There is no doubt that the security industry has experienced incredible growth over the past decade that has enabled thousands of integrators and manufacturers to make new and recurring business. However, so far security integrators have relied on a predictable revenue model, selling and installing end-user security hardware and software, with a portfolio that includes door hardware, access control systems and video surveillance, among many other offers But this model is beginning to face great challenges, so it is necessary to explore new opportunities.
By Mark Borto *
These technologies currently require higher sales volumes to meet sales targets due to competition and the consequent downward trend in prices. Cameras and card readers are sold today for only a few hundred dollars, compared to the much higher prices just a few years ago. To sell millions of dollars in security technology products, the sales team and account managers must work overtime, trying to find new opportunities and gain sales and profit margins necessary to ensure continued profitability.
Increased competition and the downward trend in prices, also called "commoditization", are holding back growth and even affecting the situation of many current integrating companies. This brake will fail to integrate companies that do not seek new sources of income with solid and stable margins. The good news is that there is an immediate opportunity worth considering: security entries.
Security inputs are in high demand and stable profit margins
Security integrators have bypassed security gateways as an access control solution, despite their ability to address multiple risks and provide end users with a greater return on investment.
A very important reason for the slow adoption of this type of solutions by the integrators is that until recently the security entries have become familiar to the end users. Only relatively recently, Fortune 50 companies have become aware of the risks involved in filtering unauthorized users, and these companies are installing large volumes and more types of security entries than ever before.
According to the survey released by IHS in 2015, The Market for Pedestrian Entrance Control Equipment, the total market size in the Americas for all types of security ticket products grew from $ 123 million dollars in 2012 to $ 159 million in 2014, that is, an average of 14% per year. The report predicts that the market for tickets will continue to experience strong growth until early 2020. The good news is that, unlike cameras and card readers, the profit margins of security inputs remain robust and stable.
The sale of security tickets provides the opportunity for integrators to strengthen the relationship with their customers and generate new and substantial revenue streams over the next few years. By asking the right questions and understanding exactly the solution your customers require, account managers can sell hundreds of thousands of dollars worth of products to an existing customer, taking advantage of their "trusted advisor" status.
Begin to ask the questions you have not asked
The fact that integrators are not sufficiently familiar with the security inputs and the benefits they provide to the end user, limits them to being able to ask the right questions that lead to fruitful and meaningful discussions.
Asking the right questions can challenge all assumptions and make the client think about what they really want to achieve. What would be an example of a good question: "Do you want to detect the presence of unauthorized infiltrators at the time they happen and respond to this event? Or do you want to prevent such events from happening in the first place?"
The next step is to request a visual inspection on the project site. Is it supervised by a security guard or is there a card reader connected to a locking door? Is the customer trying to measure the occurrence of unauthorized user filtering? Do you currently have a security entrance? What performance does the security input, in combination with the necessary technology and personnel, have in reducing the risk of intrusion penetration? All these are fundamental questions that you should ask and that will help you to recommend the correct solution to the end user.
New numbers, better relationships
How could such a recommendation be made? Begin by integrating the access control system with five or six optical turnstiles to provide a physical barrier at an entrance supervised by security personnel. Move to the perimeter of the customer premises and you may find an employee parking lot where a group of full-height turnstiles could ensure that only employees enter from that address to certain buildings, for example. Another possibility is that employee garages lead directly to the side entrances of buildings where several rotating security doors can take the place of security guards (Eastman Chemical did exactly this with its new corporate headquarters building in Kingsport, Tennessee).
If your account representative manages to successfully close the full sale described above, you would get a minimum of $ 400.000 dollars in revenue. If you think about how many surveillance cameras you need to sell to match that amount, you will definitely find it worth considering the security inputs option.
Typically, end users increase over time the number of tickets they purchase as they change and increase their security needs. This gives them the opportunity to show them how they can secure other locations, which can lead to multiple sales over the course of many years, during which many end-user companies will standardize their company entries.
It remains to make a key decision before entering this business: do you go to the manufacturer for the installation and technical services of the products, or invest in technical training and get your own certified staff to grow the business? Both methods can be successful strategies as long as you partner with an innovative and proactive manufacturer that can provide a true alliance for your future growth.
For all the reasons stated above, integrating security entries into your business model will help you more easily meet your sales goals, and at the same time establish additional trust relationships.
* Mark Borto is President and Chief Operating Officer of Boon Edam Inc. *
About Royal Boon Edam
With increasingly global and dynamic work environments, the entrance has become the center of activity of many buildings. Royal Boon Edam is a leader in the global access solutions market. Headquartered in the Netherlands and with more than 140 years of experience in quality engineering, we have acquired extensive technical knowledge on the management of the movement of people in office buildings, airports, health centers, hotels and many other types of buildings. We focus on providing optimal services for our customers and their customers. By working with you, our customer, we will help you determine the exact requirements for the concentrated mobility point in and around the building.