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CORRECTION NOTICE: Yesterday I advised that the Standard All In One Agreements were updated to include a delay liquidated damage provision. The delay charge is $1000.00 per day, not $10,000.00.
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follow up on codes - best way to avoid conflict
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Ken,
I prefer to use your Residential All in One Lease agreement. Therefore my customers don't own the equipment and they don't receive any lockout codes. If we installed a system with the builder and the new homeowner doesn't want to sign up for a monitoring and lease agreement then we take out our equipment. Not sure why you would run your business any other way.
Thanks,
Derek
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Response
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Using the Lease Form [the residential, commercial and commercial fire All in One agreements all come in lease format] is certainly one way, perhaps the best way, to avoid code issues with the subscriber. Not only can't they have the code, the Lease Form also prevents the subscriber from:
- attaching anything to the system,
- allowing anyone else to work on the system, and
- keeping the system when the relationship with you comes to an end.
Learning the lease model for your operation may require some mental adjustment. It's also not for all alarm business models. Here are a few observations:
You may not want the equipment back at the end of the lease and there are a few options. You can abandon the equipment; ysell the equipment to the subscriber, or default the system rendering it inoperable. Your options are specified in the Lease.
You may be concerned that you won't get the same cash flow or overall revenue if you lease rather than sell. That doesn't have to be the case. Since you're charging for installation you can charge pretty much what you would charge for the sale, if you want to. Even if you undersell the installation, you should be able to make it up in the monthly charge because now you're adding leasing the system to the equation. Also, you don't have to "sell" inspection, service and monitoring, because it's all included in the lease, and the subscriber has to pay to have you do it since no other alarm company can work on your system.
When I was first introduced to the New York City alarm industry in the late 1970s leasing systems was prevalent. Not so much anymore and I'm not sure why. It might have something to do with the lower cost of equipment, at least in the lower end market. Certainly some very successful alarm companies lease systems, some exclusively. We provide a lease format for the Residential All in One, Commercial All in One and the Commercial Fire All in One. The lease relationship certainly cements you and the subscriber together. Your ability to remove the system is a potent reason for the subscriber, or a new occupant of the premises, to continue the relationship with you. In some cases the cost of installing a new system [think large building with fire alarm] would be so prohibitive the subscriber has little incentive or choice but to maintain the installing company.
Other features in the Standard Form Leases are designed to protect the alarm company's profit and contract bargain. You won't have this protection unless you use the Standard Lease forms. Get them at www.alarmcontracts.com and try them out.
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PERS: SERIES - WEBINARS
WEBINARS - ALL WEBINARS ARE FREE
HOSTED and moderated by KEN KIRSCHENBAUM, ESQ., KIRSCHENBAUM & KIRSCHENBAUM
WEBINARS: PERS: Personal Emergency Response Service / Medical Alert: how and why you need to consider getting into that business Everything you need to know and do to get started with PERS or grow your PERS business to a nationwide operation. Presented by a leading PERS manufacturer, a central station specializing in PERS monitoring, attorneys who will address licensing and contract issues and telemarketing issues. Sign up for each webinar separately. These webinars are FREE. You need to register in advance to reserve your spot [attendance is limited] and sign in a few minutes before each presentation.
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Title: How to Select a PERS Monitoring Center
Date and time: July 20, 2016 12 noon to 1 PM
Place: your computer
Register here: https://attendee.gotowebinar.com/register/5252919376200633603
Presented by: Mike Zydor, Managing Director of Affiliated Monitoring www.affiliated.com
Topic: Selecting the right monitoring center for your PERS business is a key to growth
Q&A: Send your questions in advance to Mike Zydor at sales@affiliated.com
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Title: Licensing and Contracting for your nationwide PERS operation
Date and time: July 27, 2016 12 noon to 1 PM
Place: your computer
Register here: https://attendee.gotowebinar.com/register/5380922320883276803
Presented by: Licensing by Nicoletta Lakatos, Esq., licensing counsel at Kirschenbaum & Kirschenbaum; Nationwide PERS Agreement by Jesse Kirschenbaum,Esq., contract counsel at Kirschenbaum & Kirschenbaum. Moderator: Ken Kirschenbaum
Topic: Licensing for nationwide PERS. Agreement needed for nationwide PERS
Q&A: Send your questions in advance, for licensing to Nicoletta Lakatos at NLakatos@KirschenbaumEsq.com and for contract questions to Jesse Kirschenbaum at Jesse@KirschenbaumEsq.com
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Title: Telemarketing Nationwide
Date and time: August 3, 2016 12 noon to 1 PM
Place: your computer
Register here: https://attendee.gotowebinar.com/register/3591740925073303811
Presented by: Matthew Pitts, Director of Legal Compliance, Alliance Security, Rhode Island.
Topic: state telemarketing licensing; Federal and State Do-Not-Call compliance and call scrubbing; current legislation including the Telephone Consumer Protection Act (TCPA) and the Telephone Sales Rule (TSR); vicarious liability and the use of sales affiliates; recent litigation trends.
Q&A: Send your questions in advance to mpitts@alliancesecurity.com
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