comments on charging activation fee (March 15 2012 article)
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Ken,
Adding an activation fee added into a contract seems counterproductive. What happens when you are the only company with an added fee trying to give a quote to a customer? Your company sets the install price, figure in your needs at that time.
James Kamerer, President
Security & Safety Solutions, Inc.
Hicksville, NY
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Ken,
I would like to add my 2 cents on the "activation fees" (based on 30 plus years in this business)
if it is something the client "wants", new computer, ipad, flat panel tv, car, etc...they will go into hock to get it. (get out of their way)
if it is something the client "needs", house repairs, new refrigerator, new or upgraded alarm system, activation fees, etc...you can bet that they will complain to no end, and you will be waiving the fees more often than not.
ralph aiello
ess, llc
vineyard haven, ma.
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Ken,
In regards to Mike Zemering's question on charging for contract activation's...
I feel everyone is always charged for this and that. Isn't it nice not to see an activation charge when signing up for an alarm system? I build the cost into my quote for the paper work we have to do for activating any accounts, then nobody sees it or complains.
We look better to the customer because we don't have a charge like some other companies would.
This, in my experience, is what keeps the customers/leads calling! You don't need to "nickel" and "dime" everyone all the time. This is how you lose customers. Treat them like you would want to be treated and watch the phone ring!
Greg
Walworth County Security Alarms
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Hi Ken,
Love getting your Emails they help answer a lot of questions. I don’t think an Activation fee is such a great idea. I got into the business with the intent of not becoming like the BIG GUYS, that is to provide GREAT customer service and not nickel and dime my customer to death. I worked for one of the larger national companies and there always seemed to be an extra fees somewhere. I can still make very good money without adding more fees onto my customers plate.
Eric Schrowang
Gatekeeper Fire and Security.
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I think it is a great idea. Customers are accustomed to setup charges. I vote yes.
Thank you for all of your advice!
Mike
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Ken:
In reference to the proposed “activation charge”, here is my opinion.
If companies want to add line charges, there’s a host of others that can be added such as, account activation, programming, insurance fee, data entry and setup, etc. If people want to add a line item, I think it would be better to add a blank line for an additional item and either strike it out or write in the applicable fee that a specific client may not object to. It could be labeled “other” with room to write the specific item, or left as a blank line. You would know best which way to add it. Here a salesman can demonstrate good will by showing the client how he is “waiving” these other fees out of generosity.
While cell carriers do charge an activation fee, they don’t charge an installation fee. I’m not sure, but believe that this fee also covers the sim card programming. I think there’s a trade off to a client feeling nickel and dime’d against some good will. It will be difficult to justify, in the beginning at least, when the other firms don’t have that line in their contract. It’s different when there are a limited number of firms in competition who can all agree to add the line item. Besides, how would installers feel if their central station now started to charge a fee to set up every new client? This can be a double edged sword.
Mitch Cohen
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Ken,
On the surface it may seem that account activation fees are a good way to raise revenue, but lets look at from a different perspective. If a security company is looking for a central station to contract its monitoring and they narrow it down to two finalists, and one has an activation fee per account and the other doesn't, which one will the security company most likely choose?
I would suggest that in the long run we would get more customers by advertising that we have no activation fees.
Chris Allen
Bemidji, MN
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Response
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Thanks for all the comments and participation. All very good points. No doubt most subscribers compare pricing, and most know how to add up all the charges. What about adding an activation fee to the same line that has the installation charge for the Monitoring. That line is generally N/A because the monitoring is programming is done as part of the alarm installation. Adding an activation charge in the printed form, say $34.50, would give the salesman an item to omit as part of his sale. Subscribers love give-aways. And those that don't mind can pay the charge. I'll hold off adding this to the Monitoring forms unless you ask for it when ordering. Call our contract administrator Eileen Wagda at 516 747 6700 ext 312 to have this added without charge [for the time being].