comment on getting new contracts signed - June 1, 2012

comment on getting new contracts signed   

June 1, 2012

*************
Comment
*************
    In response to Colette Came [April 3, 2012 article] of Came Security, consider this.  No one wants to take the time to get new contracts signed, especially every one or two years. But if you use basic psychology you may find your customers will solve that problem.  A couple years ago I sent via US mail renewal contracts to my customers (those that were ending or ended their initial monitoring term) with the number of years left blank and my signature missing.  They received two copies.

     I included a form letter indicating their rate for the next term, often the same rate as the past term, and offered them a one year, three year, or five year term.  I highlighted the blank line where they were to fill in the number of years.  They were to sign the contract and the letter and return them to me.  The letter indicated their current or revised rate and that I would not raise their rate during the term that they chose and filled in.  I noted that upon receving the paperwork back, I would sign the contract and return a completed copy to them.

    Almost every contract returned was for five years.  People like to save money and they saw this as an opportunity not to have their rates increased.
Glenn Smith, Owner
Alarm Service Company of N.J.
***************
Response
***************
    I have consistently recommended that alarm companies get their subscribers to sign new contracts periodically rather than depend upon automatic renewal provisions.  The question of "how do I get all these contracts signed" often comes up, and Glenn's experience is well worth noting.  I believe the success rate of a mailing is pretty fair; well worth the effort.  Come up with an idea, as Glenn did, and you increase your results.  Why bother?

    A new contract gives you the opportunity to renew your relationship with your subscriber, the opportunity to survey the system and services, upgrade and up sell, increase your RMR and increase the value of your asset, the contract.  A new contract has more value than an older one, especially one in renewal.