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Professional Monitoring Prices Rise with Inflation

The cost of living has increased in 2022 as inflation recently broke a 40-year high. There are few indications that consumers can expect a significant decrease in the cost of goods and services in near future. Security companies must find ways to increase revenue to compensate for the higher prices in materials, overhead and wage inflation of their employees.

A good portion of the security industry is raising professional monitoring fees or including new services for consumers to opt into to compensate for these expenses:

  • Five of the 12 major home security players Parks Associates tracked in Q2 increased their monthly professional monitoring fees. The average price hike for these five companies was around $12 per month. In comparison, only one company reduced its monitoring fee from Q1 to Q2 2022.
  • Notion seeks to enhance revenue by adding a professional monitoring service option for their users
  • Ring raised the price of its basic self-monitoring service by $1 per device, but enhanced the services offered to its customers.
     

Price hikes for security monitoring may impact adoption rates throughout the rest of 2022 or shift market share to less costly competitors. Security solutions have enjoyed high demand, even under the economic uncertainty of the pandemic, but it is unclear if growth will continue with higher pricing and consumers watching their spending.

This is an excerpt from Parks Associates Residential Security Tracker, a quarterly deliverable tracking the security market with insights from Ryan Hulla, Ph.D., Parks Associates, and Jennifer Kent, Ph.D.

We welcome all comments on our research. Thank you for reading.

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