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Wayne Alarm Systems: Monitoring Other Markets

Recurring revenues are appealing to CE pros. High-margin installs are appealing to security pros. Can either have their cake and eat it, too?


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Todd Gaito, sales and marketing manager, left; and Ralph Sevinor, owner and president, right.

"We overstaff it," Sevinor says of his central station.

There are certain times of the day -- mornings when businesses are opening, afternoon when kids are coming home from school and late-night when bars are closing -- when alarms spike.

"You want to make sure that you have enough people [working] so you can support those customers."

Planning for the maximum amount of work often means having too many people working at any given time.

"You may walk into the monitoring room and see three people watching TV. That's true. We call it 'hours of boredom and seconds of terror.'We want to make sure we have adequate staffing."

As a manager, Sevinor says it's frustrating, of course, to see people not working. He understands, however, that it's a necessary evil -- if he wants to provide a certain level of service.

"If you look at it as a dollar and cents thing, you'd say it's a waste of money," he says. The thing is, though, that at any given moment those employees who are watching TV might be called into critical action.

"If we were ever run by a bean-counter, it would be a whole different operation," Sevinor says. He says customer service is usually the first thing to get trimmed.

The same goes happens when alarm companies are acquired, he says. "They cut back on customer service to show a quicker profit."

Financially, opening a central station is a huge undertaking.

"You're talking over a $1 million just to open it," Sevinor says. He adds that companies can simply "have an outside monitor or one that's outside the country for that matter. So, that's not [much of] an expense."

Sevinor reiterates that it's "understandable" that traditional integrators want to build recurring revenues. As a point of emphasis, however, he shows some of Wayne Alarm Systems' sales brochures.

He explains that most of the company's marketing collateral describes its personalized and tireless service. "You have to be able to back it up," he says.

The company newsletter goes to 11,000 clients. Sevinor points to the contact information. The front page displays his direct office number, his cell phone, his e-mail address and his home number.

"Some calls aren't pleasant," he says, "but I'd rather have a customer call me upset than have him drop off."

This is further evidence that recurring revenue business model comes down to commitment, according to Sevinor. "How many owners of companies will give out their home number?" he asks.

"If I don't drive the commitment, how do I expect my team to do it? It's one thing to say it; it's another thing to do it."

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Article Topics

News · CE Profiles · Security · All topics

About the Author

Tom LeBlanc, Senior Writer/Technology Editor, CE Pro
Tom has been covering consumer electronics for six years. Before that, he wrote for the sports department of the Boston Herald. Migrating to magazines, he was a staff editor for a golf publication and an outdoor sports publication. Now, as senior writer/technology editor of CE Pro magazine since 2003, he dabbles in all departments and offers expertise in marketing. Follow him on Twitter @leblanctom.

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