The Competition

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 Builder Program: The Competition

This market is fiercely competitive, both on the dealer side and the manufacturer side. The following is an assessment of the Alarm.com program.

Alarm.com is a software service provider, not a manufacturer. At Clare, we prefer to control the in-home device for a variety of reasons. The primary reasons are to control the user experience and platform flexibility. The ClareHome controller family came out of the CEDIA market, and as such it integrates to hundreds of devices. You simply cannot do that as a software service provider.

Interactive Services

Clare has three tiers of interactive services (video services are to be announced later this year). By way of generalization:

  • There are no device limits in any tier.
  • There are no user limits in any tier.
  • There are no device class restriction in any tier EXCEPT interactive for security services, which is the difference between BASIC and STANDARD Interactive.

You can view the different Interactive Service tiers here:

  • Full ClareHome services less interactive control of security panels.
  • No LTE transmission
  • $0/month, no time limits
  • Full ClareHome services including interactive control of security panels.
  • Customer may ‘self monitor’ by utilizing the built in Notification System through push notifications, email or text.
  • Available IP only
  • IP Only: $1.00
  • Clare Interactive INCLUDING alarm reporting to any supported alarm center. See list here
  • Available IP only or with LTE
  • IP Only: $3.95
  • LTE/IP: $6.90

Program Tiers

Clare Builder Program - The Competition

Alarm.com has three pages of interactive services offerings with monthly rates for specific services down to 15 cents. At Clare, we decided to keep it simple for you and your customer.


Selling Against Alarm.com

There are a few important things to know about the ADC builder program:

  • You will very likely run into situations where the dealer is installing the $100 hub (and perhaps a Skybell) for $100.
  • This model is based on assumed close rates for alarm monitoring and the long term value of those contracts.

Recommendations:

  • Don’t participate in the race to zero.
  • Sell the value of your local service and the value of the differentiated features of the Clare system: supports your brands, users can expand, zero monthly – forever, no high pressure sales tactics with the builder’s customers.
  • Explain this to the builder in terms they understand, i.e. the customer journey.

Explain the Alarm.com Free Tier

  • The free tier supports lighting, locks, and thermostats only. The LiftMaster garage controller you install with My-Q?  That can never be added.
  • After 36 months, it is shutting down unless the dealer pays a monthly fee for the service estimated at $5.95.
  • The user cannot self-install a single device. Every time the user wants to add a device, he needs to contact the dealer.
  • The dealer is committing to a 40% upsell requirements by ADC – which generally means higher pressure sales tactics with your home owner.
  • The homeowner will have to put up with constant in-app advertisements encouraging them to sign up for professionally monitored services.
  • You cannot add video cameras to this tier, the most common add-on option in existence.
  • They can never self-monitor.

Compared to Clare:

  • The free tier has only one restriction, the user cannot self-monitor. That service is $1/month from Clare.
  • There is no time limit for the free tier.
  • The user can add devices purchased from my dealership or online. There are no restrictions.
  • There are no upsell requirements, we have no externally mandated close rate as a dealer with your customers.
  • The Clare system does not ‘spam’ your homeowner with in-app advertisements.
  • You are not restricted from adding video cameras.

"Mr Home Builder, 60% of your homeowners are going to experience the above scenario. I know my competition talks about all the features Alarm.com has, and many are very good – for 40% of your customers who pay between $49 and $69/mo."

"What about the Paid tier (the 40%)?"


Explain the Alarm.com Paid Tier

  • The paid tier used in this analysis is the Interactive Gold service package.
  • Remember that in many cases the dealer is taking a substantial loss on the free tier customers: loss on install, no recurring monthly.
  • This 40% will do the financial heavy lifting for the 60% who do not buy.
  • Result: higher up-front costs, higher monthly feeds to the customer which means you should be more competitive.  Remember – you put the Clare Security Panel in base standard, your competition will not. Your upgrade lift is under $200, his is $500 or more.
  • In addition, most of the differentiators the builder values carry through to the paid tier (supporting the brands he uses, user can add devices, end user tech support).
  • Finally, your monthly pass throughs will be lower with Clare than Alarm.com b 30-50%.
Clare Builder Program Get Started CTA v4