Stealth Alarms offers monthly alarm contract

Saturday, May 1, 2004

CALGARY, Alberta - Stealth Alarms, a full-service alarm provider throughout Canada, has announced the end of long term contracts to its alarm service and the beginning of a month-to-month contract.

The program will require customers to place a down payment, which Stealth Alarm president Brad Morrison expects to be approximately $200, an administrative fee that turns into a monitoring credit after one year. A monthly charge of $27.95 covers monitoring fees, the cost of the system and extras such as concierge service and roadside assistance. A key component

to the program on the customer end is the option to cancel the program at any time. There will also be no customer credit checks, only credit reporting.

“I believe it will revolutionize the industry,” said Morrison. “I think it’s a long time coming and I believe a company such as Stealth can make this work.”

Morrison said the drive to create a no-contract program stemmed from feedback from clients who found it difficult to adhere to a long-term contract. Many alarm companies currently require a three-year contract.

Morrison also pointed to the dealer advantages with Stealth’s program, which includes receiving residual income in a short time span.

“If you are a dealer, there is an average of $200 for each system that you put out there,” Morrison said, “and the residual income is not 20 or 30 cents. I’m talking dollars right now.”

Although the idea of automatic income can be tempting to all, Morrison is quick to point out that this program is not designed for large-scale dealers but geared towards smaller dealers with less than 50 employees.

The idea of a monthly contract may seem foreign to some people, but Michael Barnes, the president of Barnes Associates, said it has been tried in the United States on a limited basis.

“There is ample evidence that this approach has extreme difficulties in being successful,” he said. “It has resulted in overall returns well below those provided by a traditional approach.”

He specifically points out that a company still must use traditional advertising methods to bring customers in - which may far outweigh the initial return on investment.

Even so, he is aware that change in the industry can also improve it.

“We are always excited when people try new approaches,” he said. “This is what keeps the industry fresh and moving forward.”