Customer payment rejected when fire alarm contract not signed / multiple locations and price increases / ISC meetings March 4, 2023
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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 ****************************** Customer payment rejected when fire alarm contract not signed / multiple locations and price increases / ISC meetings March 4, 2023 ************************ Customer payment rejected when fire alarm contract not signed ************************ Ken: *this is a NEW ONE on me! Contractor has no knowledge about UL certification or fire alarm systems. He agreed to sign the Fire All in One Lease providing we had a 1-year term (no thank you) and that the customer owned the system (that is not how I do business – I lease systems to subscribers). He then demanded to talk to someone in management and I attempted to contact him, “I’m SORRY THE VOICE MAIL BOX IS FULL” was the response to my call….. This morning, we got a call from our accounting dept and the customer wanted to make the down payment via credit card …… NO THANK YOU!!! NO CONTRACT = I’M ACCEPTING YOUR TERMS AND NOT MY CONTRACT” I’m not willing to work that way. Talk about trying to slide a fast one through the rear door. Respectfully, Joseph *********************** Response *********************** Leasing the commercial fire alarm gives you a permanent connection with the location. Replacing fire alarms is a costly proposition, especially when code requirements have changed requiring upgrades. You are wise to require an Agreement and it was a good catch not accepting payment without a contract. Too many alarm companies will do the job and then present the contract, not always getting it signed, and others will be either remiss or greedy and “take the money” and look the other way about the contract. That’s a terrible practice. The Concierge Program encourages alarm clients to send customer contract challenges to K&K for assistance negotiating the Agreement and reaching terms acceptable to both customer and alarm client. You get a free half hour each month for these negotiations and contract review. The above company is already a Concierge Client – thank you. ********************** multiple locations and price increases ********************** Ken We have a current customer who has 26 locations for alarm monitoring, and no previous contract (over 30 years). Is the Commercial-All-in-One acceptable to have them sign for each location? Just don’t fil out item number 1 or 2? I am also curious on the 10 year agreement; I am curious why that is the chosen length. I also want to be clear that, once signed, we are not able to adjust rates in that time frame. Thanks again. Quentin *********************** Response *********************** You could get 26 Commercial All in One contracts signed, or you can get one All in One and use the Rider for Multiple Locations. Why is the term 10 years? Why not ……? It’s because 10 is as long as I am comfortable with and anything less is, ….. well, less. Presumably you will have more profit over the 10 years. As far as increases, have no fear. You can increase up to 9% per year. That means the RMR will double in the 8th year if I’ve done my math right. The increase is not optional for the customer, it’s agreed to already. ************************ ISC West group and private meetings ********************** It’s time to prepare for ISC West at end of March. I am going to schedule group discussion meetings and private meetings. To reserve a spot at a group or private meeting please contact Stacy Spector,Esq. 1 516 747 6700 x 304 or SSPector@Kirschenbaumesq.com, K&K’s Concierge Program coordinator [you don’t have to be a Concierge Client to reserve a spot]. Topics, private meetings and schedule are TBD. I will be available for private meetings and consultation. I will also coordinate and attend, if you like, private meetings with some of those who will be participating in group discussion meetings. Anyone who wants to lead a group discussion or have ideas for a discussion should contact me to be included in the schedule. The following are some of the group meetings I am planning [and will coordinate private meetings with these industry experts] Still time for lenders, brokers, consultants, central stations and other vendors to sign up schedule private or group meetings. We will coordinate. Call Stacy today 1 516 747 6700 x 304 * What buyers look for and how they evaluate your business. Meet one of the most active buyers of central stations, alarm companies and alarm accounts paying the highest multiples. * How lenders view your company and decide on financing your business or your acquisition. Meet one of the most active lenders in the alarm industry * How the value of your alarm RMR is calculated and how non-RMR is calculated. Meet one of the most knowledgeable tax and business consultants in the alarm industry * What you should expect from your central station and what you can expect at the top central station in the business. * Employee Retention Credit: meet with tax expert to discuss if you’re eligible * Alarm contracts: which ones you need and which ones you should have. Group or private meeting with Ken Kirschenbaum * Buy-Sell deals: Thinking about or ready to sell? Meet with Ken Kirschenbaum to discuss best ways to increase value and get ready to sell or buy. * AIN buying group. Meet with Stan Matysiak in group or privately, time well spent * Brokers: discuss options and what to expect * Thinking of selling: Discuss multiples and what your company is worth * E&O coverage: What's available; what do you need; where to get it ********************* STANDARD FORM AGREEMENTS: To order up to date Standard Form 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 www.kirschenbaumesq.com/page/alarm-articles updated daily ************************* THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily. https://www.kirschenbaumesq.com/page/alarm-exchange ************************* 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 / 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. ************************** 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
