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Triple H Industries, LLC presents:
‘Home Drone 360°’
VAIDEHI PATEL
ALEJANDRO MOLINA
ALVARO MOLINA
HORACE HEAD
JOSHUA LAMBERT
MKG 540
DR. GRESHAM
18 MARCH 2016
JACKSONVILLE
UNIVERSITY
1
Executive Summary
Triple H Industries has created a new technological breakthrough in home security, the Home
Drone 360°. This aerial security platform poise’s itself to redefine security systems becoming the
next leader in autonomous security that provides safety and 360 degrees of protection. This product
was created to help solve current personal security issues for low cost, easy use and with minimal
upkeep. It can help detour and even respond to a security threat faster than any current technology
on the market. The Home Drone 360° autonomous security system is a small lightweight tracking
system that includes an integrated infrared & night vison camera that connects with Wi-Fi and
GPS. The GPS smart alert communicates with the security’s users and even notify emergency
services if needed. Here at Triple H Industries we go through great extents in providing a personal
autonomous home security drone that will dominate and take over a majority of the market within
2 years. Currently, this product is a first of its kind and no other current competitor can provide
what we’ve produced. We strife to produce low cost surveillance drones while maintaining an
efficient production line allowing our brand to expand and grow into the future.
“It’s like having an extra set of eyes and ears when you’re away”.
HOME DRONE 360°
2
Table of Contents
The Market Need ............................................................................................................................ 3
Situation/Environmental Analysis .................................................................................................. 5
Marketing Objectives ...................................................................................................................... 6
Marketing Strategy.......................................................................................................................... 7
Marketing Tactics .......................................................................... Error! Bookmark not defined.
Evaluation and Control ................................................................................................................. 13
Attachment 1: Basic Data Document ............................................................................................ 13
Attachment 2: Prototype Concepts ............................................................................................... 14
Attachment 3: Five Year Pro Forma ............................................................................................. 19
Attachment 4: Market Segmentation .......................................................................................... 130
Attachment 5: Buy – Sell Box ..................................................... Error! Bookmark not defined.1
Attachment 6: Financials ............................................................................................................. 22
Attachment 7: Critical path launch ............................................................................................... 23
Attachment 8: Focus Group .......................................................................................................... 24
Attachment 9: Consumer F.A.B.................................................................................................... 26
Attachment 10: Contingency Plan ................................................................................................ 27
Attachment 11: Interviews……………………….…………………………………………..28-29
References ..................................................................................................................................... 30
3
THE MARKET NEED
According to FBI.gov (2015), nearly 2 million domiciles in the United States are burglarized every
year. This includes forcible entry, unlawful entry and attempted forcible entry which occurs at an
astonishing rate of 4 times per minute. In an increasingly insecure world, most Americans are
doing everything they can to protect their families, themselves and their property. In the past,
security guards, home security systems, fenced in property, weapons, lights and man’s best friend
have been the existing deterrent for most criminals. Even after having all of these security measures
this old way of thinking gives your home a 1% chance of still becoming a statistic.
As technology continuously improves and time progresses, existing preventions are becoming
easier to defeat and are highly expensive to maintain. In our fast paced society, the need for
information and technology has become increasingly imperative. The safety of our families and
everything we love unfortunately depend upon it. Just think everything you’ve worked so hard for
can instantly be taken away without notice or disregard. Wouldn’t it be comforting to know that
when you’re away from home that your loved ones and possessions were taken care of 360
degrees? Everything that’s currently on the market doesn’t give you complete 360 degrees of home
security coverage.
What if I told you that there is a new way to approach these security issues and relieve your
concerns so you can put your fears to rest? Our new innovative product can do just that.
Currently on the market there are many ways to protect your home. Most however are insufficient
and allow very little control over preventing a potential break-in or crime in or around your home.
By combining the existing technology of home security imbedded with aerial drones we can help
reduce and even detour the most skilled criminals. Home Drone 360 will provide the comfort and
the safety that all of our families need and deserve in this unpredictable and increasingly volatile
world.
This innovative technology will make home security a worry of the past. Home Drone 360° will
provide an effective product that will satisfy even the most un-savvy tech users. This system
utilizes night vision, infrared tracking system, Wi-Fi, audio, video and camera system to track and
secure your home. The user can program fail safes and specific procedures that the drone follows
to include: who to notify in an emergency. This drone has the ability to communicate with
4
emergency services or any of its authorized user. In the event of emergency, the system is designed
to link all authorized user’s smartphones, personal computers and tablets to alert them of a
developing security situation at home. This will give the user the ability to program any number
into its memory.
This product affords you and your family the strategic advantage to easily monitor, track and
instantly respond to a threat or potential security breach with a tap on your cell phone. Home Drone
360 also allows for the most popular current home security companies like ADT, Safe touch and
Brinks users to incorporate this technology saving you time and money. For the most part, it will
eliminate the need for expensive security cameras, cumbersome wires, bright lights, fences and
even man’s best friend if you’re a cat lover. This product offers the ability to protect the home
when you’re not available. It’s like having an extra set of eyes and ears when you’re away. This
product offers so much assurance, flexibility and safety that you’ll never again come home
wondering if the safety of your domicile has been compromised. We provide to you the new age
wave of security; Home Drone 360, because we’ve got your security covered 360 degrees. See
attachment one for visuals and specifications.
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5
SITUATION/ ENVIRONMENTAL ANALYSIS
The primary target audience will be home owners looking to find better ways to keep their families
safe from burglars. Families spend around $600 to $1,200 annually. This business is growing
rapidly because home security systems are up to 300% more likely to be broken into (Safeguard
the World, 2010). It’s expected to grow to $34.46 billion market for next year (Williams, 2013).
Right now there are 123 million houses in America and only 20 % of the houses have security
systems. It’s expected to raise up to 64% in the next five years. For our competition, they will be
only the security companies that are already established with security cameras. The advantage
that we have, it’s because right now there is not a company that have drone security systems. We
will try to create partnerships with all security companies in the market to promote our product.
All of our drones have to be registered in the FAA registration system (FAA, 2016). Below is a
list of all the rules that we need to follow.
o Fly below 400 feet and remain clear of surrounding obstacles
o Keep the aircraft within visual line of sight at all times
o Remain well clear of and do not interfere with manned aircraft operations
o Don't fly within 5 miles of an airport unless you contact the airport and the control
tower before flying
o Don't fly near people or stadiums
o Don't fly an aircraft that weighs more than 55 pounds
According the National Associations of Realtors, our biggest target by age will be Generation
Y that has the largest share of home buyers at 32% that is larger than all baby boomers
combined (National association of Realtors, 2015). The younger boomers comprise 16% and
older boomers comprise 15%. The generation X consists 27% of recent buyers and lastly silent
generation is the smallest at a 10%. Moreover, while the demographics of recent buyers fall
mostly in the expected range, income peaks for ages 35 to 59, and the prevalence of children
in the home peaks for buyers 35 to 49.
6
MARKETING OBJECTIVES
Sales
Year 1: We expect year one unit sales to be 100,000 units (no less than 90,000), equating
to year one sales of $4.8 million.
Year 2: Based on our projections of a growth rate of 22%, unit sales will increase to
121,500; resulting in a revenue of $5,832,000.
Year 3: We expect unit sales to increase no less than 22% to 147,623; resulting in revenue
of $7,085,880.
Market Share
Year 1: We will have 100% of the market share due to being original producers/inventors
of this product.
Year 2: Due to the prevalence of drones in the market place, we estimate our market share
will fall to 90%.
Year 3: We are predicting rise in competition, there home drone “clones”, so we are
assuming market share will fall to 80%, a level it will stay close to until year five.
For additional information on margins (gross, operating, and profit), reductions in expenses, and
earnings, see Attachment 3.
Other performance measures:
Year 1: Be featured in magazine
Year 2: Be featured on “Must Have Items of 2016”
Year 3: Spread into other industries particularly: prisons, daycares, realtors because of their
abundance all throughout the country (See Attachment 4).
7
MARKETING STRATEGY
Product
The Home Drone 360 is a quadcopter (four motors and propellers), featuring a top of the line 4K
camera, a gyroscope to determine orientation and an accelerometer to determine speed. The drone
will be made of a hard compound plastic making it weatherproof, fire resistant, and rust proof. The
housing unit that it docks in while in standby or charging mode will be made of sheet metal, wood
and decorative laminate to include solar panels that will keep the drone continuously charged
around the clock.
All packages will have included in the original container package a user manual, FAA Drone
Registration form, Exemption 333 form, and a sheet listing regulations concerning drones such as
“Altering HD 360 is strictly prohibited”
All drones come with a 1 year limited warranty
Price
We determined that the total cost of producing each drone will be $16; with direct materials costing
$6.00, direct labor costing $5, which leaves $5 for overhead.
The product will be marked up 100%, then be sold to distributors for $48.00. The distributor is
expected to mark the price up 25% to $60 then sell to retailers. Retailers are expected to mark the
price up 100% to $119.99 which be the end user cost (See Attachment 5).
We are considering two volume pricing options, the all unit’s model and incremental model. The
all units model is a model that reduces the cost for the buyer every time the reach a certain tier.
For example, a buyer that orders 500 units will pay $47.60 per unit; a buyer that orders 501-999
units will pay $47.50 and so on. The incremental model applies discounts only to units ordered
above a certain level. For example, the first 500 units will cost $47.60; 501-999 units will cost
$47.50 and so on. If someone orders 600 units they will pay $47.60 for 500 units and $47.50 for
100 units (See attachment 6).
The credit terms we will offer distributors is 2/15 net 45. This means that distributors who pay off
their credit within 15 days will be able to reduce their bill by 2%. If they elect not to pay within
ten days they will have 30 more days to pay their entire bill; a total financing period of 45 days.
8
The most common terms offered are 2/10 net 30, so these terms will encourage distributors to do
business with us.
Promotion
Proper timing can be the difference between successful or failed advertising campaign. We believe
the ideal time for the initial product release and the yearly concentrated marketing campaign is in
the spring (See Attachment 7). During the summer months families are away from home traveling
substantially more than any other time of the year. Publicizing our product during this time will
result in tremendous growth opportunities.
Home Drone 360 will eventually be promoted mainly by retailers who will utilize their
various promotion techniques to reach potential customers. However, while in the
inception stage our marketing department has formulated several strategic approaches that
would increase both exposure and acceptance of the Home Drone 360:
o Target families with children. Emphasize that peace of mind will result in increased
focus and productivity in other areas and in their career due to having one less thing
to worry about.
o Feature police and fire personnel in commercials endorsing the product.
o Coordinate with home insurance companies to offer exclusive discounts to clients
that own a Home Drone 360°.
Place
A focus group held at Jacksonville University found that potential users would like to see this
product offered on Amazon.com, as well as at Costco’s, Best Buy, and Walmart (See Attachment
8). We plan to take their advice and reach out to the aforementioned retailers via our B2B sales
team, in order to take advantage of their established market share and brand equity. We will
emphasize to these retailers that this is an opportunity to take advantage of a technological
breakthrough that will boost revenue.. We will also emphasize that due to the fact that the Home
Drone 360° is a durable, weather-proof product, transporting and storing it should not pose a
problem or require special considerations like most products.
9
Physical Layout
We will make arrangements with retailers in order to have the drone displayed at the main entrance
area during our yearly promotional campaign. The promotional event will feature:
Drones of all shapes, sizes, and colors in displays, actively running and in packaging
material.
An active Q & A learning booth.
Video screens and TV’s in the electronic section continuously replaying footage showing
drones “in action”.
People
In order for the Home Drone 360° to be successful, there must be knowledgeable staff available
to provide customer service and assist with any issue that may arise. We plan to hire and train sales
representatives, technicians, and regulation experts to meet customer needs.
Staff training will be made available to sales representatives employed by the retailers to ensure
they are familiar with the features, advantages, and benefits of Home Drone 360°. Technicians
will be made available to provide step by step set up, repair, troubleshooting advice. In regions
that the Home Drone 360 has saturated, we plan to open a local office/facility so that technicians
will be on call as well. Lastly, we will employ regulation experts whom will serve as a
knowledgeable resource on federal, state, and local laws concerning drones.
The HD360 will be made available to all employees who are affiliated with us for 50% off the
wholesale price because our goal is 100% ownership by employees. We intend to build employee
commitment and motivation; and so that our staff are able to relate to customers better due to
having direct personal experience with HD360.
Process
Manufacturer
o Once we receive the Federal Aviation Administration’s (FAA) Special
Airworthiness Standards by passing a series of test to ensure public safety we will
begin to mass produce HD360. Since we will be working with large well
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established companies, we will not need a fleet of commercial trucks to deliver our
product.
Retailer
o The product will come with a 6’ tall by 8’ wide metal floor display for the entry
way to each retailer. However, this product will have strict positioning guidelines
to prevent product lockout.
Customers
o The only task customers must complete after purchasing the Home Drone 360° is
to go on the FAA’s website and complete an Unmanned Aircraft Systems
Registration or mail the one in that’s provided in packaging. Federal law requires
that all aircraft in national airspace must be registered.
Positioning
Our goal is to be known as a corporation that’s trusted by Americans to safeguard their most
valuable, irreplaceable asset, their families. We plan for the Home Drone 360° to eventually be a
much needed addition to any residential or commercial property that needs to be safe and secured.
In addition, we would like to be able to eventually state that prisons, daycares, and the majority of
families in America to name a few, trust us to provide safety and security.
The first step we are going to take to position ourselves in the security market is to add a unique
characteristic to the HD 360. An intertwining “SS” will be imprinted on every drone, which stands
for safety and security. This symbol will be trademarked and strategically marketed in order to
positon ourselves and separate us from competition in order to establish us as a well-known
company with brand equity.
It will be marketed as a smart device that is autonomous, intelligent, lightweight drone that
preforms numerous security functions simultaneously and in real-time. This new security platform
will allow property owners to forget about potential security threats so they can spend their time
focusing on more important matters. This product is a new “one of a kind” drone that is the world’s
first private autonomous security drone on the market.
11
MARKETING TACTICS
We would begin by with tapping into social media where our product can reach more customers
through likes, suggestions or even through product forums. We can take help of Facebook, Twitter,
Pinterest, Instagram, and Linked-In to name a few.
It is important to generate sales in retail stores. During this phase, efforts will be focused to give
our retailers/customers best practices for sales in their individual stores like Best-Buy, Walmart,
Costco, and ADT. Efforts will also be focused on our online retailer Amazon.
Blogs are helpful sources of letting people know about the product and its features, advantages
and benefits. (See Attachment 9)
Uploading and creating videos on YouTube about the product and its usage will promote the
product and help it advertise it to the focused group of customers.
Conducting webinars and teleseminars, live events are a great way to connect with and give your
audience a taste of what it is like to work with them and present the product to them in a new way.
Website serves many purposes like allowing people to learn more about the product, selling our
products and services, helps us to build our list and acts as a marketing hub for our content.
Print marketing pieces & direct mail is a great ways for us to stand out and get noticed. For
example, creating a flier or postcard for networking events you are attending or sending something
to your list via mail announcing an upcoming event will help us promote and advertise the product.
Attractive Packaging is another way of impressing the customer to buy our product. Moreover,
providing irresistible free offers to the customer will attract more customers and increase the sales
of the product.
Our Home Drone 360 is a security driven product which will help the customers to prepare in
advance for the safety of their house.
12
EVALUATION AND CONTROL
The Triple H industries will have by-weekly conferences to analyze the products and
prioritize the next stages of the company.
Meeting are via Skype or in person.
Customer service centers
Survey Cards will be sent to assure full customer satisfaction.
Meetings will be made to have any necessary adjustments.
Studies of the product will be made to ensure that the next version meets all our customers’
needs and wants.
(See Attachment 10)
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ATTACHMENT # 1 BASIC DATA DOCUMENT / SPEC SHEET
Field-tested and situation-proven, HHH INDUSTRIES LLC, a small security drone that has set
the highest standards in immediate aerial security monitoring, gathered by you.
Intuitive touchscreen interface
Minimal user training
No launch required
Reliable flight performance even in the most extreme weather and adverse
conditions.
The Home Drone 360° introduces a new airframe and integrated home security system, based on
thousands of hours of testing and successful security missions around the United States. Designed
to meet all government and FAA regulations/specifications, HHH INDUSTRIESTM extends industry-
leading performance and security capabilities.
THE NEW BENCHMARK IN HOME
SECURITY. PERFORMANCE,
RELIABILITY AND EASE-OF-USE.
HOME DRONE 360° / HHH INDUSTRIES LLC
Intuitive interface and autonomous
capabilities – no joystick required.
Home interface: Touchscreen programming,
navigation and camera control.
Dynamic flight plans and programs including
follow me protection or Auto Grid mapping
modes to protect homes autonomously.
Rugged, reliable and capable – dependable
in extreme conditions
Up to 1-hour flight time.
10 min recharge time.
High wind tolerance up to 55 mph.
Ruggedized and weather sealed.
Environmental temperature range -22° to
132°F.
Pre-assembled and collapsible.
Folding design protects payload & battery
for powered standby.
Payload, battery, arms, and legs are easily
replaced in the field without tools.
Bluetooth and Wi-Fi enabled to control from
home base or smart phone devices such
android and apple OS.
Interactive imbedded security device
enabling open contact to local or state
emergency responders.
Advanced optics and networking – smart
imagery and seamless integration.
Stabilized, simultaneously – streaming quad
- Infrared-night vision EO: 1080i60 HD
.565 video, 30MP still images.
Low-latency all digital network – 256bit AES
encrypted streaming video to multiple
devices, embedded geotags and metadata,
Beyond line-of-sight range 3.3 mi integrated
capability extensible beyond 3.3 mi.
14
ATTACHMENT # 2 ENGINEERING DRAWINGS / HOME DRONE CONCEPT # 2
15
ATTACHMENT # 2 ENGINEERING DRAWINGS / HOME DRONE CONCEPT # 2
16
ATTACHMENT 2: ENGINEERING DRAWINGS / HOME APPLICATION
17
ATTACHMENT 2: ENGINEERING DRAWINGS / NEST
18
ATTACHMENT 2: PACKAGING CONCEPT
19
ATTACHMENT 3: FIVE YEAR PRO-FORMA
20
ATTACHMENT 4: MARKET SEGMENTATION BOX
We segmented the market into 8 possible separate markets in a 2 x 2 x 2 market
Segmentation cube based on nativity, age and household income.
Group Name:
1) North American Private & Commercial Sectors
2) Evasive & Non-Evasive Applications
3) Store & Online Retailers
List of Market Segments:
1) Private Sector, Non-Evasive Application, Store Retailer
2) Private Sector, Non-Evasive Application, Online Retailer
3) Private Sector, Evasive Application, Store Retailer
4) Private Sector, Evasive Application, Online Retailer
5) Commercial Sector, Non-Evasive Application, Store Retailer
6) Commercial Sector, Non-Evasive Application, Online Retailer
7) Commercial Sector, Evasive Application, Store Retailer
8) Commercial Sector, Evasive Application, Online Retailer
21
ATTACHMENT 5: BUY – SELL BOX
22
ATTACHMENT 6: FINANCIALS
23
ATTACHMENT 7: CRITICAL PATH TO LAUNCH
FEASIBILITY STUDY, FOCUS GROUPS, SIURVEYS , AND
INTERVIEWS
3-6 MONTHS
DESIGN PROTOTYPES
1-3 MONTHS
MEET FEDERAL AVIATION ADMINISTRATION AIRWORTHINESS
STANDARDS
1-3 MONTHS
OBTAIN FUNING THEN MASS PRODUCE
3-5 MONTHS
aDVERTISING CAMPAIGN AND LAUNCH IN THE SPRING
24
ATTACHMENT 8: FOCUS GROUP
In Jacksonville University Davis College of Business class room 270 Marketing 534 a focus group
was held involving various MBA students and the professor acting as the moderator. The focus
group consisted of students from United States and international students. The information
gathered in this classroom was if they would like the idea of having a home drone security system
in their house.
The information provided was in a group discussion. The moderator asked the questions and the
students responded with questions or comments about the home drone security system.
The discussion to help us to gather information about the drone:
1. To understand what will make people want to purchase a home drone security
2. To understand their needs when it comes to security in their house
3. To understand their major concerns of having a home drone security
4. To understand where will they want to buy it, warranty, updates, and overall system of the
drone
Participant Demographics
24 participants took part in this focus group:
Both men and women
Ages from 22- 35
Countries from United States, Colombia, India, and Saudi Arabia.
All MBA Students
Only a few married with families
Outcome 1: To understand what will make people want to purchase a home drone security
1. 45% of the focus group said they will use it.
2. They will be interested to purchase a home drone security if:
a. If it will replace current home security systems
b. The price of the drone to be a good price
i. Some said $250 and one person said $799
c. What kind of permits you will need and how to register it.
Outcome 2: To understand their needs when it comes to security in their house
1. Most of the focus group participants want the drone to be able to contact the police and
firemen.
2. To be able to live streaming and recording by connecting to a smart phone or IPad.
25
3. The drone to have an alarm and speaker to be able to talk
Outcome 3: To understand their major concerns of having a home drone security
1. 80% of the focus group worries about privacy concern
a. Someone hacking the drone
b. Neighbors spying on your property
c. The drone going over people property
d. Having insurance for the drone
e. Malfunction and hit somebody was brought up by one student.
Outcome 4: To understand where will they want to buy it and how maintain it.
1. To be able to buy it on Amazon, Costco, and Walmart.
2. Rechargeable batteries preferred
3. 100% preferred to owning it than renting it
4. Most of have updates
5. About 50% want some type of training to be able to use the drone for its fullest potential.
6. Have a company to maintain the drone.
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ATTACHMENT 9: FAB
27
ATTACHMENT 10: CONTINGENCY PLAN
Drones can invariably fly into unusual situations, whether its swarms of bees, bird attacks,
lightning strikes, or signal jammers, they will need to alert operators of problems as soon as they
arise.
Sales of drones is increasing nowadays so it will soon become the largest new market for insurance
companies.
Every drone that falls within certain classification guidelines will need to be licensed and insured,
so as avoid the contingencies.
Drones need registration and pilot licensing for which the instructions are provided with the
product.
Every drone will have to deal with extreme weather at one time or another. Any condition ranging
from wind, to rain, snow, hail, extreme heat or extreme cold, will need a contingency plan for both
the retrieval and safety so our Home Drone 360 will provide a nest for the drones to keep it safe
from all the weather conditions.
Privacy means different things to different people, but flying drones with cameras, scanners, and
sensors give nefarious people far more capabilities than ever before. Privacy rule for our drone is
quiet safe and it does not disturb anyone’s privacy.
Home Drone 360 is a noise proof device which will not disturb anyone in the surrounding.
To overcome these Contingencies, we will
Provide the guide book which will make the customers work easy
The Drone would be a weather proof
Implement online videos to demonstrate setup process of the Drones.
Immediate replacement of defective product when technical support is unable to fix the problem
We will request feedbacks from the customers and take their suggestions and try to implement it
if possible
28
ATTACHMENT 11: INTERVIEWS
We conducted 100 interviews with families with and without children on having a home drone
security system. The interviews were conducted through Facebook and phone calls. We
explained the idea and we received positive response from the majority of the families. We
interviewed from young families all the way to old ones.
Main 3 positive commentaries:
1. Being able to see all angles of the house.
2. When there is movement around the house the drone will go directly to the specific
place.
3. Scare off thieves when they see the presence of the drone.
Main 3 concerns:
1. Privacy
2. Durability of the drone
3. Maintenance
Below are our results.
The chart above shows that 63 families out of the 100 that want a drone and like
the idea.
63%
37%
100 Families
Total Y
Total N
29
Of the 63 families, 70% of them that said yes have children in the home. Families
that have kids gave the most positive feedback to the home drone security. The
main concern communicated was that most families wanted this product for two
main reasons. One is the ability to keep an eye on their children while away from
home. Two is the ability to incorporate this technology while it providing extra
benefits.
70%
30%
Families that said Yes
With kids No kids
30
REFERENCES
Home Security Statistics. (2010). Retrieved from
http://www.safeguardtheworld.com/statistics.html
Model Aircraft Operations. (2016, February 10). Retrieved from
https://www.faa.gov/uas/model_aircraft/
NAR Research: Home Buyer and Seller Generational Trends | realtor.org. (2015, March
11). Retrieved from http://www.realtor.org/reports/home-buyer-and-seller-generational-trends
Williams, G. (2013, September 9). The Cost of Keeping Your Home Safe - US News.
Retrieved from http://money.usnews.com/money/personal-finance/articles/2013/09/09/the-cost-
of-keeping-your-home-safe
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