January 26, 2011
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comment on pass codes
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Ken
With all the technology we have and the trend towards a paperless society, we recommend that codes be hidden in cell phones. We are asking our customers to remember yet ANOTHER 4-5 digit code in their lives. We recommend something like (800)555-(their 4-digit code). That way, it just looks like a phone number if someone gets their phone. We do something like 100 code changes a day due to our main client's extremely high turnover rate. We have at times gotten a Manager or their Home Office involved if the person we are speaking with is giving us indications that she may not be who she says she is. BUT, we also don't want to give them such a hard time that they complain about us.
Residential passcodes are a separate issue because it could be years between times where they would need to provide their passcode. Example, alarm installed in 2000, passcode established, alarm is set off 2005 and the customer can't remember the passcode they set up at the time of installation. If they can't remember the code, we usually ask them for a cell number or something like that. If they can't remember that, we ask them something obvious like their address. The idea being, if someone is holding the person at gunpoint they should NOT give us the right passcode so that we can dispatch the police department. I've actually dispatched the police because a customer gave us the correct info but really took their time doing so, it was late at night and they just sounded "weird" on the phone. I gave the police department all the information I had so they knew this was more of a "check to see if everything is okay call". I then called our customer back while the police were there with her and she thanked me for erring on the safe side. Other central stations could have clients that require more security but that's what works for us.
Chris
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getting existing subscribers to sign contracts
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Question
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Ken
I have a question about Mitch's methods to get a new contract signed: We live in a small community with tough competition. I can't see that threatening to cancel monitoring will keep a customer; I would think it would encourage them to call the competitor. Any thoughts on that angle?
Sherry S
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Answer
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Getting contracts signed by existing subscribers is different for alarm companies simply looking to finally get with the "program" [protect themselves and grow company equity and value] and an alarm company that is selling its subscriber accounts, who now finds that "no written contracts or old contracts" are valued at 10 x or less, and proper enforceable contracts valued at 30 x or more.
If you wait until you are selling your subscriber accounts, and your buyer refuses to purchase [or pay for] accounts without contracts, then subscribers who won't sign and return contracts are without value and you may as well terminate them.
If you are continuing your business then threatening termination would be, in my opinion, too harsh. At least several efforts should be made to get a proper contract. Of course you may find that a particular account is not worth the added potential liability exposure if there is no contract. Keep that E&O insurance in place.
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comment on collection problems
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Ken
HI,like many others ,i read your column regularly and appreciate it very much.
I am from Canada and a lot of the issues are not the same here,nevertheless good sense and a good contract prevail !!!
I really liked your honest answer about the crooked lawyer and taught i would tell you
thank you
Claude S
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cell service - more liability?
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Question
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Hi Ken
In days gone by all security systems were communicating over land line and our contracts specified the alarm company was not responsible for the phone service. Today, many of us are using cellular for communicating alarm signals and collect money from our subscribers for this service on which we make a profit. Does this not add some liability to our companies in that now we are also filling the role, at least to some extent, of the carrier of the signal? Should we add some clause to your standard monitoring contract to address this, or is it sufficient as is?
Kind regards,
Lenny Bianchi
5 Star Security
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Answer
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The Standard Form Contracts are properly drafted to cover this exposure.