KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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Designing your Service Plan
November 1, 2023
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Designing your Service Plan
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Ken,
          Earlier this year I purchased your Commercial Security All in One Agreements. I have been getting good use out of them. I have a couple question's though.
          I want to start offering more service plans, but don't want to violate terms of the All in One by adding on a service plan/repair plan. I was thinking to call it the NT RSP, "NT Repair Service plan". You already have a check box for repair service and some language there, so if they want a repair service plan can I check that box and then attach a copy of our repair plan? (We would have to create a document for the repair plan). 
          Also, I love the idea of 10 year term contracts, but I have been getting some pushback on people not wanting to sign a 10 year term, the contract defaults to 10 years. A couple were shocked when they realized after the fact that it was a 10 year contract, and one is trying to wiggle their way out of an agreement now that we may have to go to court with.  My thought is, maybe I should offer a NT RSP for a 5 year term, or possibly a 10 year term but 5 years may be the max term that people may want to do and some may only want 3 years max. My thoughts with the NTRSP, would be to offer discounted service labor rates and discounted replacement part rates and prioritized service instead of being comprehensive and exhaustive. Certainly can offer 3,5 or 10 year terms as long as I am not violating Georgia law. Most of my clients are Hoa's and SMB's. I appreciate your guidance and look forward to your feedback. 
          Thanks in advance, 
 Anon
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Response
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          You can modify the Standard Form Agreements though I suggest you get guidance [my guidance] if you change the ‘legal” provisions.  Adding a Service Plan is certainly something you can do, and you do it by adding the Service Plan options on the face of the contract or in the Schedule of Equipment and Services.  Some alarm companies will create various plans for length of the term of the contract and different levels of Repair Service Plans.  It’s your contract and you should be satisfied that it reflects the business operation you want to engage in.  Who am I do deny or criticize creative genius? 
          By adjusting pricing you can design different levels of service.  For monitoring, the term of the contract may dictate the monitoring charge, with increases as the term is reduced.
          Coming up with different ideas is probably the easy part; changing the contract verbiage even easier; learning how to sell the contract, honing your skills as a salesman, that’s the hard part.  A great mechanic or administrator does not a salesman make.  Sales is its own skill-set and obviously every bit as important as a bunch of other essential business operations.  You can spend all the time you want studying contracts, learning employment law, selecting the central station, selecting the software to run the company, fancy offices, catchy logo, great website terrific decal and lawn signs, but if you can’t sell the customer, where are you?
          So make all the changes you like, especially on the business side; consult me before changing legal provisions.
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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301
ken@kirschenbaumesq.com
www.KirschenbaumEsq.com