R.H.Campbell said:
I guess it's fair to say a couple of things at the risk of perhaps appearing
to blow my own horn !! Firstly, not everybody in our industry would agree
with a lot of what I say; in fact, many take strong exception to parts of it
since some flys in the face of standard industry practices. However, that's
ok too, since the site was geared towards the consumers perspective, and not
the industry's perspective. I figure our industry can look after itself;
it's the buying consumer that could use a little help !
<Snip>
Actually Mike, what you have here in Mr Campbell, is one of two people
in this group who have decided to pick apart the industry that they're
in, by telling half truths or giving incomplete information, in order
to generate sales for themselves with total and compelete disregard for
anyone else in the industry. There's always that few who will, at any
cost, try to appear as the "white knight" to people, for some obscure
reason. Most here in this group have grown quite tired of having to
constantly contradict what these two say and do, to make themselves
"stand out" from the crowd. To be fair, some of what Mr Campbell says
has value but he apparently just feel compelled to take it that one
step further, to make the rest of the industry and their competition
seem as if they're cheating the public. Both of these people have
repeatedly referred to "other" dealers as cheats, liars, crooks,
unethical, and so on ....... without any explanation or separation,
simply because they practice capitalism. That is ...... they're seeking
the best ways to provide customers with the services they require,
while they make as much profit as the market will bear. Competition is
competition, and surely, anyone is free to run their business in any
manner they choose in order to succeed. Where the unprofessionalism
comes into the issue, is when accusations of unpricipaled motives of
their competition becomes one of their selling tools.
Take the issure of contracts that you seem to think you understand but
only because you've only heard one side of the story. If you'll look
back in this thread, you'll find that someone had mentioned a reason
that alarm companies will seek long term contracts ....... but I'll
take a guess that you didn't totaly pick up on the true meaning and
effect of it.
The fact is, that the revenue that is received from contracts by alarm
companies is the greatest part of the value of the company. Alarm
companies can get loans against the contracts to further their
business. They, can sell the contracts for fairly nice sums, should
they require revene to expand or if they decide to retire. And surely
the profit allows them to cultivate their business to foster growth by
offering lower prices for installations. Whereas, typically most other
types of home improvement companys can only claim work in progress
income and "good will", as the value of their company. Does an
agreement do anything for the end user? Well is should, but certainly
it's important for you to read it and make sure. The one most important
thing my agreements do, is to hold the price of monitoring for my
clients, for the term of the agreement. But turning over lockout codes,
warrantees, and saying what both my clients and I will and wont be
responsible for, are valuable to both parties.
In Mr Campbells case, he only gives his clients a month to month
contract. So in effect, he could raise his price at any time. Also, he
has no equity value in his company whatsoever. In the realm of the
alarm installation and monitoring industy, his company is worth zilch
and he can only offer and sell it to someone that he "knows" will buy
it for "top dollar" ..... he says. We kind of believe here, that we'll
believe it when we see it, as the starting standard in the industry,
for any investor or purchaser of an alarm company is ........ how many
contracts and what are their terms. How else could a prospective
purchaser buy accounts without any "paper" to assure a long term return
on his investement?
Another factor in Mr Campbells decision to follow this path, is that
he's already got a healthy income from other sources, so that building
equity in *HIS* company isn't important to him. These are also the same
reasons why he can afford to give free lifetime service and parts. I
mean certainly, we'd all like to be in Mr Campbells position to not
have to run our business in the most profitable and equitable way
....... and we'd certainly like to be one of the benefactors of his
policy ...... his customers. However, I doubt that many would use it as
an avenue to depreciate all other alarm companies. Obviously, he's free
to use his good fortune to his advantage but ...... again, belittling
other alarm companys under the guise of being a champion of truth
justice and the American way, is rather ...... shall we say ..... less
than honorable. But, I guess, with out a full explanation, it's nice to
appear have the attributes of Abe Lincoln, St George the Dragon Slayer,
Mr Clean, and the White Knight, all in one ...... to people such as
yourself.
In effect, from the point of view of 99.9 % of other alarm companies,
what Mr Campbell is doing, is giving away a little piece of his
company, to every client he aquires. And without any explanation to
people like you, he espouses his no contract policy, as being the high
road and portrays all others, who seek long term contracts, as out to
bilk the public.
In reality, you will find out that as you do your due diligence search,
you most assuredly will not find anyone that will offer you less than a
one year agreement. You SHOULD, read the agreements closely. Ownership
of the equipment, renewal terms, limitations and requirements; leasing
versus purchase. Lock out codes being provided should you cancel upon
temination of the agreements ...... and more ...... are all legitimate
concerns you should be aware of.
So you see, things are not always as they appear.
By the way, beware of someone who doesn't offer you ANY agreement.
Minimally, the agreements protect the alarm companies from being sued
by you or your insurance company, should you suffer a loss. Alarm
systems detect ..... they don't "protect"
......... in spite of what your insurance company thinks. Just because
you have an alarm system doesn't mean you wont suffer a loss. Alarm
companys are not insurers and are not liable for your losses .
