Business Growth for Security Dealers

I just returned from Day 1 of the NBFAA Business Focus 2007 event. This is a new event from the association that seeks to bring some of the thought leaders on business growth and management into one room to speak with security installing and integrating companies on topics that hit the bottom line.

As I write this, the second day of the event is occurring, held on the campus of Indiana University Purdue University Indianapolis (IUPUI), and the word I just received is that the second day is going great with even more sessions that are really hitting the core business needs that dealer-company owners and managers are asking for.

Since we have the opportunity to file a live report (in addition to Peter Harlick's live report from Day 1, which is up on the site now), I wanted to touch upon five things that were said by presenters and attendees in the two afternoon sessions held by Bob Harris (Attrition Busters) and Cathy Rempel (The Summit Group). We'll have more of these tidbits of wisdom featured in our Tuesday dealers/integrators newsletter Security Markets & Systems.

1. On average, it costs $30 to replace one lost dollar of recurring monthly revenue (RMR). Source: The Attrition Busters

2. "Quality is remembered long after price is forgotten." -- Bob Harris, June 2007.

3. Link up with realtors. Ringgold Telephone Company (which also does security) ties in with a Realtor to offer promotions directly to new homeowners.

4. Direct mail marketing is having a hard time, with a response rate under 1 percent, according to Rempel.

5. Don't overdo your cold calls. Rempel advised clients to know that a cold call isn't always the time to try to "close" new business, but that it is often more effective to just set the stage for a bigger conversation with a potential customer.