APX Alarm, Honeywell and Door-to-door Salesmen

One of the things that I find crazy about APX Alarm is that when they are in their sales pitch, they claim to be a subsidiary type company of Honeywell. To me, that seems they aren't very proud of making a national name out of themselves. While they love to proclaim how big they are getting, and how many accounts they sell, during their sales pitch they use a huge crutch that is Honeywell. People have heard of Honeywell, not many have heard of APX. They hope people think that if they are associated with them, they must be good.

Truth be told, any alarm company can use Honeywell equipment. So, yes, if using their equipment means they are Honeywell, then I guess APX Alarm is Honeywell. Then that raises another question of why are they APX Alarm and why do they go by that name to everyone else? One company to one person, another company to another person.

It needs to be known that Honeywell and GE are the two big players in entry level alarm systems, aka the ones they give for free. Those two companies sell their equipment to the alarm companies such as APX Alarm, Pinnacle Security, even ADT, Monitronics and others. The equipment that APX Alarm and other door-to-door alarm sales companies use is not the most high tech stuff. Think of it like the free phone you get when you sign a contract at AT&T, T-Mobile, or Verizon. Is it the best phone out there on the market? No. Same goes with alarms, if you get the free system, while it may do its job, it isn't the iPhone of the alarm industry. Anybody who tells you otherwise is off of their rocker. It is a lot like the free phone gig. While the free phone might be better than a phone made 5 years ago, it is in no way the best one out there. They give you an inexpensive alarm system for free to get you to sign a 3-5 year contract. If you get a $40/month monitoring fee, over 3 years, you will pay $1440 plus any activation fees or installation fees they may charge. If it is 5 years you are paying $2400 for that free system. The monitoring fee subsidizes the "free equipment".

Now, sure you get a free alarm system and pay for the monitoring. While it is not a scam to operate like that, it leads to the question, is it really free? Maybe a "free*" is more like it. The cost of that Alarm you are offered for free is around $200-$300 depending on how much goes into it. Obviously if you get the 5 year contract, you will get more equipment. They pay the installation guy, you know the one, the one that pulls up in a Honda accord with out of state plates probably from Utah, Idaho, or Arizona. Well they pay him $75-$100 to install your system. They also want to get him there as quick as possible because the sooner you have holes in your wall with an alarm system about to go in, the less likely you are to cancel. The less likely buyers remorse will set in. Isn't that how you feel?

Now, is this whole thing a scam? Technically no, but is that right? It depends who you ask. It is a way to operate a business but it can get shady. Honestly, as to whether it is a "scam", it's situational. There is no way the company can guarantee what is said in the sale, and if the salesman cuts a corner, they don't know that. Usually it isn't, but it can be. Be smart, if you smell something fishy, it probably is a fish. Alarm salesmen are synonymous with being pushy.

So, after paying for the equipment, the technician, you know that "advertising" guy who showed up at your door is gonna get paid. Depending on how experienced he is, he will get anywhere from $400-$500 for signing you up. So yes, he does have something riding on the line to get you to sign. Makes you wonder why they are so pushy sometimes, huh? Well, because if they get you hooked up they will be getting a pay day. If you don't sign, he doesn't get paid. If you need to "think" about it, that is bad news for him. They are trained to be pushy. It means more money. The rest of the money from your monitoring fees goes to pay the manager who taught him how to sell, company executives and everything else.

So, yeah, kind of a long explanation. While APX Alarm uses Honeywell equipment, here is what Honeywell says in regard to APX Alarm and other door-to-door sales companies:

"Honeywell corporate spokesman David Gottlieb says emphatically that his company does not employ door-to-door salespeople. Honeywell does not sell directly to homeowners, he points out. Instead, the company sells to thousands of independent dealers who utilize many kinds of sales promotions. Some sell from storefronts, some through newspaper ads, and some by going from home to home. Honeywell provides guidelines about how its logo and trademark can be used, he says, and has standards that prohibit anyone from representing themselves as agents of the company." link

So, APX Alarm basically uses the big name for name recognition, but is not involved directly with them, besides using their equipment. That is like a cell phone company claiming to be Motorola, Samsung, or Apple. Sounds absurd right? While they may use their equipment, it is the service that you are paying for. When you go to T-Mobile, you go with them because you like their service, same with Verizon or what not. I personally see that as misleading on the part of APX. If I am going to have someone secure my home, I don't want them to be in any way misleading. It's fine if they mention that they use Honeywell equipment and sell that, but don't sell the idea they are Honeywell. For example, last summer, I knocked doors in an area that Honeywell had already knocked in. I was confused as can be, I thought it was weird Honeywell was knocking. Then I put two and two together and realized it was APX because of their signs. No one knew it was APX Alarm, they knew them as Honeywell, and that is all messed up. Selling the fact that they use their equipment is one thing, but selling the idea that you are associated in any other way is dishonest. The thing that I see as an issue with alarm sales companies is that they focus on making money only, and other more altruistic things are forgotten. They are, in a way, crime profiteers. I don't like companies that only focus on making money and not to worried about the ramifications of a few people that get run over in the process. It doesn't serve the overall good for everyone and it often times screws a lot of people over in the process.

To me, the companies who only go door-to-door to sell alarms (APX Alarm, Pinnacle Security, Platinum Protection, Icon Security, Elite Security, Centurion, Northstar Alarm, etc.) are only about creating more money and doing the bare minimum to supply a quality product. They of course will say otherwise, they will say it is the best alarm out there. Of course they will, it will help them make the sale.

I have sold alarms for 3 years this very way, and I still sell alarms. I just look at it a different way. For me to sell an alarm to someone, it has to be something they want. While there are certain things to "build need", I am not going to use scare tactics, claim to be associated with a company when in reality I am not, and try to reference people who supposedly use our product in the area when no one does. I try to make it logical for someone to have an alarm, not just an emotional purchase where they are spooked and that then leads them into a 5 year contract with no way out and high monitoring rates.

Now, for a consumer, whether you should go ahead with an alarm agreement from a summer model sales company, that is ultimately up to you. It isn't a scam, but do your research. As a fact, many of the summer alarm sales companies aren't the most customer oriented companies. I have worked for a few and I know. Unless it is a local company, you can tell by the address on the contract, it may be more difficult to get someone to service your alarm if needs be, and even then it may be difficult depending on the company. If it is an out of state company, the majority are, think about if that is something that is important to you. Is shopping and buying local important for you? Do you want to have a real place to go talk to someone if the need arises? Those are all things to think about when thinking about purchasing an alarm or signing a contract for monitoring.

Now, for an employee or potential employee of such a company. You need to think about what to do or say when someone asks you about this. Do your research and realize, that for the same money you can make with an out of state traveling crew of sales people, you could probably make more with an established local company. Look into it, they probably aren't the ones doing as much advertising, just think about it ahead of time.

Simply put, think about it and make sure it is right for you, not just them. It is after all your home security, and not their financial security.

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See a map of what APX Alarm is doing in 2009