My recent visit to a national alarm equipment distribution outlet was a sobering event. While wandering the aisles looking for new and interesting equipment, I ran into one of my industry associates whom I’ve known for more than 30 years. When I asked, “How’s business?” his somber reply was that he’s cut back the number of his employees and vehicles drastically to try and stay profitable. It doesn’t seem to matter where you go in the lower 48 states; times right now are tough for alarm companies and their employees.
During economic times such as we’re experiencing now, it can be very difficult to sell new systems to new clients. New construction slows down, customers tighten their grip on their wallets and budgets, often mentally putting the purchase or upgrade of an alarm system into the “wait until times are better” category.
Our industry has long relied on recurring monthly revenue to provide the cash flow and profitability that is critical for most security dealers’ survival. What’s important to remember during this difficult time is a simple adage: The best customers are those that you have already sold. It can be a simple process to increase the revenues from your clients who have previously installed security systems.