Business Generation

Around this time of year our neighbourhood is infiltrated by pushy home alarm sales people.  Apparently not enough people purchase home alarm systems directly, so many security companies go with the old fashioned door-to-door sales approach.

Now I’m not a big fan of solicitation to begin with.  Calling me at home and interrupting my dinner isn’t going to get your survey answered.  But telemarketers are just a minor nuisance compared with these shady home security companies and their door-to-door alarm sellers.

It Starts With the Hiring Process

Home security companies rely on hiring post-secondary students to sell their alarm systems door-to-door in the summer time.  Every spring, thousands of University and College students are quickly trained and then deployed all across North America with the promise of a great work experience and quick cash.  It’s a perfect marriage between an opportunistic company with a short selling window and the money-hungry students looking for summer employment.

The students are quickly gathered together for a few weeks of, “don’t take no for an answer”, training and then sent into our neighbourhoods to try and convince us that we need their product.  The allure of huge commissions and a big screen TV bonus, combined with the companies’ tailored and targeted sales approach makes for a highly motivated and aggressive seller.

The Shady Sales Pitch

The sales approach is fairly similar for all door-to-door home security sellers.  They are well dressed and travel in pairs, and will typically approach your house on a weekday afternoon.  This is likely intentional to target seniors and stay-at-home mom’s.  The sales pitch goes a little something like this:

We’re from XYZ Security and we’re trying to get our name out there in the community.  We’re looking for households to put our sign up on their lawn and in return we will install this home security equipment in your house for free.  Just don’t tell your neighbours about this deal, ok?

There’s been a few break-in’s in your neighbourhood lately and we just want to make sure that your home is safe.  Can I come in and take a look at your windows?  Do you have kids?

We’ve taken over all the contracts from XYZ Security (your existing security company) and just need you to fill out some paperwork to transfer the service.

What are they Really Selling?

All of these shady tactics and high-pressure sales pitches are designed for one reason, to get you to agree to let the security company install their home alarm system in your house.  What isn’t discussed is that this alarm system isn’t really free, they are getting you to sign a multi-year contract where you agree to pay a monthly fee for the home monitoring system.

Before you even have a chance to think it over, a technician shows up and starts drilling through your walls to get the wiring set-up.  I guess they figure that you are less likely to change your mind if they’ve already put a hole through your house.

Who’s Protecting You from the Protector’s?

I have nothing against home security systems in general, but the fact that these companies only go door-to-door says a lot about the appeal of their product.  Their main focus is to extract the maximum amount of money out of as many customers as they can in as little time as possible.  It’s not about your protection and security.

These companies offer free entry-level equipment that may not last 5 years, and have numerous complaints in local Better Business Bureau’s about their sales tactics.  Their monthly rates are some of the highest in the industry.  Some don’t even have a license to sell door-to-door.  Is that who you want to do business with?

If you are really interested in a home alarm system to protect your house and your family then be proactive and shop around your local market.  You’d be surprised at the difference in price, customer service level, and installation quality.  Then you can take all of the time you need to make an informed decision about the products and service.

Here are some legal and policy issues small business owners should be aware of this week. Be sure to check through this legal and policy news roundup for the issues directly affecting your small business or entrepreneurial venture.

Trends

No-match letters a new headache for entrepreneurs. No-match letters from the Social Security Administration are back. The letters are issued when an employee’s name doesn’t match an existing social security number. The implications are obvious. But what should you do if you get one of these in the mail? 

Wage and hour lawsuits the lates threat. There were 40,000 of these in 2010, up 15 percent over the previous year. And one expert says they’ve replaced discrimination lawsuits as every small business owner’s worst nightmare. So what about you? Are you on

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Copyrights and trademarks can be a confusing lot for the small business owner. They are considered valuable assets by giant corporations and guarded vehemently.  However, small business owners should do the same. Do you guard your intellectual property properly?

Understanding Copyrights

A copyright is any artistic or creative material that is produced on a tangible medium. For instance, when you write and post a blog article, you have a copyright on those sentences and the way you present that content. No one can steal your blog post and print it elsewhere, or post it on another website.

Likewise, any printed materials, including catalogues, brochures, white papers, and sales letters, all have an inherited copyright that your business owns.

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The Sacramento Bee newspaper reported in early May that according to the major credit rating agency Moody’s, defaults on credit card payments are about to hit their lowest level in 20 years. Credit card defaults will reach a 20-year low by next year, Moody’s Investors Service said Monday, as card issuers remain choosier in their lending practices.

For the past few years card companies have dealt with billions of dollars worth or lost revenue due to uncollectible credit card debt. They made it harder to get credit card applications approved, they raised penalties and rates, and they lowered lines of credit for their customers. But it appears now that with the worst behind them these card companies are once again back in business and eager to offer cards and credit.

For the past couple of years, for examples, defaults added up to a grand total of nearly $75 billion in losses – and that was at just six of the biggest banks and card companies like Amex, Citi, Chase, Bank of America, Capital One, and Discover. But t

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SOMERSET – The townwide drinking water ban in effect in Somerset has affected local business, including some restaurants that decided to close for the day on Wednesday, The Herald News reported.

The drinking water ban was put in place after a company that did not have permission to do so, hooked into a fire hydrant for hydroseeding, which caused the material, which contains some fertilizer, to back into the public water supply.

Town officials are waiting for the results of a water supply test before lifting the ban which was in effect as of Thursday morning.

The company, Hydrograss Technologies, could be charged with larceny of town water and wanton injury to property, and be held responsible for the estimated $20,000 bill for ban-related costs.

Local restaurants took different approaches to the ban, The Herald News reported.

The Rise Café on County Street and Ma Raffa’s closed for the day while the close-by Domino’s Pizza remained open. Cupper

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Over the past decade Britain has become addicted to borrowing, and up until the onset of the global credit crisis most people – including those with damaged credit – were able to get finance pretty easily with banks and financial institutions eager to loan money to anyone that wanted it. This has, of course, resulted in a huge personal debt mountain that has left many people struggling with their finances and unable to keep up with their debt repayments.

The Bank of England is set to release figures later this week relating to mortgage lending and consumer credit. It is widely thought that the figures will show that lending and consumer credit levels are very low. It is thought that whilst some people will find that the figures make for very bleak reading indeed there are many others that will see the subdued lending data as a positive sign.

Many city officials are likely to see the low lending levels as something that could dampen the economic recovery and reduce consumer confidence levels. How

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