KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and whitelist ken@kirschenbaumesq.com ****************************** comment on common challenges to the K&K contracts and how to respond July 18, 2026 ****************************** comment on common challenges to the K&K contracts and how to respond from article on June 25, 2026 ***************************** Ken, June 25 2026 I read "Common challenges to the K&K contracts and how to respond". To the question of the 9% increase. I was a bit taken back when I first saw this clause. Then I realized that it is not an increase. Most customers never mention it, but when they ask, I always respond: "That is NOT an increase - It is LIMITATION to increase." Then I ask them, Do any of your providers offer to limit an increase? My Insurance went up 40% in 2024. I would have loved it to have a contractual limit. Gasoline rose 40%; Would you buy gas at a gas company who guarantees a price increase limit to 9% a year? Electricity? 17%-20% increase in NJ during 2025 and another 1 to 5% for 2026 in New Jersey; Ring doorbell subscription up 100% in 2025. Spotify has increased their fee MORE than 9% every year since 2023. NetFlix has increased MORE than 9% in March 2026; Disney+ increases 20+% in 2026. Ipads up 15 to 25% in 2026; Groceries up Beef 10%; Tomatoes up 32%; Tesla robotaxi fare up 200% in 2026; Uber and lift fee increase both up 9.6% in 2026; Hard drives up 100% in 6 months. Price of tires up 10 to 25% in 2026. UPS rates increased 5.9% PLUS fuel surcharges reaching increases of 12%+ for shipping. Insurers have stated they expect Healthcare to rise 9% in 2027. That is not offering to LIMIT the increase but is offering a minimum expected increase. Well Mr. Subscriber, would you have appreciated it if any one of these had offered to limit your possible increase? The reality is that of ALL the providers you deal with only only your security company who is willing to limit your future cost increases and put it in writing. But why 9%? 9% was the highest inflation rate in recent years which occurred during the pandemic. This assures that your increase will never be higher than historic rates. It is not intended to match historic rates. While the inflation rate was 9% during the pandemic, the reality is that our company raised none of our prices. Actually, our price increases are consistently way below inflation rates when we raise the rates at all. Then I say to them - The next time you make a purchase of anything, see if you can get them to agree to a 9% limit on future increases. Tell them that your alarm company will guarantee that they will never increase your fee more than 9%; why won't they? I have tried to get vendors to limit increases. So far I have been 100% unsuccessful in finding anyone who will limit their future increases in writing. Not the HOA, water company, the electric company or the tax man has even replied to my inquiry. When I ask the kid at Starbucks or the bagel store they just say "What?", and look at me funny.. No one has ever refused to sign based on the 9% increase LIMITATION guarantee. Jersey Jerry ************************ Response ************************ This is a great way to interpret the increase clause and explain it as a benefit to the customer. This is also what a great salesman needs, a positive pitch. By the way you are able to adjust the 9% if challenged. If the contract term has been reduced form the printed term [K&K Contracts have 5 years residential and 10 years commercial terms] the right to increase is less important. I've had lawyers complain about the increase amount after I have agreed to reduce the term to one year. I love pointing out how dumb they are. The rest of the negotiations usually goes much smoother. If you have a long term contract you have to have the right to increase so don't be too quick to agree to eliminate the provision. You really can't know what your near or long term expenses will be. **************************** STANDARD FORMS Alarm / Security / Fire and related Agreements. click here: www.alarmcontracts.com *************************** CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304. *********************** ALARM ARTICLES: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles updated daily ******************** THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily ************************* Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth ****************************** Getting on our Email List / Email Articles archived: Many of you are forwarding these emails to friends or asking that others be added to the list. Sign up for our daily newsletter here: Sign Up. You can read articles and order alarm contracts on our web site www.alarmcontracts.com ************************** Ken Kirschenbaum,Esq Kirschenbaum & Kirschenbaum PC Attorneys at Law 200 Garden City Plaza Garden City, NY 11530 516 747 6700 x 301 ken@kirschenbaumesq.com www.KirschenbaumEsq.com
