Re: Brinks Home Security Fraud

[Jim <alarminex@xxxxxxx>]

On Jun 22, 10:00=EF=BF=BDam, tourman <robercampb...@xxxxxxxxx> wrote:
>
> RHC: Bob, this brings up an interesting question (and one that
> definately IS on topic).
>
> Every business has to strike a proper (for them) balance between costs
> and income. I chose at the beginning rightly or wrongly to provide an
> all inclusive service for a very reasonable rate with no long term
> contract. I wanted to be different rather than play in the
> conventional marketplace. The gamble paid off for me handsomely and
> makes it especially easy to compete against the large companies (there
> is no competition really unless they get suckered first by a smooth
> talking salesman). My warranty is 100% with no exclusions for ANY
> reason for as long as the alarm is monitored through me. The only
> "downside" is I don't install alarms at discounted prices, and I ONLY
> do automatic billing. If a client wants a system at a lower rate up
> front, and doesn't mind signing a contract, I refer him to other small
> dealers for service (as they do for me). It's perhaps an unusual
> market niche, but one I'm being successful in. I also know that I
> simply don't have it in me to insist on the client paying out a
> contract when he moves, and if I did business that way, and didn't, I
> would be losing money. =EF=BF=BDSo I recoup my equipment costs at the fro=
nt
> end (and then some)
>
> Our market in Ottawa is a little different I suspect from a lot of
> places. People have a lot of money, and are very fluid here in the
> high tech industry, and they move a lot from home to home and place to
> place. They like the freedom of no long term contract, and have the
> money to easily pay a fair market price for a system. There is little
> if any haggling involved. Other places, this formula might not work at
> all, and I understand that...
>
> Over the years when I have had to fix a broken alarm, and the client
> has forgotten my motto...."you own the system - we own the problems -
> period !!", and his system is fixed at no cost to him, most are
> rightly surprised, but pleased (obviously), and my phone is soon
> ringing with referrals and takeovers ! This approach would never work
> for any large company, or even a small one with large overheads, but
> for me, staying small and efficient, it works well. I work out of a
> home office, subcontract my monitoring and billing to a large but very
> good company, pay no advertising or up front promotional costs, and
> keep all other overheads to things that are totally tax deductible.
> The way I factor it is there is $1 a month in the monitoring rate for
> "warranty", which pays me $1000 a month whether I spend anything or
> not, and $2 a month for conventional service and troubles. The rest is
> income from $15, less the monitoring fee. So in a sense, I am being
> "paid" for my work, but not just in the standard way. Plus the two
> high end, full priced systems that I install weekly easily pay my
> son's salary plus profit for me. It's different, and does generate
> some flack from some other companies, but usually because they don't
> understand the cost structure, or are in the "free system" game, or
> just don't want to take the longer range view. And in some cases, they
> simply disagree with it, and that's fair ball.
>
> But the bottom line question is whether I'm making money, providing a
> decent service to the community, and enjoying my business. Bingo for
> all three so far (especially the first...:)).
>
> I too have had a couple of clients who couldn't afford the monitoring
> because they lost their job in the high tech market. I have carried
> them while they get back on their feet, rather than see them mickey
> mouse their system, and like you, they have come back. Business is (or
> should be) all about two things - helping people and making money.
> Sometimes one reason takes priority over the other. But that's a rare
> situation, and you have to make sure they don't see it as a form of
> charity either....
>
> I do understand when others in the newsgroup snipe at this. That is
> natural given their market and the way they do business. I actually
> see that as one sign I'm doing things right, although I don't need any
> additional =EF=BF=BDproof in that regard. The tax man reminds me of that =
once
> a year......-

I would have treated this customer the same as you did, under those
circumstances but not because I'd expect her to give me more referrals
or have a better "feeling" about me.  As a result of being in business
so long, I've got a good percentage of "older" customers that I do
"gratis" things for and not because I expect anything back from doing
it ...... either.

However, as magnanimous as it sounds when you say or write
it, .........
practically, ..... your " $1.00 equals $1,000.00 .... so that you
don't have to charge for service and you get more referrals and good
will "   .... is Polyanna thinking..... which is something you're
prone to do.

You are actually leaving thousands of dollars on the table that your
customers would be more than happy to pay BECAUSE of the good serivice
and follow up you do. You've only got the "notion" that you are
getting more referrals and good will. This is something that you seem
to be prone to doing. It's simply a "feelgood" reaction that you're
having and has nothing to do with whether  you actually DO get MORE
referrals than anyone else who gives good service and DOES charge for
service. It may make you FEEL like you're going the extra mile so you
must be getting more out of it, but it just isn't practical from a
business point of view. You don't seem to understand that even if you
DID charge for service, and you also gave GOOD conscientious service
and "threw in" those little extras while you were on a service call
( like not charging for a switch or a part, but did charge for the
service call) that people actually EXPECT to pay you for your time and
would be just as grateful and would refer you just as much as you're
getting now. People are actually grateful to HAVE someone that they
can count on to be there when they need help.They wouldn't be any less
exuberant about you at all and are glad to pay for good service.

By doing what you do, you are actually doing the very same thing that
you complain about the Nationals doing.  You are demeaning the value
of what you do, what you know, your expertise and also what all alarm
companys do. You don't tell your customers that they are paying for
the "free" service up front. Just like the "feebee" companys, you
devalue what you know and your skills by giving it away for what the
consumer sees as NOTHING!
And if ya get it for nothing ........ it's worth nothing. Free is
Free!

I can just see your customers when ever you do everything for them for
free. They just look at each other, raise their eyebrows, shake their
head and shrug their shoulders ....... thinking ..... wellll
aaalllllright ..... coool .... I don't have to pay .... But would have
thought none the worse if you'd have said    .... "$75.00 for the
call". And occasionally, "the parts are on me", or throw in a battery
or whatever.

 So instead of the feeling you THINK they have, they're
thinking ...... How stupid is this guy? Well, hell, if he doesn't want
to charge ..... thats ok with me! Hey Charlie, ya wanna good alarm
company? THIS guy doesn't charge for service! How come? Hell Idono,
but ya may as well take advantage of it while it lasts .... it's
FREE .... isn't it?


Do you really think that they'd not refer you to someone else if you
charged for service calls? The answer is no. As I say, it has nothing
to do with how your customers react. You giving free service only has
to do with how it makes YOU ** FEEL** And thats not good business, if
for no other reason than it's not a good return on investment.

They're going to refer you whether you charge for service or not. Who
the hell else are they going to refer someone to?  They've only got
you for an alarm company. Jeeeeeze!

I don't advertise. I have an unlisted telephone number. I haven't
bought a box of business cards in so many years, I can't remember. I
get approximately 2 to 4 referrals every week while I also get $95.00
per call. ( recently raised in anticipation of everything going up in
the near future and to cover the cost of fuel)
You're leaving THOUSANDS behind by not charging for service, in
addition to devauling your company when a buyer sees that they have to
give free service and that you've only got one month long contracts.

Sure, I can understand that you've got another source of income and
that this policy works for you, but it certainly isn't practical and
obviously hasn't, isn't and won't become a way of doing business in
this trade, in spite of your fanciful dreams, and speculations that
you make in this group.

What you do makes no business sense at all and its all only because it
makes YOU feel good because you think your customers will like you
better. What the hell is that?  A self esteem problem  or what?  "LIKE
ME, LIKE ME. See what a nice guy I am? While your customers are
thinking .... Stupid, stupid, take advantage while I can.

(Someone please repost this .... just in case he really does have me
filtered.)