Submitted by mhaanpaa on Tue, 01/26/2010 - 3:32pm

After my post last week about the 3/50 Project, and the importance of small businesses to local communities, I got some interesting feedback. A fellow ESC who installs security and entertainment systems wrote the following; "Both ADT and Apex are continually running these $99 or free install promotions with a 3 year monitoring contract. What do you do to compete against that? Talking about the level of support, install, and design only goes so far in today's price driven market..."

He makes an excellent point, is it possible to make the sale with that type of pricing structure out there? And if you're sitting back chuckling now, glad you don't sell security systems, have you checked Best Buy, RC Willey, even Wal Mart's ads lately? They are selling the same thing you are; at least that's what many of your potential customers believe.

I think I can speak for most of us who are members of CEDIA and say yes we can win and we do on a daily basis! The best way is by not playing their game. Don't let them set the rules. From the statement above about ADT and Apex, and that is a common marketing approach for those guys, what are they selling? It's a $99 alarm! What does it do? It costs $99!!

Compare that product with the presentation of a skilled alarm system design consultant. He will spend time finding out about the lifestyle of the family he's speaking with. What keeps them up at night? Do they worry about their children coming home to an empty house? Do they travel? What are the vulnerabilities of the property? Where would someone likely enter? Do they have pets? Are they in an area where frozen pipes could be a concern? What about energy savings through automation?

By the time these questions and more have been answered the system that will be presented will not look anything like the $99 alarm. Can you sell the increased price? Most of the time the answer will be yes, because you aren't trying to sell the same product. And with a properly planned presentation the client will see the difference as well.

Will it work every time. No. Some people just want a $99 alarm, but give them the choice and make it clear. Take advantage of all the educational opportunities you can, whether from CEDIA, the manufacturers of the product you present or dealer groups. They will all help you to distinguish yourself from the competition.

The same principles apply to all of the products CEDIA members sell and install. The more you know about how your products should be used and what they are capable of, the easier it is to rise above the price wars. Talking about the level of support, install and design does only go so far, so don't sell the same thing. Take the time and develop the skills to find out what the client your speaking to really wants, then use your expertise to design and install something that meets those needs.

Every day CEDIA members are mixing it up with big guys and they are winning, we'd love to hear how you do it!

Mike Haanpaa