History and Business Model

When did Pinnacle Security start?
Pinnacle officially started doing business on July 17, 2001.

Who started the company?
Owners Kelly Walker and Steve Zolman started the company and later partnered with Jared Chappell.

Why was the company started?
The owners began the company to provide residential security solutions to consumers throughout North America. They began as a dealer for another security company and moved to a full service security provider by 2007.

Is Pinnacle Security a publicly traded company?
Pinnacle is privately owned and backed by financial partner Golden Gate Capital, and investment firm with over $9B under management.

What is the company's mission statement?
Pinnacle Security is a leading provider of security solutions and home management that help individuals realize the peace of mind that comes from securing the things that matter most.

Why door to door sales?
We are a consultative, relationship driven company that provides a custom solution for our customers that fits their home and lifestyle.

Why does Pinnacle pull credit?
Because of our pricing model, Pinnacle Security incurs a substantial upfront investment in equipment, service and installation. As a result, it is important that our customers have a history of meeting their financial obligations.

Why does Pinnacle not offer service to renters?
The system requires installation that can only be authorized by the owner of the property.

Does Pinnacle only provide security solutions?
Our primary business is in the security of home and property, but Pinnacle also provides 24-7 monitoring, for medical emergencies, smoke, fire, carbon monoxide, extreme temperatures, and flooding. We also offer thermostat control, both live video and still picture camera surveillance, and other home management services.

Size and Growth

How many customers does Pinnacle have?
Pinnacle Security has secured over 300,000 homes in the last 4 years alone, but has sold some of these accounts to various security companies. We currently retain more customers and will continue to add to that number as new accounts are generated.

Does Pinnacle sell its accounts to other security companies?
Pinnacle Security plans to hold the majority of its strong and growing installed base of customers; there may be some occasions where it makes sense to sell some accounts to other security companies.

Is Pinnacle still growing?
Pinnacle adds to its overall customer base every year. Since we began holding our own accounts, we have grown by about 50% each year and anticipate similar growth in years to come.

How many customers does Pinnacle plan to secure in 2011?
Pinnacle expects to generate over 80,000 new customers in 2011.

How many people does Pinnacle employ?
During our peak season, Pinnacle may employ anywhere between 1,500 and 2,000 seasonal workers with an additional 700 full-time employees out of our corporate offices.

How many offices does Pinnacle have?
Pinnacle is headquartered in Utah where it has two recruiting and training offices totaling over 86k sq ft. In addition it has nearly 60 sales service offices throughout the United States and Canada.

What is Pinnacle's Annual revenue?
As Pinnacle Security is privately owned and operated, that information is confidential.

Product and Pricing

What equipment do you use?
Pinnacle is an authorized dealer of GE Security equipment, and partners with Alarm.com to provide cellular radios, cameras, and image sensors.

Why does Pinnacle install wireless equipment?
In the past, wired equipment was more reliable, but very invasive, as wires would need to be run throughout the interior of the home. Installing quality GE security equipment that use today's wireless technology allows us not only to install a system quickly, but with less damage to a home and a signal reliability that meets and can even exceed those of wired equipment.

How much does a Pinnacle Security system cost?
Because our model customizes each system to fit a customer's needs, there is not set price for a Pinnacle Security Alarm system, however, the majority of our systems are installed for under $200 and monitored services provided at rates ranging from $34.99 to $49.99 per month.

Is equipment really free?
Our pricing model is different than many industry competitors. Many charge equipment and installations up front with a lower monthly monitoring charge. Pinnacle bundles our equipment and service offerings over the duration a service contract as an alternative to paying significantly more up front.

Service

How long does installation of a Pinnacle Security System take?
Over 90% of our systems are installed the same day they are ordered, and based on the equipment requested, installation typically takes about an hour and a half.

Why does Pinnacle install same day?
Pinnacle Security has found that once a customer has made the decision to secure their home, they typically don't want to want to wait to have their system installed and start enjoying the peace of mind it brings, so we install 90% of our systems the same day they are ordered.

Is Pinnacle a full-service residential security provider?
Pinnacle Security is a full-service security provider. We handle all aspects of our customer's security needs, from installation and service to monitoring, account, technical and billing support.

What is your lifetime service guarantee?
We guarantee every system we install. Should a customer ever require service due to ordinary wear and tear, we will repair or replace the equipment free of charge.

Regulatory Agencies and the Better Business Bureau

Is Pinnacle properly licensed in all its sales and service areas?
Pinnacle works in an extremely regulated industry. As such, we strive to be licensed properly in every area we work. Purchasing over 10,000 state and local licenses every year, we spend over $2M and average 10 licenses per person.

Does Pinnacle have a code of conduct?
Pinnacle has a strict code of conduct by which all employees, technicians, and Security Consultants must adhere. We also operate under the ESA (Electronic Security Association) code of ethics to ensure the highest level of standards are not only met but exceeded. To obtain a copy of our code of conduct, visit our website or e-mail the media contact.

What are the penalties associated with violating Pinnacle's Code of Conduct?
Penalties for violating the code of conduct vary and are based on the severity of the violation, but can range from small fines up to and including termination.

Do you enforce your code of conduct?
Pinnacle takes the code of conduct very seriously and has even terminated individuals whose behavior was not consistent with our high standards of customer interaction and regulatory compliance.

Why does Pinnacle have an "F" rating with the BBB?
We do not believe the BBB rating fairly reflects Pinnacle's current business practices. Less than 1% of Pinnacle customers have logged a compliant with the BBB, and of that percentage, 97% of the issues were resolved to the customers and/or BBB's satisfaction. Because the BBB's rating system does not reflect resolution status, our rating remains the same as though we have taken no action. The BBB also unfairly penalizes companies like Pinnacle for "listed governmental actions." Without any due process or admission of fault, any media report is profiled and the company is penalized. These ratings are calculated on a 3 year cycle, so in many ways Pinnacle continues to be penalized for historical issues that have since been resolved.

What has Pinnacle done to raise it's "F" rating with the BBB?
Pinnacle continues to work with BBB offices around the nation to ensure that any and all complaints are resolved to the customer's and/or BBB's satisfaction.

Contract and Agreement

Why do you require a customer to sign an agreement for services? Because our pricing model bundles our equipment and service offerings as an alternative to higher upfront costs, we require each customer sign an agreement for services to help recoup our investment in the equipment and services provided.

How long is the agreement?
Agreement length varies by location, as some states have regulations regarding the allowable length of a service contract, however the majority of our customers sign a 42 month agreement.

Can a customer leave his/her contract early?
Because our pricing model bundles our equipment and service offerings over the duration a service contract as an alternative to paying significantly more up front, we maintain an agreement with each customer to help recoup our investment in the equipment and services provided. If a customer wishes to terminate this agreement they will be required to pay the full balance of the agreement upon cancellation.

What happens after a customer's term is up?
It is our goal that Pinnacle provides a level of service that exceeds expectations and peace of mind for our customers. Our equipment is user friendly and reliable. While we have an initial term for each agreement, we are confident that our customers have seen significant value and will remain loyal and happy customers for years to come, renewing their agreement with us as it comes to term.

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