June 2009 - Winnipegers' warned about sales tactics of alarm companies

CBC News warns people of out-of-province high-pressure door-to-door sales - Click on the following for the full story
http://www.cbc.ca/canada/manitoba/story/2009/06/16/mb-alarm-sales-winnipeg.html

Manitoba Consumers Bureau issues a News Release warning consumers to take precautions.

In light of the above, we offer the following advice:

In recent weeks, some of you might have received phone calls and/or visits from various door-to-door security firms that have chosen Winnipeg as their current target market. The following information will hopefully provide some perspective on what they are offering and act as a reminder of how critical it is to protect your privacy and be a wise consumer to avoid being taken advantage of. 

Above all else - Protect yourself – In today’s day and age where identity theft, phishing schemes, credit-card fraud, theft, etc. seem all too commonplace, it is imperative that you protect information that can be used against you.  Do not enter into conversations with anyone regarding your alarm system and what it includes unless you have initiated that consultation.  While the person on the phone or at your door might represent a legitimate security company, it could just as easily be a criminal trying to obtain information on how to best target your premises and contents for a subsequent break-in.  Just as it would be foolish to share credit card or banking information with someone who arrived at your doorstep simply sporting an ID badge and clipboard, discussing details surrounding your current level of security is equally dangerous.  An appropriate response to anyone asking questions about your security protection might follow along the lines of “I don’t discuss security details with strangers and we are very well protected, thank you very much”. 

If perhaps, by being caught off guard, you find yourself engaging in discussions with a door-to-door or telephone solicitor, the following common-sense approach will ensure you are not taken advantage of and that you are making a wise, informed decision: 

1.       Never buy on the spot – There is no reputable deal that won’t be available after you’ve done your homework on the product, the company and your alternatives.  Many of these companies install their hardware within minutes of signing an agreement so that exercising your cancellation rights on direct sales are complicated by the fact that removal of their hardware will not include reinstallation of your original hardware.

2.       If something sounds too good to be true - it typically is.  Few things in life are ever “FREE”.  Along with “FREE” comes higher monthly fees and if you calculate your total costs, we guarantee you that Tower Security will be (to borrow another companies well-advertised slogan) “cheaper than free”!

3.       Before committing to any purchase - Obtain multiple written quotations – Calculate your total cost of ownership including up-front fees AND recurring monthly charges.  “Free” will invariably be your most expensive option.

4.       Read the entire contract before signing – things such as warranties and who retains ownership of what you’re buying must be clearly stated.

5.       If you are feeling pressured – ask them to leave or hang up

6.       Research the company you are considering

a.  Ask for references

b.  Perform a Google search to see what people are saying about this company

c.  Are they licensed to do business in Manitoba?

d.  Do they have a local office and local phone numbers?

e.  Who will service your system after their sales-blitz is over and they’ve moved on to the next city?

And finally, if in the heat of the moment you have been pressured into signing a contract, you do have some recourse.  The Province of Manitoba requires a 10-day cool-down period during which time you can cancel the contract.  You don’t have to give a reason for canceling and any moneys paid must be refunded within 15 days.  If the direct seller is unlicensed you have a full 12-months to cancel your contract.

While we are confident that following the above six-step process prior to committing to any purchase should reliably allow you to discern fact from fiction, we have heard that part of the sales routine of these door-to-door companies is to cast doubt on the effectiveness of existing alarm systems and promote their system as a cutting-edge solution that addresses these shortcomings.  The technology that they are offering is not new.  As an example - technology such as wireless cellular communication (that doesn’t rely on a land-line) was detailed in our March 1999 Newsletter, more than 10 years ago, and has been included as an option in every quotation we’ve issued ever since.  Another innovation in the last ten years is live two-way voice verification.  We also offer two-way voice monitoring and would welcome the opportunity to discuss its pros and cons and let you decide whether this might be a beneficial addition to your system.  Please feel free to call our office at any time to discuss these and any other potential issues.  

Over the last couple of weeks after having to arrange the reinstallation of customer's original hardware, we have become aware of various sales techniques that have been used during these door-to-door calls and would like to offer another perspective.  For an in depth analysis of some of the information some of these companies are communicating - click on the following link - Sales Tactics