Read Now

  • Security Industry Association Launches New “askSIA” AI Tool

    The Security Industry Association (SIA) has unveiled a brand-new SIA member benefit – askSIA, a conversational AI agent designed to help users get the most out of their SIA membership, easily access SIA resources and find the latest information on SIA’s training and courses, reports and publications, events, certification offerings and more. SIA members can easily find askSIA by visiting the SIA homepage or looking for the askSIA icon in the top left of webpages. Read Now

    • Industry Events
  • Industry Embraces Mobile Access, Biometrics and AI

    A combination of evolving workplace dynamics, technology innovation and new user expectations is changing how people enter and interact with physical spaces. Access control is at the heart of these changes. Combined with biometrics and AI, mobile access control has become increasingly crucial for deploying entry solutions that are seamless, secure and adaptive to user needs. Read Now

  • Sustainable Video Solution Delivered for Landmark City of London Office Development

    An advanced, end-to-end video solution from IDIS, with a focus on reducing waste and costs, has helped a major office development in the City of London align its security with sustainability objectives. Read Now

  • DHS to End ‘Shoes-Off’ Travel Policy

    Homeland Security Secretary Kristi Noem announced a new policy today which will allow passengers traveling through domestic airports to keep their shoes on while passing through security screening at TSA checkpoints. Read Now

New Products

  • Automatic Systems V07

    Automatic Systems V07

    Automatic Systems, an industry-leading manufacturer of pedestrian and vehicle secure entrance control access systems, is pleased to announce the release of its groundbreaking V07 software. The V07 software update is designed specifically to address cybersecurity concerns and will ensure the integrity and confidentiality of Automatic Systems applications. With the new V07 software, updates will be delivered by means of an encrypted file.

  • EasyGate SPT and SPD

    EasyGate SPT SPD

    Security solutions do not have to be ordinary, let alone unattractive. Having renewed their best-selling speed gates, Cominfo has once again demonstrated their Art of Security philosophy in practice — and confirmed their position as an industry-leading manufacturers of premium speed gates and turnstiles.

  • FEP GameChanger

    FEP GameChanger

    Paige Datacom Solutions Introduces Important and Innovative Cabling Products GameChanger Cable, a proven and patented solution that significantly exceeds the reach of traditional category cable will now have a FEP/FEP construction.