Security Sales & Integration February 2023 - 22

Management
Diving Into Dealer
Programs
long might it last once you have stopped
doing business with the program?
I encourage
any alarm
company looking
at selling their
paper to also
explore the option
of owning their
own contracts by
leveraging a thirdparty
finance
company.
- Hank Groff, Haxakain
▶ What is the program committing to you?
▶ Are leads provided? Will the program
commit to any number or frequency?
▶ Do you receive equipment discounts? Longer
payment terms? Overall buying power?
▶ Are there sales requirements, either
through amount of equipment purchased
or sales of contracts?
▶ Are you offered specialized training that you
would be unable to obtain on your own?
TONY SMITH, President,
Security Funding Associates
Dealer programs come in
a variety of forms depending
on the sponsor. A
manufacturer may want
to create a select group of
dealers to represent their
equipment or software.
They will provide gratis
training in the use of their
equipment along with professional marketing
materials, and perhaps even a year-end convention
and celebration for those who performed
above a certain level. Their interest in helping
these elite dealers financially will normally be
limited to better credit terms and special pricing.
The dealers who are looking for financial assistance
in the form of a sale of their accounts
can open negotiations with the half-dozen or
so account purchasing companies. Those dealers
who want to grow the equity in their companies
will seek another way. If you are one of
the larger industry companies, a bank loan of
several million dollars will likely provide the
working capital or acquisition funding you are
seeking. Remember, these loans require a payback
when you sell the company.
Those smaller or medium-sized companies,
who have done their due diligence, will find
their customers are eager to make use of a consumer
loan to pay for their security installation.
These loans fall into the broad vertical
of home improvement. So does solar, which
is why Security Funding Associates is one of
the first to combine security and solar in one
financing package. This provides a much more
attractive scenario for the homeowner as it incorporates
below-market interest with extended
terms of 10-20 years.
Consumer loans are superior for a dealer of
PARTNER PROGRAM PROVIDER PERSPECTIVES
FOLLOWING ARE dealer
program insights and
recommendations from
several more insiders, all of
whose provider companies
are included in the directory
listings.
▶ " New and existing dealers
need capital for various reasons
from adding a new service
vehicle, to help offset the
cost of equipment, or infusing
cash back into their business
in other ways. Depending on
the reason, different dealer
programs may suit different
particular needs. Does the
program require you to fund
all of your accounts? Does
the program fund commercial
and renters as well as
residential? Are you retaining
ownership of your agreements
or sacrificing longterm
equity? Would you be
selling your accounts directly
to your monitoring company?
At COPS, we believe owning
our own accounts would be
a conflict of interest with
our dealers, which is why
we do not purchase or fund
accounts directly. We focus
on building relationships
with select companies that
bring the best value to our
dealer base. " - Jim McMullen,
COPS Monitoring (SSI
Industry Hall of Famer)
▶ " A channel partner program
can amplify business
opportunities and provide
valuable resources for training
and development. Being
an 'authorized partner' within
a strong, recognized partner
program often allows you to
find new markets and capture
new opportunities from your
existing customer base. Look
for programs that reward
sales performance, technical
expertise, and loyalty with
benefits that improve as the
partnership grows. " - Jill
Woltkamp, Genetec
▶ " Integrators should
strongly consider joining
dealer programs that align
with their company, specialty
and product offerings.
They should consider what
financial benefits are offered,
additional training and
support they'll get, and what
products and features they'll
gain access to. Does the program
offer ongoing rebates,
discounts and a rewards program
that will add margin?
Keeping the complexity of a
typical project in mind, would
additional support benefit
the company and end customers?
Does the program
support a project from sell-in
through project management
and troubleshooting? Also,
22
Security Sales & Integration FEBRUARY 2023
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Security Sales & Integration February 2023

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