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March 19, 2014
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Think Protection

Why Does ADT Charge So Much?

In the world of home security, ADT is the 800-pound gorilla. With over 4 million customers, ADT is the biggest name in home alarms. When looking at their products and services, ADT doesn't have anything unique, separating them from the thousands of other home alarm companies out there. So the big question is why does ADT charge so much for their services?

ADT charges anywhere between $29.99/month and $34.99/month for standard home alarm monitoring. Two-way voice monitoring with ADT is between $35.99/month and $39.99/month. Cellular alarm backup is another few dollars per month depending on if you contact ADT directly or an ADT dealer. Beyond that, there is a charge for the installation of their basic package which ranges from $99 up.

As far as I know, ADT has never lowered their monthly rates, however, once you're under contract with them they reserve the right (and often do) raise their monthly rates. So if you signed a 29.99/month contract, don't be surprised if by the third year of your three year contract you're now paying $31.99/month.

In this ever competitive world of security, one has to ask themselves why doesn't ADT lower their prices? The answer is because they can't. ADT is locked into this high prices. By having so many current customers, all of which continue to pay more and more, if they lowered the price for new customers, say to $25/month, the rebound effect for their current customers could potentially destroy the company. So unfortunately for new and old ADT customers, the price is what it is, regardless of the world of security continuing to be more and more competitive.

When considering going with ADT, compare their offering with other companies. Look at the monthly monitoring price, the upfront price, what and how much equipment you're getting if there's a contract and what's the length, is the equipment leased or do you own it and if you're associating with the company or a dealer working independently of the parent company. All of these issues should contribute to your decision. Think longterm when you think protection, and make sure to go with the best company.