Equipment theft from an outside lot is a major source of economic risk—and loss–for Alabama equipment dealers.
A well-designed video security camera system, especially one that incorporates a couple of thermal cameras and security monitoring services, can be a cost-effective solution.
Here at Vulcan Security Systems, a fast-growing segment of our customer base is the local equipment dealer looking to reduce inventory losses from theft of tractors, ATVs, boats, trailers, and similar equipment stored on an outdoor lot.
Our customers across central Alabama are using a combination of HD security cameras, dual thermal cameras equipped with optical and thermal lenses, and event-based monitoring services to detect and stop would-be thieves before they can drive away from the dealer’s lot.
In this article, we will take a deep-dive into how a remotely-monitored security camera system can easily pay for itself through prevention of equipment inventory loss from the dealer’s lot due to theft.
Fences and security gates are no match for determined off-road equipment thieves.
It’s easy for a thief to pull a truck and trailer onto a dealer’s lot after hours and load up a small backhoe, tractor, ATV, or similar piece of equipment and drive away long before any law enforcement arrives (assuming there is some type of detection system in place).
Skilled equipment thieves can make off with more than one piece of equipment in a single, quick stop-and-load operation.
The presence of a human security guard after regular business hours is expensive. Aside from the labor costs associated with a human security guard, there’s a liability factor to be considered.
Assume for a moment that the security guard is armed and attempts to stop a couple of thieves caught red-handed. The guard could be killed and/or the guard could shoot the thieves. There will be legal costs relating to the inevitable lawsuits from the shooting, even under the best of circumstances.
Video security cameras can be an ideal solution–under the right conditions:
- The system is properly designed for your unique lot configuration, terrain, landscaping and lighting;
- The right camera technology is deployed; and
- You utilize event-based security monitoring technology.
We’ll explain this technology in just a moment.
First, let’s take a look at a not-always-obvious way that theft of inventory can impact an equipment dealer’s bottom line.
Floor Plan Inventory Financing & Inventory Theft
If you’re an equipment dealer selling equipment in the sub-$100,000 price range, it’s almost a certainty that you finance your inventory using some type of floor plan financing.
If your product line focuses on tractors and heavier equipment used in construction, you may have good terms through a captive financing program offered by your preferred equipment manufacturer, like Kubota, Husqvarna, CAT or the like.
If you’re a farm equipment dealer, you may finance your tractor and implement inventory through a local agriculturally-friendly bank with a floor planning option.
Power sports dealers may be using a specialty finance company to keep an adequate supply of motorcycles, boats, Jet Skis, marine equipment, and four-wheelers on the lot.
Since your inventory is the collateral for your floor plan loan, any theft of equipment means a loss of collateral for your loan. Under the terms of a typical floor plan arrangement, the dealer/borrower will bear the risk of loss for the collateral.
At a minimum, loss of collateral through theft will result in the need to file a claim with your inventory insurer. The floor plan financer–whether bank, captive financing company, or specialty finance company–will be the loss payee on the claim. Each claim will impact the cost of your insurance. If losses due to theft are too high you might even find it hard to get insurance.
Beyond the insurance impact of claims due to theft, you also have to consider the impact of repeated incidents of theft on your ability to get floor plan financing at all. Some lenders might view the loss history and see that your business is a credit risk not worth taking. Others might only offer floor plan financing at a significantly higher interest rate or impose additional collateral requirements.
In short, loss of inventory due to theft can cause you to lose access to captive financing options and force you into a financing arrangement with a specialized lender with rates and terms that mean you can no longer operate profitably.
Of course, as an equipment dealer you probably already know this.
So how do advanced video security camera systems differ from the camera set-up you’re already using?
Security Cameras Equipped With High Definition, Low-Light Capabilities & Thermal Sensors
If your current security camera set-up consists of a few self-installed analog or low-end HD cameras that store footage on an SD card you are way behind the curve. You may have already discovered that the cameras aren’t helpful if the card was full at the time a truck drove away with three UTVs from your lot.
At a minimum, you need to be using full HD security cameras that are capability of capturing detailed images in low-light situations across the entirety of your dealership lot. This means you need to have done a proper site-assessment to evaluate where cameras should be placed to achieve full-coverage.
Check out our free Guide to Defining the Scope of a Video & Premises Security System.
Ideally, you will have one or two dual optical/thermal cameras at key locations. These cameras are super-helpful for remotely checking the site using remote-monitoring when the camera signals an intruder may be on the premises.
In 2018, we published a multi-part series on thermal camera technology and applications. If you’re interested in learning more about thermal cameras, start with this explainer post describing thermal camera technology—or just give us a call.
You will also want a combination of cameras to allow you to take advantage of pan-tilt-zoom features and cameras with wide-angle field of view.
IP Networked Security System
If you’re using standalone cameras now, you are missing out on advanced monitoring, server-based storage, and other functionality that networked cameras offer.
To take advantage of our event-based remote monitoring services your cameras must be connected via an IP network.
One reason we prefer the German-made Mobotix security camera technology is the enhanced security protections these cameras offer.
Event-Based Remote Security Monitoring
For applications that depend on quick notification of law enforcement and management, we offer both live and event-based camera monitoring services.
Event-based monitoring is the most affordable of the two options. When the camera detects a potential intruder, alerts are sent to the monitoring station. The on-duty monitoring personnel will evaluate the situation using the camera’s remote viewing capability and determine whether it’s an obvious or potential threat or an obvious false-alarm (such as a deer wandering onto the lot). The proper authorities and company personnel can be notified quickly—hopefully in time to stop the theft before it happens.
Depending on the camera and system set-up, the remote monitoring capabilities may also make it possible to communicate verbally to warn off the would-be thief, if that’s the preferred first action.
Free Initial Needs Assessment to Alabama Equipment Dealers
If you are looking to upgrade or expand an existing video security system, or want an entirely new install, Vulcan Security Systems offers a free initial needs assessment to Alabama equipment dealers.
We have small and mid-sized industrial clients throughout the area, including Troy, Montgomery, Bessemer, Brent, Birmingham, Walker County, Leeds, and Pell City.
Vulcan Security Systems
Phone: 205-290-9404
