Commercial security integrators offering service and maintenance agreement often face the issue of replacing out-of-warranty equipment for their customers – and replacement of out-of-warranty commercial grade cameras, DVRs, NVRs, and access panels can get downright expensive.
What about when your customer’s device has stopped working, and it is no longer supported by a manufacturer, let alone still under warranty? To make matters worse the proliferation and popularity of that model throughout the marketplace is extensive. The Honeywell Rapid Eye Hybrid DVR is a good example – it has been in use throughout the U.S., since at least 2009 and is a workhorse that continues to be relied on by retail chains with multiple locations. These devices, of course, outlived their warranty years ago and Honeywell repair support was understandably discontinued more than a year ago.
Integrators who are required to support these DVRs – and equipment in similar situations – under maintenance contracts are now faced with a decision:
- Purchase, integrate, and maintain a new and comparable/compatible device – often at costs ranging from $5 to 10K;
- Take their chances on Ebay or another secondary market – generally at costs ranging from $2-5K; or
- Locate and use a third-party repair facility.
One way or another, the only way the integrator will be able to maintain their customers’ loyalty is by quickly getting that DVR – or camera, or device – repaired or reinstalled.
Similar examples exist where the device is no longer under the OEM warranty but the OEM continues to offer repair services. A few OEMs are known to provide excellent aftermarket repair and even advanced exchange services; however, for the most part, OEM aftermarket repair services are generally expensive and integrators must wait long periods – sometimes weeks or longer – to receive the repaired equipment. Frankly, who can blame the OEM? They are in the business of developing and building new products, and thus their repair departments are treated as cost – not profit – centers.
The scenario can get worse: Let’s say the integrator waits weeks and finds out that the device has been deemed “non-repairable” by the OEM – perhaps for economic reasons. A bench fee was still charged; meanwhile, the customer remained at risk for lack of a camera or a recording device, and the integrator risked their reputation operating outside their promised service level agreement.
It only takes a couple of such experiences for the integrator to adjust – often by settling to buy an expensive replacement right away. This is called “service-drag,” and the non-working device winds up taking up space in a landfill.
When compared to other mature technology markets such as computers, point-of-sale devices, telephony and telecommunications, the security industry remains very young. In the mid-1990s – thanks primarily to IBM – these more mature industries were already replete with third-party repair facilities, equipment brokers, and other alternatives that enabled the development of an aftermarket, with the ultimate price compression within their markets. The winner was always the end-user, who found many alternatives and many vendors vying for the opportunity to extend a product’s warranty and fix non-functioning products – either on-site or in a repair depot – quickly and economically. Service providers supporting OEM technology were purchased and sold by OEMs, which were then combined, grown, spun-off, enhanced, absorbed and later resold over the course of the last 20 years. The end-result was a highly developed aftermarket support infrastructure for these technologies.
This was not the case for the security industry until the last few years. Two major aftermarket support service providers have come to the forefront – one in the commercial sector and the other in residential – who are now offering dealers and integrators repair services that are helping to keep cameras, DVRs, NVRs and other equipment out of landfills.
Renova Technology of Georgia is the commercial aftermarket repair service, which services more than 1,500 different models of cameras and recording devices made by 60-plus manufacturers. QGistix, also based in Georgia, focuses its aftermarket repair on residential security products.
Renova repair customers include four of the largest U.S. commercial integrators, the Department of Homeland Security, smaller integrators, municipalities and others. It is estimated that by enabling integrators to repair rather than replace equipment, Renova alone has kept more than three million pounds of electronics out of landfills in just the last four years.
The world increasingly demands that our industry provide high-availability and a growing sophistication of technology to ensure security and safety, with reasonable pricing and maintenance – all while being environmentally responsible. Third-party repair services are certainly one way for integrators to begin to deliver on those needs.
Jonathan Pine is CEO of Renova Technology (www.renovatechnology.com). Requests for information may be directed to [email protected].
