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Comment
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Ken
A few years ago we used a discount central station which was offering monitoring for $1.00 per account. Besides all the hidden fees they had and the nickle and diming they did, we became aware that they were marketing monitoring directly to subscribers via the internet under a variety of different entities. Then I had a customer inform me that the customer was receiving faxes soliciting their business for $5.00/mo monitoring from some of these entities. That was it, we swung our lines to a new monitoring station which after all was calculated cost a little less per account. We have been with them for 5 years and could not be happier. When a large customer of our contacted the CS to inquire about contract the CS directly, the customer was informed that the CS only works with licensed security companies. They know who butters their bread and sees the big picture.
The two lesson to learn is, first, own your own phone lines. Second, ensure your CS is reputable and will not compete in the retail market.
Keith Olstrom
Vanguard Fire & Security Inc.
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Response
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This comment arrived shortly after a brief discussion among central station personnel on the topic of how they handle calls by subscribers looking for services that the dealer furnishes. One central station responded that they tell the subscriber they must contact the dealer and then provide the dealer contact information; if they sense reluctance on the part of the subscriber to call the dealer then the central calls the dealer and reports the issue. Another central station reports that they do tell the subscriber to contact the dealer, but this central will try and assist the subscriber directly to resolve issues. Yet another central station reports that their position is that it's not the central's problem and if the subscriber wants the name of another dealer they will provide it.
Dealers depend on central stations to perform the essential service of monitoring. Very often once an installation is completed a subscriber is likely to have most of its alarm interaction with the central station, not the dealer. While the dealer may be called for service, all of the false alarm, or real ones for that matter, typically result in subscriber - central station interaction. Dealers are sensitive to the fact that central stations have access to and possess all of the dealer's customer information, and of course the central station is in a position to provide the monitoring service for much less than the dealer. It would be difficult for a dealer to compete with a central station that decided to offer monitoring to a subscriber for wholesale or close to wholesale prices, especially when that central was introduced to the subscriber by the dealer and has been monitoring the subscriber with some degree of satisfaction.
Dealers who decide to do business with a central station that competes directly, or one that competes indirectly through dealer subsidiaries, should be leery, and do need to take additional precautions in their contract negotiations. They should insist on restrictive covenants and non competition provisions.
If you are concerned that your central is competing against you, or not conducting its business in a way that enhances your business, then switch centrals. There are plenty of them listed in The Alarm Exchange, and if a dealer has a problem with any of the listed centrals let me know - maybe the central doesn't belong on The Alarm Exchange.
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Webinars:
June 27, 2013 12 noon EST Covering all your contractual needs with the All in One contracts
This webinar will focus on how the All in One contracts can build and protect your security and fire business.
Presented by Ken Kirschenbaum
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July 11, 2013 12 noon EST Valuing the non RMR security integration side of your business
This webinar will focus on how you arrive at valuation of the non RMR side of your business - the revenue you receive from sales and non contractual recurring revenue. EBITDA and Enterprise valuation explained so that you can determine if it applies to your business evaluation
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July 18, 2013 12 noon EST Selecting an E&O insurance carrier
This webinar will have a panel of insurance brokers will discuss Insurance Company underwriting considerations for determining if the carrier will offer to insure you and how it prices the policy. This webinar will enable you to better select an insurance company to insure your business.
Panelists: Bart Didden; Kelly Izzo; Alice Giacalone; Rick Gumbar;
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July 25, 2013 12 noon EST Defending claims
This webinar will focus on what you need to do when you become aware that your subscriber has suffered a loss and when you know of a claim against you. Other topics will include what to do when you get a reservation of rights letter, or denial of coverage letter, from your carrier.
Panelists: Ken Kirschenbaum; Bart Didden; Rick Gumbar; Dennis Stern
https://attendee.gotowebinar.com/register/3574596215465671424
August 1, 2013 12 noon EST Yesterday is gone, tomorrow is here
This webinar will focus on what you need to do to keep competitive. New technology and products
Panelists: Mark Fischer; Keith Jentoft; John Hoffe; David Roos; Jorge Hevia
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August 8, 2013 12 noon EST Marketing your security and fire alarm company
This webinar will focus on marketing ideas to promote your alarm business.
Panelists: Bob Maunsell; David Morgan; Bob Harris
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