Re: [LM_NET] [CALIBK12:8563] Query Re: 3M Service Agreement

[Mark Williams <markwilliams@MAKAW.NET>]

At 03:24 PM 1/9/2007, you wrote:
>3M wants $843.00 for the yearly service agreement on our security 
>gate system.  I seem to recall some discussion on this board 
>regarding renewal contracts.  Does anyone have experience with 3M 
>and/or knowledge of options for these contracts?   It seems like a 
>lot of money, but our system is now about 10 years old. Any 
>suggestions/advice would be appreciated.

Susan:
Yes, it IS a lot.  How many service calls have you made per year, and 
what is your repair budget like?  For us, it was $350 just to send a 
truck, plus $125/hr, starting when the tech stepped off the truck 
until he was back in his truck at the end of the job.  Parts were 
extra.  So, one repair per year and you may lose money.  Two repair 
calls and it will definitely pay for itself at the $843 you were quoted.

IMHO, 3M grossly overcharges for the equipment in the first place, 
and then REALLY overcharges for repairs.  I have always suspected 
that the high repair fees were to encourage people to buy the service 
contract.  After all, if you don't use it during the year, its 100% 
profit for 3M.  One thing in their favor is that they do guarantee to 
repair the unit.  You to not have to ship the item back to them ever 
(which would be a very costly proposition, given the size and weight 
involved.  If the tech does not have the required part(s) on the 
truck, there is no charge for a return visit (the $350 fee, I mean), 
just the hourly labor charge.

Bear in mind that these figures were from perhaps 8 years ago.  I am 
sure prices have gone up.  Call 3M to check, and then do the 
math.  If your district can be persuaded to do this, you might 
consider putting aside say $500-800 in a "repair contingency fund 
that would roll over each year (instead of being zeroed out at the 
end of each budget year).  When it gets used, replenish it.

You say your gate/system is 10 years old.  Has it needed a lot of 
repair?  Consider that as well, and balance that against the cost of 
a new system.

Finally, I would not be without a security system.  I have record 
from when my predecessor spent over two-thirds his slim book budget 
on replacement of stolen books (20 years ago).  The numbers were 
amazing.  The theft rate dropped dramatically once the security 
system was installed.

Hope this helps, and good luck!





>Thanks,
>
>Susan Baranich, LMT
>Thomas Starr King Middle School LAUSD
>4201 Fountain Avenue.
>Los Angeles, California 90029
>323-664-1176 x139
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Mark Williams
Consulting Librarian
Professional Services for Conferences, Districts, Workshops
markwilliams@makaw.net
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