Old subject new input Re RHC

[Jim <alarminex@xxxxxxx>]

The following was posted to Ken Kirshinbaums blog.

Since it comes from someone in Canada, I thought Robert C might have
some interest in it. This comes from the point of view of a purchaser
of accounts.

(Quote)
Ken:-
There have been many valid and worthwhile comments about purchasing
accounts. I would like to add a couple of things to consider for those
who are thinking about buying. Determine up front the vendor's
relationship with his customers in regard to service calls. Of all the
acquisitions that I have done the greatest cause of attrition are
those customers who were never charged for service calls. When we do
service and send them a bill they kick and scream and complain that
they never had to pay for service before and they don't intend to do
so now. And they leave. And I have to assume that they are finding
some other character out there that will include service for free.
Always ask about the vendor's policy of charging for service and if
they don't charge walk the other way or cover yourself with a
significant holdback over an extended period of time. Otherwise you
will pay for accounts that bail out first time you do a service call,
and you may not even be paid for the service work.
The second thing is avoid those vendors who don't have contacts with
their customers. Those of us who are even a little savvy about the
business know and understand the need for contracts. If you buy a
block of customers who have never had contracts and you send them an
agreement way too many of them will kick up a fuss and refuse to sign.
In Ontario we use the valid excuse for residentials that the Consumer
Protection Act requires contacts for services valued in excess of $
50.00, or for services to be provided in the future. Obviously both
conditions apply to alarm monitoring services. But they still refuse
to sign! As always =96 buyer beware!
Dave Currie
Damar Security Systems
Sarnia Ontario Canada.
(End quote)