The rich are different. They like convenience. They are not price sensitive. They want creature comforts. And, they have properties that require protection.
Todd Broyard, owner of Black Lab Alarm Inc., Woburn, Mass., knows a lot about the different controls and convenience tools these customers want. He has built a successful business serving top-end builders and their customers in the Boston area and has achieved success even in the down economy. He knows what his customers want and how to deliver it.
For starters, they are way beyond setting a system by punching a few buttons and walking away. How old school! Black Lab’s customers like to control things from their smartphones and iPads. They know what they want, but that can change by the hour so Black Lab provides a system that changes parameters to meet their whims. These customers want bells and whistles (and would probably take an entire brass band if they could).
“You don’t want to box then in,” Broyard said. Black Lab’s client list reads like a Who’s Who of society in New England— athletes, Fortune 500 CEOs and prominent business owners.
This is not a clientele where profits are made on RMR. In fact, Black Lab has only about 1,000 monitored accounts. But some of them generate $700 a month in revenue.
“One big positive about these people is that, even in a down economy, they have money and they are even more concerned about security,” Broyard said. Through the recent bad years, there were no layoffs at his company. In fact, this year he has hired an additional tech and another office member for a total of nine technicians and four administrative positions.
“Our customers are a bit more recession proof than most and they are willing to spend,” Broyard continued.
Black Lab got into the business about 17 years ago. A couple of years into the business, they did a project for a client who had hired an A/V installation company. The client was disappointed with the quality of work. It was this business-savvy client who suggested Black Lab and the A/V firm might work well together.
“We met to discuss opportunities,” Broyard recalled. Over the ensuing years, he built a network of about a dozen A/V partners. “We get about $1 million of referrals from A/V firms each year,” he added.
Know the customer
It should be obvious by now that these customers, both the contractors and the homeowners, require special handling. Having a background in residential contracting as a frame and finish carpenter helped a bit. However, Broyard said, an alarm dealer must be selective about which alarm panel to use.
Black Lab will do a dozen or more contracts each year that are well over six figures—some hit $500,000—in a single family home. Customers want to have top-quality megapixel monitoring cameras. The video surveillance has to work with the iPad and iPhone for arming and disarming. The jobs almost sound like commercial installs. Homeowners demand Web-based access control. It is not unusual for a client to spend $40,000 on a video system. “A quarter-million is not unheard of,” Broyard said.
Black Lab works with Chubb Insurance Co. as a Preferred Partner. Chubb also caters to the upper crust. It makes Broyard’s life easy when a client says they need a system that Chubb will approve and he can flash his endorsement from the company.
The same relationship holds true with the major A/V vendors in the Boston area. Broyard said that the alarm dealer should be on the same page as the A/V dealer when it comes to presenting to the customer. Both stand to win a substantial contract when things go well.
This means the alarm dealer should have a simple, coordinated system design to present. This will require some back-and-forth, either by phone, email, or in person, between the alarm company and the A/V dealer.