Are Monitoring Rate Increases Allowed?


Alarm Monitoring Rate Increase

Alarm Monitoring Rate IncreaseAre Alarm Monitoring Rate Increases Allowed?

Now that you chose the lowest priced monitoring rate, can you expect the charges to increase?

You’ve done all of the homework.  You’ve shopped around for home security alarm companies.  You’ve done your due diligence on the final 2 or 3 that you want to select from.  You’ve even read the contract’s fine print.  What else can you do before making your final selection?Did you see the clause about rate increases?  What?  Rate Increases?

Yes, most alarm companies (including Aloha Alarm in Honolulu, Oahu, Hawaii) have a rate increase clause built into their contract. Most rate increase provisions allow up to an annual 10% increase.

Companies have 2 intents for including a rate increase allowance in their contracts.

The first is to protect the security company from large increases in the cost of providing services.  If the cost of a component of the monitoring service raises dramatically, then the alarm company needs to be able to cover these increases.  If we can’t cover large increases, then we may no longer be profitable.  If we are no longer profitable, then we may not be able to stay in business.  If we don’t stay in business, then the customer may have to spend more money to find and install a new home security system with a different alarm company.  This is the reason that Aloha Alarm has a rate increase provision.  We have never raised our rates, and never intend to!  However, we need to protect ourselves.  Fair, right?

The second reason is to make more money.  By and large, most alarm companies raise their rates to their customers regardless of their costs increasing or not.  They look at it as an easy 10% increase to their bottom line EVERY YEAR.  Do the math.  Start at $25.00/month.  After 1 year, $27.50.  After 2 years, $30.25.  After 3 years, 33.28.  After 5 years, $40.27.  After 10 years, $64.85.  WOW!  It’s called a loyalty reward, and it happens more often than you would think.

Do more research.  Read the contract.  If there is a rate increase provision, it is perfectly acceptable to negotiate for them to limit or remove the clause. If they refuse, find another company.

If you live in Hawaii, and are looking for a reputable and honest alarm company, be sure to call Aloha Alarm.

Mark Plischke
Aloha Alarm LLC
Home Security Systems
Honolulu, Oahu, Hawaii

 

 

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One Response to “Are Monitoring Rate Increases Allowed?”

  1. Alarm Monitoring Rate Increase. Aloha Alarm, Honolulu, Oahu, Hawaii | Security News Says:

    […] Alarm Monitoring Rate Increase. Aloha Alarm, Honolulu, Oahu, Hawaii […]