It's still a very competitive market out there for alarm companies and most alarm owners are looking for any idea that generates sales.  The "free alarm system" is one idea, and it's rather common.  But the "free" alarm system usually isn't free to the end user.  Typically there is a "connect charge" and nominal [$99] installation charge for a very basic system.  By making the installation actually free subject only to the monitoring contract it seems to me that the alarm company is offering a more competitive service. 

    But is free alarm installation the way to go.  Here is one observation that counsels against it:

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Ken:

    I've known dealers who have had to close down due too much bad paper, (too many people were defaulting and the bankers who bought their contracts wanted the money back) which was caused by relaxed pre-qual of customers, which was the direct result of the alarm company's too hungry to meet sales projections.  Like our national financial crisis on a more limited scale.

    The end-user needs to be protected against  the telemarketer mentality dealers who have already destroyed the residential alarm market and forced municipalities to pass false alarm ordinances in self defense against excessive alarms.

    I'm surprised that the recent series of residential alarm ads by "Whatever Their Name Is This Week Alarm Co." hasn't fostered even more backlash for being misleading.

    I knew an installation manager who told me confidentially that most of his subs didn't know what a RJ-45X was for. He was serious.

    I am fully aware of the end-users' role in this mess too.

I've had clients who told me they deliberately triggered their system to measure the police response time and to get some satisfaction for all the taxes they paid.

    I've installed systems with the best of intentions that were just too complicated for the end-user to operate or were just too sensitive to nuisance alarms.

    My client pays for the system, and the contract protects both parties against a faulty install, misrepresented system, or abuse on the part of the end-user. It's monthly, but with quarterly billing.

    I've never sold a system that was 'free' up front and required a multiple year commitment. That is why I moved out of the residential alarm market when the oil company moved into it.

    But if an end-user wants a bargain, both parties must be indemnified both for some sort of failure in the system, and recourse if the client fails to fulfill the payout. Unless Obama wants to bailout them too.

thanks

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