T
Tyler Halbrooks
Confused about which panel to buy and who to deal with ?
There can be a great deal of information to deal with after getting several
quotes from suppliers! Remember, in Ontario, unlike every other province in
Canada, or state in the USA, this is a totally unregulated market !! There
are no regulations governing who can operate a security business, so just
about anything goes !! It is very much a "buyer beware" market....
Following are some guidelines to help you wade through the mess of
conflicting facts and pricing schemes:
1- Before you even start your shopping, you should have make a basic
decision as to HOW you wish to purchase; then investigate within the ranks
of those companies who's business model mirrors that pricing structure. For
example, the two extremes in the marketplace are:
Nothing down up front ("free system") **, megabucks a month in excess of
$30 per month under a long term non-cancelable contract for from 2 to 5
years, usually minimal equipment coverage without extra upfront costs, extra
cost warranty and service in many cases. Note that in most cases, after the
initial term of the contract has expired, the high monthly price remains. At
that point, you may wish to shop for a small or medium dealer who will
"takeover" your future monitoring, service and warranty requirements at
significantly lower cost to you.
Full but fair price up front for a complete system, monthly contract only
at minimal price, including free service, 100% warranty, monthly term only,
and a 5 year rate guarantee. This can be the least expensive way to buy over
the long term. However, it is not reasonable to expect major up front cost
breaks on the equipment when buying this way. Anyone doing so is probably
just entering the market, and is "buying" your account at a loss, hoping for
your ongoing monitoring business over the longer term.
Most alarm companies market within the middle ground, including a contract
term of some length for monitoring services, and with or without no cost
after sales service and warranty. Here you must shop around, since prices
vary all over the map !!
** "Zero down" systems are a perfectly legitimate way to buy any product.
However, alarm companies that advertise "free systems" are being deceptive;
this is basically a dishonest way to market, and should always put any
potential buyer on high alert.....
Caution: Do not believe the line handed out by large companies (mass
marketers and others) that no one except small unstable dealers will market
services without a long term contract. This is simply their way of
justifying maintaining a decidedly "consumer unfriendly" status quo !!
Remember the one rule of thumb in this and any other business...." You only
get what you pay for" !!
2- Do not buy on price alone. The lowest price is not always the truly
lowest price over the long term. You must compare costs over a five year
period based on initial cost, cost of monitoring, cost of service calls, and
cost of warranty. If you do decide on the "zero down" option, know
beforehand exactly what you are locking into by way of total cost, service,
and contract length (you should always ask about your options for early
termination of the contract - this can be quite an eye opener !!) While
price is always a major consideration, too much preoccupation with price
alone can blind you to other equally important concerns. Again, I emphasize,
understand fully what you are locking in to, and what your commitments are
!!!!!
3- Do not allow yourself to be locked into a monitoring contract in excess
of one year if purchasing your system outright. Remember, a contract does
not in any way serve your interests, and is there solely to protect the
dealer's revenue stream. The argument that it guarantees you long term price
stability is just not so with most alarm company contracts. A contract
length of one year is more than sufficient to ensure longevity of service
from a dealer perspective. You WILL have to shop around though to find a
more progressive company that does not lock you in to a term contract of
some length.
4- Shop for your dealer with the same care you shop for your system. Look
very closely at the person or firm you are dealing with. Will they be here
tomorrow when you need service (this is especially important here in the
Ottawa area, where people enter and leave this business on a monthly basis).
These amateur "trunk slammers" are responsible for a lot of poorly installed
systems purchased by people too quick to purchase on price only. My partner
and I often comment on how we rarely see the same faces at distributor
sponsored events from month to month). The smaller the dealer, the more you
should examine his qualifications to do the job, ie: number of accounts,
years in business, backup service capabilities etc. Remember, there is
currently no licensing requirements or background check required to set up a
security business in Ontario.
On the other hand, dealing with a large corporation guarantees you very
little as a consumer, other than most certainly costing you more, with
generally a far less personal level of service, and having to sign a binding
contract which can and often does get sold as these larger corporations
swallow each other up (ADT recently purchased the assets of Honeywell, and
now SecurityLink....)
5- Be just as careful dealing with large companies as you would in dealing
with smaller companies - maybe more so !! Often, being a large corporation,
they can not or will not be as flexible on price or unique requirements that
you may need or ask for. This seems to come about due to a certain level of
"institutionalized bureaucratic stupidity" ingrained in most large
corporations today!! Often too, that dealer who represents himself as the
large national is in fact an independant dealer linked to the national
through an un-monitored "authorized dealer program", and who sells that
account to the large national, largely bowing out of any further involvement
in after sales service (ADT and Voxcom are two mass marketers who operate
dealer programs)
While I admit my bias in this respect, I happen to personally believe that
the best providers of residential security are usually small to medium sized
companies. Large companies excel in large industrial security applications.
If purchasing one of these so called "free" systems, you will be
contractually bound for from $30 per month to as high as $50 per month for a
period of time. If at the end of the contract period, you do not request
your fee to go down to pay just for the monitoring (now that you have
finished financing the system), they will leave your monthly payments at the
higher level. The ethics of this situation I will not bother to comment on
!!.... At this point, shop around for monitoring from another source and do
not pay more than $20 monthly (monthly term contract).
6- Don't pay much attention to companies telling you how their panel is
better than everyone else's. In this industry, every installer / company has
a panel which they prefer and in their mind, everyone else's choices are
poorer. At security get togethers, this is always a point of lively
discussion!! As long as you are buying professional equipment, and it serves
your current and projected needs, all will serve your basic security
requirements (DSC, Paradox, Ademco, Napco, Caddyx, ITI, FBI, Linear,
Europlex, to name a few common makes - Radio Shack and Home Depot systems do
NOT qualify as professional grade equipment!)
7- Choose a hardwired alarm system over a wireless system. Although wireless
systems have come a long way over the last few years, they remain generally
more prone to problems and false than a hardwired system of equal quality.
They are also considerably more expensive. Some difficult locations may
truly require wireless components, but the usual reason a company recommends
wireless is because of the decrease in labour costs involved in not having
to run wiring. This allows them to put in two systems a day rather than one,
thereby generating more monthly recurring monitoring revenue. As well, it
doesn't require qualified installers to complete. Mass market companies
heavily into the "free system" sales concept often specialize in wireless
equipment.
8- Follow your gut instincts about the person or company you are dealing
with. Do they seem honest in their sales approach to you, or do they exert
high pressure to close the sale. Be especially careful dealing with a pure
salesman who is not himself going to be involved with the actual
installation- they can be tempted to say things to win your business which
may not be accurate or possible to do. Many "security consultants"
(translation - sales staff) are short term in this business (especially with
the mass marketing companies out to sell long term contracts), and may not
be fully knowledgeable about security specifics and alarm system design.
(Doing sub-contract work for large firms, we experience by far the greatest
problems when going in behind a salesperson who has promised impossible
things in order to close the sale, and we then must break the unhappy news
as to what realistically can and should be done).
9- Ask your friends for their experiences with their alarm companies. Did
they come when service was required ? Did the service cost money, and if so,
was the price reasonable? Did the company clean up after themselves? Smart
alarm companies know that word of mouth is the very best advertising for
security services. However, use that as a starting point only, but make your
own decision. Most people (provided they haven't experienced problems) will
wax eloquently about their choice of firms. To do otherwise is against human
nature!
10- Ask about the company's "false alarm policies". Reputable companies who
care about their reputation will gladly pick up false alarm fees assessed
due to failure of the actual equipment.
11- Discuss up front any special requirements you need to ensure your new
panel has that capability. While you may initially purchase for reasons of
theft prevention, you may later decide to add to the system to cover fire,
heat, cold, gas detection etc. Avoid installing a panel which is at capacity
from day one. Leave yourself room (at least one zone) to add on additional
requirements which you may need in the future.
12- Insist that your company check all internal software settings via
upload/download software after installation. Surprisingly, most companies do
not check their panels via upload/download software !!!.....(Even being as
careful as I am, I still make "finger trouble" programming mistakes in one
out of five installations, which need corrective action via uploading). Also
look for a company which programs in "cancel codes" and "recent close codes"
for your protection against false dispatches which can cost you money.
13- When you make your final decision, don't put any money down up front.
That should never be required since the equipment costs are not in the same
league as a furnace or air conditioner !! Smaller firms that do this are
generally running their business on a shoestring budget, and this can be an
indication of the level of service you can expect later on.
14- Discuss the design of your system with several companies and look for a
design which covers all traffic areas inside the home. For example, one
medium sized company in this area typically installs no motion detectors,
relying solely on glass break detectors to provide inside protection. This
is clearly defective design in that should the burglar pry open a window
rather than break it - far more likely with heavy modern double pane
windows - there is absolutely no protection whatsoever.
15- Insist on a guarantee that the equipment you are purchasing is not
"proprietary" and can be monitored by any other company. Many larger
companies especially are guilty of installing this type of equipment to
prevent you from leaving them in the future. Insist that after the term of
any contract, should you wish to go elsewhere for your monitoring, that:
1- Your alarm panel can be serviced by any other monitoring station, and
2- At no cost to you, the company will reset your installers code back to
factory default, and unlock the board so it can be reprogrammed (this is
vital - and get it in writing as part of any contract)
16- NEVER sign any contract on the spot. Sit down and compare the three
price quotes you obtained, and make your decision in the "calm light of
day". You will likely be with this company for some time, so make the
correct decision up front.
And finally, one last word of caution - any salesman that insists that:
a- The deal is "only good for so long", and that you "must make a decision
now"
........or........
b - You should sign up for his deal immediately because "there have been a
lot of robberies on your street", etc should be shown the door in short
order !!
Most importantly, remember that your alarm system can not be effective
unless you have done the physical security updates needed first to keep
thieves out to begin with - good locks, good strikes, patio door security,
and window bars for all your basement windows (sorry... I feel I have to add
this again because it IS every bit as important as your alarm system
There can be a great deal of information to deal with after getting several
quotes from suppliers! Remember, in Ontario, unlike every other province in
Canada, or state in the USA, this is a totally unregulated market !! There
are no regulations governing who can operate a security business, so just
about anything goes !! It is very much a "buyer beware" market....
Following are some guidelines to help you wade through the mess of
conflicting facts and pricing schemes:
1- Before you even start your shopping, you should have make a basic
decision as to HOW you wish to purchase; then investigate within the ranks
of those companies who's business model mirrors that pricing structure. For
example, the two extremes in the marketplace are:
Nothing down up front ("free system") **, megabucks a month in excess of
$30 per month under a long term non-cancelable contract for from 2 to 5
years, usually minimal equipment coverage without extra upfront costs, extra
cost warranty and service in many cases. Note that in most cases, after the
initial term of the contract has expired, the high monthly price remains. At
that point, you may wish to shop for a small or medium dealer who will
"takeover" your future monitoring, service and warranty requirements at
significantly lower cost to you.
Full but fair price up front for a complete system, monthly contract only
at minimal price, including free service, 100% warranty, monthly term only,
and a 5 year rate guarantee. This can be the least expensive way to buy over
the long term. However, it is not reasonable to expect major up front cost
breaks on the equipment when buying this way. Anyone doing so is probably
just entering the market, and is "buying" your account at a loss, hoping for
your ongoing monitoring business over the longer term.
Most alarm companies market within the middle ground, including a contract
term of some length for monitoring services, and with or without no cost
after sales service and warranty. Here you must shop around, since prices
vary all over the map !!
** "Zero down" systems are a perfectly legitimate way to buy any product.
However, alarm companies that advertise "free systems" are being deceptive;
this is basically a dishonest way to market, and should always put any
potential buyer on high alert.....
Caution: Do not believe the line handed out by large companies (mass
marketers and others) that no one except small unstable dealers will market
services without a long term contract. This is simply their way of
justifying maintaining a decidedly "consumer unfriendly" status quo !!
Remember the one rule of thumb in this and any other business...." You only
get what you pay for" !!
2- Do not buy on price alone. The lowest price is not always the truly
lowest price over the long term. You must compare costs over a five year
period based on initial cost, cost of monitoring, cost of service calls, and
cost of warranty. If you do decide on the "zero down" option, know
beforehand exactly what you are locking into by way of total cost, service,
and contract length (you should always ask about your options for early
termination of the contract - this can be quite an eye opener !!) While
price is always a major consideration, too much preoccupation with price
alone can blind you to other equally important concerns. Again, I emphasize,
understand fully what you are locking in to, and what your commitments are
!!!!!
3- Do not allow yourself to be locked into a monitoring contract in excess
of one year if purchasing your system outright. Remember, a contract does
not in any way serve your interests, and is there solely to protect the
dealer's revenue stream. The argument that it guarantees you long term price
stability is just not so with most alarm company contracts. A contract
length of one year is more than sufficient to ensure longevity of service
from a dealer perspective. You WILL have to shop around though to find a
more progressive company that does not lock you in to a term contract of
some length.
4- Shop for your dealer with the same care you shop for your system. Look
very closely at the person or firm you are dealing with. Will they be here
tomorrow when you need service (this is especially important here in the
Ottawa area, where people enter and leave this business on a monthly basis).
These amateur "trunk slammers" are responsible for a lot of poorly installed
systems purchased by people too quick to purchase on price only. My partner
and I often comment on how we rarely see the same faces at distributor
sponsored events from month to month). The smaller the dealer, the more you
should examine his qualifications to do the job, ie: number of accounts,
years in business, backup service capabilities etc. Remember, there is
currently no licensing requirements or background check required to set up a
security business in Ontario.
On the other hand, dealing with a large corporation guarantees you very
little as a consumer, other than most certainly costing you more, with
generally a far less personal level of service, and having to sign a binding
contract which can and often does get sold as these larger corporations
swallow each other up (ADT recently purchased the assets of Honeywell, and
now SecurityLink....)
5- Be just as careful dealing with large companies as you would in dealing
with smaller companies - maybe more so !! Often, being a large corporation,
they can not or will not be as flexible on price or unique requirements that
you may need or ask for. This seems to come about due to a certain level of
"institutionalized bureaucratic stupidity" ingrained in most large
corporations today!! Often too, that dealer who represents himself as the
large national is in fact an independant dealer linked to the national
through an un-monitored "authorized dealer program", and who sells that
account to the large national, largely bowing out of any further involvement
in after sales service (ADT and Voxcom are two mass marketers who operate
dealer programs)
While I admit my bias in this respect, I happen to personally believe that
the best providers of residential security are usually small to medium sized
companies. Large companies excel in large industrial security applications.
If purchasing one of these so called "free" systems, you will be
contractually bound for from $30 per month to as high as $50 per month for a
period of time. If at the end of the contract period, you do not request
your fee to go down to pay just for the monitoring (now that you have
finished financing the system), they will leave your monthly payments at the
higher level. The ethics of this situation I will not bother to comment on
!!.... At this point, shop around for monitoring from another source and do
not pay more than $20 monthly (monthly term contract).
6- Don't pay much attention to companies telling you how their panel is
better than everyone else's. In this industry, every installer / company has
a panel which they prefer and in their mind, everyone else's choices are
poorer. At security get togethers, this is always a point of lively
discussion!! As long as you are buying professional equipment, and it serves
your current and projected needs, all will serve your basic security
requirements (DSC, Paradox, Ademco, Napco, Caddyx, ITI, FBI, Linear,
Europlex, to name a few common makes - Radio Shack and Home Depot systems do
NOT qualify as professional grade equipment!)
7- Choose a hardwired alarm system over a wireless system. Although wireless
systems have come a long way over the last few years, they remain generally
more prone to problems and false than a hardwired system of equal quality.
They are also considerably more expensive. Some difficult locations may
truly require wireless components, but the usual reason a company recommends
wireless is because of the decrease in labour costs involved in not having
to run wiring. This allows them to put in two systems a day rather than one,
thereby generating more monthly recurring monitoring revenue. As well, it
doesn't require qualified installers to complete. Mass market companies
heavily into the "free system" sales concept often specialize in wireless
equipment.
8- Follow your gut instincts about the person or company you are dealing
with. Do they seem honest in their sales approach to you, or do they exert
high pressure to close the sale. Be especially careful dealing with a pure
salesman who is not himself going to be involved with the actual
installation- they can be tempted to say things to win your business which
may not be accurate or possible to do. Many "security consultants"
(translation - sales staff) are short term in this business (especially with
the mass marketing companies out to sell long term contracts), and may not
be fully knowledgeable about security specifics and alarm system design.
(Doing sub-contract work for large firms, we experience by far the greatest
problems when going in behind a salesperson who has promised impossible
things in order to close the sale, and we then must break the unhappy news
as to what realistically can and should be done).
9- Ask your friends for their experiences with their alarm companies. Did
they come when service was required ? Did the service cost money, and if so,
was the price reasonable? Did the company clean up after themselves? Smart
alarm companies know that word of mouth is the very best advertising for
security services. However, use that as a starting point only, but make your
own decision. Most people (provided they haven't experienced problems) will
wax eloquently about their choice of firms. To do otherwise is against human
nature!
10- Ask about the company's "false alarm policies". Reputable companies who
care about their reputation will gladly pick up false alarm fees assessed
due to failure of the actual equipment.
11- Discuss up front any special requirements you need to ensure your new
panel has that capability. While you may initially purchase for reasons of
theft prevention, you may later decide to add to the system to cover fire,
heat, cold, gas detection etc. Avoid installing a panel which is at capacity
from day one. Leave yourself room (at least one zone) to add on additional
requirements which you may need in the future.
12- Insist that your company check all internal software settings via
upload/download software after installation. Surprisingly, most companies do
not check their panels via upload/download software !!!.....(Even being as
careful as I am, I still make "finger trouble" programming mistakes in one
out of five installations, which need corrective action via uploading). Also
look for a company which programs in "cancel codes" and "recent close codes"
for your protection against false dispatches which can cost you money.
13- When you make your final decision, don't put any money down up front.
That should never be required since the equipment costs are not in the same
league as a furnace or air conditioner !! Smaller firms that do this are
generally running their business on a shoestring budget, and this can be an
indication of the level of service you can expect later on.
14- Discuss the design of your system with several companies and look for a
design which covers all traffic areas inside the home. For example, one
medium sized company in this area typically installs no motion detectors,
relying solely on glass break detectors to provide inside protection. This
is clearly defective design in that should the burglar pry open a window
rather than break it - far more likely with heavy modern double pane
windows - there is absolutely no protection whatsoever.
15- Insist on a guarantee that the equipment you are purchasing is not
"proprietary" and can be monitored by any other company. Many larger
companies especially are guilty of installing this type of equipment to
prevent you from leaving them in the future. Insist that after the term of
any contract, should you wish to go elsewhere for your monitoring, that:
1- Your alarm panel can be serviced by any other monitoring station, and
2- At no cost to you, the company will reset your installers code back to
factory default, and unlock the board so it can be reprogrammed (this is
vital - and get it in writing as part of any contract)
16- NEVER sign any contract on the spot. Sit down and compare the three
price quotes you obtained, and make your decision in the "calm light of
day". You will likely be with this company for some time, so make the
correct decision up front.
And finally, one last word of caution - any salesman that insists that:
a- The deal is "only good for so long", and that you "must make a decision
now"
........or........
b - You should sign up for his deal immediately because "there have been a
lot of robberies on your street", etc should be shown the door in short
order !!
Most importantly, remember that your alarm system can not be effective
unless you have done the physical security updates needed first to keep
thieves out to begin with - good locks, good strikes, patio door security,
and window bars for all your basement windows (sorry... I feel I have to add
this again because it IS every bit as important as your alarm system
