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Dealer Programs ?

Discussion in 'Security Alarms' started by James, Feb 21, 2005.

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  1. James

    James Guest

    Can anyone here explain "in general" how dealer programs work? I see them
    advertised in trade magazines and am just curious as to what the advantages
    and disadvantages are?

    Thanks, James
  2. Bob La Londe

    Bob La Londe Guest


    I almost died laughin when I asked the guy from P-1 to send me a copy of the
    contract, and he said he didn't like to do that because everybody who asks
    for a copy before they are ready to sing never signs it.
  3. R.H.Campbell

    R.H.Campbell Guest

    Hehehe.......lets see......give up a large part of your autonomy, lose
    overall control of your accounts, assume all the financial risks, end up a
    low paid lackey of a large conglomerate, lose your individual corporate
    identity to end up just becoming another of the big alarmco's reps.....

    I knew there had to be some reason why I didn't do that.......:))) the background, the sound of Johnny Cash...."I lost my soul to the
    companies coal"....

  4. Bob Worthy

    Bob Worthy Guest

    Don't forget the charge backs, how long it takes to get paid, because they
    find every reason not to pay you, and the attrition rate in this type of
    program that the dealer is responsible for. For every 10 you install, you
    will be installing 3-4 more for free to payback the ones that fell out. Then
    you will be installing another free one for everyone of those because the
    attrition rate is around 30 plus percent. Unless you are very large and
    extremely agressive in your sales and marketing, it will take about 7 months
    to get back your initial start up money, but by that time the chargebacks
    kick in you will be installing as many free systems, to pay the chargebacks,
    as you are new systems. The numbers don't work. When the mother company
    screws up and gets sued by the customer, guess who else gets invited to the
    picnic, the dealer. This will happen because that is the way of the legal
    system, get everyone that had anything to do with it involved, whether they
    were responsible or not. Did the dealer get named as additionally insured on
    the mother company's policy? Bhahahahahahahahaha! Close your doors, get in
    your truck and go home and if you live in a state that your home is not
    protected, you may not have that either. If you have a business, it is yours
    to make or break. Don't get into a situation where others can break it for
  5. R.H.Campbell

    R.H.Campbell Guest

    It almost seems that the parties that get involved in these sorts of
    "instant buy in dealer programs" are those that either can't or don't want
    to take the time to build their own business. They hope to fly on the
    coattails of the large organization.

    But as you say, the downsides are real and can be costly, and the benefits
    can be fleeting. You definately want to read and fully understand your
    obligations before you sign their contract.

    In this case, it seems the old adage in our business also applies at our
    level....buyer beware !

  6. In the imortal words of Monty Python: Run Away....!!!
  7. Jim Rojas

    Jim Rojas Guest

    Let's not forget that after the chargebacks, they like to go behind the
    dealers back and resign the customer at a lower rate...I have seen this all
    too many times.

    IMHO, I think once a customer passes their credit check, and pays the first
    3 months, the dealer should be let off the hook. It's not the dealers fault
    that the customer doesn't want to pay the bill. Yet the dealer still has to
    pay for all costs upfront.

    I have also seen dealers sending in payments for customers just to keep the
    attrition down to zero. They usually charge the customer a fee for this.

    Jim Rojas
  8. Mark Leuck

    Mark Leuck Guest

    I gather a lot of you guys don't like dealer programs?

  9. R.H.Campbell

    R.H.Campbell Guest

    What's to like?...:))

  10. Guest

    If you listen to the bunch of old hens in here you'd think
    dealer programs are a spawn of Satan. What some of them neglect to tell
    you is they service for the very dealer programs they lambast. Listen,
    there is money in dealer programs but there are also some lousy
    programs that will swallow you up.
    Do your homework on the company first, and ask to speak to some of
    their dealers. Asking for business advice in here is tantamount to
    asking for a ham with mayo at Sid's Kosher Deli.
    You'll get neither but they will bitch you out before you go.
  11. James

    James Guest

    Yes, I understood what I was getting myself into with this group when I
    asked the question. I have been here for several years and know what goes
    on. I do look at both sides of the argument, "this group seems to be all
    one sided" and I was hoping to find out the good and the bad. Like I said
    I always see them advertised but dont know a thing about them. I did watch
    one local company do something with SAI and they grew considerably. Im not
    sure how that works but I do know they retained ownership on all their
    accounts. I see them on the SDM top 100 each year now.

  12. I worked with SAI for 2 years, not FOR them but within them so to speak.

    Getting involved with any of these programs requires due diligence on YOUR some SERIOUS research before you get involved - you know with like an attorney.

    I can tell you this...that, of the people I KNOW (including myself) that have gotten involved, the number of people that are unhappy far outweigh the ones are remain happy.
  13. Karl Magnus

    Karl Magnus Guest

    Just like time-share eh?
  14. Norm Mugford

    Norm Mugford Guest

    Joining a dealer program is like taking on a partner,
    and I don't like partnering with anyone. If I make a decision
    and it goes belly up, I'm the only one to blame. If on the
    other hand the decision I made takes off, I'm the
    one with the smile on my face and ALL the money in my wallet.
    I don't have to share my successes with anyone.

    I also do not need someone outside of my office telling me
    what to do and how to do it. Having customers tell me what
    to do, is the only motivator I need.

    Norm Mugford
  15. Yah.

    It starts out great, until you realize you've become quite a slave making up for lost accounts because of goofy billing, bad dispatching, on their part etc. Then, service calls become demanding and time consuming because they don't know how to ask questions of the client, so you find yourself driving 120 miles round trip to close a bedroom window ON warranty.

    Now combine that with getting paid late or not at all...and you have a lovely business scenario (for them).

    My story got *much* worse, but I won't go there here.
  16. I have P1's and ADT's and one other one...dunno who'd sign any of them.
  17. I'll tell ya what it's like; it's like being sucked down a manhole during a tsunami - in slow motion. And, if you manage to keep from drowning you have no clothes on your back and nothing left of your identity (reputation).
  18. Jim

    Jim Guest

    Wasn't that Jimmy Dean

    "And I lost my soul to the company store" (?)
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