Re: Salesman Compensation

[Robert L Bass <sales@xxxxxxxxxxxxxxxxxxxxx>]

> An $800 alarm with monitoring would net me between $170 and $200.

The problem with those deals is you have to hustle like crazy to make four sales
a day.  I'd rather turn two sales a day into the same net earnings.  Also,
clients who invest more in the system tend to stay with you longer (all other
things being the same, that is).  RMR gains are much better over the long run if
the average client remains with the company for 10, 15 years or more.

The fast sale, quick install junk some of these companies push may result in
rapid initial RMR growth but attrition it so high that they reach the point of
diminishing returns in a year or two.  The other problem with selling to the
bottom of the end is the market becomes somewhat saturated, especially with the
large number of "authorized dealers" pushing lick-and-stick trash.

Note:  The above is not intended to imply anything about you, Bob.  I'm
commenting about the security system market in general.  Unfortunately, those
"free" system sales adversely affect companies selling legitimate systems in the
lower price category by undervaluing your goods and services in the eyes of the
consumer.  In the high end sector I'm sure you've noticed that the "authorized
dealer" garbage rarely impacts you.  These are all financial incentives to
concentrate on offering comprehensive protection.

Interestingly, there's a parallel to this in the online market.  Most of the
online dealers seem to concentrate on selling cheaper stuff like DSC.  Only a
small percentage of online dealers try to market high end systems and almost
none offer much in the way of commercial fire, high end intercoms and CCTV.
Guess who gets the lion's share of that market.  :^)

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Regards,
Robert L Bass

Bass Burglar Alarms
The Online DIY Store
http://www.BassBurglarAlarms.com

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Never underestimate the power of very stupid people in large groups.