Re: Any tips for a consumer about to purchase a system & contract?

["tourman" <rh.campbell@xxxxxxxxxxxx>]

> > but it occurs to me that there is some middle ground here and I'd like to bring
> > it up so that I can better understand things from various POVs.  You
> > point out that there would be some upfront work to getting the existing
> > system up and running.  The costs of such could be paid separately (in
> > the same way that the costs of a new system could be paid separately)
> > or those costs could be built into a service contract of some minimum
> > term.  Does it really matter to you which approach is taken?  If so and
> > if you have the time, could you explain why?  Thanks. <
>
> OK in Bob Campbell's proposal the alarm company can wind up screwed. I
> send a tech to your house umpteen miles away to program a system for
> $20. $20 won't pay for the gas in the truck, and you the customer can
> tell me adios  after the $20 service call.

RHC: And why would the client ever do that. In my 12 years in the
business, that has NEVER happened ! The customer has called because he
wants you to put him on line and be his dealer. I can't think of a
single reason why any customer would up and decide to go elsewhere
after a month's service (except perhaps if he hadn't done any price
research and your monthly rate was WAY far out of line.) There is a
measure of basic two way business trust here, and it seems to me you
are assuming the worst here. I can't see any client wasting his time
and ours only to leave after a month or so. Now if you made a pass at
the guy's wife, or kicked his dog, I could understand it....:))
>
> In your proposal of having service costs paid up front and still a
> month to month contract then you the client can get screwed.
> Let's say I charge you $100 for arguement's sake for a service call,
> and next month I decide to terminate the agreement. Now you're left
> having to hire another vendor and pay another $100.

RHC: What on earth would ever make you terminate his agreement after
one month. Lets be real here, no one drops clients just like that in
the real world ! (what are you smoking ?...:)) The only reason I've
ever dropped any clients is for non payment after six months or a year
of not paying, and they would go long term contract or not. Alarm
contracts only limit the client's movements, never ours. If we should
decide to drop the customer, there are no encumberances on us. ONLY on
the customer !!
>
> Using a contract term of say a year assures me that I will profit,
> which I am entitled to do, while the client receives service, which
> they are entitled to. This is only for an existing system mind you.

RHC: A one year term is not onerous although it's still unnecessary.
But I can see how some might feel they need it to recoup any upfront
signing costs. Long term is three to five years and that is way out of
line on takeovers in my opinion.
>
> Whole different can of worms on a new install.

RHC: Absolutely !! There long term contracts pay for "lower than they
should be" front end system costs. That's just marketing ! And I've
never argued the validity of that (except in the phoney "free system"
arena).  I just don't market that way in my company. After the few bad
experiences I've had trying to get some of my early leased equipment
back, I can't imagine how difficult and expensive it would be to force
a client to pay up if he really didn't want to. So I recoup ALL my real
sunk costs up front leaving nothing hanging out long term !!  If the
client leaves suddenly after six months, so be it ! I'm not behind the
eight ball financially at all ! Besides, he probably lost his job and
had to sell, so I certainly wouldn't won't to be looking to make his
live any unhappier than it is !! The one time that actually happened, I
carried the client for a year until he got another job so as not to
ruin his alarm system, and he paid me in full. You can call it
"pollyanna"; I call it one other way of caring for the client !!