November 13 2010
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comments re cut rate and cut throat monitoring competition
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Hello Ken,
Well, Luis Cortes hit a real hot button with cheap internet monitoring and you will probably get a lot of response. Those companies have their marketing plan (leaving a lot of money on the table) and if it’s successful, of course, it will expand. That doesn’t mean we have to make it easy for them.
I had a rude awakening in the 1980’s when a supplier whose credit terms I had chronically abused (and who had just been paid up) refused to take an order from me, even for cash. I asked to speak to his boss. He said “I am the boss.” The point is, he was not required to sell something to me unless he felt like it.
In 2009 Mr. G_____ bought a home that already had a Reliance system. Mr. G_____ previously used such an internet monitoring co (charging around 5-6/month) and now he needed our Dealer Access code.
Mr. G_____ was shocked when I told him we would not service the system unless we monitored it, nor would we provide the dealer pass code. He was seriously pissed off, complained and threatened. He eventually filed a case with the BBB.
I don’t think I ever worked so hard to salvage an account or ever put myself further out to gain a more obstinate or arrogant customer, but in this new situation, I was experimenting to see just what it would take to keep the account. I could have gone with his flow and might have garnered some future repair fees but I decided I would never recover my investment; it would be a very bad precedent making it easy for the Internet monitoring company; and having such a low value platform for our services, Mr. G_____ would always have a problem paying our repair bills.
Luis Arellano, III
Reliance Alarm Company
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Ken
I can't help but add to your answer because you didn't remind the writer that customers are welcome to try to follow pictures and diagrams and become electricians in a DIY atmosphere.
But the pigeons always come home to roost.
1- How many of the DIY subscribers are under contract that they will have to pay to get out of.
2- How many are capable of following the instructions to change over? ((How many will begin the process and get cold feet and want their service company to complete the transition? (((Billable of course)))
* What about the customer that completes the change only to have a loss?
3- How much is a service call to a non monitored account who needs service and calls out of the phone book?
4- As you said, if the Central Station relies on wholesale monitoring to independent dealers to survive that may not last long.
5- How long before the Central Station opens up regional service centers?
(Remember the ALERT CENTER?)
Nothing to whine about. The customers that want service will stay with the FULL SERVICE ALARM COMPANY.
When you give good service for an honest bill you don't have to apologize to anyone.
Joel Kent
CT
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Ken
In response to wholesale monitoring companies. A few things need to be mentioned. One thing is that the wholesale monitoring company may not repond to what you think is the correct way to handle alarms. Sometimes these companies have to adhere to different regulations throughout the country and may not restrict or delay some dispatches. How quickly can you change something on one of your accounts? Some require you to jump through hoops to just get a simple note or memo put on the account. That leads to, can you do this yourself through your computer or do you require faxing etc to get it done. Want to know who I use, email me and I'll get you connected. I've run 3 UL Certified Central Stations with runners and am very familiar with procedures. UL Certified Central Stations issue UL Certificates for insurance purposes with armed response and with police response. Don't confuse this with an approved central station, totally different animal. We were also FM approved and UL Fire with service centers.
One thing I have learned through the years, if you are using a monitoring central with service or installation departments, DO NOT LET THEM BILL YOUR CUSTOMERS OR USE THEIR AFTER-HOURS PHONE NUMBER, EVER! You might wake up with an account that had a service problem, but since the monitoring station got the call, they go service and presto you lost an account. It can happen.
Great forum, Ken.
John Elmore
elmore@ix.netcom.com
Security By Elmore Inc
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comment re getting out to see every client who's contract comes up for renewal
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Re:
Hi Ken,
This is in reply to Marty Wingers comments about getting out to see every client who's contract comes up for renewal.
Let us say that even a relatively small company with 1000 accounts, each with annual contract renewal dates were to follow Marty's advice. I figure that on average there would be about 83, renewals per month or about 20 per week. Multiply that by about 3 hours average time per visit, including travel time, would put him at about 60 hours or more per week just visiting clients. It's a nice thought but as for me, I figure I have got to set some time apart to install a few systems now and then.
Although, it might be an opportunity for someone to start a new sub contracting business to the Alarm Trade,called, "Contract Renewal Visiting Service"
Gene
Reliable Alarm
Here is Marty's comment:
Gene,
Thank you for your reply to my answer to the issue, and I did not imply any disrespect to this subject, or to you either, and in fact enjoy weeing small to mid size companies do well. I am glad you (someone) responded to the matter.
I tried to "focus" on as to the approach to bringing in new accounts by doing the same as the national alarm companies. They tend to be aggressive and have very aggressive expectations of their sale staff. Since I don't know the size of your company, not that it matters, but if in the case you have one or more sales folk on staff your company would need to be moderately dynamic in acquiring new accounts, and making your existing account base aware of all that you provide in regard to offering "security needs" to the existing base too.
I also agree you can't "chase" all over the planet to see customers. Using time functionally is very important. That is why I feel a "marketing approach" is important. Marketing is not necessarily expensive, and again not to chase out to see your customers, but to let them know all you do, that is, if you send out your monthly statements for billing service calls and monitoring you have a better chance of them calling you for added value services.
When I worked at "the majors," that's what we did, and not only that but established "zones" were covered too and yes we were required to work them. That is what the sales managers expected too. All I'm saying for both individuals owning a smaller or mid size company is to work smart and be productive.
Best wishes.