TORTIOUS INTERFERENCE WITH ALARM MONITORING CONTRACTS

Some of us believe the activity of “stealing accounts ” will substantially increase.   I have seen serious business plans that magnify this issue, and can share some of those strategic and tactical issues.
 
Bullet points:
~ 25 million systems are already sold and installed in the US and producing RMR.
~ It is easier and less costly to convert and upgrade an existing alarm system than to locate and sell a fresh non-user.
~ Massive competition exists for every fresh non-user, whereas little or no competition for “conversions”.
~ High percent of existing alarm users are unhappy with their system or supplier, thus little or no loyalty.
~ Police departments are lowering the priority for alarm response, even stopping emergency response.
~ Alarm users are generally unaware of the local legislation that is diluting the credibility of their alarm supplier.
~ Many existing long term alarm contracts can be reset to month-month due to pressure from consumer protection laws.
~ Pressure of “tortious interference” is a low priority in a high number of consumer protected States or communities.
~ Some of the national and regional alarm associations are diluting the credibility of their members.
~ The term “deceptive business practices” will be focused on the existing alarm suppliers, not the new guys.
 
Recent activity suggests that the real threat of conversion marketing is not from the “summer, collage kids”.  It could be from well funded, well organized, highly experienced, firms that will be setting a trend by gaining high market share at relatively low cost, without a legacy liability.
 
We hope managers of existing installed alarm systems will apply a defensive/offensive strategy, rather than just holler “foul”.
 
Lee Jones
Support Services Group
949-361-3300