On the Lookout for the Right Dealer Program
“We believe our Smith & Wesson dealers will be able to push forward by helping protect people in these times of uncertainty,” says NationWide Digital President Wayne Wahrsager. “The investment in a security system to protect family and home is actually very minimal considering what is being safeguarded. By offering services that include monitoring for smoke, carbon monoxide and intrusion, we are optimistic our dealers will be able to stay the course and grow their businesses.”
A chief requisite to join the program is all subscriber accounts must be monitored with NationWide Digital. However, while other programs stipulate dealers sell some or all accounts to the contracting provider, the Smith & Wesson program allows dealers to keep their accounts and recurring monthly revenue (RMR). (For more from Wahrsager and Smith & Wesson’s CEO on this new program see the extensive and exclusive interviews here.)
Wanting to Hear From the Dealer
Popular brand recognition and robust member support services are not the only features of a successful, mutually beneficial dealer program. Participants may also 
appreciate a service provider’s willingness to listen to their concerns and suggestions. Ultimately, such discourse can lead to program modifications.
The network of GE Security Pro authorized dealers is one example of a program that is structured, in part, on the active involvement of its members’ guidance. Dealers in the turnkey program are encouraged to participate in roundtables and focus groups hosted by the company. The sessions provide a forum for dealers to share best practices and personal experiences in the marketplace, but also to determine direction of the overall program.
Since its inception in 2002, a number of changes have been made to the comprehensive Bosch Certified Security Dealer (BCSD) program. For instance, Bosch no longer requires a minimum sales obligation as it did in the past. Today, members need only acquire a certain level of training to ensure end users receive optimal service and support.
To better assist communication with program members, Bosch replaced its dealer advisory board with quarterly customer focus groups. This has enabled the company to increase the number of dealers who provide views and opinions on the BCSD program. It was feedback voiced during such sessions that prompted Bosch a few months ago to discontinue its co-op marketing program.
“This year, instead of investing in the co-op funds, we are investing in a program to provide qualified leads to our customers,” says Daniel Gundlach, vice president of marketing, Americas. “We, and our dealers, feel that this is a higher impact program for helping them grow their businesses and increase profits.”
3rd-Party Monitoring Programs
Because programs offered by third-party monitoring companies often center on purchasing independent monitoring accounts, dealers will want to shop for the best multiple being offered.
These programs can provide an excellent means of
raising additional capital to reinvest in a dealer’s business. Dealers can also expect to enjoy a variety of benefits depending on the program, including free marketing materials, sales leads, revenue sharing and support services.
The premise behind the authorized dealer program offered by Dallas-based Monitronics Int’l is flexibility. Dealers have the choice to remain independent and promote their own company, co-brand or promote the Monitronics brand. Dealers also decide what accounts they want to sell and what accounts to provide wholesale monitoring for.
Dealers can also look to monitoring providers for special financing options, such as lines of credit and cash advances, as well as insurance programs. For instance, Criticom Monitoring Services (CMS) provides dealers with general liability (GL), errors and omissions (E&O), workman’s compensation, property, auto, directors and officers (D&O), and employment practices liability (EPL) insurance. CMS dealers receive preferred rates with a savings benefit of up to 15 percent.
Monitoring companies with a national footprint can oftentimes help dealers offer added services in their respective local turf.
Chicago-based EMERgency24 (EM24), with four regional monitoring stations across the United States, has made a concerted effort as of late to help its dealers enter the promising personal emergency response system (PERS) market. Dealers can drop off or ship PERS equipment to the company, which in turn will program the devices and ship directly to the subscriber.
EM24 staffers will handle the task of tutoring subscribers through the setup and testing of equipment to make sure they become acclimated with the service. Dealers can also receive free PERS marketing materials, such as mailers and billing inserts, customized with their logo.
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