Recently AlarmForce sold their US accounts to Select Security. AlarmForce has approximately 30,000 US customers. These accounts will be transferred to Select Security. It’s unknown when servicing by Select Security will begin.
Why did AlarmForce sell their customer base?
AlarmForce was having trouble growing in the US. Was it poor marketing that was put into effect after Joel Matlin’s firing? Maybe new management raising monitoring rates from $25/month to $29.99/month? Could it be that customers didn’t want to commit to long-term contracts? Who knows?
What we do know is that AlarmForce has decided to pull out operations in the United States.
Read about the sale here – http://bit.ly/2sdy65S
American AlarmForce customers will become Select Security customers. Select Security typically charges customers $42.99/month to $50+/month for monitoring. They also require a long-term contract. Will Select Security raise AlarmForce’s old customers’ monitoring rates? AlarmForce customers need to remember that in the contract they’ve signed there is a clause that monthly monitoring rates can rise at any time.
The sale also raises questions for current and new Canadian AlarmForce customers. AlarmForce customers should pause and understand that if AlarmForce has sold the American customer base, could they also sell the Canadian customers at some point?
AlarmForce continues to post lackluster growth numbers. Will management get to the point where they decide to sell off select Canadian subscribers? How can they guarantee it won’t happen? Remember all AlarmForce customers are forced to sign a contract. That contract is binding even if the accounts are sold! So if AlarmForce sells their Canadian customer base to ADT, you now have to honor the remainder of your contract as a new ADT customer! And as we all know, ADT isn’t shy about raising monitoring rates!
This shows why all alarm customers should avoid signing up with any company that requires a long-term contract to be agreed to. This way if you’re ever unhappy you can cancel without a penalty. It lets customers guarantee the best price and service.