Buying/selling of lines

[Machida]

I was hoping to get some opinions from people in the industry.

I was always under the impression that the buying and selling of 'lines' was diminishing in both price and frequency, mostly due to the uncertainty of homes/small businesses continuing monitoring with 3G upgrades required for NBN, and IMO, other players eventually attempting to disrupt the market such as google/amazon. But I have heard a lot of talk lately about someone paying $xxx, someone buying someone etc etc. Do you think this trend will still continue or are these people living in the past?

[downunderdan]

Machida,

Businesses get bought and sold all the time. The scenario you raise continues. Perhaps just discreetly and without much fanfare.

That said, due to the noxious and occasionally criminal conduct of many operators within the security industry you may find that buyers (and in some cases sellers) have become a lot more judicious in how these transactions are managed. There's also the perennial issue of business sellers (vendors) with wildly unrealistic expectations. Yes, your business cost you two marriages and a lot of blood, sweat and tears, but no, it is not worth five million dollars.... etc.

We've been approached more than once by a person looking to offload "their" monitored client base. Except we knew he'd sold the same customers previously (sometimes more than once) and was clearly a grub who would sell a business and immediately knock off the customers. Immoral. Also a third-rate provider in general but that's another story. Reputations matter.

We've also just (successfully) completed litigation against a bloke who represents everything I cannot stand about the industry (and our gene pool) and it was certainly a valuable learning exercise.

As for "living in the past" I'd say you've nicely described a major segment of industry in general :-)

If people would like to have an in-confidence chat about these things give me a bell.

[xr5adam]

I was in the buying position last year,

A retiring business owner was wanting half a million for what was meant to be 500 lines, however it turned out to be 350 lines, in the end the deal fell through, basically as he let his business dwindle, he had no NBN plan for the areas converting over, and was actually more wanting to tell me about the call rebates he was getting each month.

Now I have been on the other side with ADT wanting to buy what lines I do have,

I think the buying and selling will always be there, however isn't it just a database you are buying and good will that the seller will not sell that same list of names to another party. Or even start up again?

[Dfektiv]

ADT offered to buy yours?
they stole most of ours, sent both us and the customer the same bill.

We give the customers all the options and they choose what they want, informed decision by the customer.

I wouldn't buy customers from someone, we've been given customers by a closing business and they were informed first.

[xr5adam]

I have considered buying, but as mentioned it is only a list, what is stopping the techs (most I know are contractors) approaching the clients direct once the old owner has moved on? I would like to think that what I have been be sold or even passed on to my son when he is older, That's many years away from now so I am sure alot will change by then

[downunderdan]

Unfortunately the comments here are consistent with the poor ethics often on display within the security industry. Ironic when you consider it is (at least theoretically) an industry based on upholding honesty and integrity...

[Poody]

Do you guys not have contracts with the monitored client for a time period. EG 2 years @$xxx per month.

[Pyro]

I'd rather be saying Downunder Dans comments are completely unfounded, however, it's been my experience that the selling of lines, then systematically stealing them back is a common practice.