Re: Do YOU ACTUALLY Own Your Equipment??

[Frank Olson <Use_the_email_links@xxxxxxxxxxxxxxxxxxxxxx>]

Sammy wrote:
> I have to agree with Jim on this one RHC.  You are getting into the paul and
> Duck catagory with your constant harping on contracts.


Here's a strange one for you.  I had a customer call me all concerned
about how his three year contract was up and he was reading the renewal
clause (which states it reverts to an annual renewal after the first
three years).  He wasn't comfortable with the fact that because other
costs were rising, his monitoring expense might as well.  He opted to
renew at his current rate for another three years.  I'm thinking, if
he's thinking like this, how many of my other customers out there are as
well?  I'm going to mention this in an article in our next newsletter
and give my customers the choice of either renewing for a year or for
three years (which co-incidentally locks in their monitoring fee for
that period as well).  I'm also thinking I should add that it isn't our
intention to increase our rates.  Our monitoring expense hasn't gone up
(it's actually gone down because we've just "crossed over" to the next
tier).

On the "flip side", one of my newer sales guys came back with a signed
contract which the customer had altered to read "one year" instead of
three (which is our standard contract term).  Another clause on the
contract stipulates that if it isn't accepted by a manager, the job may
be cancelled and the customer's deposit returned.  The salesman was
worried that he might lose the commission on a fairly decent sale (in
this case the equipment and installation totalled $4834.00).  I told him
not to worry and accepted.  These days you have to be flexible and some
people starting new businesses (like this client was) may not be willing
to commit to a long term monitoring agreement.  I draw the line at a
"month-to-month" contract though.  I don't think it serves either the
company or the client well.

My two cents FWIW.