Question:
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Hello Ken,
My father owned and operated a small alarm company in Vermont. He passed away unexpectedly and I was left (not knowing anything about the business) to take it over. Through determination and a relationship with another local dealer, I have been able to run the business and grow it successfully over the last five years.
He had bought alarm monitoring equipment and placed it in the local police department 20 years ago and paid for the phone lines going in to the department. At one point about 10 years ago he updated the equipment. I had been in contact with the PD after his death and they knew I am running the business now, but a lot of the faces and relationships he had built (he was a police officer for many years) have now left.
Without notice, the PD took over the phone line into their name, then bought a new piece of monitoring equipment to replace mine. (I don't know if they still have mine as a back up or what happened to it) These where accounts I had been billing for, but now that I am not paying for the line or I don't believe my equipment is being used, I don't feel I can anymore (contract are long since expired)
What is the best thing to move forward with this, send some sort of letter to the my customers? I would like to move them to my UL listed central. The PD is not charging them so I have to fight that battle as well.
Any insight would be greatly appreciated.
Kevin, Vermont
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Answer:
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This topic was addressed in this article: https://www.kirschenbaumesq.com/earticle315.htm
You are in a tough stop because you are now competing against the municipality, no doubt the one you pay taxes to support.
I would approach this problem this way.
First visit with the powers that be in the municipality and try and explain the impact their decision to provide monitoring and cut you out has had on your business, and is likely to have on your business. At the very least you have lost and risk losing monitoring accounts and revenue. You should also point out the exposure the municipality has undertaken, most likely without realizing it. Refer them to my prior article above.
If you can't bring the municipality to its senses, then you have to recognize that you are in direct competition with them as far as monitoring goes. Keep in mind that the municipality can't compete with you by providing full alarm / security services, a point you need to make clear to your subscribers. The cops won't go out and fix alarm systems, at least not yet.
Depending on how much other competition you have in your area you may be able to take the position that you will provide Service only to those subscribers for whom you are providing monitoring. You may also try to offer monitoring even to those subscribers who connect directly to the police station, as a secondary back up.
I have heard that at some municipalities have given up trying to provide monitoring, but I can't recall specifics. If you figure out how to compete against this governmental intrusion into private business, let us know.
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Another Question:
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Dear Ken,
This question may have been already addressed. We have a client who's security alarm system was installed by our company. They have been satisfactorily monitored by us for over a year. They are now requesting that we come out and reprogram their system into "the local Police Department". We all get these calls. However, my question is:
Why would an alarm company be responsible or obligated to reprogram any alarm system to a local police/fire department? If the Local Police Departments want the revenue, shouldn't they have personnel available to reprogram systems into their central stations? It is like asking your Local Cable Company to reprogram their system into the Local Telephone Company. It is not done. If the local Police Departments are offering such "services" then shouldn't they be responsible and LIABLE for such?
Thanks! I really enjoy your newsletters.
Charisse Allen
D E A Security Systems Co., Inc.
Belmont, CA 94002
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Answer:
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As far as I can tell you are under no obligation to reprogram the communication. When acting in a monitoring capacity the police department is nothing more than one of your competitors, and you don't have to reprogram to assist your competitor to take over your subscriber's monitoring.
Hopefully you are using a monitoring contract - one that you got from me - so that you can explain to your subscriber that the contract has not expired and payments must still be made. You should also be able to explain why staying with you rather than direct police connect is beneficial. For one thing, you can point out that the police offer no service other than monitoring, so that there is really be no savings to the subscriber. If the police in your area really do have a handle on monitoring [and I can't imagine this to be the case unless it is a very small municipality] then suggest that your monitoring remain as a back up.
If you do decide to reprogram, you can charge whatever you think is reasonable. If the subscriber doesn't like it they can ask the police to come out and reprogram.