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Comments on central stations competing with dealers from May 27 2014 article
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Ken
Make no mistake about it, I will never in any way possible help, feed or financially assist anyone or any organization that is also my competitor in the market place and rest assured that in our industry that includes the central station.
No fancy language can ever make it justifiable for us in the alarm industry to spend our dollars in a way that benefits our competition. Ken also rest assured we in the alarm industry are not alone with this point of view, I am sure that I will not find many legal firms and individual lawyers that are knowingly spending their hard earned money in a manor that benefits their competition.
For personal reasons I wish to remain anonymous,
THANK YOU for your forum
anon
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Ken
In response to your reply about the contract monitoring station that has a DEALER network.
The ALERT CENTRE of Englewood Colorado started as a DEDICATED CONTRACT MONITORING CENTER for dealers. After several years in the business they then started to BUY accounts from dealers offering cash up front and you maintain and service your accounts. This went on until they opened their own installing and service companies in select profitable markets.
Any dealers got hurt in this combination of events and the ALERT CENTRE no longer exists.
If a dealer contracts with a monitoring station they should be assured that the monitoring station will not begin to solicit, sell and service accounts in your area. They can certainly do it cheaper because of the sheer size of the monitoring portfolio.
If I choose to install as a "AUTHORIED DEALER" for any of the network programs, (and I am not denigrating them or their operation in any way, ) I know that I will install a system that will then be serviced by XY alarm company and after I install I am out of it, that is a conscious choice. If I install and have a system monitored by Central are Us central station I must be assured that they will not try to undermine me in any way, or send a bird dog after my accounts.
Just my thoughts from under my desk......
Joel Kent
FBN Security Co LLC
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Ken,
I appreciate the forum you have created.
I wanted to comment on “anon’s” concern regarding using a wholesale central with a competing retail operation. We used a central station based in south Houston, TX who also directly owns a retail operation and when we fired them they used our proprietary client database to send solicitation mailers to our clients for their retail operation. For that reason, I would never again do business with a wholesale central who directly owns a retail operation.
Currently, my central’s CEO has a son who owns a retail operation, and my central was very open and honest when I asked about the indirect relationship. I state this to say two things to those who do not already know: 1.) I doubt there are very many wholesale centrals in the United States who are not somehow directly or indirectly related to a retail operation; 2.) get involved in the trade organizations so that you can learn the character, the politics and who’s who of those you do business with. If you are a dealer looking for a reason to join your local, state and/or national alarm association there it is.
Thanks,
Kyle J. Beller, President
BAT Security Services
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Ken,
Do you have a list of monitoring stations that are not in direct competition with
their dealers? I would like to remain,
anon
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Response
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Check on The Alarm Exchange under the central station category.
Even if a central station does have an installation affiliate it may not compete in your jurisdiction. So if a nationwide central station has an installation company in Florida it may not matter to you if you're in California. On other hand you may prefer to support a "pure" wholesale central station operation. As I mentioned in my article on May 27, 2014 there are pros and cons to using a central that has an installation company - it can give you back up in a pinch and also may have answers to issues that confront dealers. A wholesale central located across the country may not be able to answer a "quick" question or assist with a service call. But, you also don't have to worry about it competing unfairly against you.
No matter which central station you use it is required to maintain your proprietary customer information confidential. If it breaches that duty you should sue them. [if it's on The Alarm Exchange let me know so I can let everyone know and also remove it].
Make sure your agreement with the central station makes it clear who owns customer data and how it's to be used.
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TO SUBMIT QUESTIONS OR COMMENTS REPLY TO THIS EMAIL OR EMAIL Ken@Kirschenbaumesq.com. Most comments and questions get circulated.
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