Security install and monortoring contracts

[hockeypuck]

Could you security pros give me a good place to find examples of security proposals and contracts. I am an licensed electrician getting into the security and home automation business. I understand that the security installs are basically done at cost to get the monthly monitoring fee. How do you write that into the contract and do you put minimum yearly enrollments (say 5 years). Thanks again.

 

[AnthonyZ]

All that comes to mind is...yuck. It's FAR better, in my opinion, to build a reputation designing and installing COMPREHENSIVE security and NOT giving away gear and labor, all while retaining a sense of integrity. The flip side is do contract work for ADT or Brinks and never be able to wash off the stink of "lick it and stick it" installs. The "free gear (re: piss poor design and maybe a 6 zone system) for a rape style contract" model is crazy ugly.

But, then again, good luck to ya', Puck. Oh yeah, take a look at the latest issue of Residential Systems...

 

[hockeypuck]

All that comes to mind is...yuck. It's FAR better, in my opinion, to build a reputation designing and installing COMPREHENSIVE security and NOT giving away gear and labor, all while retaining a sense of integrity. The flip side is do contract work for ADT or Brinks and never be able to wash off the stink of "lick it and stick it" installs. The "free gear (re: piss poor design and maybe a 6 zone system) for a rape style contract" model is crazy ugly.

But, then again, good luck to ya', Puck. Oh yeah, take a look at the latest issue of Residential Systems...

I do not expect having to do lick it and stick it installs. My electrical customers do not expect that and I give them quality installs. I think because I am in the electrical business, being first on the scene, I hope to sell on performance and quality. I did find the mag and subscribed to it ( i am currently recceiving a few others). I guess I would like to know what ling is standard in a contract, ie limits on liability, service and monitoring lengths and labor rates. If I can get monitoring for my panels for 8 bucks do I charge 12 or 18 a month?

Thanks

 

[politics123]

All that comes to mind is...yuck. It's FAR better, in my opinion, to build a reputation designing and installing COMPREHENSIVE security and NOT giving away gear and labor, all while retaining a sense of integrity. The flip side is do contract work for ADT or Brinks and never be able to wash off the stink of "lick it and stick it" installs. The "free gear (re: piss poor design and maybe a 6 zone system) for a rape style contract" model is crazy ugly.

But, then again, good luck to ya', Puck. Oh yeah, take a look at the latest issue of Residential Systems...

I do not expect having to do lick it and stick it installs. My electrical customers do not expect that and I give them quality installs. I think because I am in the electrical business, being first on the scene, I hope to sell on performance and quality. I did find the mag and subscribed to it ( i am currently recceiving a few others). I guess I would like to know what ling is standard in a contract, ie limits on liability, service and monitoring lengths and labor rates. If I can get monitoring for my panels for 8 bucks do I charge 12 or 18 a month?

Thanks

5 years minimum enrollment period? That's even longer than the franchised Brinks and ADT contracts! The reason that you're looking for contract language is because you're probably looking at having the security company subsidize the installations. It's unfortunate that the ADT and Brinks folks have essentially trained customers to expect the cell phone model (free phone/large contract).

My advise -- stay away from contracts and be strictly "fee for service." Offer your customers a variety of monitoring companies with short terms (1 year or less). Make your money on the referral not on the mark-up (and tell your customers this, and let them choose an alternative monitoring contract if they want). Said another way... you're never going to get good value for the expertise you provide at $3/mo.

 

[hockeypuck]

All that comes to mind is...yuck. It's FAR better, in my opinion, to build a reputation designing and installing COMPREHENSIVE security and NOT giving away gear and labor, all while retaining a sense of integrity. The flip side is do contract work for ADT or Brinks and never be able to wash off the stink of "lick it and stick it" installs. The "free gear (re: piss poor design and maybe a 6 zone system) for a rape style contract" model is crazy ugly.

But, then again, good luck to ya', Puck. Oh yeah, take a look at the latest issue of Residential Systems...

I do not expect having to do lick it and stick it installs. My electrical customers do not expect that and I give them quality installs. I think because I am in the electrical business, being first on the scene, I hope to sell on performance and quality. I did find the mag and subscribed to it ( i am currently recceiving a few others). I guess I would like to know what ling is standard in a contract, ie limits on liability, service and monitoring lengths and labor rates. If I can get monitoring for my panels for 8 bucks do I charge 12 or 18 a month?

Thanks

5 years minimum enrollment period? That's even longer than the franchised Brinks and ADT contracts! The reason that you're looking for contract language is because you're probably looking at having the security company subsidize the installations. It's unfortunate that the ADT and Brinks folks have essentially trained customers to expect the cell phone model (free phone/large contract).

My advise -- stay away from contracts and be strictly "fee for service." Offer your customers a variety of monitoring companies with short terms (1 year or less). Make your money on the referral not on the mark-up (and tell your customers this, and let them choose an alternative monitoring contract if they want). Said another way... you're never going to get good value for the expertise you provide at $3/mo.

So in other words make money on the install and product and offer them choices in monitoring with a small monthly profit for the installer :lol:

 

[IVB]

Actually, i've been leading seminars for both my local neighborhood watch and shortly, the city-wide watch council, with the advice to find someone who they can pay by the hour for the install with zero contract, but rather a contract with the user directly with NextAlarm.

There's only one guy i've found who's willing to do that, even for the standard $75/hr rate, and boy is he busy now. I've been putting his name in the collateral for the seminar, so he's instantly had 2000 qualified leads get only his contact info. Even if folks don't pick the "pay me now, contract however you want", his willingness to do that has paid off in spades.

 

[opie]

So in other words make money on the install and product and offer them choices in monitoring with a small monthly profit for the installer :lol:

Basically, yes. Think of it ADT ect. as Home Theater In a Box; yes you get surround sound but it sucks. I often use this analogy with clients. We as integrators have to provide a much more comprehensive solution than as Anthony Z said "Link and Stick" type of installers. If you try to play the game their way and do any level of quality (which it seems like you would) you will get killed and be doing it for Nada. You have to differentiate yourself from the ADTs of the business. I charge retail for my equipment, make a fair profit on the monitoring and charge for my time. For me, selling is a much more difficult skill to hone than all the technical stuff but it gets easier every time.

Now more to what I believe to be your question. You definitely should have some sort of contract. It could be as short as month to month but have something that addresses liabilities for system performance. Since these issues vary so much from state to state it's really best to contact a lawyer. Short of that you might check with the NBFAA, I think they have some sample contracts but you may have to be a member to get them I'm not sure.

Best of luck.

Scott

 

[hockeypuck]

Thanks for the responses. How do you handle nuisance false alarms? Is that handled like a service call? I will contact my lawyer about liabilities and ugrade my policy to include security installs.

 

[politics123]

All that comes to mind is...yuck. It's FAR better, in my opinion, to build a reputation designing and installing COMPREHENSIVE security and NOT giving away gear and labor, all while retaining a sense of integrity. The flip side is do contract work for ADT or Brinks and never be able to wash off the stink of "lick it and stick it" installs. The "free gear (re: piss poor design and maybe a 6 zone system) for a rape style contract" model is crazy ugly.

But, then again, good luck to ya', Puck. Oh yeah, take a look at the latest issue of Residential Systems...

I do not expect having to do lick it and stick it installs. My electrical customers do not expect that and I give them quality installs. I think because I am in the electrical business, being first on the scene, I hope to sell on performance and quality. I did find the mag and subscribed to it ( i am currently recceiving a few others). I guess I would like to know what ling is standard in a contract, ie limits on liability, service and monitoring lengths and labor rates. If I can get monitoring for my panels for 8 bucks do I charge 12 or 18 a month?

Thanks

5 years minimum enrollment period? That's even longer than the franchised Brinks and ADT contracts! The reason that you're looking for contract language is because you're probably looking at having the security company subsidize the installations. It's unfortunate that the ADT and Brinks folks have essentially trained customers to expect the cell phone model (free phone/large contract).

My advise -- stay away from contracts and be strictly "fee for service." Offer your customers a variety of monitoring companies with short terms (1 year or less). Make your money on the referral not on the mark-up (and tell your customers this, and let them choose an alternative monitoring contract if they want). Said another way... you're never going to get good value for the expertise you provide at $3/mo.

So in other words make money on the install and product and offer them choices in monitoring with a small monthly profit for the installer

Small or no monthly product to the installer. I'm a consultant... $100/hr, and for that the customer gets my (relatively) unbiased advise and expertise. If I get a referral from a monitoring company, I give the customer credit for it (I make no money on monitoring). Why? Because I don't want to be in the monitoring game. I don't want to have to respond to monitoring issues, and I don't want monitoring liability. Oh yeah, it's much easier to earn $2500 doing one job and getting paid for it, rather than charging the customer $1000 and hoping to make the rest up on residuals.

 

[AnthonyZ]

Small or no monthly product to the installer. I'm a consultant... $100/hr, and for that the customer gets my (relatively) unbiased advise and expertise. If I get a referral from a monitoring company, I give the customer credit for it (I make no money on monitoring). Why? Because I don't want to be in the monitoring game. I don't want to have to respond to monitoring issues, and I don't want monitoring liability. Oh yeah, it's much easier to earn $2500 doing one job and getting paid for it, rather than charging the customer $1000 and hoping to make the rest up on residuals.

One word....Amen.

 

[IVB]

Yeah, as mentioned above, with my neighbors that's viewed as a win-win. They'll happily pay an upfront charge and get the $12/month monitoring than lock in. For them, it's actually not a price thing - we've had numerous complaints about horrid service/etc, and they like knowing they could switch at will if need be. And, given that I live in a high-tech area (SF Bay Area), they also like having all the installer codes so they can add a single sensor/etc themselves if they so choose.

No one actually chooses to extend themselves, they just like knowing they could if need be.

 

[CollinR]

Go to your local ADI, on the couters will be a flier about leasing.

When you build your systems just apply your total with labor and monitoring and compare to the lease terms on the flier. Give both to the customer and they can choose pay now or lease for x years.

The system must be $1K or more to qualify for the lease, this shouldn't be too difficult with monitoring included.

36 months seems to be the norm.