Re: Question about buying alarm accounts

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

Stephane, I suggest you be very careful about buying accounts from just
anyone, especially the very small dealers. There's a lot you have to do
upfront before you even try to determine a fair market price for them. A few
thoughts below:

1- You might want to be shown the customer records and some relevant
information showing the cash flow coming into the business. Do an analysis
to see what revenue stream you can realistically expect from them.
2- What is the sellers reputation in the industry re quality of installs,
customer service, time in business etc.
3- How many different makes and models of panels in his customer base, and
are they all on line currently
4- Is he doing his own billing or subbing it out. How big a problem are "non
payment" accounts. How many does he currently have that are not fully paid
up to date.
5- What is his current attrition rate versus the industry norm.
6- What does his current monitoring station say about this dealer (off the
record...)
7- Did he install these panels himself or sub them out.
8- What assurances do you have that his clients will be happy to swing over
to you ? How does this client plan to advise these clients of his company
sale (or does he at all...?)
9- What length of term contract applies to these customers ? (but don't
depend too much on that; if they are unhappy, and choose to leave for other
reasons, you will likely be able to do nothing short of suing in small
claims court......)

There are a few dealers around town here that have approached me to sell me
their accounts. I wouldn't touch them with a ten foot pole ! And there are
others who's accounts would be as good as gold in the bank !

In our business it is "buyer beware" (for both end user and account buyer
alike...).

RHC

"Stephane Laviolette" <manouche_j@xxxxxxxxxxxx> wrote in message
news:kowzf.66464$NQ5.1401305@xxxxxxxxxxxxxxxxxxxxxxx
> true its not much
> but i'll be starting on my own
> 100 accounts could give me a good start by at least paying for my store
> rent
> or part of it
> but the technical aspect I got warned about already..
> and it makes sense, it could be alll junk
>
>
> "Crash Gordon" <webmaster@xxxxxxxxxxxxxxxxxxxxx> wrote in message
> news:LTszf.13$I35.31@xxxxxxxxxxxxxxxxxx
>> Be really really rweally careful - if they're junk installs, or slow
>> pays,
>> you're buying a headache.
>>
>> 100 accounts is not very many for a "jumpstart"...you could easily do
>> that
>> in 6 months with a couple of installers on your own. Besides it aint much
> of
>> a monthly income after you pay monitoring and billing costs and taxes.
>>
>>
>>
>>
>> "Stephane Laviolette" <manouche_j@xxxxxxxxxxxx> wrote in message
>> news:AHizf.48528$Fl2.1205627@xxxxxxxxxxxxxxxxxxxxxx
>> | Hi
>> |
>> | I hope this is the right place to ask this question...
>> |
>> | Well i'm looking to get into alarm sales & monitoring and may have an
>> | opportunity to purchase existing alarm account.
>> | If contracts have 12 + months remaining and charge 16$ monthly what do
> you
>> | thin is a resonnable price to buy 100 or so of these accounts ?
>> | This would be great and give us a jump start and a steady monthly
> income.
>> | any advice would be appreciated
>> |
>> | Stephane
>> |
>> |
>> |
>>
>>
>
>


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