Contract

[Blythe Noe]

It is getting close to the time when a new contract is due with one of
my major clients. What do you consider to be the "average" length of
a contract for a combination of monitoring, alarm maintenance, and
video maintenance? There are 63 systems under this contract. Your
input will be appreciated. Thank you.

 

[jackcsg]

I'll give you a case of beer if you let me right that one for you....
I might have a $50 gift certificate to Outback Steakhouse laying around here
somewhere as well.

Jack

 

[Frank Olson]

It is getting close to the time when a new contract is due with one of
my major clients. What do you consider to be the "average" length of
a contract for a combination of monitoring, alarm maintenance, and
video maintenance? There are 63 systems under this contract. Your
input will be appreciated. Thank you.

We have contracts with several corporations and property managers. The
length of term varies. Government (and some private) contracts are usually
two to three years and are re-tendered at the end of every term. Property
managers usually stipulate to a one year term and will renew with the same
Dealer as long as the service is "outstanding" for the dollar they pay. In
your situation, I would suggest looking at the "geographics". The "63
systems" you mention... are they "scattered" over a large region?? Why
would they insist on including the monitoring service along with the
maintenance under one "umbrella"? If I were you I would try to get that
separated. You can easily make it worth their while to do so.


--
Frank Olson
http://www.yoursecuritysource.com
Free listings for qualified dealers and industry professionals
You can read the ASA FAQ at
http://www.yoursecuritysource.com/asafaq.htm

 

[Bob Worthy]

We have contracts with several corporations and property managers. The
length of term varies. Government (and some private) contracts are usually
two to three years and are re-tendered at the end of every term. Property
managers usually stipulate to a one year term and will renew with the same
Dealer as long as the service is "outstanding" for the dollar they pay. In
your situation, I would suggest looking at the "geographics". The "63
systems" you mention... are they "scattered" over a large region?? Why
would they insist

Maybe they didn't. Was the option of separate agreements ever addressed.

on including the monitoring service along with the

maintenance under one "umbrella"? If I were you I would try to get that
separated.

I agree totally. Why jeoprodize the whole deal. If the contract is all
inclusive and you have a deficientcy in one area of the contract, for what
ever reason, but are performing 100% in all the others, you have put
yourself in a position to loose the whole thing. I am sure you would rather
back away from servicing a particular location, if you were have problems,
but still keep the other locations in tact. Under one contract, you could
loose everything. You also have flexibily when you separate the two.
Monitoring for three years, service and maintenance annually for instance.
This will allow you to adjust for increased labor and overhead expenses
rather than suffering it out for three years. Frank's point about location
is very important when it comes to service and maintenance and each should
be looked at individually. They may pay a little more on some but less on
others.

Bob4Secur

 

[Blythe Noe]

We have contracts with several corporations and property managers. The
length of term varies. Government (and some private) contracts are usually
two to three years and are re-tendered at the end of every term. Property
managers usually stipulate to a one year term and will renew with the same
Dealer as long as the service is "outstanding" for the dollar they pay. In
your situation, I would suggest looking at the "geographics". The "63
systems" you mention... are they "scattered" over a large region?? Why
would they insist on including the monitoring service along with the
maintenance under one "umbrella"? If I were you I would try to get that
separated. You can easily make it worth their while to do so.

Thank you Frank: Your input is most appreciated. These accounts are
in fact spread over a rather large area. This is a rural area,
consisting of small towns, with a few larger towns spotted around.
From my office, about 10 of the accounts are 150 miles (one way), one
account is 225 miles, and the balance of the accounts will average
about 65 to 75 miles. Most service calls will take a minimum of 4
hours (travel & repair) while some will take all day. The client has
not insisted on the monitoring be included with the maintenance, it is
just the way that it has been for years. Once a year, they are
invoiced for the year, with the monitoring, alarm maintenance, video
maintenance, and several with door access control maintenance. Each
item is shown and priced sperately. Is there an advantage to having
the monitoring seperate?
Again, thank you.

 

[Frank Olson]

Thank you Frank: Your input is most appreciated. These accounts are
in fact spread over a rather large area. This is a rural area,
consisting of small towns, with a few larger towns spotted around.
From my office, about 10 of the accounts are 150 miles (one way), one
account is 225 miles, and the balance of the accounts will average
about 65 to 75 miles. Most service calls will take a minimum of 4
hours (travel & repair) while some will take all day. The client has
not insisted on the monitoring be included with the maintenance, it is
just the way that it has been for years. Once a year, they are
invoiced for the year, with the monitoring, alarm maintenance, video
maintenance, and several with door access control maintenance. Each
item is shown and priced sperately. Is there an advantage to having
the monitoring seperate?
Again, thank you.

You're most welcome. Bob Worthy's already answered the last question you
had. It is better for you (even legally) to have the monitoring and service
agreements separate. Have you managed to "track" the service histories of
the various sites? You would be in the best position to judge what is and
isn't profitable and make ajustments accordingly. You'll also be able to
demonstrate to the customer why there are increases in one particular
region/location over the others. If you start to factor in the fuel costs
(in Canada we've had a 75% increase in the price of gas over the last year),
you might consider tacking on a "fuel surcharge" to every invoice that's
generated from the "out of town" trips if your customer doesn't feel the new
contract price is justifiable (I can't imagine that he won't if you've been
tracking the service tickets). The other thing you can offer is a "rebate"
on service in the next year of the contract if it winds up you don't spend
as much time on a particular site as you've allowed for. "Credits" are a
powerful selling tool. )


--
Frank Olson
http://www.yoursecuritysource.com
Free listings for qualified dealers and industry professionals
You can read the ASA FAQ at
http://www.yoursecuritysource.com/asafaq.htm

 

[Aegis]

It is getting close to the time when a new contract is due with one of
my major clients. What do you consider to be the "average" length of
a contract for a combination of monitoring, alarm maintenance, and
video maintenance? There are 63 systems under this contract. Your
input will be appreciated. Thank you.

Monitoring and maintenance from my company: normally yearly, but with that
number of accounts you might be able to arrange monthly