Re: LOCKED PANEL

["Robert L Bass" <RobertLBass@xxxxxxxxxxx>]

> We do not use boiler plate microscopic contracts.
> We went out of our way to redo all our contracts
> so they are in larger type, single 8.5 x 11 paper,
> so the customer can actually read them. We
> removed all the confusing legal terms, because
> the customer did not go to law school...

We did the same, except the wording of our monitoring contract was
given to us by a friend who was also a competitor.  He had already
paid an attorney to draw up a "readable" contract.  It was his
copyright so he was able to share it with me.

The only thing I changed was that after the first year the client
could cancel at any time even after renewing and receive a prorated
refund of the monitoring charge. I did that to make it more
attractive for customers who were unsure if they might move or
cancel.  It worked. The vast majority of clients re-upped each year.

> It is this practice that has gained us a nice market
> share. We even leave the contract with the customer
> prior to them signing it. This way they can take their
> time to read it all. We also place initial lines by each
> critical paragraph to insure that the customer has
> read it...

This is not only excellent customer-oriented procedure. It is also
good business sense as the initials show that the customer has
carefully read things like the limitation of liability and third
party indemnification clauses.  It also shows that you have drawn
their attention to these matters -- not hidden them in a jungle of
minute-print legalese.

> We call this honest selling practices. We even
> have a translation forms in spanish, french, and
> can get then translated to just about any other
> language thanks to the internet...

Good, but be careful if you use automated translation services.  They
just translate the words as types -- usually losing most of the
meaning in the process. You might want to consider having attorneys
who are fluent in each language check the wording.

> If Brinks was to do this, they would not get as
> many customers to sign otherwise...

Many companies like that use high-pressure sales tactics, rushing
customers to sign without understanding. Then, when the customer
realizes he's been duped, they reply as another gentleman here has,
saying it's the customer's own fault for not reading the contract.
They gloss over the fact that their own practices are dishonest. The
sad thing is that sort of behavior tarnishes the industry as a whole.

> We also do not install basic systems. We do
> every opening, period. We charge $34.95 for
> 3 years to recover our costs, with no credit
> checks. We do ask for a drivers license & SS
> card, and we do verify employment.

As long as the price and terms of the contract are clearly spelled
out in readbale print there's nothing wrong with that.  We used a
similar design approach (full perimeter, backed up with motion and
glass break detection) but we charged for the installation up front.
Our monitoring fees were $20-22 a month for residential service,
including daily test.  I never ran credit or employment checks on
customers.  If they lived in the towns where we did most of our work
they could aford our services.

> After the 3rd year, the customers rate drops to $22
> a month, which includes a full maintenance contract
> that includes battery replacement...
> We mail customers batteries for wireless devices
> because we get them for $1 each on the internet...

We rarely did wireless because most homes in southern New England are
easy to wire.  We charged for backup batteries and routinely replaced
them during annual service visits if they were over 5 years old.

> We do not charge to come out to the home...
> We do limit each customer to 4 service calls
> a year to keep our costs down. After the 4th
> call, we charge a $25 trip charge. To this day,
> we have yet to visit any customer more than
> twice a year...

We charged for service visits after our warranty expired.  If the
equipment was still under the manufacturer's warranty the visit and
the hardware were free.

> This practice would bankrupt companies like Brinks.

Heh.  Honesty would bankrupt some of the peoploe who post here as
well.  :^)

--

Regards,
Robert L Bass

=============================>
Bass Home Electronics
941-925-8650
4883 Fallcrest Circle
Sarasota · Florida · 34233
http://www.bassburglaralarms.com
=============================>