Like most businesses, home security companies market their lowest possible prices. It's important for you to understand the pros and cons of certain deals. You might pay less up front, but you could end up paying more in the long run.
How exactly are companies lowering their costs on expensive security equipment and who is it actually benefiting, you or the company? Home security companies lower their system prices in a few different ways:
1. Entry-level pricing. The advertised price generally represents the lowest service provided by the company.
For example: Protect America advertises their lowest monthly package at $19.99/month. But the low cost comes with a significant catch. The Copper package is a LANDLINE based service. Not only are landline security systems easily compromised, more and more people are cutting their landline altogether. A cellular monitoring system provides a great deal more security than a landline. You should price your system for cellular monitoring, which can cost more, but is worth the upgrade.
2. Reducing the upfront costs for customers who sign a monthly monitoring contract. This is great for people who want an affordable home security option but can’t afford the heavy upfront costs of installation, activation, and equipment purchasing. The upfront costs are essentially spread out over the life of the contract, increasing your monthly payment slightly but saving you from paying these charges in a lump sum.
3. Offering DIY home alarm systems. By setting up and installing the system yourself, not only are you bypassing these upfront charges, but you’ll also usually pay a smaller monitoring fee, keeping your monthly payment lower.