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how to price service plan / digital copies March 11, 2017
Next webinar March 28, 2017
TitleAll You Need To Know About Alarm dealer program contracts - getting in and getting out
Register here:
how to price service plan
    My customer is interested in a service plan for equipment that is 4 years old (analog).  The equipment is obsolete, but since it's a good customer we don't want to say no.  Any thoughts how we should proceed? 
      This presents the classic dilemma when trying to price a RMR service plan.  These plans should consider that most of the service calls are going to be at the beginning of the relationship and at the end.  Even on new installations there are going to be service calls to repair installation issues and deal with subscriber errors.  The repairs and subscriber errors should subside after a month or so and then you should not anticipate repairs [at least those covered by the inclusive service plan] until the system starts failing because of age.   
     In your case you know that you are going to have to replace the equipment.  Sounds like you're not using the Standard All in One or that you haven't read it because you are not responsible for replacing obsolete equipment under the RMR service plan.  Assuming you will replace the equipment rather than continue to service it, assuming you can service it, you need to take that expense into consideration when pricing the service plan.
     Figure your cost of providing the service over the life of the plan and then price the monthly accordingly.  Err on the high side since you will be limited in increases.  The longer the term the more you'll collect, though you may face increased service requests as the equipment ages.
digital copies
    Your answer to the question about digital copies of contracts correctly answered Sue's question about the ability to enforce against the signer. Properly authenticated photocopies can be admitted in evidence at trial under most circumstances, if you meet the requirements of the best evidence rule.
    However, The federal ESIGN and UETA acts set the standards for what is required to establish a valid e-signature.   For purposes of security interests that may be held by lenders and for buyers who are borrowing money to acquire accounts the issue is how to identify THE controlling document.  Since there is not a wet signature piece of paper how do you tell what is the "original"?
    Under the acts there is created a concept of "Authoritative Copy".  This is the equivalent of an "original" and needs to be paced in a virtual "vault" to assure the integrity of the document.  While not all lenders are demanding of compliance, I would advise your readers that they should have either a compliant e-signature document or a wet ink signature if they want the best opportunity to qualify the documents for financing in the future.
Best regards,
Jeff Gorelick
Gorelick Advisors
    Admission into evidence in a defense case was and is my primary concern.  What a potential lender or buyer of alarm contracts may require will no doubt vary with their counsel.  It will be essential to establish that the digital copy offered is an exact copy of the original.  Thanks for sharing your expertise.

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FREE Webinar Series "All You Need To Know About" alarm industry issues. 
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TitleAll You Need To Know About Alarm dealer program contracts - getting in and getting out
When: March 28,  2017 noon EST
Where: Your computer for power point, live video and call in on computer or phone
What will be covered: General discussion about honeypots/trappings of dealer program contracts and how difficult they are to get out of. 
Who should attend: Alarm company owners.
Presented by: James Babbitt, Esq. General Counsel, RMR Capital Group [ ; 952.467.8610]
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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
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