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False alarm fines / comment on competing against the phone company August 19, 2017

KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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False alarm fines /  comment on competing against the phone company
August 19, 2017
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False alarm fines
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    False alarms continue to plague the alarm industry, pitting police departments and municipalities against alarm end users and alarm companies.  Apparently, despite alarm verification laws and efforts to comply with those laws, the police still consider over 98% of alarms called in as false alarms.  
    The false alarm fines that I have heard of are imposed against end users, not alarm companies.  California just enacted a statewide law that prohibits municipalities from fining alarm companies for false alarms.  Similar laws exist in Florida and Texas.  But Sandy Springs, Georgia, just enacted legislation that does fine alarm companies for for alarms and other issued related to registering the alarm.
    The Standard Form Agreements all deal with fines the same way; the fine is passed on to the end user, the subscriber.  Termination of police or fire department response does not suspend or excuse the subscriber's payment obligation.  Dealers should be mindful that the central stations require the dealers to indemnify the central station for false alarm fines, so it's important that the dealer pass that financial obligation to the subscriber.  While false alarm fines can cause contention between the alarm dealer and the subscriber, the fines can be so substantial that the alarm company may need to consider the relationship with the subscriber as unsustainable if the false alarms can't be contained or better yet, eliminated.
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comment on competing against the phone company from August 16, 2017 article
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Ken
    It gets exhausting trying to compete on PRICE so I don’t even try. I have a belief that the pain of poor quality and service will be remembered long after the joy of low price is forgotten. I have learned my lessons from trying to retain cheapskate customers and all it does it suck the profits out of my business. I prefer to let the someone else deal with the constant high maintenance and low profits of these clients.
    Just my 2 cents worth.
John Romero 
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Response
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    It took me over 20 years in practice to figure out that I could have all the clients I wanted if I didn't expect them to pay.  So, lesson learned.  Not every "bad" account can be turned into a "great" or even good account.  Some just stay miserable until you finally cry uncle.  Only silver lining is that K&K's collection department may be able to salvage some or all of the account by strict adherence to the contract terms and conditions.
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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
516 747 6700
www.KirschenbaumEsq.com