Re: Brinks & Broadview Takeovers

[tourman <robercampbell@xxxxxxxxx>]

On Oct 2, 10:00=A0pm, "Doug" <n...@xxxxxxxx> wrote:
> "tourman" <robercampb...@xxxxxxxxx> wrote in message
>
> news:404dd192-3526-4aaf-b76b-ab6ae2a2959c@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
>
> > So, yes, in that sense I contributed to the lowering of prices, but
> > things have since gone from the sublime to the ridiculous. Many
> > companies charge $12 full service all the way down to $9 no service. I
> > know that they are not making money overall, unless my previous rate
> > calculations were way off.
>
> I don't know what the average rate was in your area when you were a newco=
mer
> to the alarm business and priced your service at $15 full service, but if
> the average rate was $25 then you priced yourself 40% below your
> competitors. If the average rate was $20 then you priced yourself 25% bel=
ow
> the competition.
>
> If the rate you charge is still only $15 for full service, then a newcome=
r
> charging $12 for full service is only undercutting you by 20%.
>
> I'm sorry but I fail to see any logic to your position that things have g=
one
> from the sublime to the ridiculous, you apparently entered the game at
> between 25% to 40% below your competitors and now are unhappy when others
> are entering at 20% below your price.
>
> Doug

RHC: No....I'm unhappy about the newcomers who don't do good work
whatever they charge, $12 OR $25.. Bottom line, the super discounters
don't affect me much if at all. You've missed the point of this
discussion. When the price gets too low, with people scrambling to get
accounts at any cost, that's the start of a downhill slide in the
industry. If the "super discounters" were to actually do good work,
and give good service, then my hat would be off to them !! But that
doesn't happen.