Connecting With Customers in New Ways
Can you give me a ballpark in how much more monthly it is to have that feature?
It’s about a $20 uplift a month.
And is that inclusive of all features or if I want to have video as well is that another charge? How does that work?
That does not include the video. Video is another $10 uplift per camera, so on an average install, you might get four cameras, which would be an extra $30-$40.
Given that that the offering is so new, how did you come up with that particular price structure?
We looked at the profitability of the deal to see if it actually would cost us some money per month to sell this. We pay Honeywell a little bit of a fee per month, so we looked at that. We looked at some competitive benchmarking in the marketplace and we also looked at what we thought the market would bear on a monthly cost for the customer. At some point you reach a level of, ‘I’d rather not have it.’
It seems this could also be beneficial in helping mitigate false alarms if the customer is more engaged in their system. It could also help in verifying if an alarm is a real event or not.
Yeah, that’s a good point. For sure, I’d say a video, and then I would say false alarms because there is actually going to be some evidence there. There will be something to go back and verify. So, yes, I would say the way video is going, it’s going to make significant inroads into the industry problem with false alarms. It will soon be verified video.
When someone adds a Total Connect service is that a contract or can that be added or dropped at any time?
That’s a contract component. We haven’t had any drops yet. We would consider that part of the five-year agreement.
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