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INTRUSION STATISTICS: TYPICAL SYSTEMS & INSTALLATIONS Average Number of Annual Intrusion Installations Per Dealer 900 Commerical 832 800 Residential 728 700 Commerical & Residential 600 516 500 400 300 306 360 200 216 100 168 180 2009 2010 216 168 2011 0 2003 2004 2005 2006 2007 2008 2012 Business in this market rebounded to recapture its 2008 totals, gaining an average of 48 more intrusion projects per dealer/integrator. That represents a 29% rise, the largest improvement since 2007. Overall, 82% of all installing companies install average fewer than 20 intrusion alarm systems per month. Small companies (annual revenues less than $1 million) average 114 projects per year. By contrast, midsize outfits (revenues between $1 million and $9.99 million) report 227 on an annual basis, with large security contractors (revenues in excess of $10 million) installing 294 systems each year. Note: The post-2006 figures were not separated into commercial and residential classifications, and only new installations were included as opposed to upgrades in years past. Typical Residential Intrusion Alarm System YEAR Leading Reasons for Residential and Commercial Accounts Attrition INSTALLATION PRICE MONTHLY MONITORING PRICE 2002 $1,530 $25 2003 $1,217 $27 2004 $1,788 $24 2005 $1,500 $24 2006 $1,520 $24 2007 $1,345 $23 2008 $1,428 $23 2009 $1,126 $24 2010 $1,095 $24 2011 $1,167 $26 FAST FACTS • Dealers counted on intrusion for 26% of their revenues in 2012 (an 8-percentage-point rise from 2012). • Average gross proft margins realized on intrusion jobs is 32%. • 46% of intrusion installations include 48% 25% 24% Nonpayment 22% Competitive takeover 11% 4% 3% Unsatisfed customer 3% 7% Death Commerical 18% Other Residential 7% 0% The average customer price paid for the installation of a residential intrusion alarm system moved upward $72 (7%) in 2011 to reverse a three-year trend of diminishing returns. At the extremes of the bell curve are those that charge less than $250 (10%) and those that invoice for more than $5,000 (3%). Perhaps due to emerging consumer-oriented service offerings the average monthly monitoring fee rose for the first time since 2003 and also pulled within $1 of the high achieved that same year. Intrusion 28% Moved 10% 20% 30% 40% 50% For both residential and commercial customers, moving away continues to be the leading cause of lost accounts, although commercial declined by 5 percentage points. Residential, on the other hand was even more transient with a 4-point increase. Both commercial (2 points) and residential (3 points) saw rises in nonpayment. All other categories either fell or remained the same. As an ongoing sign of the recession, by far the leading "other" reason on the commercial side was customers going out of business; "economy" was the most popular residential "other" cause. wireless equipment; 23% exclusively. • Large companies (annual revenues exceeding $10 million) install an average of 300 systems, while numbers for small (revenues less than $1 million) and midsize ($1 million to $9.99 million) are 114 and 227 respectively. • Methods of alarm signal transmission: 65% phones/digital communicators (down 4 points); 19% cellular; 10% VoIP; 6% long-range radio. • Residential accounts for 38% of all intrusion alarm sales, followed by offce buildings at 16% and retail at 12%. • 90% of intrusion alarms are sold as opposed to leased. • Average total sales price charged for a commercial intrusion system is $4,854; median is $2,500. • 68% of commercial intrusion installations and 72% of residential are new installations vs. upgrades. THE GOLD BOOK 2013 / SECURITYSALES.COM / 21