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:
- Install the alarm.
- Monitor the alarm.
- 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.
Now, say an alarm company wanted to come into the city and sell alarms.
Here are the downsides for any given community:
- 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?
- 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.
- 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.
- 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.
- 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,
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:
- 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.
- More competition for local company hopefully means better product from local company.
Otherwise, patters will continue and more and more cities will opt to deny permits.

2 comments:
I'm not sure how this helps...it's not like they seem to care if they are licensed or have the proper paperwork most of the time anyway.
Please tell me the 4 cities that have denied or revoked licenses for door-to-door alarm companies. My 85 year-old mother lives in Milwaukee and was scammed by Pinnacle into a 39 month contract. They told her that her existing alarm company went Bankrupt in February 2009 and that Pinnacle is now her new Security Alarm Company. They removed the original equipment from the other company (that she now owes them $600.00 for) and installed their own. Now she has two contracts with two monthly payments. Her original contract does not expire until September 2010 and Pinnacle is being very difficult and insist that she can not bread or get out of the contract. Any help or info is appreciated! Thank you!
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