Are you charging too much for your alarm system installation? You could lose customers if your prices are too high. Here are the security system installation cost trends you should know.
Every 13 seconds, a burglary occurs in the United States. That equates to about 2.5 million burglaries nationwide every year! What’s more, two-thirds of these are home break-ins.
No wonder why security alarm services has become a $25 billion dollar industry, annually! After all, more consumers are now aware of the risks and potential losses that can occur with a break-in. Most would rather invest in security devices than have $2,361 stolen from them (the average amount stolen during burglaries), not to mention the emotional upset, worry and impact they create.
But, this awareness and demand doesn’t mean you can afford to overprice your security system installations. Granted, consumers are willing to shell out a lot of money to deter crime. But, charge them too much, and they’ll not only turn to your lower-priced competitors – in today’s world, they’ll be sure to tell all their fans and followers on social media.
So, what is a fair price? Read on to learn about the factors that should determine the cost of your products and services.
What Should Go into Your Security System Installation Cost
How much should you charge for your home security installation cost? Consider these three crucial factors first:
- Price of equipment
- Installation labor costs
- Additional services requested, such as monitoring and maintenance
Now, consider that the national average cost of home security alarm systems is $695. This accounts for basic equipment and installation costs. But, the more advanced the equipment, the higher the price goes.
For simplicity’s sake, let’s break down each of the three factors mentioned above.
In general, basic home security systems include the following components:
- Main control panel
- The siren or alarm itself
- Window and door sensors
- Motion detectors
This basic set up costs about $600 or so. Keep in mind that many consumers now want more than a basic package, so you need to do the math for these add-ons too.
If a client wants more window or door sensors, that’ll add $15 to $60 (for each) to the bill. For every extra motion detector, that’s another $30 to $50. Your clients may also want glass break sensors, which cost around $70 a piece.
The Price of Your Hard Work
Unless you offer free installations to all customers, you’d need to factor in labor costs. Especially if it’s for a wired home security installation, where you’ll have to cut holes, mount the equipment, and deal with connections.
If it’s only a basic set-up, though, installation shouldn’t take you an entire day. If you can’t afford a free installation yet, you should at least consider a discount.
How about labor costs for clients who want their entire homes wired? In this case, you need more time for planning and installation. But, if they buy loads of security devices from you, you may want to show appreciation with a lower labor charge.
Additional Services and Upgrades
Let’s say your clients want your monitoring services too. In that case, consider the monthly monitoring rates that run anywhere from $15 to $100. Note that the average rate is only about $30 though.
Keep in mind that monitoring rates also vary from state to state, city to city. So, to ensure you’re charging fair prices, research your direct competitors. Find out how much they’re charging and consider that when coming up with your own rates.
Better Surveillance Technology
Your clients may also want live video surveillance in addition to recording functions. As such, they may ask you to install high-definition cameras with smart technology. The higher the resolution, the more expensive the cameras are.
There’s also the cost of developing the mobile app for remote surveillance. Don’t forget you need to maintain the program too and ensure there aren’t any bugs.
Other Safety Detectors and Alarm Devices
Other popular security system add-ons are smoke detectors and fire alarms. That makes sense, seeing as more than 1.34 million fires occurred in the country in 2015 alone. Homeowners turn to these safety devices to keep their properties and loved ones safe.
Most people also want carbon monoxide detectors in their properties. In fact, 27 states in the U.S. require private homes to have these installed! That makes offering them to your clients a good opportunity for your business.
All these options will increase your overhead costs and the price you can potentially pass on to your clients. However, many consumers are willing to pay more for greater peace of mind. After all, the cost of not having a secure home or replacing lost belongings is much more expensive than an alarm installation cost.
Getting More Customers by Delivering What They’re Looking For
In 2015, the global physical security market’s value was $35.85 billion. In 2016, it jumped to a whopping $133.94 billion.
What do these figures tell us? That a huge number of consumers now rely on security technology. After all, these systems prevent more than financial losses. They also protect against traumatic experiences.
But, as technology evolves, so do consumers’ needs. For instance, more consumers now prefer having security cams with HD features. They also want remote video capabilities with their security systems.
This should tell you that to obtain more customers, you need to keep up with their changing demands. In fact, this rule is key to also maintaining your existing clients, as well.
As such, stay apprised of home trends that impact the security industry. This will allow you to grow your base of customers and open more doors for profit-making.
Bonus: Customers Will Pay for Excellent Customer Service
The above are all technicalities involved in figuring out home system installation cost. But, with so many factors to consider, it’s easy to overlook the value (and cost) of customer service.
Excellent customer service should always be part of all your business transactions. Because almost 9 in 10 consumers say they’ll pay more to get a great customer service experience. There’s also the fact that exceptional service is key to building a great reputation.
Fair Rates Equate to Longer-Lasting Customer Relationships
A fair security system installation cost is key to making your cash register ring more. It also helps you build better relationships with your existing customers.
So, review the rates you currently have in place. Make the necessary changes and adjustments to meet your customers’ needs and budgets. If a discount makes sense, then go ahead and give it to clients who deserve it.
Want more strategies to improve your security products and service business? Then head over to our blog! We have more tips to share with you. While your there head over to our Alarm Installation page to see what kind of coverage El Dorado has to offer!