Parks Associates, a Dallas, Texas-based IoT market research and consulting firm, recently announced a report titled, “360 Deep Dive: Pricing Strategies for Residential Security”. The findings of the report include some eye-catching purchase trends that home security consumers tend to follow. According to, the Residential Security report almost twice as many home security consumers intend to purchase a standalone security product than a professionally monitored system.
Furthermore, the Parks’ 360 Deep Dive: Pricing Strategies for Residential Security findings report 16% of the US broadband households plan to purchase a home security product, such as video doorbells, cameras, or door locks, in the coming 12 months; 8% plan on buying a professionally monitored service; and the remaining US broadband households contenders are planning installation of a stand-alone, self-monitoring or ad-hoc monitoring security system.
“These smart products address the same core needs of consumers — to feel safe and secure in their home, having peace of mind that all is well and knowing they will be alerted of potential dangers,” states Dina Abdelrazik, senior analyst, Parks Associates. “Only 28% of security intenders plan to subscribe to long-term professional monitoring, illustrating competition from alternative business models and standalone security products that have entered the market.”
The report ventures deep into the pricing of stand-alone systems and professional security services, evaluating upfront fees, monthly fees, and tenure of the contract, thus addressing the price sensitivity issue in the home security market.
“Price sensitivity is likely the major reason that intentions to buy additional control devices are unfulfilled,” Abdelrazik adds. “The lack of interest in the smart home bundle also indicates that pricing is an obstacle. Therefore, dealers need to consider a strategy that offers the most desired products at the point-of-sale and then provides upgrade options over the life of the customer.”