How ADT, Comcast Are Threatening Your Business

As the tide rises so do all of the boats.

Does anyone know if the ADT Pulse system includes cellular back-up as well.  I would hope so for $47 per month!

I’m guessing cellular is ON TOP of that—the usual $10 or so extra per month.

The doomsday guys are as charismatic in the down times as the bulls in the good times. To assume a wind down of A/V is to assume the shutdown of so many speaker, display and component manufacturers. Sources change. Control interfaces change. Human beings will always experience the world by stimulating the senses. The real threat to my business are communists in the federal government wanting to wage war against my client base, the people who are able and willing to pay someone else to handle things like A/V for them. Let’s hope Washington gets retrofit this fall!

@jhamill1, I totally agree that there’s no doomsday scenario here.

Virtually every mass-market security, cable, phone, utility and other service provider has tried UNSUCCESSFULLY over the past 10 years to bring automation to the masses through their respective “Trojan horses” ... and to bring profits to shareholders through so much recurring revenue.

ADT’s $50 monthly fee (presumably excluding cellular backup and other niceties) will be unpalatable to the mainstream consumer.

On your other comment—Yes, our industry would be better off if the government would stop punishing small businesses and consumers.

The key takeaway from this article is that no matter what the big service providers like Comcast and ADT do, custom electronics pros can do it better. You just have to figure a good strategy to piggyback their services, upsell to specific markets and do more retrofit.

Says Gerhardt:

“You can offer personalized installations, professional in-home staff, complete packages with full service, home management that pays for itself through dimming and comfort and control and hibernation modes,” he adds.

And don’t forget green and energy management systems:

“Green is the biggest economic opportunity you will ever see. We are entering the green age of systems integration.”

I saw Rich Green here in Orange County.  He did a seminar on preparing your AV business for 2015.

He definitely does not paint a doomsday scenario.  In fact, if you get the chance go to this talk.  It is the best 3 hours I spent this year in a seminar.

They track over 60 associations and groups to help them anticipate future technology trends.

There is something to be said for segmenting or refocusing your business, as there are definitely two different philosophies at work here.

I have done this in commercial as well, segmenting service and upgrade work from Design/Build.  They have different levels of documentation, manual creation, etc to support the competition in that market.

As for selling in a commodity marketplace, I argue that we did it to ourselves.  Break the cycle, go to http://www.noplanb.com and sign up for a free webinar from David van Toor, who is a renowned Customer Experience expert.  One of his point is that cold dead fish is $2.40 per lb at the fish market, $250 per lb at the average Sushi house, but $450 per lb at Nobu, who offers an experience that keeps them from competing with the others on Sushi alone.

Those who can’t teach.  Gerhardt told me 3 years ago if I didn’t get his magic box and if I wasn’t selling Creston I would be out of business. I know our industry is training. But - I don’t put much stock in a consultant that peddles his solution as the answer. Same product - different story. He will probably respond and tell me I will be out of business again if I don’t listen to him. The future is what you make of it. It is time to examine what we do. We certainly don’t need last years tool to fix this years problem.

What is interesting is that all of this is “wireless” is my assumption. Lutron has key lighting wireless patents that are pretty solid. Already they have sued Leviton and Control 4 and settled.. It is interesting that they would fund Gerhardt’s Integrator de/motivational lecture circuit, but not be willing to see whats under the hood with an injunction? CE pro covered this story awhile back.

If this is only working with lamp modules.. maybe they have something.. but there are more switches than lamp modules everywhere..

The big guys have a hard time managing and training qualified staff to properly design, install and service the CI market. It takes alot more than just money thrown at the CI market to make it work. Many of the well known and successful CI integrators are still learning to perfect a process which brings their clients and business successful rewards. I think the big guys think that volume and numbers will force the market. If it was just that easy.

ADT Pulse Select is now available in a growing number of markets. Pulse Select is a wireless system that includes burglary, fire, cellular backup and warranty on the system for $46.99 mo. It was released in the San Antonio and Austin markets last week. The full line of products and services is expected to be available later this year.

Those who read this and saw the problems, and agree, should follow the path espoused. Those who wondered; ‘if we can do the control and green stuff better than the mass market, why can’t we do the AV better? You are the ones that should explore the classic CEDIA combination of control over A/V throughout the house, done better than the mass market. Those who read this and thought it was 180 degrees off the mark because high performance private theaters, and music systems were retrofit when CEDIA began, and are just as much retrofit today; you are the ones who might say ‘yes economy problems are here, but America isn’t done, just down a little’. Everyone is selling something, and if stepping up from the set top box is a plan, then go for it. If producing a cinema experience at home that gives goose bumps, or a music system that is as far beyond Best Buy as F1 is from bumper cars, then you indeed have a path that’s clear. That path is to dig into what high end video displays can provide in the theater, and every room of the house. And to dig into reference sources and sound systems and video systems that rival the experience at the Samuel Goldwyn Academy Theater, and deliver the music experience of Boston’s Symphany Hall. Once you know the goal, then find today’s best means for transporting that experience to as many rooms and outside spaces of the property the clients desire. Comcast and ADI are the bumper cars, and there are ways to build a better bumper car, but the experience we can describe and demonstrate at the highest levels is a dramatic opportunity; yesterday, today, and tomorrow. Comcast music channels are low res mono….I suggest their biggest vulnerablity is in the fact that the audio they deliver and the destination they have in mind; and that is where we contrast with them the most. (Quite frankly, control interfaces, apps on iphones and ipads are where the land mines might be). The Comcast destination and ADI end game is an HDMI LCD Best Buy purchased flat panel with speakers built-in. The display has no dark field uniformity, has white field tint impurity, and can’t do color accurately. If we become experts at our products, and designers of superior systems which are easy to control, then we get back to the point; control over something exciting! Save power on the refridgerator so you can crank up the movie theater….carbon credits inside the house is what will lead us back to the green that matters most to our businesses. The green of profit dollars gained because we sold something incredibly cool to our customers who can’t wait to show it off to their family and friends. That may be the new dimmer…but I’m thinking the new scope format Personal Cinema with a 16’ widescreen and killer content over killer audio might get a little more attention!
Good luck figuring out how to outmanuever ADI and Comcast, I for one just want to blow peoples minds who have never seen a reference screening room at the Hollywood Director’s level. It’s way more fun, and that’s what I like to sell. Fun!

OK; ADT, ADI whatever. Point made.

@ John Bishop. WELL SAID !

We provide a different level of excitement how ever you define it, thats what we do.

The ADT Pulse System includes a cellular option with NO ADDITIONAL MONITORING FEES. You only pay installation for a cellular dialer.