Survey says as many as one-third of security dealers considering selling business

DALLAS – As part of survey results revealed in the Parks Associates’ 10th annual Security Dealer Perspectives: Views from the Front Line, as many as one-third of security dealers may be looking to sell their businesses.

The nationwide survey polled results from both owners and those employed by the company and according to Parks Associates the research quantifies the dealers' view of the security market, using data compared across multiple surveys, it analyzed competitive pressures, industry conditions, and new trends (i.e., the addition of smart home and interactive technologies). It also found that in addition to the one-third estimate, 42 percent had no plan of succession lined up either.

"2022 was a difficult year for home sales after several boom years, and the years to come will be challenging for the housing market," said Elizabeth Parks, president and CMO, Parks Associates. "Between inflation, increased home prices, rising mortgage rates, and general uncertainty over the health and direction of the economy, consumers are pulling back on spending and buying homes."

Parks Associates found other indicators of a strained housing market as well. Its research of 10,000 households found that 23 percent of home security system owners only acquired their system by moving into a home where the equipment was already present.

"A decline in the housing market is bad news for security providers. In response, many security dealers focus on reviving or increasing their sales to commercial environments, or they are looking to set the business up for sale," Parks noted. "To thrive, dealers must avoid high attrition, increase fees as possible, and seek additional revenue sources."

Data is available by request. Interested parties are directed to contact Rosey Sera at  rosey@parksassociates.com or by phone at 1-972-996-0233.