Much like cell phones, the security system itself is generally a loss leader that the company uses to get you to sign up for active monitoring. For example, ADT usually charges $400 to install their
EZ Essentials package (control unit, 1 motion detector, 2 deadbolt detectors, 2 reset keys, and a battery backup) but if you sign up for three years of service at $33.99/mo, they’ll drop the install down to a mere $99 - a savings of $300. By giving you a discount of $300, they earn $1,223.64 of business, a net profit for them of $924.64.
Let’s look at Brink’s offer: $99 for their standard install which has the control unit, two door/window sensors, a motion detector, and alarm. Your contract is a mere $29.99 for three years, a $4 discount, for a total commitment of $1,079.64. While they don’t list the MSRP of the unit, if it’s comparable to ADT, we’re talking the same idea here.
Now, does this mean that it’s bad for you to take advantage of these deals? No, but it’s important to understand the company’s motivations for the discount (which is probably as plain as day to anyone). And if you were going to get active monitoring anyway, you might as well go with these deals and get a discount.
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