Security Sales & Integration February 2023 - 21

grams. Then continue on to SSI's directory of
large dealers, monitoring centers and manufacturers
eager to help you succeed.
KELLY BOND, Partner,
Davis Group Mergers
& Acquisitions
A dealer program can be a
great solution for a company
that is looking for
growth capital, training
opportunities and specialized
pricing for purchasing
equipment. Over
the years, many manufacturers
have created their
own dealer program to create a stronger relationship
with their dealers. Initially, many of
those included a protected geographic territory
and a commitment of leads to the program
members. As the programs grew, the promise of
those has often gone away.
Many dealer programs became popular as
residential door knocking sales, which offer
a low or no money down system for the end
user, kicked into gear. Dealers with this business
model often find themselves unable to
cover the cost of the equipment and labor on
the free systems they are giving away. Several
dealer programs offer to purchase recurring
revenue contracts from the business owners,
providing the owner the necessary capital to
make the next sale.
For business owners who only sell the number
of accounts necessary to run their business,
this model can be advantageous. Owners should
proceed with caution as it is easy to begin to
exist on the cash flow from the sold accounts
and find they need to continuously sell more
to replace attritted account to keep up with the
cash needs. Additionally, if the dealer program
stops buying accounts, many businesses will
understandably fail completely.
Some manufacturers have created programs
that offer their dealers new ways to sell access
control and video solutions, for example. They
offered financing for the end user that allowed
the cost of the equipment to be rolled into a
monthly recurring payment, which generated
RMR for the dealer as well as the manufacturer.
Other programs like PSA's integrator consortium
provides owners and members education,
networking, services, and connections
with industry-leading product and solution
providers. AiN Group is a nationwide
network of security dealers who share best
practices and leverage combined purchasing
power to receive better pricing and terms on
the products they buy, providing a long-term
business lifestyle to their members. There are
also consumer financing dealer programs,
such as Alarmcredit.com, that offer a source
to finance products but only on specific manufacturer's
equipment.
The first thing any business owner should
consider is what do you hope to gain from
joining a dealer program. What will it ultimately
do for your business? Among the things
to consider:
▶ Does it allow for co-branded marketing
with a well-known name that is well
reputed and synonymous with security?
▶ What are you committing to as a business?
▶ What is the length of time you are committing
to be a member?
▶ Will there be a lien placed on your business?
If so, what does it cover and how
securitysales.com
FEBRUARY 2023 Security Sales & Integration
21
The first thing
any business
owner should
consider is what
do you hope to
gain from joining a
dealer program.
- Kelly Bond, Davis Group
Mergers & Acquisitions
http://www.Alarmcredit.com http://www.securitysales.com
Security Sales & Integration February 2023

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