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    For one reason or another you decide to switch central stations.  You\\\'ve taken the precaution of having all your accounts on your own line, or you have an agreement with the central station that it will assign its line to you if you want to leave.  You then ask your central station to permit you access to capture your subscribers\\\' data electronically.  The central refuses, claiming that the data is its property and the central won\\\'t aid you in leaving.  

You can protect against this scenario by making sure your agreement with the central station includes access, retrieval and copying of electronic data and records.  An interesting exchange took place among central station personnel.  The exchange is below.  The first paragraph introduced the issue of a central refusing to aid the dealer with removing the accounts.  Comments from other central station personnel follows, and after each of these I have added my response.

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The issue: 

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This is a first for me. Have an alarm company that has around 900 accounts with a contract central station and they want to move all the accounts to our central station. They have a contract that only has 180

days left, so they have time to make this happen. Here is the hook. The current contract central station claims that all of the account info and database is theirs and will not release it in anyway. They will not allow the alarm company to access it online, print out account info, and will not work with our automation vendor to allow a conversion. Old central holding them hostage.  Anyone out there ever heard of this before?    

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comments:

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What a sad situation when a wholesale monitoring company refuses to release a company’s monitoring database. This type management attitude can cost them business. As a former owner of a wholesale station I would ask if it is covered in the dealer monitoring agreement?

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Response:

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It should be covered in the Installer Agreement, but often it isn\\\'t.  There may be good reasons a central station will not assist, and in fact prohibit, moving accounts from the central.  For example, some central\\\'s provide incentives to switch to or stay with the central.  That usually comes with a commitment by the dealer to place all accounts with the central and remain there for a period of time.  Even if there was no incentive, centrals like all other businesses do not like losing business to a competitor.  

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Comment

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Never seen this approach before. Ownership of data argument seems a bit specious but would be interested to see that contract. I could see a company pulling this once but getting a name for themselves pretty quickly.  In the end, pulling accounts is often the best and only recourse for a dealer. To enter into an arrangement where you don\\\'t have that ability is a new one. Maybe a tactic for an outstanding bill?

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Response

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You need to get out more.  This is not an uncommon problem.  It does usually resolve itself but best if addressed in the Dealer Agreement.

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Comment

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Yes, have heard of it before and helped do conversions from a company like that.  Some automation companies will limit the number of accounts that can be output at once through their web software as well unless you call to get a code.  They say it\\\'s a \\\"safety\\\" thing so a dealer doesn\\\'t take his accounts and run, but if they are giving good service that won\\\'t happen.

As others have said, even though money may be current, there is definitely bad feelings.  It\\\'s a thin line between being helpful to get their accounts in your system and burying your staff with a last minute 

switchover.

Consider the full $$ over a shorter period like a year before determining if the extra help is worth the effort.  If they are switching today, why won\\\'t they switch a year from now to someone else?

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Response

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Good service is important, but cost is another factor important to dealers.  Funding is also sometimes an important issue for dealers.

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Comment

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With data becoming increasingly important and valuable, it\\\'s a good idea to think about this issue (i.e., \\\"who owns the information\\\") anytime you enter into a relationship with another entity and part of the relationship is sharing information. 

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Response

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Absent a specific provision in an agreement I\\\'d say the central station data is the property of the central station.

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Comment

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I have seen an alarm company that also does contract 3rd party monitoring do what you are describing.  They went on to solicit the central station accounts to keep the monitoring agreement between the end user and the central station intact.  Their agreement with the alarm company apparently does not prohibit them from contacting the end user for this purpose.  Let the alarm company beware!

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Response

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Read and make sure you understand your central station agreement - the one you have to sign.  You should insist that you have access to your sub\\\'s data if you want to leave the central.  

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Comment

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Actually I have heard of something like this, but didn\\\'t believe it at the time. It had to do with an agreement the alarm company had to sign with the discount central station in order to get a very low monitoring rate. I was told that under the agreement accounts could be canceled, but never moved. I don\\\'t know who the central was.

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Response

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There can be a number of good reasons, usually related to discounts or incentives.  Those are legitimate reasons to hold the dealer to the central for a period of time.

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Comment

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First off, why does the alarm company not have a record of their accounts?  Second, there is some questionable legality going on here regarding the data.  Unless contract states otherwise the data does belong to the alarm company, though export methods may not which doesn\\\'t really help.  Not being a lawyer or really the one that has this talk with alarm companies, ethically they should be able to move their data as needed, however legally they may just be out of luck if the central does not recognize any sort of export method.

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Response

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The central station made the investment inputting the data; I think the central owns the data.  Absent an agreement the central does not have to permit access.

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Comments

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We only have had dealers leave because of being purchased by a company that has its own central. 

We have always done whatever we could to help when this happens.  What you are experiencing only makes me suspicious.. I cannot see a professional operation doing this to one if its customers.  Although when it comes to dealers we terminate for nonpayment we don\\\'t make it easy at all.

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My guess is that the dealer and the other central have had one too many \\\"upsets\\\" and the central may be playing the vindictive game.  We would go out of our way to help a dealer move his accounts out of our central if the need arises.   While the automation system is ours, the data in his accounts belong to him/his clients.

Any time a dealer is looking to leave, it\\\'s rarely due to the positive and rewarding relationship with his current central, so why would I want to antagonize him further by making it difficult?!?!

Let him go....you\\\'re not going to force him to stay by making things difficult.

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Never heard of this. Perhaps they owe them money!

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Response

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Understand your contract terms with your central station.

 


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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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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.