Page 62 - Security Today, September 2017

REVENUE STREAMS
By Greg Schreiber
TURN TO NEW PROFITS
Dealers, integrators can turn to security entrances for more money
s a security integrator, you’re used to having a pre- dictable revenue model selling security hardware and software to end users. Your portfolio likely contains products such as door hardware, access control sys- tems, card access readers and software, video surveil-
lance cameras, VMS software, and many other technologies to help your customers deploy a complete security solution.
While selling these technologies may provide a predictable, recur- ring revenue opportunity, take a moment to think about the volume that you need to sell to meet, let alone exceed, your sales targets. If you’re looking to sell millions of dollars in security products, your team needs to work overtime to get the margins your CEO demands.
This is especially true in today’s competitive environment where manufacturers are too often locked in a race to the bottom with re- spect to pricing. Cameras and card readers sell for just a few hundred dollars and competition continues to push that figure ever lower. This is a new and frustrating reality for the integrator community. With decreasing profit margins, account managers face increasing pressure to sell higher volumes than ever before. Aren’t there alternatives to this challenging future?
THE BENEFITS OF SELLING SECURITY ENTRANCES
Security entrances are often overlooked by security integrators as an access control solution despite their ability to solve the multiple risks presented by unauthorized entry—theft of property or data, workplace violence, bad PR, to name just a few—while simultane- ously offering end-users a greater ROI from such a purchase. Security entrances help businesses control who can enter and exit a building, and they decrease the threat of tailgating, which has become a top security challenge as recognized by the C-Suite.
The market for security entrances is also growing with the same vigor as the overall security industry. According to the IHS 2015 sur- vey “The Market for Pedestrian Entrance Control Equipment,” the total market size in the Americas for all types of security entrance products (from 3-arm turnstiles to security revolving doors and man- trap portals) grew from $123 million in 2012 to $159 million in 2014, or an average of 14 percent per year. The report predicts the entrance market will continue such strong grow into the early 2020’s. The good news is that unlike cameras and card readers, the margins on security entrances continue to be healthy and stable.
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0917 | DEALER STRATEGIES