Old subject new input Re RHC

The following was posted to Ken Kirshinbaums blog.

Since it comes from someone in Canada, I thought Robert C might have some interest in it. This comes from the point of view of a purchaser of accounts.

(Quote) Ken:- There have been many valid and worthwhile comments about purchasing accounts. I would like to add a couple of things to consider for those who are thinking about buying. Determine up front the vendor's relationship with his customers in regard to service calls. Of all the acquisitions that I have done the greatest cause of attrition are those customers who were never charged for service calls. When we do service and send them a bill they kick and scream and complain that they never had to pay for service before and they don't intend to do so now. And they leave. And I have to assume that they are finding some other character out there that will include service for free. Always ask about the vendor's policy of charging for service and if they don't charge walk the other way or cover yourself with a significant holdback over an extended period of time. Otherwise you will pay for accounts that bail out first time you do a service call, and you may not even be paid for the service work. The second thing is avoid those vendors who don't have contacts with their customers. Those of us who are even a little savvy about the business know and understand the need for contracts. If you buy a block of customers who have never had contracts and you send them an agreement way too many of them will kick up a fuss and refuse to sign. In Ontario we use the valid excuse for residentials that the Consumer Protection Act requires contacts for services valued in excess of $

50.00, or for services to be provided in the future. Obviously both conditions apply to alarm monitoring services. But they still refuse to sign! As always =96 buyer beware! Dave Currie Damar Security Systems Sarnia Ontario Canada. (End quote)
Reply to
Jim
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RHC: Well...isn't this interesting. For once, I'm not the one bringing up this subject again. However, since you brought it up, I will feel completely free to comment in ways that I said I wouldn't (remember...you brought it up).

What a pile of crap ! This is one sad excuse for a company charging clients for unnecessary long term contracts when they are not necessary ! Consumer protection laws my ass !! There's no such thing governing services in Ontario valued in excess of anything here, and it's dishonest to say so as an excuse to extort a long term contract out of them. I'm assuming his reference to contracts is in reference to a LONG TERM value as opposed to just a month over month term, since no one in business would provide monitoring services without a formal contractual agreement in some form.

There are loads of companies all over Ontario who don't demand a long term commitment, and they are growing by the month. More and more, I find I am no longer unique in doing so, such that it's probably a good thing that I already have an established reputation in the market, otherwise, I'd be down at street level, burning rubber to build my business. And who the hell would ever go out on a service call without reviewing costs in advance with the client ??? Free service is only a perception thing; service and warranty is "bundled" with the monitoring rate (and in my case they are actually paying $4 a month for it). Increasingly, the discount monitoring places (such as The Monitoring Centre in Toronto) are gaining in size at a tremendous rate compared to conventional companies, and they are doing so, NOT just because of low rates, but because they don't demand long term commitments from their clients (and how do I know this...because the owner of one of the larger discount companies here in Canada is a personal friend of mine. His perspective on the market is VERY interesting...). It's alos interesting he agrees with me on the dangers of a client forgetting about the importance of ongoing service and warranty for their system....

Of course, any customer who's had the freedom to choose over time would refuse to sign into anything long term with a new company. However, assuming the systems meet all the other criteria for a good purchase, that doesn't materially lessen their value to an astute buyer for that reason alone. And if this company bought accounts from another company who dealt with their clients more flexibly, and then tried to force them into other more restrictive terms more in line with how they have been running their business, it's no wonder these customers would squawk. That simply means the buyer didn't do his "due diligence" properly and is now paying the price !!

I've heard all this crap before ! I've reached the point where I no longer totally blame alarmco's for doing this - they're only trying to maximize their advantages. I blame the consumer who allows himself to be suckered into one of these agreements with little or nothing in it for them because they are too lazy or stupid to shop around. Its the same stupidity that allows companies like Alarmforce to survive, and the "free system" marketers to continue to thrive.

There are a couple of things that I have come to believe are simply wrong in our industry. One is long term contracts when they are not necessary (takeovers, and when systems are fully paid for). The second is a total disgust with companies who produce boards that can be locked, and especially the alarmco's who use those features as weapons against consumers and other alarm companies. It's amazing to watch how locking boards becomes an established pattern within a company as their attrition rates rise due to a fall down in service levels.

So this company can go ahead and justify their actions any way they want; arguments such as this are self serving drivel as far as I'm concerned. In conclusion, run your business anyway you see fit. I'll continue to run mine exactly as I have been doing for the last 15 years. I know exactly how much my accounts are worth with the buyer who will get them when and if I ever retire. In the meantime, I'll enjoy the RMR and continue to give my clients the best terms I can....

And it sure makes it easy to beat all the other more conventional companies around.......

Reply to
tourman

you gotta be kidding. there are companies that charge a discount rate for monitoring and they give free service? whattabunchafreakinmorons. talk about shooting yourself in the foot. takes all kinds, I guess.

"Jim" wrote in message news: snipped-for-privacy@m13g2000vbf.googlegroups.com... The following was posted to Ken Kirshinbaums blog.

Since it comes from someone in Canada, I thought Robert C might have some interest in it. This comes from the point of view of a purchaser of accounts.

(Quote) Ken:- There have been many valid and worthwhile comments about purchasing accounts. I would like to add a couple of things to consider for those who are thinking about buying. Determine up front the vendor's relationship with his customers in regard to service calls. Of all the acquisitions that I have done the greatest cause of attrition are those customers who were never charged for service calls. When we do service and send them a bill they kick and scream and complain that they never had to pay for service before and they don't intend to do so now. And they leave. And I have to assume that they are finding some other character out there that will include service for free. Always ask about the vendor's policy of charging for service and if they don't charge walk the other way or cover yourself with a significant holdback over an extended period of time. Otherwise you will pay for accounts that bail out first time you do a service call, and you may not even be paid for the service work. The second thing is avoid those vendors who don't have contacts with their customers. Those of us who are even a little savvy about the business know and understand the need for contracts. If you buy a block of customers who have never had contracts and you send them an agreement way too many of them will kick up a fuss and refuse to sign. In Ontario we use the valid excuse for residentials that the Consumer Protection Act requires contacts for services valued in excess of $

50.00, or for services to be provided in the future. Obviously both conditions apply to alarm monitoring services. But they still refuse to sign! As always ? buyer beware! Dave Currie Damar Security Systems Sarnia Ontario Canada. (End quote)
Reply to
Kid

RHC: No, I don't think anyone including the original poster said or implied that those who discount severely also give "free" service. The companies giving those $9.99 monthly rates ONLY give the basic monitoring service for those prices. All other service of all kinds is chargeable on top of that (including phoney up front "administrative charges"), AND it is usually done by subcontractors local to the client who charge hefty service charges for service. In my case, I come in at a medium level charge, but bundle service and warranty in the rate. Is it "free"; not really, but certainly closer to it than the the traditional "free" alarm system ever will be...:))

That's one thing I've noticed about our industry that is different than some other industries. Our rate structures are "all over the map" with service and warranty prices especially varying the most between companies.

Reply to
tourman

Ok! Ok! don't get your shorts all in a bunch.

As I said, since it came from someone in Canada, I thought you'd be interested in seeing it.

Reply to
Jim

RHC: Yeah...well...thanks....I guess.

Look, I don't want to start this argument all over again. The newsgroup has been quiet for a long time now, with little sniping at each other. I'd personally like to keep it that way ! So I'll go back to before this thread and keep quiet about these points. I'ts not likely that anything said will influence anyone to do other that what they are doing now, so all it will do is create needless "heat". And coming from Canada has no bearing on anything vis a vis this issue....

Peace brother !!!

Reply to
tourman

Wow! Bob C is upset and Jim is telling him to calm down. My, how the newsgroup has changed. :^)

Reply to
Robert L Bass

=3D=3D=3D=3D=3D=3D>

=3D=3D=3D=3D=3D=3D>

RHC: Yeah, that is a bit of a strange twist isn't it.....:))

Reply to
tourman

Now all we need is for Leuck to become honest.

Reply to
Robert L Bass

or for bAss to stop lying and trolling.

Reply to
Kid

"Robert Le Ass" wrote

Leuck speaks the truth. It's a foreign concept to you, I know. That is why you don't recognize it.

Reply to
alarman

Leuck speaks the truth about as often as you contribute something useful. I've been participating in this newsgroup for about 10 or 11 years and so far you're both batting zero.

Reply to
Robert L Bass

Wow three different threads where out of the blue you mention me, thats funny!

Reply to
mleuck

Wow three different threads where out of the blue you mention me, thats funny!

or a man crush!

Reply to
Kid

He likes to post gratuitous insults. I was just returning the favor.

Reply to
Robert L Bass

Well he was bringing up gay stuff again so that makes sense

Reply to
mleuck

"Kid" a écrit dans le message de groupe de discussion : 4b07d37b$0$579$ snipped-for-privacy@read01.usenetall.se...

that will come soon enough ;-)

Reply to
Petem

Well he was bringing up gay stuff again so that makes sense

what happens in Brazil should stay in Brazil. ;) not that there is anything wrong with that!

Reply to
Kid

You're confusing Brazil with Las Vegas. Then again, you usually do seem confused...

Reply to
Robert L Bass

oh so you got some kicks in Vegas too, eh? do tell.

Reply to
Kid

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