Re: Need Advice For Packaged Home Alarm Purchase

["Mike" <wxyz09@xxxxxxxxx>]

"Jim" <alarminex@xxxxxxx> wrote in message
news:1138167274.441352.287830@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
> R.H.Campbell wrote:
>> I guess it's fair to say a couple of things at the risk of perhaps
>> appearing
>> to blow my own horn !!  Firstly, not everybody in our industry would
>> agree
>> with a lot of what I say; in fact, many take strong exception to parts of
>> it
>> since some flys in the face of standard industry practices. However,
>> that's
>> ok too, since the site was geared towards the consumers perspective, and
>> not
>> the industry's perspective. I figure our industry can look after itself;
>> it's the buying consumer that could use a little help !
>
> <Snip>
>
> Actually Mike, what you have here in Mr Campbell, is one of two people
> in this group who have decided to pick apart the industry that they're
> in, by telling half truths or giving incomplete information, in order
> to generate sales for themselves with total and compelete disregard for
> anyone else in the industry. There's always that few who will, at any
> cost, try to appear as the "white knight" to people, for some obscure
> reason. Most here in this group have grown quite tired of having to
> constantly contradict what these two say and do, to make themselves
> "stand out" from the crowd. To be fair, some of what Mr Campbell says
> has value but he apparently just feel compelled to take it that one
> step further, to make the rest of the industry and their competition
> seem as if they're cheating the public. Both of these people have
> repeatedly referred to "other" dealers as cheats, liars, crooks,
> unethical, and so on ....... without any explanation or separation,
> simply because they practice capitalism. That is ...... they're seeking
> the best ways to provide customers with the services they require,
> while they make as much profit as the market will bear. Competition is
> competition, and surely, anyone is free to run their business in any
> manner they choose in order to succeed. Where the unprofessionalism
> comes into the issue, is when accusations of unpricipaled motives of
> their competition becomes one of their selling tools.
>
> Take the issure of contracts that you seem to think you understand but
> only because you've only heard one side of the story. If you'll look
> back in this thread, you'll find that someone had mentioned a reason
> that alarm companies will seek long term contracts ....... but I'll
> take a guess that you didn't totaly pick up on  the true meaning and
> effect of it.
>
> The fact is, that the revenue that is received from contracts by alarm
> companies is the greatest part of the value of the company. Alarm
> companies can get loans against the contracts to further their
> business. They, can sell the contracts for fairly nice sums, should
> they require revene to expand or if they decide to retire. And surely
> the profit allows them to cultivate their business to foster growth by
> offering lower prices for installations.  Whereas, typically most other
> types of home improvement companys can only claim work in progress
> income and "good will", as the value of their company. Does an
> agreement do anything for the end user? Well is should, but certainly
> it's important for you to read it and make sure. The one most important
> thing my agreements do, is to hold the price of monitoring for my
> clients, for the term of the agreement. But turning over lockout codes,
> warrantees, and saying what both my clients and I  will and wont be
> responsible for, are valuable to both parties.
>
> In Mr Campbells case, he only gives his clients a month to month
> contract. So in effect, he could raise his price at any time. Also, he
> has no equity value in his company whatsoever. In the realm of the
> alarm installation and monitoring industy, his company is worth zilch
> and he can only offer and sell it to someone that he "knows" will buy
> it for "top dollar"  ..... he says. We kind of believe here, that we'll
> believe it when we see it, as the starting standard in the industry,
> for any investor or purchaser of an alarm company is ........ how many
> contracts and what are their terms. How else could a prospective
> purchaser buy accounts without any "paper" to assure a long term return
> on his investement?
>
> Another factor in Mr Campbells decision to follow this path, is that
> he's already got a healthy income from other sources, so that building
> equity in *HIS* company isn't important to him. These are also the same
> reasons why he can afford to give free lifetime service and parts. I
> mean certainly, we'd all like to be in Mr Campbells position to not
> have to run our business in the most profitable and equitable way
> ...... and we'd certainly like to be one of the benefactors of his
> policy ...... his customers. However, I doubt that many would use it as
> an avenue to depreciate all other alarm companies. Obviously, he's free
> to use his good fortune to his advantage but ...... again, belittling
> other alarm companys under the guise of being a champion of truth
> justice and the American way, is rather ...... shall we say ..... less
> than honorable. But, I guess, with out a full explanation, it's nice to
> appear have the attributes of Abe Lincoln, St George the Dragon Slayer,
> Mr Clean, and the White Knight, all in one ...... to people such as
> yourself.
>
> In effect, from the point of view of 99.9 % of other alarm companies,
> what Mr Campbell is doing, is giving away a little piece of his
> company, to every client he aquires.  And without any explanation to
> people like you, he espouses his no contract policy, as being the high
> road and portrays all others, who seek long term contracts,  as out to
> bilk the public.
>
> In reality, you will find out that as you do your due diligence search,
> you most assuredly will not find anyone that will offer you less than a
> one year agreement. You SHOULD, read the agreements closely. Ownership
> of the equipment, renewal terms, limitations and requirements; leasing
> versus purchase. Lock out codes being provided should you cancel upon
> temination of the agreements ...... and more ...... are all legitimate
> concerns you should be aware of.
>
> So you see, things are not always as they appear.
>
> By the way, beware of someone who doesn't offer you ANY agreement.
> Minimally, the agreements protect the alarm companies from being sued
> by you or your insurance company, should you suffer a loss. Alarm
> systems detect ..... they don't "protect"
> ........ in spite of what your insurance company thinks. Just because
> you have an alarm system doesn't mean you wont suffer a loss. Alarm
> companys are not insurers and are not liable for your losses .
>
Jim, thanks for taking the time to post your informative reply.  My belief
is everybody has their unique opinion.
 I've contacted two independents in my area.  One had been sold twice and
neither one called me back.
So far, Brinks is out and ADT is on the list.

Mike