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Comment on Customers using fake names on contract

June 11, 2024
Comment on Customers using fake names on contract from article on May 27, 2024
         The "pay nothing down" alarm industry has brought this upon itself. That's why I never got into it and wanted to get out of the residential side as quickly as I could because of these fly-by-night companies just looking to flip a few accounts. They raced the industry to the bottom. No one makes any money upfront in sales anymore, and now they can't afford to operate. They struggle with basic business necessities like confirming a contract signature—the number one requirement to stay in business. Secondly, they can't collect on these contracts, and then they have to take these cases to court to fight for just $39 a month. It makes no sense to me. That’s why these companies only manage to stay in business for about five years before they must shut down due to their poor business structure. It’s a shame what dealers have done to this industry.
           Scott Alarm initiated this foolish downturn, followed by ADT, and now every little mom-and-pop follows suit. We won’t install another residential system for that very reason. 
           The ignorance of the dealer is greater than the fraud of the man signing the contract. 
Enjoy your quick-setup burglar alarm industry. Stay out of the high-end security, market, and commercial fire sectors.
Ed H
            Bad business practices end up causing all types of problems and certainly contribute to the struggle to stay in business.  Everyone should keep in mind that staying in business is not the goal; being successful and getting rich is the goal.  You do that by using best business practices, and not just some of them.
            Most of you have made the right first step by getting the Standard Form Agreements.  Many of you keep the Standard Form Agreements up to date, also a best practice.  And just under “many of you” get the contracts signed properly, thereby sealing the deal, at least as far as contractual protection and squeezing out the most equity value from the contracts.  Getting the correct name of your subscriber is vital.  At best you will have inconvenience if you have to pursue collection against a subscriber who you can’t even identify.  At worst you may find you don’t have a contract at all, at least not with someone who isn’t a phantom residing so deep under a rock you can’t find them.
            There are several successful business models in the alarm industry and what works for someone may not work for you and vice versa.  Building consistent RMR growth, no matter how you get it done, seems to me what you should be striving to achieve. 

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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301