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Competition for security work is severe in some regions across the country. Just imagine trying to compete against a saturated market that keeps growing. Standing out from the crowd needs to become your top marketing strategy. One company, 4 ALARM Service of Albuquerque, NM, is a study in chasing business and landing it.
The company concentrates on the northern part of New Mexico with a large customer base in Santa Fe. Robin Phillips, president of 4 ALARM and a member of the security industry for over thirty years, points out that on her most recent business inquiry, there were 150 licensed alarm contractors registered with the Albuquerque police department.
"The stiff competition here is the biggest challenge I am facing," she says. With that comes the uphill battle of getting her company's message across that 4 ALARM's services are not a generic product or service.
Educating the consumer is another battle. "Consumers are hearing a lot of messages. I really strive to send the message that we are different—and the biggest difference is the quality found in our installation techniques and our equipment. People are under the impression all the equipment is pretty much the same, so we have to get them over that myth," explains Phillips.
MANY TRADITIONAL CHALLENGES STILL EXIST
Albuquerque, according to Philips, is very price driven with steep competition on the commercial side. "I was bidding on a project where the contractor said to me, 'all we care about is price.' Working in that environment you are lucky to get your wages covered."
While this might be discouraging, the Santa Fe residential market continues to be booming with construction steaming ahead on multi-million dollar homes. "Working in Santa Fe and growing our reputation there has been rewarding," states Philips. "Quality not price is supported by an economy which is similar to Vail or Aspen, CO."
Like the days of old, what can be most bothersome, says Phillips, are the free installation dealer programs. According to her, these types of programs are gaining in popularity again. "Customers don't realize what little quality in both service and equipment you get with these programs," she warns.
Other hurdles to jump over, she says, are the business decisions that are being made differently than in years past. They make it very difficult to conduct business, Phillips adds.
"We don't have the opportunity with chain store clients to really sell them since the security decisions are being made at the corporate headquarters," she explains. "In these types of situations, I am finding many decisions are being made to utilize one alarm company for all of their locations."
It is frustrating and can also be bad for business, Philips says, because it drives down installation costs. "Some of these large alarm companies are offering what computes to a 24 month payback," she comments. "We don't want to fund that type of business growth."
USING EXPERTISE TO EXCEL
Regardless of the obstacles, Phillips has found ways to succeed. Chasing business in a small competitive market, Phillips says, forces you to focus on the market segments where you can excel. Namely for 4 ALARM Service those are in security systems, fire systems, card access and video. "You have to diversify so that if one segment is down another segment will be growing," she asserts.
Having a go-and-get-it attitude has proven beneficial as it has opened new avenues of market opportunity they had not had before. "By being aggressive we have now made a name for ourselves with the state prison system, state office buildings, banks and credit unions," states Phillips. "We do not have a big manufacturing base here or warehousing facilities, so we've really had to zero in on many targets."
With the business manageable, as Phillips describes it, she feels she can now bring on a sales staff to continue keeping the company right where she likes it. "I have been in this industry for a long time. I have been the one primarily responsible for the sales and marketing. I'd like to reduce my work load and now is the right time," she admits. "To go ahead with those plans, I am looking forward to bringing on new people and incorporating them into the business."
All the while, Phillips plans to stay focused on the company's service offerings and managing a tight operation. Most companies are looking for managed growth through new business development, acquisition or both. This is not the case for Phillips. "Sometimes huge growth through acquisition is not always desirable to all business owners but offering a quality service with consistency is," she says.
The history Phillips shares with many a long-term security professionals is the years of watching technology and trends come and go. She also shares this profession with her sons who grew up in the industry with one remaining by mom's side helping it to remain a success. The early business focus remains the same as it always has. It is a formula that has worked, says Philips, by concentrating on quality installations and service and sticking to your convictions.
KAREN DUANE JOHNSON is a freelance writer and frequent contributor to Security Dealer magazine.
author: By Karen Duane Johnson