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Question 

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Ken,

    We have always been proud of our level of customer service.  However we have a handful of contracted customers that we have finally classified as mentally unstable – those we will never be able to satisfy.  They are a drain to our entire staff in terms of time trying to calm volatile and unreasonable behavior.  This goes way beyond an unhappy customer.  If we have decided enough is enough - what are the best steps to exit out of this business relationship to protect the company? 

Thanks for your help.

Christine

The Protection Bureau. 

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Answer

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    Most inquiries are about retaining subscribers or going after those that default on their performance committment.       But every alarm company can probably point to a few subscribers they wouldn't mind losing.  If you are the one initiating the early termination then you should be sure that you have appropriate basis, and that you follow the procedures you have in your contract.  Your contract should not have a provision that permits you to terminate at will, because that right may also apply to the subscriber, a result you did not intend.  

    There are a number of ways to encourage early termination.  Ignoring your subscriber or poor performance on your part are not acceptable ways.  You could exercise your right to increase charges.  Even though the Standard Form Contracts permit up to 9% increase per year, and the subscriber is required to accept that increase, you could offer the subscriber the option of terminating rather than paying the increase.  

    You could start reading your contract more closely to see percisely what rights you have to terminate and what provisions you can start enforcing with more regularity.  For examply, you might be covering service calls that are not really covered.  You might not be charging for excessive and unnecessary alarms.  You may not tolerate late payments.     

    It would probably be easier to terminate with a subscriber if you can explain why you can not longer provide your service, and perhaps suggest someone else to provide that service.  

It also makes sense for you to try and sell your difficult accounts; those that pay but for some reason have rubbed you the wrong way.

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Special language needed in High Profile Client

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    Door knockers sell the same system over and over.  Their prospective subscribers are not high profile types but those looking for a basic system with a few bells and whistles.  Door knockers don't typically target homes on several acreas or enclosed by gates and security.  High profile subscribers can be more demanding, more careful with what they sign and have different expectations for your services.  If you have these types of subscribers you should be prepared to negotiate your contract terms.  Some provisions can be changed to accommodate your subscriber.  Learn which changes you can make on your own and those that require you to engage counsel.  If you're using the Standard Form Contracts then my intervention is easier - I already know what the contract terms are and what can be modified.  

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Contract enforcement by the unlicensed

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Ken,

    In Florida and probably other states if the company does not have a valid current contractors license they do not have the right to defend a contract.  In fact defending it makes them guilty of unlicensed contracting.  I am on the road and do not have cites with me today but it is in 489 part II Fs.

Mike Fletcher

Florida Alarm School

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Response

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In most states if you are required to have a license and don't you won't be able to enforce your contract or get paid for licensed work.

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Webinars

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December 4, 2013   12 noon EST  Register here: https://attendee.gotowebinar.com/register/4919260455763006721

     Title:  10 Things Residential Security Alarm Companies should consider BEFORE entering the world of Commercial Engineered System Fire Alarms

      Presented by:  Bob Williams, President of Briscoe Protective Systems and his Management Team. 

Briscoe Protective Systems has been in the industry for 35 Years and has made the transition from a Residential Alarm Company in the late 70’s to a Engineered System Fire and Security Company that is an SDM Top 100 Company. Find us on the web at www.BriscoeProtective.com or on LinkedIn under Companies, Facebook and Twitter@BriscoeProSys 

      Description:  There is a big difference between installing Residential Fire Systems and Commercial Engineered Fire Systems and there are “Key Factors” that Security Company’s should consider before attempting to go into this lucrative but challenging market.

      Who should attend:  Alarm company owners and fire techs.