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Installers Shell Out $25K a Month for Products

For the first time the Security Spending Survey reveals how much installing companies are paying each month for equipment — overall as well as by specific product categories. Top buyer listings are presented along with purchasing patterns associated with different business characteristics.



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Accelerated technological advancement and efficiencies throughout the supply chain have resulted in widespread commoditization and margin erosion for a great deal of products sold and installed by electronic security contractors. And yet, despite increased focus on “solutions” and services to offset those shrinking returns, the industry’s foundation revolves around devices and systems. So how much are installing companies spending today on the equipment that lies at the core of their business?

In attempt to answer that question, SSI and Bobit Business Media Research conducted the first Security Spending Survey. The survey was initiated Nov. 3, 2010, being sent via E-mail notification to nearly 11,000 subscribers. Three subsequent reminders were sent to those who did not respond to the initial correspondence. In total, 272 respondents participated by a margin of error of +/-5.9 percent. The objective was to determine how much installing companies are spending on equipment each month in total as well as by specific product categories.

The compiled data is presented here in the form of “top” listings for companies’ overall spending as well as access control, fire/life-safety, intrusion and video surveillance purchasing. Those companies appear in alphabetical, as opposed to ranking, order. In addition, product expenditures are shown according to company characteristics such as revenues, customer base, number of employees and number of locations.

Some disclaimers are in order. The results are not scientific as they appear as reported by the respondents. Furthermore, the findings are not comprehensive as only those firms voluntarily participating could be considered (companies wishing to be included in future surveys can E-mail interest to info@securitysales.com). Some graphs include notations indicating small sample sizes in those particular categories. In the interest of presenting conservative estimates, all dollar amounts are shown as medians rather than averages.

The aim is to make future iterations of the Security Spending Survey more definitive. In the meantime, at the very least it is a conversation starter.

Click here to view the full results of the 2011 Security Spending Survey.

 


Article Topics
Business Management · Research · Industry Research · Installing Companies · Managing Your Business · Research - Security STATS · Security Spending Survey · All Topics

About the Author
Scott Goldfine
Scott joined SECURITY SALES & INTEGRATION in October 1998 and has distinguished himself by producing award-winning, exemplary work. His editorial achievements have included blockbuster articles featuring major industry executives, such as Tyco Electronic Products Group Managing Director Gerry Head; Protection One President/CEO Richard Ginsburg; former Brink’s Home Security President/CEO Peter Michel; GE Interlogix President/CEO Ken Boyda; Bosch Security Systems President/CEO Peter Ribinski; and former SecurityLink President/CEO Jim Covert. Scott, who is an NTS Certified alarm technician, has become a respected and in-demand speaker at security industry events, including presentations at the Central Station Alarm Association (CSAA) Annual Meeting; California Alarm Association (CAA) Summer and Winter Conferences; PSA Security Network Conference; International Security Conference and Exhibition (ISC); and Security Industry Association (SIA) Forum. Scott often acts as an ambassador to mainstream media and is a participant in several industry associations. His previous experience as a cable-TV technician/installer and running his own audio company -- along with a lifelong fascination with electronics and computers -- prepared Scott well for his current position. Since graduating in 1986 with honors from California State University, Northridge with a degree in Radio-Television- Film, his professional endeavors have encompassed magazines, radio, TV, film, records, teletext, books, the Internet and more. In 2005, Scott captured the prestigious Western Publisher Maggie Award for Best Interview/Profile Trade for "9/11 Hero Tells Tale of Loses, Lessons," his October 2004 interview with former FDNY Commander Richard Picciotto, the last man to escape the Ground Zero destruction alive.
Contact Scott Goldfine: sgoldfine@ehpub.com
View More by Scott Goldfine
Industry Research, Installing Companies, Managing Your Business, Research - Security STATS, Security Spending Survey


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