August 10, 2011
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Question
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Ken,
I have a question in regards to the Remote Video Monitoring contract which our company just purchased, and your Alarm Sales Contract that I purchased three years ago.
We offer customers wireless systems that they can setup themselves, or our salespersons can setup the system for the customer in a few minutes.( Plug it into a wall outlet). We sell systems via direct sales, over the counter at our offices, and via the Internet. A customer may email us, or come by one of our offices to pick up an additional door sensor, smoke detector, or video camera, etc. Requiring the customer sign a full contract each time can be cumbersome.
Can additional language be placed on these contracts to include any additional equipment that might be added to the customers existing equipment at a later date?
Thank you.
Bob
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Answer
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Selling alarm equipment for self installation is not the same as providing security services, unless those self installed systems are being monitored by you or your designated central station.
A sale of the Internet is easy. Your disclaimers, both warranty and traditional limitation of liability, are easily obtained on line as part of the ordering process. But when a customer [yes I am downgrading your subscriber to customer] comes to your retail store front and buys equipment for self installation [and let's make it easy - no monitoring] then you're not a security company providing security, but a retail shop selling equipment. I agree that it would be cumbersome, and unnecessary, to ask a customer to sign an alarm contract which each sale. I'll go one step further, that customer should not have to sign any contract at all. If you're not monitoring or servicing the alarm system then a written warranty should be included in the box. No signature required.
If you are providing remote video monitoring [passing through a server that subscriber pays you monthly charge, and sent to subscriber's computer or smart phone, etc] or remote subscriber access to arm / disarm / view cameras, again passing through your server, then you use the Remote Video Monitoring Contract or the Subscriber Enabled Monitoring Service Contract, respectively.
If you service the self installed system you need a Service Contract, and if you monitoring the system, a Monitoring Contract. You know where to get them : alarmcontracts.com
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comment on long term contracts
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Ken
If JE has no interest in long term contracts, he shouldn't need any contracts.
As long as puts his house and his cars in his wife's name, he should be
judgement proof, as the remainder of his business would be worthless.
B