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



> 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.

That's true, Tom, but Bob has found that in the vast majority of cases the
alarm company makes out alright because most customers aren't dishonest.
Most customers only want good service and, if they get it, they'll stay with
the alarm company for as long as they own the property.

> In your proposal of having service costs paid up
> front and still a month to month contract then the
> client can get screwed.

Up front or built-in maintenance charges are similar to insurance fees.  I
have a contract with a local firm to maintain all of the major appliances,
as well as my two HVAC systems.  Everything but the pool and spa is covered.
Last year there was a problem with my oven.  Fixed, no charge.  This year
the freezer died.  It was replaced, no charge.  Next year I'll keep paying
the annual fee of around $600.  We have two fridges, a freezer, a complete
set of kitchen appliances and (soon) an outdoor kitchen will be added.  For
me paying a few dollars a month to be certain that everything is covered
makes sense.

As to whether any kind of insurance policy is worthwhile, Dire Straits put
it best" "Sometimes you're the windshield... Sometimes you're the bug," and
"Sometimes you're the Louisville slugger... sometimes you're the ball."

> 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.

If the client pays his bills on time and your business is thriving, you're
not likely to drop him.

> 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.

For almost any service arrangement, a one year term is reasonable.

> Whole different can of worms on a new install.

That depends on how the client is paying for the system.  Almost every
system we installed included the offer of a 1-year monitoring contract.  The
vast majority of clients wanted the service.  All but a very few stayed on
after the year expired.  ear in mind, of course, that most of our clients
were in W Hartford and Farmington Valley towns.  The average client was high
middle to upper class.  If your marketplace is a different demographic you
may se different results from a similar approach.

Regards,
Robert L Bass
Bass Home Electronics
www.BassBurglarAlarms.com




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