| Do the big national companies actually "give"
their systems away? No doubt you already know the answer to this
one. Of course they do not actually give anything away. If they did, their
stock values would head south in a hurry. Here's how they do it. In all cases, the
"free" equipment constitutes the bare minimum of equipment required to fit the
description:. Usually included in this package are a keypad, control, battery, two
door contacts, and sometimes a motion sensor. That package actually does fit the
needs of about 30% of the homes.
It is with the "add ons" that the picture changes. They usually charge
from $150 to $250 for motion sensors, $125 to $150 for additional keypads, $75 for
additional doors, $200 for smoke detectors. In many cases they have the phone
company do the telephone work. That can cost the homeowner another $60 or more.
With those additional charges, a so-called "free" system will often cost
$500 to $700.

But even in the case of the "basic" package, the free system is still not
truly free. Along with the alarm system the homeowner also gets a very complicated
contract. ...And, without signing that contract, he does not get the free system.
What does that contract do? Well, for one thing, it doesn't do much to protect
the interests of the homeowner, while at the same time it does a great deal for the alarm
company. Typically, this is what is in that contract:
1--It limits liability. That means if your free system doesn't work, you are
legally very limited in what you can do about it. That is, it makes it next to
impossible to sue for monetary relief.
2--It requires you to pay the company a monthly fee for several years--sometimes up to
five years. If you do not pay the monthly, they can not only take back that
"free" system, but they can take your house too.
3--The amount of that fee is most often substantially above (sometimes as much as double)
the prevailing rate offered by the local alarm companies.
4--These contracts make it virtually impossible to legally contract with another
monitoring company, should you become displeased with the service.
Consider along with these facts that in order to have your "free" system
maintained, you have to come up with at least another $5 per month (service contract).
It would not be unusual for a homeowner of a pretty average 1200 square foot home to
pay $500 for "additional equipment" at the time of installation, another $60 to
have the phone company hook up the telephone line for monitoring, and $30 per month for
monitoring and service contract for a period of five years. That comes to a grand
total of $2360.
If it wasn't before, it should now be obvious that these "free" systems are
anything but free. Perhaps Grandpa was right all along: "There's no such
thing as a 'free lunch.'"
Are these "free" systems any good? It
is not surprising that some of the national companies have built their systems around the
cheapest components available. However, the trend now seems to be toward a more
reliable control panel. In fact, many of the nationals have contracted with Ademco
for their CPUs. That is a good sign, because Ademco makes a very good product.
The product Ademco has come up with for these companies looks to me to be a revised
version of Vista 10. These units are, however, proprietary in nature. That
means that they have been designed with a unique software package specifically for the
particular national, and they cannot be monitored by any other alarm company.
So, while the trend is toward better equipment, in most cases end users are even more
tied to the installing company. This proprietization of equipment means that the
installing company can raise your monitoring rates, increase the cost of service, and you
can do nothing about it, because no one else in the world can ever monitor your system.
Even at the end of the initial contract period, if you still want to use your
system, you must pay your monthly fee to the installing company.
To find out if the national company is trying to sell you a locked-up proprietary
system, ask your salesman this: "Will you sell me the equipment without the
monitoring?" If he says "No," then ask him for a one year contract.
If he says "No" again, you are probably talking to a proprietary company,
and you need to shop around.
Is Eagle competitive with the big national companies?
Yes! Absolutely! Not only are we competitive, but most people will
actually save a substantial amount of money with Eagle, over the national companies.
Here's how that is true. Since none of the nationals we know about typically do
contracts for less than a period of three years (most often they go for five), we will use
that shorter contract period as a starting point.
Let's start with the minimum "free" system offered by some of the nationals:
one keypad, one control, one battery, one siren, two doors and a motion detector.
Eagle Security would typically charge $385 for that system, and $18 per month
monitoring, with a one-year warranty. Eagle performs the telephone line hookup at no
extra charge.
The nationals usually charge about from $25 to $30 per month for monitoring, 60-day
warranty, and $5 to $6 per month for a service contract. Often they have right in
their contracts that phone line connection charges will be billed directly to the customer
by the phone company. The minimum telephone company installation charges we know of
is $60. More in some cases.
Using those numbers, this is what the total cost over the three year period would be to
the customer:
| Total for three years: |
|
| Eagle Security: |
$ 993 |
National #1 (at $25 per month, with one year of service
contract, & $60 telephone company charges): |
$1020 |
National #2 (at $30 per month, with one year of service
contract, & $60 telephone company charges): |
$1140 |
It is a simple fact, even in the most basic case, you actually save
money with Eagle. It is financially wiser to "buy" a system from Eagle,
than it is to let the nationals "give" you one. Furthermore, these savings
(with Eagle) just keep growing at the end of the initial contract period. There is
no reason to think the monthlies you will pay the nationals will ever go down. If we
look at these three programs over a five-year period (which some nationals have as their
minimum), this is what the picture looks like then:
| Total for five years: |
|
| Eagle Security: |
$1377 |
National #1 (at $25 per month, with one year of service
contract, & $60 telephone company charges): |
$1620 |
National #2 (at $30 per month, with one year of service
contract, & $60 telephone company charges): |
$1860 |
What makes Eagle Security better? We
believe Eagle Security provides a better price. We also believe that we proved a
better product. Here are some Eagle advantages:
1--Local Monitoring. Some of the nationals
boast of having 5000 accounts for each dispatcher. I guess that is one way to hold
costs down, but it is not Eagle's way.
2--Top of the line equipment. Our product is not a stripped-down proprietized
version of the real thing. We use top-quality Ademco equipment.
3--Better Design. Our philosophy is not "One size
fits all."
So, the bottom line is this: you get a better product, for a better price, with
Eagle Security.
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