Re: Term agreement with NextAlarm (Fishy?)

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

<thx123> wrote:
>
> Thank you Robert. As long as that term agreement is industry
> standard I am okay. I understand that the alarm monitoring
> companies are not making much money from the subscribers' monthly
> fees...

FTR, they actually make lots of money but it's spread out over
thousands of accounts.

> so it makes sense that they don't cover the liability cost,
> considering the insane legal costs in the US.  I guess the reason
> why NextAlarm can be a lot cheaper than the industry average is
> because they effectively shift the responsibility of installation
> and maintenance/test to the end users through DIY systems...

That's true but most "traditional" alarm monitoring companies don't
do the installation or service either.  The most common arrangement,
with the exception of the big, national providers, is for a local
firm to install and service the system while a 3rd party station
provides the monitoring service.  In those arrangements the local
company pays between $2 and $7 a month for the service and marks it
up to between $20 and $40 or more a month.  Considering a mid-sized
local alarm company can install 2-3 systems a day, it doesn't take a
rocket scientist to see why local firms are primarily interested in
selling monitored accounts.

What NextAlarm and 911Alarm do is sell direct at a rate that is
higher than what alarm companies pay but less than the going consumer
rate.  Interestingly, whiile NextAlarm has their own facilities,
911Alarm actually resells the services of many of the same UL-listed
cntral stations that the locals use... but at about 1/2 to 1/3 the
price.  Needless to say, many alarm installers and dealers resent
guys like that.

> which I am okay with since users can see real time feedback of
> system activities, not just alarms, online or through email or
> phone messages.  If I use a traditional monitoring service I would
> not know completely if the system is always sending signals out and
> company receiving them correctly.  I know there are periodic tests
> but I still feel a little unsafe about that fact, so I would rather
> maintain it myself for peace of mind given that I know electronics
> pretty well.

I understand and I agree with you.  There are some good things to be
said for traditional monitoring but you can do things yourself that
they can't/won't offer.

> Thank you for your reference to 911.alarm.com. I tried the URL but
didn't work.

It's www.911alarm.com.  Those little dots make a big difference.  :^)


> FYI, NextAlarm also provides wireless cell service as a backup for
> full dialer. But I am not planning to order that since my
> neighborhood is pretty safe in general, and I don't have much
> valuable belongings...

We also offer digital cellular dialers.  Many central stations, both
conventional and DIY-oriented, work with them these days.  I'm in the
process of revamping our online presentation of the various options
since analog units are becoming obsolete and there are several new
digital models available.  Still, most of the people I deal with take
the route you have, DIY the installation and either self-monitor or
work with 911Alarm or NextAlarm.

> I just want more safety for my family after
encountering a suspected burglar in front of my house last week.
Fortunately I was home then.

Glad you didn't have a worse problem.  You're doing the right thing.

--

Regards,
Robert L Bass

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http://www.bassburglaralarms.com
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