Re: Brinks & Broadview Takeovers

["Robert L Bass" <Sales@xxxxxxxxxxxxxxxxxxxxx>]

"Jim" wrote:
>
> Are there abuses of lockouts ......... sure! Is the concept bad and does
> EVERYBODY abuse it? NO!

Agreed.

> Those that abuse it are bad. Not the lockouts. Guns don't commit the crimes.

They just make it easier to commit the crimes.. until the jerk comes up
against a well-armed, well-trained gun owner.

> The issue about long term contracts is a non issue. It has nothing to do
> with the end user ...... IF IT"S NOT ABUSED!

Agreed.

> Tell me you didn't have contracts with your clients...

I did.  They were annual or tri-annual with one-year renewal.  The choice was
up to the client.  If they signed for three years the price would remain fixed
for three years.  Otherwise it *could* go up at renewal time though not
always.  I tried to stay competitive in the local market.

> What do you mean "normally"?

Bad choice of words.  I should have said, "more often than not."

> Where has it been unequivocally determined that term contracts are always
> abused or mostly abused or "normally" abused?

I honestly can't say that it has.  What I've seen, though, is that the worst
players use longer term contracts, longer notice requirements and longer
renewal periods.  It's certainly not universal.  Some good dealers use all of
the above.  But the best ones I've known over the years had shorter initial
contracts and easier cancellation terms.  Like Bob says, it's a lot easier to
keep clients by treating them well than by locking them into a rigid
agreement.

> How much less would you have been able to get for your company if you didn't
> have contracts.

My situation was unique.  SInce the guys who bought me out were the same guys
who worked for me under contract for many years, there would not have been any
difference.  Most of our clients wanted to know one thing -- would xx and yy
still be servicing their systems?  Once they knew the answer very few left.
Most were long-term customers who were by then under month-to-month contracts
anyway.  Only 100 or so were recent adds.  Most of them stayed on as well.

> What? Are you saying that you didn't abuse the contracts?  OH MY GOD! HOW
> UNUSUAL!  Are you saying that you wouldn't sell your accounts to someone
> because THEY might abuse them? Well, that can't be ..... because you did
> sell them. Being rather hypocritical ..... aren't you?...

I don't think so.  I sold them to the people I trusted most.  I knew these
guys for nearly 20 years and they had always treated my customers well so I
had no doubt they would continue.  I never talked to one of those brokes who
are always pestering people like you and me to let them sell our business for
us.

> Bullshit! And no ...... it's not for the benefit of the client ..... it's
> for MY benefit.

That's fine as long as you are fair and honest and I have no reason to believe
you're not (regardless what I may have said or thought during turmoil past).

> The reason I went into business was for MY benefit.

Same here.

> My clients will benefit from the good service I will give them in order to
> attain their good will and loyalty. But that doesn't mean that I will fail
> to gain what benefit I can get to attain value in my business...

No problem, Jim.  I'm not saying this applies to all contractors -- only that
the bad boys are more likely to use long-term agreemens, etc., etc., to the
hurt of their victims.

> Come on Robert. If a company wants a loan, from a bank, wants to sell his
> company, what will any attorney or business consultant tell the owner of a
> recurring revenew company?  Don't have long term contracts NO! Contracts are
> strictly and simply for MY benefit and in return I give my clients the very
> best service that they can want.

OK, you win.  Long term contracts are good for customers WHEN THE DEALER IS
GOOD so he will stay around to continue servicing the.  The problem is those
same contracts are used for ill by not-so-good dealers.  Imagine the plight of
one of MM's customers had they signed up for 5 years.  Yick!  Why the B.O.
alone would just... uhh never mind.

> I can understand objection to the abuse of lockouts and term contracts but
> not to the basic and intended purpose of them .....

I think we basically agree on this, Jim.  It's just that I've emphasized the
problems with this stuff whereas you've emphasized the benefits.  Either way,
you're right -- they're not going away.

--

Regards,
Robert L Bass

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