To Murphy’s earlier point about technology playing an important role in meeting a client’s security needs and goals, it also factors strongly into conversations centered on cost. For example, Bosch’s Intelligent Dynamic Noise Reduction (IDNR) technology allows for higher resolution cameras that provide greater detail and wider coverage areas but require up to 50% less storage. This can mean fewer cameras and smaller recording appliances, which drives down costs. The ability to explain to the customer these types of cost-saving scenarios is vital to a winning presentation.

A cheaper alternative growing in popularity with SMB clients are all-in-one, preconfigured NVRs available in four-, eight- or 16-channel units. Traditional-minded installing security contractors are especially finding the devices to be an appealing, much lower risk install since they offer automatic IP addressing and other set-up efficiencies.

And when the customer has all but dug in their heels over cost, it may be time to take an entirely different path and pitch a monthly payment structure based on hosted video services or video as a service (VaaS). It is a viable option to get a customer out of a several-thousand-dollar conversation to possibly $100 or less per month, thereby spreading out the cost to avoid an upfront hit.

Selling VaaS is a big conceptual shift for many dealers and integrators, many of which have had a difficult time migrating their own business from analog to IP. Still, for customers who are having a hard time seeing the value of an IP video system, it may be a time to shift the conversation from the traditional product sale model to a recurring payment model.

“We are beginning to see that strategy is ticking up,” Carney says. “Some of the business in the SMB market where customers who may be shying away from a certain level of investment can be enticed to get into a longer-term relationship. We definitely see that space growing.”

How to Best to Present IP ROI

Security is commonly seen through the eyes of the end user as loss prevention or recovery. This means the return on investment (ROI) is set in terms of reduction of shrinkage and/or insurance cost reduction compared to the amortized cost of the security system.

Yet today it’s possible to leverage a security system for much more. It is the salesperson’s duty to communicate the multitude of benefits a video surveillance system, in particular, can achieve beyond helping catch the bad guy.

“The video capt
ured is a view into the operation of the business. It catalogs efficiency, habits and skills of the workers. It also shows insight into customers,” Murphy says. “That data can be collected through manual viewing or analytics. It fundamentally changes the ROI equation to include the revenue gains from a more efficiently run business or better marketed products.”

When discussing the potential ROI of an IP camera purchase, installing security contractors should stress the device is far more than just a CCTV camera, Leary advises. An IP camera is a flexible and powerfully intelligent input/output device. Most IP cameras have the ability to react to events without intervention from the head end.

“Events can trigger outputs that sound alarms, turn on lights or send text message or E-mail with snapshots or video clips to name only a few,” Leary says. “The IP network is an existing bi-directional link that can easily be used for one- or two-way verbal communication between the camera location and operator.”

Here’s a tip from Carney to focus the conversation directly on the customer: Pose the question, “When was the last time you used an analog phone or an analog cellphone?”

Undoubtedly it was very long time ago. Hence, the IP/IT advancements that people take for granted in their everyday lives can be used to help a customer realize their legacy security system is inadequate.

Take, for example, a small store owner who may be part of a franchise. They could possibly be obligated to take part in procedures demanded by the franchise such as point-of-sale staffing obligations. Maybe signage has to be displayed a particular way or there are uniform requirements to enforce. Being able to monitor and manage all that remotely via a mobile device can save time and generate an improved ROI vs. analog.

ROI, just like other key factors to address in a well-tuned sales conversation, circles back to identifying customer needs and expectations.

“It’s the same as the best advice for anyone hoping to sell something. Solve the client’s problems, known or unknown by them, by understanding their needs and goals,” Murphy says. “A majority of the time, they’ll have a hard time saying no.”

 

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