Security, access control, etc "service contract"

Status
Not open for further replies.

Security101

Senior Member
Location
Northern Indiana
Hey all,

I have a new customer takeover of an existing burglary system, access control system, some fire, etc that I need to quote for a "service contract" providing "same day service".

I usually just provide "when you call - pay as you go" type contracts and our regular pricing for calls and materials.

The systems are all systems I support and appear to be properly configured and installed, and clean, with no real issues besides some lightning problems (I have discussed surge protection - it will probably be a separate install)


My question is how do I charge for the "same day response" part in addition to the regular charges (monitoring of the system, regular service calls, materials). I am not offering "maintenance", only "service" when the need arises. I would be billing them monthly for monitoring and assume I should add the additional amount to this cycle. I can handle being there in the same day. I cant however have all necessary product available the same day, but could have it within a day or two. I do have a properly worded service contract. They are within 20 miles.

I'm picturing something like this: Monthly monitoring and same day service at a price $_ _ _._ _ . Onsite same day to address issue (repair or silence or bypass), materials and final repair within 72hrs.
Service calls at regular hourly rate (no service call "first hour" upcharge fee -waived)
Main control failure replacement within 5 business days, payment for materials due at confirmation:-?



Any ideas or other issues, snags that you can advise about would be greatly appreciated, besides just some rough cost ideas for the "same day" trouble...

Thanks Jim
 

nhfire77

Senior Member
Location
NH
I have a policy that anything same day is an emergency, which is time and a half. Now, if it's not a life safety issue, and I happen to have them time that day, i won't charge extra for it.

Fire is life safety, and thus $.

Those are my polcies, and they are fair IMO.
 

Security101

Senior Member
Location
Northern Indiana
OK, I agree with your thinking but they are wanting to pay a standard fee (monthly in advance) to guarantee same day service.

I'm trying to determine what that's worth, or what to base the figure on. I know others have done this. I haven't and I'm trying to give them an acceptable cost but cover my trouble as well.

Thanks for all ideas...

Jim
 

nhfire77

Senior Member
Location
NH
Well I would look at it like insurance. I would charge a hefty security services management fee for that say 600-1000 more a year, broken up over the contact of course
 

Security101

Senior Member
Location
Northern Indiana
Well I would look at it like insurance. I would charge a hefty security services management fee for that say 600-1000 more a year, broken up over the contact of course

That sounds like the right idea only I was thinking closer to 2000 give or take...

I dont think that is unreasonable - but that's why I'm asking ;):roll:

Jim
 

nhfire77

Senior Member
Location
NH
I guess how much more would depend on what your time and
materials rate is. Also, my $1000.00 in Monday-Friday. $2000.00 would be better for nights weekends and holidays inclusive. And I would put the hourly rates and one hour or two hour minimum on the contract, just to be up front abot costs.
 

Security101

Senior Member
Location
Northern Indiana
And I would put the hourly rates and one hour or two hour minimum on the contract, just to be up front about costs.

Yea thats the other part - I wasn't sure if the standard rates would be acceptable or if part of the deal was that they could be relieved of the "first hour" addition to the regular hourly rate (I generally charge 65 service call/first hour, then 45 each hour after - in 15 min increments). This would just be kinda a perk to the front of the line contract - I dunno...

Jim
 

nhfire77

Senior Member
Location
NH
Yea thats the other part - I wasn't sure if the standard rates would be acceptable or if part of the deal was that they could be relieved of the "first hour" addition to the regular hourly rate (I generally charge 65 service call/first hour, then 45 each hour after - in 15 min increments). This would just be kinda a perk to the front of the line contract - I dunno...

Jim

Wow Jim! I would not leave my office for less than $65/hr (before trip charges/travel time), I guess Indiana is not New England. Nothing mean meant by that.
 

Security101

Senior Member
Location
Northern Indiana
Wow Jim! I would not leave my office for less than $65/hr (before trip charges/travel time), I guess Indiana is not New England. Nothing mean meant by that.

Yea, around here that's about the max anybody can get for standard service, certain system tech services can go higher but not to much (say 75-85 bucks).

Do you or anybody know much about retainers or service prepayments? Somewhat different than what I was originally planning but worth investigating I guess...

Jim
 

nhfire77

Senior Member
Location
NH
Yea, around here that's about the max anybody can get for standard service, certain system tech services can go higher but not to much (say 75-85 bucks).

Do you or anybody know much about retainers or service prepayments? Somewhat different than what I was originally planning but worth investigating I guess...

Jim

Some of the bigger alarm companies get alarm management fees, not just monitoring fees. You manage their alarms, you proactively test and inspect their fire and burg as part of the contract. You know their equipment, and know what to expect.

If a company has say 10 locations, you would manage their alarm services, burg, fire, access control, cameras. They pay a monthly fee, which is a lot more than what the monitoring would be. (say $350/month per site, including three monitoring accounts, burg, fire, cell back up)

The alarm company sets a guaranteed response time frame and discounted labor rates. Also you don't mark up parts more than say 15% and that would be part of the contract as well

It is a win win in my opinion. You get to collect a ton of $ monthly, plus you make some extra on service. The client gets priority service and doesn't have to sweat costs, they know what they are getting.

It's my theory that I should be paid ridiculously well, and the client should be able to get what they want, and be treated like babies, because they pay for it.

For example, if I am getting $15/hour and the client is upset that something is broken, I as an employee don't really care about their needs or whether or not it is fixed to prevent it from happening again.

If, I am paid $40/hour and get perks from my employer for doing a good job (positive reinforcement) I will go out of my way to do a great job, and I will not leave until I have put a smile on the customers face, or at least have a plan to do so.

Now as a business owner, I don't want my customers to have to call me for service too much. I want the problem repaired, and proactive steps taken to prevent it from happening again. This makes that "management fee" I charge month an asset to the client, they see paying it as a good thing.

Now I can send my technicians onto other jobs that I can charge out full rate on.

I realize this is a dream world situation, and I only have it with one five site client. But, if I had this going with half my clients, my pockets would be fatter.

I had to really explain why this was a benefit to my client, it took 3 meetings with the owners, but when I explained why it was giving them freedom from dealing with the alarm systems, and how we would treat them, their response was, its worth it to be pampered with this because they no nothing about alarms. This service would free them up to focus on their clients, which is their biggest asset.

Just like those big private investment firms ads say on TV, "asset management."
 
Status
Not open for further replies.
Top