Homebuilder Business is Thriving for Alarm.com and Control4 Dealer
Home-builder business is booming for Sacramento, Calif.-based Liberty Bell Alarm & Home Theater, which installs Control4 and Alarm.com security and home automation systems in hundreds of homes in new residential communities.
The New Home Co. is installing a generous Control4 home automation system in 56 homes in the new Woodbury community in the Bay Area.
Buzzard recently signed an agreement with Elliott Homes to equip 772 homes in six communities with structured wiring, as well as a monitored security system, a few automation devices and interactive services. The standard package, installed in all homes, includes:
- Interlogix Concord 4 wired security system with central station monitoring
- Image Sensor (Alarm.com sensor/image-capture device) (1)
- Z-Wave dimmer (1) (installed by builder’s electrician)
- MyQ Wi-Fi garage door controller (1)
- Smart door lock (1)
- Alarm.com smart thermostat (installed by builder’s HVAC contractor)
- Structured wiring system
- Phone, data and TV wiring
- Satellite prewire
- Surveillance camera prewire (1)
- Alarm.com interactive service, including cellular radio.
For the standard equipment and installation, Elliott Homes pays Liberty Bell a fair price – not a major money-maker but better than the old freebie model. And then there are the add-ons, which may be purchased initially through the builder and then through Liberty Bell directly when the home is finished.
The best part for Liberty Bell is that the company has the opportunity to sell security monitoring and Alarm.com interactive service to every home buyer. That was all part of the deal with the builder.
Marketing collateral for Alarm.com security and home automation package. Click to enlarge.
With some heavy lifting, Liberty Bell launched a program that would provide 90 days of free security monitoring and interactive services. After those 90 days, the automatic billing kicks in unless the customer cancels beforehand.
“It [business model] wouldn’t work without the subscription service,” Buzzard says.
It wasn’t easy implementing a trial subscription program. Liberty Bell first had to get the builder’s approval, then find a provider that would handle the billing, and finally sell the service to home buyers.
Liberty Bell charges pretty much the going monthly rate for these services, but the company structures them differently than the norm. Most dealers offer Tier 1: Alarm monitoring only; Tier 2: Alarm monitoring + interactive alarm services; Tier 3: Alarm monitoring + interactive security and home automation. Liberty Bell structures its plans to make Tier 3 easily the most attractive option:
$30 – Professional alarm monitoring only
$40 – Interactive self-monitoring with apps and alerts (no professional monitoring)
$50 – Professional alarm monitoring plus interactive services for security and home automation (cameras are an add-on option)
“People are used to paying $50 per month when Comcast [Xfinity Home] or AT&T [Digital Life] comes knocking at their door,” Buzzard says. “They’re charging $60 or $70 for interactive service, so they’re actually helping us.”
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About the Author
Julie Jacobson
Julie Jacobson, recipient of the 2014 CEA TechHome Leadership Award, is co-founder of EH Publishing, producer of CE Pro, Electronic House, Commercial Integrator, Security Sales and other leading technology publications. She currently spends most of her time writing for CE Pro in the areas of home automation, security, networked A/V and the business of home systems integration.
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