Re: How do you price CCTV service contracts?

["Bob Worthy" <securinc@xxxxxxxxxxxxx>]

"DA" <test_at_1-script_dot_com@xxxxxxx> wrote in message
news:447df422$0$23769$a82e2bb9@xxxxxxxxxxxxxxxxxxxxxxxx

> Reading the latest BICSI News newsletter, in the "Secure your bottom
> line..." article the author argues that typical charges for a CCTV system
> service contract is 1/3 of the contractor's equipment cost annually.

Way to aggressive. You will never compete with that formula.

> I would have to charge $1250/month PLUS additional labor for cleaning the
> cameras once a year as per that article in BICSI News.

They teach that to support the BICSI training center they have here in
Florida. Quite the operation. First class.

>Is this realistic
> here in North East US?

If it is, I am moving.

> So, what would you say? Walk away or raise the proposal to $1250/month?

> Any real life input anyone?

First, what are you proposing. Don't confuse service with maintenance.
Although, people lump them together, they really are two different issues.
If you are offering maintenance, check with your attorney because there are
some legal issues that you may or maynot be aware of. Maintenance lends
people to believe it is your responsibility to make sure they are working
24/7. After all you are receiveing money to "maintain" them in working
order. If a camera is out and it is their responsibility to contact you
about the problem, then they are requesting "service". I used to have
Service and Maintenance agreements that I used for everything. Now, also
have just service and just maintenance, as well.  Be specific as to exactly
what your obligation is on any agreement. You need to take everything into
consideration and then find a program that will satisfy both parties. Items
to consider are, How long of an agreement are we talking about? As needed?
Scheduled? When called? Service only? Maintenance only? Service and
Maintenance? How often? Part replacement? Parts only? Labor only?
Parts and Labor? Is your warranty different than the manufacturer's? Are you
passing on the manufacturers warranty? Normal working hours? 24/7? Where is
the location in conjunction with your office? Are talking portal to portal?
Actual time on job? Any which way you configure the program, there will be a
price difference. This shouldn't be a one shoe fits all senerio. If there
was one, we could all sit and throw out prices for installations over the
phone without seeing the job.You need to sit down with your customer and
build a program that fits their needs and budget. Best formula? One that
makes you money and fits within your customers budget. Sounds simplistic,
but it is reality.