The home technology market is forecast to grow over 20% per year over the next 8 years. Now is the time for dealers to seriously consider adding professional security as part of their business portfolio. Understanding the source of the growth is key to remaining relevant and capturing your share of the opportunity.
The greatest driving forces behind this sudden growth is turning professionally installed monitoring into True Smart Home control and personal monitoring.
Numerous studies have been done by leading market research firms with the intent to understand simple principles behind the ‘smart home’ phenomenon. For example, what does the term ‘smart home’ mean to a consumer? When offered categories to select from, which are the most important? Common categories across these studies include: security, energy management, lighting, and entertainment. Without exception, the number one selected category in every survey we have reviewed is security, and security does NOT mean burglar alarm. Survey respondents are really reacting to the safety and security of the envelope of the house. Cameras, locks, garage door controls and of course, alarm systems. People want to be virtually present 24x7.
From a technology perspective, security and ‘smart home’ or home automation are converging, and it is our belief at Clare, that over time, smart security offerings will meet the automation needs of a vast majority of all homeowners. The cloud backend systems of advanced interactive service solutions like Clare are sophisticated, flexible and deliver tremendous value to the consumer.
Those service offerings also drive your business as a dealer. With subscription revenue (RMR) tripling in eight years, it is logical to conclude the industry is migrating from one of hardware sales to services. As with many contract service driven markets (e.g. mobile phones), the contracts are where the value is, not the hardware. These monitoring contracts can be accumulated and serviced or sold outright at rates of up to 40 times the monthly contract fee. As they say, ‘do the math’. If you had 1,000 contracts paying you $35/month - the liquidation value could reach in excess of $1.25MM.
We do not in any way doubt there will always be a market for luxury systems and services in our industry. Forecast to grow about 5%/year, it will be lucrative for some. If however, you want to ‘market to the masses’ and not fight the onslaught of smart speakers, DIY products, and advanced video solutions from nearly every service provider, ‘smart security’ solutions from companies like Clare can pave the way.
Clare offers full-featured home automation and monitored security in one highly differentiated platform that will help you generate subscription revenue, and getting involved with Clare couldn't be easier.
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