Re: Question about buying alarm accounts

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

Of course it matters Jim; I never said it didn't (your sarcasm
notwithstanding).  However, it is not the be all and end all you assume. And
consumers are still well advised to shop for the shortest contract possible
as being the best thing (from their perspective...)

A long term contract probably matters somewhat more to a conservative minded
bank should you wish to borry against the equity, than it does to a buyer,
since the quality of the company / accounts in question is just as important
if not more so to the buyer (he has to live with them and service them) ! We
have a guy here in town we call "Jimmy the sleaze" ! No one will touch his
accounts; we even check them out beforehand before agreeing to take them
over. Buying his accounts at any price would be a disaster !! I have no idea
what he will do when he decides to leave the business (hopefully sooner
rather than later...)

Any company with a good reputation in the industry should have no trouble
selling their accounts to the RIGHT BUYER. Speaking from personal experience
with the two companies that I have dealt with, they seem to be just as
interested in how much work it will be to swing the account (once they've
determined they value your accounts for purchase at all). The actual monthly
dollar amount counts for far more, since any price determined is ultimately
based on the revenue stream. In our area, ALL OTHER THINGS BEING EQUAL,
monthly, one or three year terms all bring about 30 times monthly. It may or
may not be different in other areas. And clawbacks due to attrition can also
make a significant difference in the actual end value.

It would be interesting to be able to see some formal publications on this
issue of buying and selling accounts, since most of us will one day be in
that position.

RHC


"Jim" <alarminex@xxxxxxx> wrote in message
news:1137779989.770122.159680@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
>
> R.H.Campbell wrote:
> <SNIP>
>
>
>
>> 9- What length of term contract applies to these customers ?
>
>
> Really?
>
> Hmmmm!
>
>
> <SNIP>
>


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