How are security systems priced out?

They have to be planted, grown, picked, packed, shipped and sold.

They have to be planted, grown, picked, packed, shipped and sold.

There are several ways to price out any item that you are going to sell. Obviously it has to do with supply and demand and like phones you can have a lower monthly payment if you pay more upfront or you can have a higher monthly payment and get what they would call a free phone. Let’s look at the numbers.

Plan A – Pay $600 for your phone upfront and you may get an $80 plan per month with a certain commitment
Plan B – Pay $199 for your phone upfront and your may get a bit higher monthly bill with a commitment
Plan C- Pay for the phone and do month to month (This can also be done with Peak Alarm)

Let’s say the phone costs $40 dollars to manufacture, a normal retail market would double that price and sell it for $80 but with the demand of Phones they can and do charge more so you could pay hundreds more than it costs to make and the same applies to jewelry. Without diamonds you could pay three or four times what the ring is worth in gold value and they tell you that you are paying for workmanship and quality.

Security Systems are very similar, lets break it down to two devices and look at that pricing for a hardwired motion detector and a wireless motion detector. Peak Alarm is still in business after 47 years because we don’t do FREE systems. We also don’t do CREDIT CHECKS which is great if you have fallen on hard times and don’t need people running your credit for things like this.

Hardwired motion may cost $15 dollars (no name brand and not the best motion) The company sells it for $30
Wire $5 and they will charge you $10
$100 Labor is normally 1 hour in a normal size home for one motion which includes pulling the wire and installing the motion with programming*

Hence cost for a hardwired motion assuming you can get wire to those areas is about $140 for the low end motion and higher for say a Bosch higher quality motion detector which would run you around $140-$174

Wireless Motion Detector cost also varies depending on the brand and features but a normal one costs around $50 dollars so you pay $100
No cost for wire
Labor cost is about 20 minutes of unpacking, mounting, programming and testing the motion so it comes out to around $35 dollars

The cost of a wireless motion is about $135 installed

On our basic systems you can add a wireless motion, glass break or smoke detector for $130 installed.
A door contact or window contact is as low as $65 or recessed $75 or overhead door contact is as low as $150
Give me a call and I can come out and walk your site and give you a deal with multiple sensors.

Peak Alarm has a special system price for systems that have multiple monthly services so we can save you money with a package deal.

Peak Alarm web site ask for Larry Love

Some monthly services are as follows:

Monitoring $32 per month (When you bundle services this price can be adjusted depending on the service you have)
Cellular (This adds $10 per month)
Elite Control (Remotely arm and disarm) This adds $5 per month
Lock Control $4 per month (Remotely lock and unlock doors)
Lighting Control $4 per month (Remotely control lights)
Camera Control $10 (for up to 4 cameras)
Garage door control $4 per month (Remotely open and close your garage door) you can have a contact on it so you can know if it is open or closed
Temperate Control $4 per month
Repair agreement $7 to start in a small system and from there it depends on how much equipment there is.
Schedules $10 per month (We would call you if say someone disarmed too early or armed up too early or late – great for stores)
Opening and Closing $5 per month (When you have Elite control you can see a history of people opening and closing)
Text on troubles (Free) Just sign up on the call list form
Web Access $5 per month
UL Certificate $15 per month (Most UL monitoring is over $100 per month because of required services)
Elevator Monitoring $15 per month (When someone gets stuck they pick up the phone and can speak with a live person)

On a very large security system often we will use DMP which is more robust but it is also more expensive. Once a home is over 5000 square feet depending on the configuration we may want to consider the more expensive system and this also depends on how you will use the system.

Peak is very price competitive on pricing for monthly monitoring.

Learn more about Peak Alarm and Larry Love facebook

Can you compare something like this if you don't know what it is?

Can you compare something like this if you don’t know what it is?

Now lets look at some other factors of how systems can be priced out.

Some Security Companies will subsidize part of the cost and they normally want to get paid back their investment from 20 to 30 months so if the system cost 1400 with equipment and labor then the security company wants to make that money back within say 20 months or 20 payments. Only a portion of the monthly fee can be used as a payment since there are some hard costs of doing business such as the Central Station employees, the cellular company that has to be paid and of course the equipment and labor. Let’s say that the monthly payment is $45 per month and we use $31 to subsidize so $31 times 20 payments is only $620 dollars that the alarm company would get back after paying the central station and the cellular company so in that case what Peak would do is charge the customer $780 upfront and the discount they would get would be $620 on that $1400 dollar system. This may be an over simplification although some people have been interested in how the numbers are figured out and there are formulas and in a large company we figure in the cost of use tax, shipping, labor, parts, salesman’s commission and other costs.

Some companies will tell you that you are getting free equipment and there is no charge for the installation or the equipment. Don’t fall for that. There is always a cost of equipment and installation because if they did not charge those costs then they would go out of business and many do just that. If a small company installs a system and tells you it is free look at the agreement because much of the time they will lock you into a 60 month agreement. Personally I like to have repeat customers so I like to take care of a customer so they will come back and buy again.

What can Peak Alarm offer that many companies cannot offer?:

Small companies do their monitoring using 3rd party monitoring and at Peak we have our own UL listed Central Station (also UL2050)
Peak offers same day or next day service
Peak has a full Guard and Patrol Division and we are the only local Alarm company that has this and the Central station
Peak is not going to go out of business like many companies do that don’t have the capital to operate when hard times come.

Peak has a design department and the support needed to do your installation in a professional manner for commercial projects that require Fire Marshal approval

Check the Better Business Bureau before you buy from any company. Better Business Bureau web site is the web site and Peak Alarm has had 3 complaints filed in the last 3 years and they are all resolved. Peak has an A+ rating with the BBB and is accredited. Many of our competitors have hundreds or in some cases thousands of complaints and some of them are being sued in several states.

I worked at a smaller company for 16 years and when we did a security system we would charge the customer for the entire system upfront and then do the monitoring monthly for $29 dollars a month if it was just a phone line connection and we hired out a 3rd party central station. Many of the small installs we did cost the customer around $1,300 to $1,600 dollars each system depending on the exact equipment. At this company we charged around $67 per hour on our labor rate although our overhead was very low. We had 2 techs, 3 office people and I did the sales, estimating, remote programming and much of the office work as well. I know from experience since I was on the State Alarm board for DOPL that many of these smaller companies do not pay their insurance, licensing and their training programs lack when compared to larger companies like Peak Alarm or Mountain Alarm. If you need to monitor a fire alarm system in a commercial building you can do so with 2 analog phone lines and the monitoring will cost around $30 per month (keep in mind you are paying around $35 per analog line) so if we monitor with a radio it only add $15 per month to the cost of the monthly. When you want to use a cellular for commercial fire you need to use a high supervision cellular that sends signals very 6 minutes so that costs a bit more which is right around $22 extra per month. If you are just monitoring a security system with cellular it only adds $10 per month. It can get confusing so just call Larry and he will go out to your site for a no cost site visit. Larry Love (801) 428 1384

At Peak Alarm we will subsidize part of the equipment and labor when someone commits to a certain time period with us. Peak will do a 60 month, 48 month,36 month, 24 month, 12 month or month to month agreement with a customer. When we do a 36 month which is our most common we sell a security system that has the Panel with built in touch keypad and siren, Cellular communicator, 3 Door Contacts, one motion for $99-$149 installed and the monthly is around $44 to $49 per month which includes: Monitoring, Cellular, Elite control (Remote arm and disarm with your smart phone) and a repair agreement which is an extended warranty so you would not pay the residential labor rate of $100 per hour for service on covered items.

The same principles apply to cameras and other systems where formulas are used to figure out what should be charged. Obviously if we have to pull wire for a greater distance or drill through walls or rent a lift the pricing changes. If you have drop tile ceiling the labor will be less than hardcap hard ceiling. If we have to install conduit or wire mold the cost would be more. If we have to call blue stakes and trench and run underground PVC electrical pipe and special burial or UV rated cable outside the pricing will vary.

*Labor to install the motion detector by a licensed burglar alarm employee that is trained, tech may be making $17-30 an hour and depending on the taxes, social security, company and overhead you could pay around $85-$120 per hour for his or her labor. If you hire a mom and pop company that does not have as high of an overhead you might get a deal of $50 per hour but often they don’t pay general liability insurance, workman’s compensation, licensing and certain things like use tax. Peak Alarm pays all of those fees so by not cutting corners our labor rate is higher.

Using a reliable company that has the ability to do the job is important

Using a reliable company that has the ability to do the job is important

Brand Name
Quality (If the device stops working in 2 years ask yourself it it was worth paying less for it)
Features (A security system that can have different areas arm up such as arming a gun room up separately while the rest of the system unarmed)
Company that can provide fast, reliable and competent service.

I am sure you have seen signs like: Fast Service, Quality Equipment and Low Labor Rates PICK TWO. If you go to a big box store for a camera system I would advice you to buy two or three of the $700 dollar packages so when something goes wrong you can replace the recorder or the cameras. When you pay on average $30 for one camera it is a very different camera than the one we sell for $217 and it is very different in quality from the camera we well for $420 which is 3MP verifocal 90IR IP66. We have AXIS cameras that are over $1000 dollars each and there are reasons for this as well. Many of the cameras we install now have the ability for us to load apps into the camera and these apps perform different functions like counting people or knowing if a car is driving down a one way street or having the camera tell between people and animals. This analytical software is great for specific things.

Take the time to do your research

Take the time to do your research

Article by Larry Love (801) 428 1384 Peak Alarm is UL listed for Monitoring, Factory trained, insured, licensed and has a full service local Central Station that is 5 diamond certified and has been in business for 47 years as of 1969 and Peak Alarm has 4 offices to serve you with over 270 employees which also includes our Guard and Patrol Division.

When should I upgrade my security system?

Ask for Larry Love at Peak Alarm to help you design your security system including additional sensors.

Ask for Larry Love at Peak Alarm to help you design your security system including additional sensors.

Knowing when to upgrade anything is a difficult decision because technology moves quite quickly

When do I upgrade and how?

Look at the technology that may benefit you and consider upgrading to a panel that will have these abilities for the future. When you call us we can go over the options with you. For home owners we make it quite affordable. The basic system comes with the Panel, cell communicator, Siren, keypad, 3 door or window contacts and a motion all for $99 installed and $39 per month for 36 months.

Examples of upgrades you may want to consider depending on your needs

Change your cameras to IP High Definition MP cameras from Analog cameras in order to get 5 times or more the resolution. You can see more of an area and even zoom in after the fact. Normal analog cameras do not allow you to do this.

Upgrade to a security system that has Z wave so you can control your garage door, lights, locks, house temperature,cameras tied to the system and much more, upgrading to a system that has the capability to add these things that you can control remotely from your smart phone is a prudent move.

Recently AT&T announced that they will no longer support 2G technology so any security systems that were sending signals using 2G will stop working sometime between now and 2017 so those systems need to be upgraded.

If you are done with your contract on your security system now is the time to consider those upgrades.

Peak Alarm can do an agreement for any length of time, the most popular agreement is for 36 months since it does not lock you in for a long time yet Peak can still subsidize part of the equipment so you won’t have to pay as much up front.

When a company offers you a FREE camera or FREE motion detector understand that nothing is every free. You will either end up paying for a longer period of time such as 60 months (Five years) or you will end up having a higher payment. It is the same with cell phones. One of my kids bought a phone for over $600 but they don’t have a high monthly payment like their brother who bought their phone but signed a contract so he got the phone for right around $200 but his monthly payment is higher.

We can do a monthly payment for around $39 per month which includes the monitoring and the cellular monthly fee and when you want to control your system remotely with your smart phone then add another $5 per month so that puts your monthly around $44 per month.

If you want to pay less upfront we can make the monthly payment higher

When you to purchase more equipment you can either pay for it up front and have a lower monthly payment or the other way around.

Ask for Larry Love (801) 428 1384

Temperature freeze sensors, water flood sensors, smoke detection that notifies authorities. (You room smokes normally don’t call authorities they just wake you up and sometimes people never wake up)

When you decide to upgrade call Larry at Peak Alarm and he can come to your home or business and go over the options.

Some upgrades that can be added to the monthly payment would be adding an optional repair agreement so you would not need to pay the hourly rate when something stops working or when the batteries need to be changed. The repair agreement gives you the peace of mind that when a tech needs to come out to your site you won’t end up with a large hourly bill.

Another upgrade would be ALARM RESPONSE, within the Salt Lake area we have Guard/Patrol response for $10 extra per month which gives you up to four responses per year and then they are normally $50 to $70 each response after the first four.

Adding camera control adds $10 per month for the first 4 cameras, adding temperature, lock control or lighting control only adds $4-$5 per month, web access is only $5-7 per month depending on your exact situation. Having this web access allows you to get on the internet and check your account. If you want us to send you a report of when your system is armed and disarmed we can do that for only another $5 per month. This is called openings and closings.

Having this can help a business owner know when his or her employees are coming and going. A tanning salon owner found that employees were going in at 3AM with their friends to tan and these reports allowed him to take care of this issue before it got too expensive.

Adding a high supervision cellular communicator or an AES radio to your commercial fire alarm will allow you get rid of your 2 analog phone lines that you have been paying for each month. The monthly charge for this high supervision cellular is $22 to $25 per month and the AES radio is $15 to $20 per month.

Peak Alarm can also do your annual fire alarm inspection that is required by law and we can bill this either monthly quarterly or annually.

Peak Alarm can do that !

Protect your assets with updated technology don't stay stuck in the past

Protect your assets with updated technology don’t stay stuck in the past

Peak Alarm offers Interactive services (Elite Control) meaning you can control the following items using your smart phone:

1. Alarm System

2. Lighting control with schedules and remote control of lights

3. Thermostats also on schedules and remote control of temp, air etc..

4. Lock Control – Unlock, Lock remotely and even disarm your system when the doors are unlocked.

5. Garage door control. Did you shut the garage door or not? If you are not sure just get on your cell phone and your system will tell you if it is open or shut and if it is open you can automatically shut it.

6. GEO FENCING – We can help you set up the system so when your phone gets into a certain range like a half mile from your house the system will turn down the house temp, turn on the lights for your and even unlock your doors. These are relay logic strings that we can program into your security system. The same holds true for when you get a half mile from your house the system will lock the doors if they are not already locked and turn off the lights and adjust the temp all without you even doing anything.

7. Some of the items we can connect to your security system are as follows:

Smoke Detectors, Heat detectors, Temperature sensors, Water bugs or flood sensors in your laundry rooms, by the water heater or water softener or in the basement where your sump pump is, Carbon Monoxide sensors (can’t see this gas or smell it but it makes you sleepy and if there is enough of it you don’t ever wake up) We install these just outside funace rooms, just in the home by the garage or near sleeping areas.

Call Larry Love for more information and a free site visit: (801) 428 1384 direct number or cell 801 898 6003

Ask for Larry Love

Peak Alarm is an Alarm company, we don’t sell phone or cable service we sell alarms. We won’t make you wait on an endless phone system Q but we put you through to a live person. Peak Alarm has been in business for 46 years, has an AV division, Guard and Patrol Division and a UL listed Central Station and we are locally owned and operated which is becoming very rare. Peak Alarm is also 5 diamond certified which is an honor that only 7% of Central Stations in the US can claim.