SSI logo

‘Marketing Marvel’ Names Today’s Top 3 Monitoring Challenges

SSI Editor-in-Chief Scott Goldfine discusses the top three challenges for monitoring providers today with the first annual Five Diamond Marketing MARVEL Award winner Redwire of Tallahassee, Fla.

By ·

The November issue of SECURITY SALES & INTEGRATION includes a feature article on this year’s CSAA Five Diamond Marketing Marvel Award winner, Tallahassee, Fla.-headquartered Redwire. Conducted in partnership with SSI and reviewed by an independent panel of judges, the Marketing Marvel Awards: recognize and honor firms that use their CSAA Five Diamond designation to better position themselves in the central station monitoring marketplace; inspire other certified firms to market their Five Diamond advantage; heighten awareness of the Five Diamond program throughout the industry; and elevate the profile of Five Diamond firms for their professionalism to mainstream media and the general public.

During my interviews with Redwire’s leadership, I asked a bonus question not contained in the print piece. That question was: Looking at the industry, what do you see as the top three challenges as well as the top three opportunities for monitoring providers today? Following is what company President Doug Smith had to say ...

Challenge No. 1: “Clearly, the changing dynamics regarding alarm verification and phone lines continue to present challenges for traditional alarm companies. As Redwire is a relatively new company, it does not have the legacy account base that does not support IP, VoIP or wireless communication and as Redwire is primarily a nonresidential provider, it is able to push video alarm verification, mitigating the risk of these two potential problems.” 

Challenge No. 2: “Another challenge is the growth of compliance issues. Like many businesses, security companies face an increasing cost and resource burden related to building codes, contractor licensing, false alarm ordinances, alarm system permitting, various taxes and fees, and so on. As an integrator, we find the work necessary to remain compliant with government imposed fees and permits to be a growing cost item for our customers. Additional pressure flowing downstream to alarm companies from government-imposed regulations on banks and insurance companies have added costs that have to be accounted for as well.”

Challenge No. 3: “Competition continues to provide challenges for the industry as cable and phone providers enter and re-enter the market. We anticipate that this may force smaller, primarily residential providers to move upstream to small business and other commercial spaces as they face competitors that can offer bundled solutions, such as phone, TV, Internet and now security, that appeal to certain residential buyers. This means additional competition in the commercial space, which in turn will drive a need for differentiated services, such as video verification, managed access, video hosting, etc., that will require dealers to broaden their service offering. A small alarm vendor attempting to make this entry in the commercial space may have to develop competencies in areas outside of their regular proficiency. The result will be higher cost structures and the attendant squeeze on profits. It also will likely mean a decline in service delivery and ultimately customer happiness as dealers divert resources across a broader spectrum of product and service offerings.” 

Scott Goldfine

Article Topics
General Industry · Installation and Service · Interviews · Management · Blogs · Business · Management · marketing · Monitoring · RMR · Sales · 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:
View More by Scott Goldfine
Business, Management, marketing, Monitoring, RMR, Sales, Under Surveillance