Minnesota Proves My Point

Last week I wrote:

To me, Minneapolis is an area that security salesman are always going to. It has to be perpetually knocked out. I personally have never worked there, but I have known a lot of people that have. Almost every company that has more than 3 offices sends one to Minneapolis. People have been going there for about 10 years. Every summer it gets absolutely scoured. When the whole neighborhood knows they can get a free security system, it takes away the surprise and is easier for them to say "no".

This week, James Shiffer from the Minneapolis Star-Tribune proves my point:

I would gladly install an alarm system that would repel alarm system peddlers, who come around much more often than burglars. I find it unlikely that Pinnacle Security will offer that product any time soon. link.

General Electric Going Door-to-Door?

Someone is really believing their own line today, and someone is also buying it. I don't know which company it is, maybe Platinum Protection or Pinnacle Security, but they are telling the police they are with GE.

Let me just say no one who goes door to door selling security systems works for GE or Honeywell or any other well known manufacturer. If you think they do work for GE then you probably think the T-Mobile salesman works for Motorola or the appliance salesman works for Maytag or the kid that works at Best Buy actually works for HP. They don't, and neither do the security salesman. It's just a sales tactic to create trust by using a name you are familiar with. It also deflects any negative name association by not using the company name. It worked for this company here.


These salesman work for a company that uses the equipment. In fact, the salesman don't even work for the security company. They are independant contractors. So, technically, they are their own business and work for themselves.

Read story here.

Door-to-Door Alarm Salesman Punches Competitor After Heated Street Dual

Without a doubt, this is going to be the best story of the summer regarding door-to-door security system salesman. Last year it was an Icon Security salesman flipping out on a news station in El Paso, this year it is Jeffrey Jacobsen. This guy, after getting into a street dual with a competing salesman decides to punch him. Bad move. He's now got a possible 5 years in the slammer. Probably not going to happen, the law enforcement probably wants to do the same thing to the door-to-door security salesmen. I would assume a slap on the wrist is coming his way.

To me, Minneapolis is an area that security salesman are always going to. It has to be perpetually knocked out. I personally have never worked there, but I have known a lot of people that have. Almost every company that has more than 3 offices sends one to Minneapolis. People have been going there for about 10 years. Every summer it gets absolutely scoured. When the whole neighborhood knows they can get a free security system, it takes away the surprise and is easier for them to say "no". Now it comes to this.

At the moment, the news story, which is limited in detail, is the only confirmation I have on this. I can almost guarantee that the competing salesman was from out of state. It says that this guy was from Bloomington, MN, a 20 minute drive away. If you ever want a to meet a surly group of people, get to know a few locals that do door-to-door alarm sales. Call them up for a quote or wait for them to come, it is worth it! They have a sincere disdain for the out-of-state security companies. They are like the Europeans who know the Vikings are coming to conquer them. The out-of-staters are better salesman, have better deals to offer, work harder, and sell more and probably steal their girlfriends too. I'm usually a fan of the local alarm companies, I think they provide a good service. But local companies that go door-to-door can't compete, the only thing going is they have a local address. And did I mention the people that the local door-to-door security employ? Guaranteed they have at least one exotic-pet guy and one street-racing-in-a-1996-multicolored-Honda-Civic-that-sounds-like-a-weedeater-on-steroids guy. I'm probably being a bit harsh in saying that, but some of these companies are not even in the same league as the companies like APX or Pinnacle, and their league isn't that far fetched.

Needless to say, it's quite the rivalry. You know I'll be updating this when there is more info. Best story of the year!

***************UPDATE******************

More info is coming in:
Star Tribune story, most detailed account.
Court Record.

Pinnacle Security Denied Peddler's License in Kenosha, WI

Pinnacle Security applied for the license, but has been denied a license to sell home security systems door-to-door. The reason for denial was that Pinnacle Security has received 10 complaints statewide. This could be bad news if other cities follow suit and have the same requirements for receiving licenses. This wasn't 10 complaints in Kenosha, it was 10 complaints in the state. Looks like Vigilon Security aka the other name for Pinnacle Security may have to come to Kenosha.

From what I have found, there have been at least 4 cities that have denied or revoked licenses for door-to-door alarm companies.

If there were to be a pattern applied, it would be that cities are getting more stringent with door-to-door alarm companies than more lenient. If cities liked the product, they would be increasingly more open, not the other way, increasingly more closed. I mean, it only makes sense. Cities do not like to have to take on an added work load and get paid nothing for it, especially when they are barely scrapping by on their current budget.

For example, if an alarm company comes to a town like Kenosha, sells 100 or so security systems, they make a good chunk of that money. The things Pinnacle, or any security company for that matter has to do to uphold their end of the bargain for the customer is:

1. Install the alarm.
2. Monitor the alarm.
   
3. Obtain licensing, if needed, but not the license a customer may need to have a burglar alarm. That is still a cost paid for by the home owner.
   

That's it. Who pays the cost to have a police officer respond to a call at the homeowners residence? The alarm company surely does not pay, the city does. About 97% of all alarm calls to police are false alarms. Even with 2-way voice, alarm.com, etc, 97% of all alarm calls are false alarms. That is a lot! It's like the little boy who cried wolf, 97 out of 100 times it wasn't a wolf. If you were a city who had to pay a policeman to go out to that house 97 times to find that the cat set off the alarm, would you be upset?

Now, say an alarm company wanted to come into the city and sell alarms.

Here are the downsides for any given community:

1. Residents complain about any door-to-door activity, not just alarms. Add in the fact that some of these salesmen don't take no for an answer when no is the only thing available. How would the police feel about that?
   
2. Increased alarm calls due to increased alarm systems. Even with the best technology available, people who buy an alarm from a door-to-door salesman guaranteed will not be the group that will decrease the alarm calls to police.
   
3. Alarm company is not a local company. It adds nothing more than an increased usage in gas purchases, red bull purchases, and fast food purchases. If a permanent temporary office is set up, the apartment communities will add a little. However, no jobs are created, no taxes are contributed, and money is leaving the community.
4. Local alarm companies are affected. Some say it is good competition, some say it's bad. I say it's bad WHEN the local alarm company has accounts taken due to dishonest sales tactics. Those companies, bad or good, do add to the local economy.
   
5. If the company neglects to get a license, it is a double slap in the face to the local police department. Not paying to get the license and add in the previous four topics you get a not so pleasant situation with the local community.Want the ultimate situation? Not being a local company,
   

Want the ultimate situation to create ill will with the police? Not being a local company, going door-to-door citing false crime statistics, not being licensed, and claiming you are working with the local police department. If you are a company, do that and it will guarantee issues with local authorities.

Overall, more police time is needed to patrol calls and they are receiving no extra money to do it. They aren't big fans of that and thus they don't issue permits.

Now, for the upsides of having an alarm:

1. Increased in perceived safety for residents in community. Even though it is not a local company that it may be bought from, the positive effect could well be worth it.
2. More competition for local company hopefully means better product from local company.

If you can think of more, let me know. I think both of those can be accomplished through other measures, but they are still beneficial if done correctly. If the company gets the proper licensing, does a great and honest sale, gives a little back to the local community and actually takes interest in community, then it could be a beneficial situation.

Otherwise, patters will continue and more and more cities will opt to deny permits.

APX Alarm Has License Revoked in Greenville, NC and Gets Police Warning in Longview, TX.

Just another day for APX Alarm.

• Greenville, NC: License gets revoked after a few verbal complaints while selling security systems. It seems like the phase is catching on. It isn't taking much to get revoked. I do applaud them for actually getting a license. Now, it just creates a whole new phenomenon, actually keeping the license.
  
• Longview, TX: APX Alarm got a complaint in Longview, TX and apparently it has created enough ruckus to make it to the newspaper. However, they did use the one sales tactic that creates more uproar than any other, The We're-With/Endorsed-by-The-City sales pitch. If you are a salesman and want a tip, don't use that line if you don't want to be kicked out of the city you are working in. However, if you do want to make it onto the local news radar, use that trick. One thing that surpised me is that they got 31 permits for a city of 70k. They should get that knocked out in a week or less. Given this news story, they probably are already gone down the road.
  

Pinnacle Security Salesman Arrested in Savannah, GA

This could be an episode out of the Andy Griffith Show: (link to story)

Police say they've now arrested one of those salesmen, 22-year-old Tyler Doyle from California.

Leroy Scott said Doyle showed up on his doorstep just minutes after he watched an alarm salesman story on WTOC.

"Bells went off, I said hold on a minute," he said.

Scott said he didn't wait for the sales pitch. Instead, he called police. "They started questioning him, found out he didn't have a permit," Scott told us.

Police arrested Doyle for violating Savannah's solicitation regulation. It's a misdemeanor and he got a $650 bond. Doyle is a sales rep for Pinnacle Security, a company based in Utah.

According to the Better Business Bureau, Pinnacle Security is a legitimate company. They even have an A+ rating and they are licensed to sell alarms in Georgia. But they do not have permits to sell door to door in Savannah.

Not too serious, but still, kind of funny.

One fact that I found curious was the fact that Steve Hafen of Pinnacle Security says he has no idea why his employees would be in Savannah. How does he not know? This could be an understandable excuse if Savannah were a suburb of another city and they just happened to wander inside the boundaries of Savannah. However, that's not the case. Savannah is over 2 hours from any city that could sustain a team alarm system of salesman. There can be two scenarios here. Either they have been in Savannah all summer selling security systems, and just happened to knock on the wrong house, or they knew exactly what they were doing by going to Savannah. It would be a huge rarity if they pulled into town, and before selling any security systems, they happened to knock on the door of Pamela Miller, the Neighborhood Watch lady. Can one really believe Pinnacle had no idea they were in or around Savannah? Nope. That basically means that the quote by Steve Hafen is bunk and also proves the point that door-to-door alarm sales companies still utilize the go-till-you-get-caught strategy.

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