The home heating oil industry has a long and proud history, and Fuel Oil News has been there supporting it since 1935. It is an industry that has faced many challenges during that time. In its 77th year, Fuel Oil News is doing more than just holding
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www.fueloilnews.com | FUEL OIL NEWS | JULY 2014 31 OppOrtunities and Challenges While there are a lot of opportunities with security and the smart home concept, there are a tremendous number of competitors entering the marketplace from different vec- tors. These include cable companies, large venture capital-driven enterprises, traditional security companies—maybe even Google. "It's not as easy to get into the business these days," Cohen said. "When we got into the business it had been growing nicely since the 1970s and in the 1990s there were still a lot of opportunities. Today, a lot of homes already have systems installed and you are getting a lot more competition. With wireless technology is easier to be an installer than it was before when you had to snake more wires behind walls. There was a window and luckily we were there when the window was open, and now that window seems to be closing." One competitor in the marketplace today could very well be a heating fuel dealer's existing customers. With wireless technol- ogy (except for the base station) systems can be had at a cost ranging between $60 and $700. The types of equipment installed and the integration with other smart home capabilities tend to be more limited, but for homeowners who are not particularly secu- rity conscious that can certainly be enough. Video can even be incorporated as can vari- ous monitoring services, which can range from self-notification to a more professional level of service. "The traditional home security market in the US has plateaued at 25% market pen- etration," noted Michael Wolf, chief analyst at NextMarket Insights. Wolf was referenc- ing the company's recent "The Smart Home Security Market: Analysis, Vendor Profiles & Forecasts" report. "The reason is that while most consumers want to feel safe, only a segment of the market is willing to pay a $40-$50 recurring monthly fee and commit to a three year contract." While the do-it-yourself angle will have some appeal, unlike most DIY projects there can be tricky installation issues and a main- tenance component that can be a headache. Is everything positioned correctly? Is there unwanted electrical interference and if so how do you work around that? Are the sensors positioned appropriately to cover the likely risks? Does the system that was purchased integrate efficiently with any other smart home concepts that may be desired? What happens when something's not working? How many hours will be spent waiting on hold at a call center located in a foreign country? For the customer, going with a company that focuses on task-specific knowledge, qual- ity workmanship and customer service—your typical established oil or propane dealership— can alleviate those concerns. In fact, that should even give a leg up not just on the DIY urge, but on the cable companies and similar entities whose reputation (often deserved) is for less than stellar customer service. BUSINESS OPERATIONS l F O N