residential alarm systems
For the second consecutive year SDM’s Industry Forecast Study cited DIY security providers as their greatest competition in the coming year, with 33 percent of respondents choosing DIY companies as their No. 1 competitive threat. National/global security companies followed, at 28 percent of respondents. However, wireless phone providers/broadband providers fell to 7 percent as a perceived threat, down from 11 percent last year. In all cases, it seems dealers and manufacturers alike view competition as untapped opportunity, a philosophy that also factors into the healthy optimism this year. Welsh has similar observations: “We have 5,000 security dealers we work with and they had a great year. We are hearing that the DIY systems are addressing a different segment of the market. They are not
necessarily cannibalizing the market. is a legitimate segment that is growing but we haven’t seen it be a significant factor for the small and
medium guys. Even with the cable and MSOs that have taken share, I think that perhaps it is more at the big guy level. ADT and Comcast are going back and forth while the independent security dealers win business by being local and being a part of the community.
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