Security Sales & Integration November 2021 - 28

Original Research
Residential
Dealers
BROADEN
HORIZONS
Home security systems installers are experiencing
a post-pandemic push, but like COVID-19 itself
the recovery remains ongoing. SSI's 2021 Home
Automation Deep Dive also shows companies
expanding their offerings while dealing with the
encroachment of DIY competition. By Tricia Parks
P
rofessional security dealers responding
to the Security Sales &
Integration and Parks Associates
2021 Home Automation Deep
Dive survey show positive results for 2020.
Nearly 60% of dealers
report
revenues of
at least $3 million versus 51% reporting the
same in 2019. This marks the eighth year SSI
and Parks have collaborated on this residential
security and smart home market study (see
Methodology box).
There is, however, a small drop (from 35%
to 31%) for revenues greater than $5 million,
but that may be margin of error. Only 22% of
responding dealers report revenues for 2020 of
less than $1 million, versus 31% reporting the
same in 2019. That is a significant reduction in
dealers with less than $1 million in revenues,
pointing to an uptick in sales for small dealers.
For 2021, a year still in progress, dealers
anticipate steady or good results. Fewer dealers
project significant drops in revenues for
2021 while more than half anticipate about
the same results as 2020. Nearly 20% foresee
revenues higher in 2021 by at least 10%. Given
COVID-19's continuing weight on citizen
minds and actions, these are strong results
28
Security Sales & Integration NOVEMBER 2021
- results that are envied by many industries.
Before addressing the drivers and inhibitors at
both the consumer and dealer level, a few more
2021 stats are noteworthy.
Pro Installs Rebound
Installing dealers report an average of 34 system
sales per month, down 10% from 2020 (Figure
1). There may be some margin of error in
play, but more importantly an increasing percentage
of installing dealers are selling security
system adjacencies such as video cameras, video
doorbells and smart garage door openers. These
increase revenue per sale culminating in higher
revenues overall. While profit margin may not
always be large for hardware adjacencies, dealers
do not usually sell devices below cost ... as
they often do security systems.
Some unit decline is attributable to DIY
security systems sales. Dealers recognize this
threat. Recent security buyers report increasingly
high rates of DIY purchase. Thirty-nine
percent of security intenders (based on 1-7
scale, with 7 = certainly will acquire) report
that they will purchase a DIY system for security
in Parks Associates' consumer research.
Dealers rightly identify DIY security systems
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Security Sales & Integration November 2021

Table of Contents for the Digital Edition of Security Sales & Integration November 2021

Security Sales & Integration November 2021 - Presentation Page
Security Sales & Integration November 2021 - Cover1
Security Sales & Integration November 2021 - Cover2
Security Sales & Integration November 2021 - 1
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Security Sales & Integration November 2021 - Cover3
Security Sales & Integration November 2021 - Cover4
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https://www.nxtbook.com/emerald/securitysales/january_2022
https://www.nxtbook.com/emerald/securitysales/december_2021
https://www.nxtbook.com/emerald/securitysales/november_2021
https://www.nxtbook.com/emerald/securitysales/october_2021
https://www.nxtbook.com/emerald/securitysales/september_2021
https://www.nxtbook.com/emerald/securitysales/august_2021
https://www.nxtbook.com/emerald/securitysales/july_2021
https://www.nxtbook.com/emerald/securitysales/june_2021
https://www.nxtbook.com/emerald/securitysales/may_2021
https://www.nxtbook.com/emerald/securitysales/apr_2021
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