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Alarm System Agreements – Good or Bad?

alarm, good or bad

Alarm System Agreements – Good or Bad?

In the alarm industry, it’s common for a company to request that the customer sign an agreement. In this article we’re going to discuss the good and the bad.

The Good

  • Save money upfront

    A lot of companies will have an option to save money upfront by signing an agreement and paying a little more per month for the service. This will allow the alarm company to break even on the equipment over the course of the agreement.
  • Warranty

Some agreements come with a warranty or discounted service rates. Alarm companies have figured out that a customer is more likely to pay for their service if their security system is in good working order.

  • Higher Quality Equipment

If the cost of the security system is cheap then you’re probably getting a cheap system. Alarm companies that offer agreements typically provide better quality equipment since the agreement can help with the upfront costs.

  • Price Lock

Locking in the service price helps with budgeting and planning. It’s nice to know that you won’t experience price increases or have to call to argue for a better rate after a promotion has ended.

  • Better Rate alarm

    Sometimes, if you sign an agreement committing to a certain amount of time, the alarm company will provide you with a better rate for your commitment to them.

The Bad

  • “The Paper”

Be careful working with Authorized Dealers who are only interested in selling the paper. Companies like ADT and Brinks are known for this kind of practice. These Authorized Dealers only care about selling agreements to monitoring companies for a quick payout. They typically use door knocking, telemarketing and mailer tactics. They’ll use the cheapest equipment and the cheapest installer they can find to keep their costs low and profits high. They’ll only be responsible for your security system for 6 – 12 months then they’ll just disappear.

  • Just Because Agreements

For some reason, alarm companies will make you sign an agreement just to sign an agreement. We’ve found that if you take care of your customer and provide the best security system, then they usually don’t go anywhere. So why make you sign an agreement?

  • Price Increases

Be careful of agreements allowing the alarm company to raise their pricing.

  • Being Stuck

If you choose the wrong company, you could end up stuck with them for the remaining time of the agreement or have to pay an early termination fee.

As you have read, alarm agreements can be both good or bad. However, the best way to make that decision is to talk to one of our pros at Freedom Systems. Contact us today and we’ll be happy to help you make the best decision while providing options that make sense.

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