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Self help getting in to reprogram

October 7, 2010

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Question:

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Ken,

    I enjoy reading your daily emails. As a current user of your contracts there has always been one part that I have been wondering about? The line that asks us to put a value to the installed software.  I am curious what are other companies putting as their value and what is the purpose of this value?

Thanks,

Ben Godwin

Graybill Communications

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Answer:

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    The Monitoring Contract has a provision for valuing the installed communication software.  This provision evolved from the value placed on separate transmitters or dialers.  Since most systems have communication built into the control panel there is no separate equipment to install or value.

    The monitoring contract makes clear that even though the subscriber may own the alarm system, the communication software remains the property of the alarm company.  This is all about control of the communication, and hopefully the subscriber account. 

    The Monitoring Contract calls for the value of the installed software and I typically recommend $400.  This valuation comes into play only if the subscriber defaults and you decide to sue for the balance of the contract recurring payments; the value of the software is added to that claim.  There is no magic to that valuation and for more complex programming you should increase that number.  Keep in mind that the valuation is for the "installed" software, so you should be able to justify your valuation by your cost of obtaining the right to use the software, programming and up keep.

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Self help getting in to reprogram

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Hello Dave Myers,

    Regarding Dave Meyers issue on August 28, 2010, our contract has a clause to the effect that we are authorized to enter the building peaceably at reasonable hours to do our thing.  It more or less assumes there will be someone there to admit us and oversee our action.  By entering without a non-company witness on hand, you could be exposed to assorted accusations, whether true or not.  You may also garner ill will, especially if the panel is not actually unprogrammed and it starts ringing up constant comm. fails.

    The problem is more a matter of the coordination, time and expense it takes to effect the disconnect.  This type of visit is far more expensive to the company than an ordinary service call for many reasons, not the least of which is the hit-or-miss aspect.

    You want to send a tech qualified to handle any potential matter from sales to panel programming (even better, go yourself).  You want to be scheduled and admitted freely by the new owner so you can put on a good, professional performance.  It gives you a much better shot at putting an existing system back in service, either now or by and by.  If they feel like they've been ambushed and stripped, your next shot won't be until the property is sold again.

     Our explanation letter mentioning our concern that the fire department could be sent unexpectedly usually gets their attention, but it requires the ability to establish contact.

Lou Arellano, III