Re: Monitronics monitoring assigned to Apex

["R.H.Campbell" <rh.campbell@xxxxxxxxxxxxx>]

Interesting ! I see Jim (Alarminex) is as ignorant as ever, so I'm not even
going to answer his usual invective. Clearly Mark was baiting him with that
last conciliatory post.....good one !.....saves me having to figure out how
to "unblock" someone in Outlook Express...

But you sir, do make some good points. No offense meant, but I've been down
this road so many times, frankly, I'm getting a little bored with having to
respond to the same old industry self serving practices. I fully intend to
run my business to my customers advantage regardless of what the accepted
industry practices are. This may have been an acceptable way to operate
years ago, but informed consumers expect more today and that is what I will
give them. With the advent of the "direct to consumer $10 monitoring" (which
is excellent btw - I know and deal with two of these companies myself), and
the coming amalgamation of less expensive monitoring services on cable and
satellite services, the companies that will suffer the most will be those
with overpriced, long term contracts. Just like ADT, they'll keep their
customers until the end of the contract and then lose a good many of
them.These changes in the industry are coming more quickly than not !!
(which is why it is important that security companies diversify into other
related fields rather than depend upon RMR for their revenue flow). If lack
of a long term contract is so bad, then my attrition rate should follow, yet
it is one of the lowest rates on our station with over 300 dealers. In a few
short years, my company has risen to become the 10th largest company here in
town. I can sell my accounts for excellent value at the snap of a finger,
because they are all well installed and most have been with me for many
years. And our reputation in this business is sound !! Due diligence is MUCH
more than the presence of a long term contract. But my son is now pretty
much running things totally and the business will give him a future he can
take anywhere he wants. If he chooses to operate differently, that will be
his decision once he owns the business.

Different is not wrong just because it goes against the commonly accepted
grain. I don't have to duke it out with any other company in town; clients
flock to me because of it. It's safe to say I wouldn't have 60% of the
clients I do have if I forced them to sign contracts with unnecessary long
term restrictions. And my clients are every bit as loyal as anyone elses
believe me !! Referrals account for over half my new customers. My website
gives me the other half. New ones coming in know I don't discount my systems
artificially, but they also know they get damn good value for the money
spent. We "mickey mouse" nothing !! They get the best panels, upgraded
motions, largest batteries,and ONLY the high end LCD keypads. They also know
I must give them exemplary service or face losing them.That's the way it
should be in business. And that's also why I get so many takeovers from ADT
(who I don't hate by the way...). My client base is no different than anyone
elses except they know they are not locked in past a month. That in itself
is a great sales attraction when it is put up against other quotes they may
have been given. It's a "no risk" situation, especially if they've been
bitten before by a not so reputable company. That doesn't make these
customers better or worse.....perhaps a little more discerning but nothing
else. Monitoring is a service; nothing more, nothing less. If the client
needs it, he gets it. If he doesn't need it any more, I'll be damned if I'll
take his money for nothing given simply because he was foolish enough to
commit himself when he didn't need to. I'll not let my customers make that
mistake, I can assure you.

I wish you and your company well. Yours is the traditional approach, and I'm
sure it works well for you.  I also hope it continues to work well for you
given the changes that are coming. But it's not for me or my customers. I've
always liked doing things differently (it's also worked that way in my other
past businesses....) and I will continue to do so

Regards,

RHC

"Nomen Nescio" <nobody@xxxxxxxxx> wrote in message
news:0bf95ca1eee11e1c880c1c007076b573@xxxxxxxxxxxx

...............snip unnecessary invective...................................

> Jim's absolutely right.  I wouldn't have been so blunt, but he's right.
> It
> is both foolish and nonproductive to use month-to-month monitoring
> contracts.
>
> The idea of building equity through the use of contracts is well
> understood.  RHC will pay a heavy price when he tries to sell his
> accounts,
> and discovers buyers want some kind of assurance that the subscribers will
> continue to pay their bills.  He will say that he has no intention of
> selling, but eventually, everyone sells.  People get old, they get sick,
> they need money suddenly for a host of reasons, their children decide they
> don't like running an alarm company, and so on and on.
>
> Not using contracts is like throwing money away.  It's foolish.  I'm not
> urging everyone to use five year monitoring contracts for existing
> customer-owned systems, but a contract term of one year is entirely
> reasonable, and prudent.
>
> The question then becomes, what is the advantage to using month-to-month
> contracts?  Obviously, it is only a good idea if the alarm dealer can sell
> more accounts that way, and only if those additional sales stick around at
> least as long as accounts sold under contract.
>
> Personally, I have never had anyone argue with me over a one year
> monitoring contract (and yes, I always tell people orally that the
> monitoring contract is for one year!).  People either sign with me, or
> they
> don't, but the length of the contract is never a factor in their decision.
> If you want to be a really nice guy, you can always choose to let people
> out of their contract instead of enforcing it religiously.  This option
> lets the dealer maintain the written contract for possible future sale,
> while letting deserving customers leave without penalty.
>
> So, if RHC believes he is making additional sales by using month-to-month
> contracts, I believe he's fooling himself.  But let's assume he is making
> those extra sales.  What kind of customers is he attracting?  People who
> want the flexibility to throw him out at a moment's notice, for no
> particular reason.  That's hardly a desirable client base.  The good
> customers won't mind signing a one year contract, and the bad customers
> are
> probably going to be the collection problems and the ones who will have no
> loyalty, who will dump him without a second thought.
>
> Summing up:
>
> 1.  Good customers won't mind signing a one year contract.
> 2.  People who do mind, you don't want as customers anyway.
> 3.  No contracts = no equity.
>
> - badenov
>