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Two (Opposing) Alarm Company Business Models

Most national alarm companies have fashioned themselves, business model-wise, after ADT, one of the oldest and largest alarm companies.  Why?  Because this business model is extremely profitable, both for the national company and their network of authorized dealers.

Using the fictitious national alarm company name of APZ, the anatomy of the company’s sale of an alarm system very often looks like this:

1) The alarm sales team, which is almost always employed by an independent, authorized dealer of APZ, knocks on the doors of homes around dinner time on weeknights.

2) If allowed entry, the sales team applies high pressure tactics to get a signature on an APZ contract that evening.

3) The authorized dealer sends a crew out to do the installation and sets the system to be monitored by APZ’s monitoring centers.

4) The authorized dealer sells the signed contract to APZ for about $1600.00.

This business model is packed with problems for the buyer.  First, the authorized dealer, after selling the contract to APZ, has absolutely no reason to provide you with any further assistance, training, service or after sale follow up.  They got paid and they’re “down the road”.

Second, they buyer has no idea where their system is being monitored.  It could be one of dozens of monitoring centers around the country (and even the world) used by APZ.

Third, if the buyer calls for service, APZ has to pay a local authorized dealer to go to the home to provide the service.  Because APZ is paying the dealer, they are going to avoid an actual in person service call in any way they can; blaming the buyer’s incorrect usage is one of many we’ve heard.

Fourth, the chances that the service person sent by the local authorized dealer is actually the person who installed the system (or is even employed by the same dealer that installed it) is very remote.

This business model is almost completely focused on making local dealers, and the national corporation, millions of dollars a day.  It is the antithesis of a customer focused business model.

At Sierra Security, we are completely independent of any national affiliation and we don’t knock on doors and strong arm you into making a decision.  Typically after talking with prospective customers and assessing the needs, we will leave, and then email a proposal back, allowing you to make a decision with no pressure.  The technician who actually installs your new system will more than likely by the technician who is sent to service it for any follow up or future service requests.  And your system is monitored in one designated area at one center in Lake Forest, California, with a complete backup in Arlington, TX.

If you are going to pay us hard earned dollars to monitor your system, day in and day out, we are going to make sure you become a customer for life through outstanding customer service; and our business model is designed to allow us to do exactly that.