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Posted by tourman on August 5, 2008, 5:00 pm
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> I accidently deleted the topic we were discussing on month to month
> agreements. I noticed that even though you call them month to month, they
> are really just open ended. To me, month to month means that one can say, "I
> just need monitoring for this month while I am in town and then shut it
> down. I'll call you next year to activate it again for the month of August."
> I take it from your post that you sign a client with the intention of
> providing service for years but if the client sells the home, he has no
> further obligtion. That is what I refer to as open ended. The agreement
> actually has no expiration date. I personally wouldn't sign anything that
> didn't have an end. Do you have any minimum requirements or is that based on
> the install price and/or your gut feeling? With mine, after the initial
> term, with a 30 day notice they are free to go even though they are in a
> renewal period. It doesn't state that in my agreement though. Each one is
> decided on a case by case decission. There is always the dick head scenerio
> which puts them in the "pay off your agreement" pile. I have several
> apartment communities that I have exclusive agreements with. I sign the
> renter up for the length of their lease which is normally a year. I get
> first an last at the time of activation because when they skip, which they
> do, I have my last month. The equipment is there and I don't have any
> investment in the equipment. Some will call with only a few months left on
> the lease and I will sign them anyway. Inorder to protect my exclusive
> agreement, I don't want to play hardball when, depending on the property,
> there are anywhere from 200 to 400 potential clients that can't go anywhere
> else for monitoring. I don't want the management company to open it up.
> Although different apartments, I have averaged about 100 to 150 accounts on
> each of these properties for years. That is the closest I get to what might
> be considered month to month.
RHC: I guess there is a question of terminology here Bob. When I talk
about month to month contracts, I mean fully open ended, to use your
words. The intent here is to establish monitoring services with no
clear cut end date in sight. It's available for as long as the
customer needs it and cancellable with one month's notice. The intent
is definately NOT to put it in one month and cancel the next. I make
this very clear to people during the initial installation; I am not
here to put a professional system in and have them cancel after one
month, simply to get a quality installation which they can then ruin
with no monitoring. Nor do I do "on one month; off the next" type of
service. There is nothing stopping any client from doing that, but so
far it has never happened. The intent of doing it open ended is to
leave the customer in the driver's seat so to speak. If he moves or
otherwise doesn't need the monitoring, then he can cancel ! If I let
him down as his dealer, he's also free to leave ! Since all billing is
by Pre-authorized Payment Plan, the only problem comes when someone
calls up two days before they are leaving, and I have billed one month
in advance, then I have the bother of writing a refund cheque.
I only deal in single residential customers (and about 20 or so early
commercial customers). In an arrangement that you describe, one would
have to be very careful if you didn't have some form of long term
commitment from the renters (in fact, it might be very dangerous for
you). My market niche is VERY narrow as I have said many times before,
and wouldn't work for everyone, nor for every type of
customer....Otherwise, my contracts are likely identical to yours,
with the exception of that first term period before yours go month to
month.
I have no sort of minimum commitment; if the client pays for his
system fully up front, then monitoring is available this way, with
service and warranty bundled in. And I ONLY charge full price for the
system. They usually shop around some, but quickly discover this is
the long term cheaper way to go (but short term definately not...). If
they ask about signing a contract for a lower price up front, I refuse
and redirect them to other quality dealers I know - period, no
exceptions ! So once they decide to go with me, they likely feel they
have to take the monitoring from me to be paid back for the full
market value they paid already....:))
If I appear to be "anti-long term contract" in many of my posts it's
because I am looking at things totally from the buying customer's
perspective. It is never in a consumer's best interest to commit long
term if he fully owns the system although I recognize that it
certainly is from the alarmco's perspective. But bottom line, I give
advice to people coming on the newsgroup recommending that they search
out a company that gives them this freedom. In one sense, I don't care
about the alarmco's here or anywhere (they are big boys and have had
things slanted their way for ever). I want to see some pressure put on
the industry to change their ways, although I don't for a minute think
that will happen without a massive change in consumer attitudes (hell,
if people are still stupid enough to buy into the "free system"
approach in the way they do, it will be a bloody long time after that
disappears before there will be any pressure to resist long term
contracts......). But I can still try to help the individual....
There are quite a number of companies in our area, and on the
internet, that monitor without long term commitments. I know of one
regular on this newsgroup that does as well (although he will remain
nameless to protect him against the wrath of some....). But if no one
tells newcomers on this newsgroup there are companies who do sell this
way, they will simply accept the status quo as it is !!! The market
should always provide the maximum number of choices for the buying
customer (even the stupid ones we all like to hate such as"free
systems"....)
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