Re: Old subject new input Re RHC

[tourman <robercampbell@xxxxxxxxx>]

On Nov 17, 8:47=A0pm, Jim <alarmi...@xxxxxxx> wrote:
> 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)

RHC: Well...isn't this interesting. For once, I'm not the one bringing
up this subject again. However, since you brought it up, I will feel
completely free to comment in ways that I said I wouldn't
(remember...you brought it up).

What a pile of crap ! This is one sad excuse for a company charging
clients for unnecessary long term contracts when they are not
necessary ! Consumer protection laws my ass !! There's no such thing
governing services in Ontario valued in excess of anything here, and
it's dishonest to say so as an excuse to extort a long term contract
out of them. I'm assuming his reference to contracts is in reference
to a LONG TERM value as opposed to just a month over month term, since
no one in business would provide monitoring services without a formal
contractual agreement in some form.

There are loads of companies all over Ontario who don't demand a long
term commitment, and they are growing by the month. More and more, I
find I am no longer unique in doing so, such that it's probably a good
thing that I already have an established reputation in the market,
otherwise, I'd be down at street level, burning rubber to build my
business. And who the hell would ever go out on a service call without
reviewing costs in advance with the client ??? Free service is only a
perception thing; service and warranty is "bundled" with the
monitoring rate (and in my case they are actually paying $4 a month
for it). Increasingly, the discount monitoring places (such as The
Monitoring Centre in Toronto) are gaining in size at a tremendous rate
compared to conventional companies, and they are doing so, NOT just
because of low rates, but because they don't demand long term
commitments from their clients (and how do I know this...because the
owner of one of the larger discount companies here in Canada is a
personal friend of mine. His perspective on the market is VERY
interesting...). It's alos interesting he agrees with me on the
dangers of a client forgetting about the importance of ongoing service
and warranty for their system....

Of course, any customer who's had the freedom to choose over time
would refuse to sign into anything long term with a new company.
However, assuming the systems meet all the other criteria for a good
purchase, that doesn't materially lessen their value to an astute
buyer for that reason alone. And if this company bought accounts from
another company who dealt with their clients more flexibly, and then
tried to force them into other more restrictive terms more in line
with how they have been running their business, it's no wonder these
customers would squawk. That simply means the buyer didn't do his "due
diligence" properly and is now paying the price !!

I've heard all this crap before ! I've reached the point where I no
longer totally blame alarmco's for doing this - they're only trying to
maximize their advantages. I blame the consumer who allows himself to
be suckered into one of these agreements with little or nothing in it
for them because they are too lazy or stupid to shop around. Its the
same stupidity that allows companies like Alarmforce to survive, and
the "free system" marketers to continue to thrive.

There are a couple of things that I have come to believe are simply
wrong in our industry. One is long term contracts when they are not
necessary (takeovers, and when systems are fully paid for). The second
is a total disgust with companies who produce boards that can be
locked, and especially the alarmco's who use those features as weapons
against consumers and other alarm companies. It's amazing to watch how
locking boards becomes an established pattern within a company as
their attrition rates rise due to a fall down in service levels.

So this company can go ahead and justify their actions any way they
want; arguments such as this are self serving drivel as far as I'm
concerned. In conclusion, run your business anyway you see fit. I'll
continue to run mine exactly as I have been doing for the last 15
years. I know exactly how much my accounts are worth with the buyer
who will get them when and if I ever retire. In the meantime, I'll
enjoy the RMR and continue to give my clients the best terms I can....

And it sure makes it easy to beat all the other more conventional
companies around.......