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COMMENTS ON COMPETITOR STEALING ACCOUNTS FROM  AUGUST 3, 2016
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Ken
    With regards to Dan having a competitor targeting his accounts..........A few of the most common reasons from a long list of why an account could be lost.
    The first thing any company finding themselves in that position should do is a self evaluation of why they are losing any account and what if anything could have been done to prevent such a loss.
    Our company has encountered competitors offering monitoring far below what the industry charges (ie $10.00 per month) This alone should tell you that your customer has a low regard for the monitoring value provided by your company. If they think all monitoring services are the same, you have a problem. People need to feel they are getting something in return for their money.
    If the loss is  a commercial account, It may also indicate that they are in such financial trouble they need to reduce every expenditure including system maintenance. This should be a red flag that you may not be paid for future services.
    One of the most important is constant contact with the customer. Installation and continued contact only by invoice, is another sure way to lose an account.
    Last but, not least, no matter what you do, you will always have at least one customer that no matter what you do, they will never be satisfied.
    For what it's worth.
John W. Yusza Jr
Monitor Controls Inc
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Ken,
    Regarding the inquiry you responded to dealing with a competitor stealing 10+ accounts from the writer, your answer was correct insofar as it went.  As you know, we have had some experience in these matters and I think you left out the most important thing: regardless, you have to defend your business and the sanctity of your contracts.
    As a practical matter, based upon the seeming pattern being described, I believe the litigation should be immediately brought.  If the writer just sits there and takes it, I can virtually guarantee there will be more attrition, maybe a lot more to this competitor, because the competitor will know he can continue his wrongful conduct unchallenged.  However, if the writer challenges the competitor in court (as well as legally targeting some of the competitor’s accounts), based on experience I would bet the incessant poaching will stop.  The perfect example occurred about 30 years ago when the Holmes Company lost thousands of accounts to a certain well known competitor in the industry. Holmes believed it wasn’t worth the effort to fight them in court. (They actually told me that!)  The same competitor tried going after our accounts and we fought them tooth and nail, both in court and in the marketplace.  We only lost 5 accounts to them. 
    While each and every loss to competition during a contract term should be challenged, the above “full scale” approach should only be used when a pattern of targeted poaching is recognized.  Competition is a fact of life and an isolated loss to competition where a customer still has time left on a contract can many times be effectively handled by directly speaking with the competitor and working out a solution.  But when it’s a pattern, it’s time to go to war.
Robert Kleinman,Esq
AFA Protective Systems
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RESPONSE
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    You need to be mindful that most litigation is costly and the outcome all but certain.  That means it's a gamble, and even if you win, unless you can recover counsel fees and litigation expenses it may not be worth the battle.  That's not to suggest that sometimes you just have to bite the bullet and stick to your principles, as well as protect your interests.  
    A concerted persistent attack against your company should be repelled.  Whether you resort to the courts or target the competitor's accounts, or both, is your decision.  If your competitors know that you will sue them and the lost customers that will naturally work in your favor as a deterrent.  Nobody wants to poke the bear.  
    But, evaluate your situation carefully.  You don't want to pursue litigation you won't win and you shouldn't pursue litigation that does not make economic sense.  Have your matter reviewed by an experienced litigation attorney and don't be shy about asking what all the costs are likely to run and the anticipated outcome.  
    One of the most important issues that will arise in a Tortious Interference case is the enforceability of the contract that was breached.  Start with the Standard Form Agreement and you will have the most iron clad agreement available in the industry.  Pursuing your subscriber for defaulting will be easier if you're using the Standard Form Agreements.  You could potentially have your matter heard in arbitration within 60 days of the default.  Do your part by using the Standard Form Agreements and by carefully monitoring your subscribers for default.  
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