Smith & Wesson Takes a Shot at Security
While millions of systems can be found in homes coast to coast the number of household names in the electronic security industry — particularly on the installation and monitoring side — can be counted on one hand … with some fingers left over! That is radically changing this year, however, with the official launch of Smith & Wesson Security Services.
Like a shot that resonated throughout the industry, the famed firearms maker announced last spring it was entering the electronic security business by partnering with Freeport, N.Y.-based NationWide Digital Monitoring, a division of New York Merchants Protective Co. Inc. The licensing agreement allows NationWide to establish an authorized North American program that exclusively provides dealers with wholesale monitoring services plus Smith & Wesson’s iconic branding on products and supporting materials.
This means independent installing security companies now have an opportunity to affiliate themselves with one of the most trusted and renowned brand names that exists today, and leverage that to compete with larger rivals and grow their businesses. Furthermore, when a name like Smith & Wesson — which shipped its first revolver products way back in 1852 — enters a marketplace it serves to strengthen, fortify and expand the scope of the entire industry.
How powerful is the Smith & Wesson brand? The Springfield, Mass.-headquartered company conducted a survey and discovered it was the third-most recognizable brand after ADT and Brink’s in the security category — that’s before Smith & Wesson was even in this business.
“Dealers need to separate themselves from the competition in order to show the prospective 
customer why this purchase makes sense. The best way to do that is to be associated with a brand that is known for protection,” says Wayne Wahrsager, president of New York Merchants and Nationwide. “The marketing plan is simple: Develop a group of traditional dealers who seek to grow their business. Then provide them with sound marketing principles, top quality literature and a superior infrastructure and support.”
To ensure its legendary name was in good hands, Smith & Wesson selected a partner with nearly as long and respected a history as its own. Founded nearly 100 years ago, New York Merchants Protective is one of the nation’s largest security providers — protecting more than $100 billion in property and assets, and in excess of 100,000 families. The company established Nationwide, its third-party monitoring entity, 30 years ago.
Exclusive interviews with Smith & Wesson president/CEO Michael Golden and Wahrsager uncover why the gun-maker decided to enter the security industry, how the partnership with Nationwide was forged, all the specifics of the new authorized dealer program and much more.
Why did Smith & Wesson decide to get involved with electronic security?
Michael Golden: Smith & Wesson has been a trusted brand in the security industry 
since the company’s inception over 150 years ago. Smith & Wesson revolvers and pistols have been used by security forces around the world, and were for years virtually the only weapons carried by U.S. law enforcement personnel.
In fact, we are so synonymous with security that, in a recent national survey conducted by Smith & Wesson, our brand was named No. 3 in recognition rankings for home security behind ADT and Brink’s! As we expand our brand into categories that align with our mission, electronic security naturally seemed an excellent fit for us.
When did the company first begin seriously looking into entering the electronic security industry?
Golden: We began evaluating the security industry several years ago. Once we determined that Smith & Wesson would be accepted into the electronic security business, we evaluated how best to enter the market. We had the choice of acquiring a business, entering into a joint venture, or licensing our brand to an already successful and qualified company — we choose the last option. We then began interviewing and evaluating likely candidates. We engaged in significant research, and had the luxury of having several significant partnering opportunities.
Why did S&W decide to partner with NationWide Digital Monitoring?
Golden: We knew we wanted a company with the background, scope and capabilities to create and sustain a major national program, and a company with experience and success in both installation and monitoring. We also wanted a partner that already had processes in place, yet was nimble enough to tailor a program that suited our brand equities. Our evaluation focused on concrete capabilities and stability. Then we assessed which potential partner would fit our style.
Can you please describe the agreement with NationWide in detail?
Golden: The relationship with NationWide is a standard licensing relationship. That is, we have granted them certain rights and sublicenses to use our most important asset, our brand, and they pay us a negotiated royalty commission based on the revenue generated by this activity. NationWide is responsible for soliciting and signing up experienced dealers. They also supply the program and marketing materials that enable the dealers to maintain a consistent and high-quality image, commensurate with the reputation that Smith & Wesson has enjoyed for over 150 years.
We provide both insight and oversight of every facet of the program. We also provide information about our industry, customers and brand that facilitate the work done by NationWide. We see and provide input on every item NationWide issues that features the S&W brand. What seems to me to go beyond the standard licensing relationship is the coordination and degree of interaction between us and NationWide.
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About the Author
Scott Goldfine
Scott Goldfine is the marketing director for Elite Interactive Solutions. He is the former editor-in-chief and associate publisher of Security Sales & Integration. He can be reached at [email protected].
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