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New Study Pinpoints How to Save, Make More Money

A year ago, SSI’s inaugural Operations & Opportunities Report (OOR) exposed the best ideas installing security company managers had for slashing costs and elevating profits. Since then, that guile has translated into an 11-percentage-point rise in gross margin. Now, the 2010 OOR delivers more incisive business intelligence.



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What a difference a year can make. Just 12 months ago, during what was hopefully the apex of the recession, installing security companies were aiming for a 34-percent gross profit margin yet were only seeing a 24-percent return. In 2010, those businesses projected earnings at 32 percent, but halfway through the period are actually exceeding that forecast with a 35-percent take. However, the economic scars remain with more firms (42 percent) reporting their financial footing has slipped the past three years.

These findings were among the wealth of vital market intelligence gleaned from SECURITY SALES & INTEGRATION‘s second annual Operations & Opportunity Report (OOR). This unique, original research not only conveys better times for the electronic security industry but, even more importantly, uncovers how these providers are succeeding by identifying the top money-making and cost-saving ideas, and today’s leading growth opportunities.

More than 200 executives, managers and others from across the nation, representative of all sizes of companies, were asked a host of questions targeting not only the best ways to boost profits and reduce expenses, but also the implications of implementation. Further, respondents were asked to identify the most promising new technologies and service offerings, as well as the most viable vertical markets. Several financial and operational questions were also included.

Among the key changes from a year ago: megapixel video and fire alarms are the fastest growing technology areas; commercial offices, residential and industrial are rising markets; maintenance/service agreements top recurring revenue aspirations; poor time management is cited as an increasing drain on the bottom line; reputation/referrals has risen as the leading boost to the bottom line; and there is an upswell of disenchantment with product pricing.

For more on these benchmarks and scores of other indispensable data, press onward where nearly 20 graphs and captions tell the complete story.

 


Article Topics
Business Management · Business Tools · Economic Recovery · Operations & Opportunities Report OOR · Recession · Research - Security STATS · Surveys · All Topics

About the Author
Scott Goldfine
Scott Goldfine is Editor-in-Chief and Associate Publisher of Security Sales & Integration, directing all editorial aspects of the magazine brand in print, electronically, online and in person. The voluminous, innovative and award-winning body of work he has distinguished himself with since joining the publication in 1998 includes groundbreaking research, landmark features, leadership roundtables, high profile case studies, and many industry exclusives. Well versed in the technical and business aspects of electronic security (video surveillance, access control, systems integration, intrusion detection, fire/life safety), Goldfine is a nationally known figure in demand as an industry presenter and subject matter expert to mainstream media. He is responsible for developing many unique products and programs, including the SSI Industry Hall of Fame, Control Panel (industry’s first E-mail newsletter), Police Dispatch Quality (PDQ), Marketing Marvel, Installers of the Year, Integrated Installation of the Year, Security Industry Census, Systems Integration Study, Installation Business Report, Operations & Opportunities Report, Commercial End-User Study and Security’s Fantastic Fleets. Recognized for his relationship building, integrity and lead-by-example ethic, Goldfine is a solutions-oriented team player who advises and collaborates with industry dealer/integrator, consultant, distributor, central station and manufacturer icons, luminaries and executive business leaders on a daily basis. He is also actively involved in several security events and organizations, including the Electronic Security Association (ESA), Security Industry Association (SIA), Security Industry Alarm Coalition (SIAC), False Alarm Reduction Association (FARA), PSA-Tec, SAMMY Awards, International Security Conference and Exhibition (ISC), Electronic Security Technology Summit (ESTS), Mission 500, Electronic Security Expo (ESX), ASIS Int’l, Honeywell CONNECT and other supplier conventions. Goldfine also serves on several boards, including the CSAA Marketing and Communications Committee and PSA Cybersecurity Advisory Council. A certified alarm technician, former cable-TV tech, audio company entrepreneur, and lifelong electronics and computers enthusiast, Goldfine graduated with honors from Cal State, Northridge with a management degree in Radio-Television-Film. His professional media endeavors have encompassed magazines, Internet, radio, TV, film, records, teletext and books. Goldfine resides in the Charlotte, N.C., area with his wife, son and three cats.
Contact Scott Goldfine: sgoldfine@ehpub.com
View More by Scott Goldfine
Business Tools, Economic Recovery, Operations & Opportunities Report OOR, Recession, Research - Security STATS, Surveys




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