Security Sales & Integration

July 2013

SSI serves security installing contractors providing systems and services; surveillance, access control, biometrics, fire alarm and home control/automation. Coverage in commercial and residential product applications, designs, techniques, operations.

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||| LEGAL BRIEFING ||| WHY YOUR CUSTOMERS SHOULD CARE ABOUT LICENSING by Ken Kirschenbaum Ken Kirschenbaum has been a recognized counsel to the alarm industry for 35 years and is principal of Kirschenbaum & Kirschenbaum, P.C. (www.kirschenbaumesq.com). His team of attorneys, which includes daughter Jennifer, specialize in transactional, defense litigation, regulatory compliance and collection matters. The opinions expressed in this column are not necessarily those of SSI, and not intended as legal advice. W hat are the negative ramifcations for a customer who uses an unlicensed alarm installer?" Tat was a question I recently received I thought universal enough to share here. Te interested party added the following information: "I was on an estimate the other day and got into a conversation with a prospective client about the importance of using a licensed alarm company such as mine. She had researched alarm installers in the state of New York and decided to call only licensed companies as she assumed they would be more qualifed to do the job. However, while she found there to be penalties for alarm installation companies operating without proper licensing, she was unable to fnd any drawbacks for a client deciding to use an unlicensed installer." Te issue isn't limited to New York; it's a great question for all licensed jurisdictions, which are most states. Considering all of the requirements for getting an alarm installer license in New York, I'm surprised this person could not come up with a few quick potential repercussions for using an unlicensed provider. So why would a customer care if the alarm dealer was licensed or not? Maybe price is all the customer should care about, or a suave sales pitch, or immediate installation, a fancy advertisement or reputation, or just a recommendation from a friend. I can think of a few reasons to justify the need for licensing, and I'm sure there are many more: • Licensing laws generally include some level of competency requirements; • Education and testing; maybe continued education or certifcation levels. Te license ensures at least some level of competence. • Criminal background check for all employees who will have any contact with the customer. Customers don't do their own background checks and this may be the single most important response you could ofer. • Some jurisdictions require licensed dealers to maintain 88 / SECURITYSALES.COM / JULY 2013 Would the customer allow his or her kids to be picked up by a school bus employing drivers without driver's licenses or vehicle insurance? Then why would they allow someone unlicensed into their home and trust them with their security and safety? certain minimum standards of operation, such as contracts, insurance and training. • Most jurisdictions will receive and act upon complaints made against licensed contracts, a remedy that may not be available if the customer chooses to deal with an unlicensed contractor. • A licensed dealer has demonstrated that at a minimum they are willing to abide and conform to the licensing laws. Choosing to disobey the licensing law may be ignoring lots of other laws that are designed to protect consumers. You may want to ask a few questions of your own when confronted with a customer who is making you bid against an unlicensed contractor. And let's face it, you may have some difculty competing with an unlicensed contractor. Why? Because the unlicensed contractor doesn't have your expenses for license compliance, insurance, employee wages; he might even get his equipment at Midnight Alarm Supplies or of a truck. So ask, would the customer allow his or her kids to be picked up by a school bus employing drivers without driver's licenses or vehicle insurance? No? Ten why would they allow someone unlicensed into their home and trust them with their security and safety? SECURITY SALES & INTEGRATION (ISSN 1539-0071) (USPS 511-590) is published monthly by Bobit Business Media, 3520 Challenger Street, Torrance, California 90503-1640. Periodicals postage paid at Torrance, California 90503-9998 and additional mailing offices. POSTMASTER: Send address changes to Security Sales, P.O. Box 1068 Skokie, IL 60076-8068. Please allow 4 to 6 weeks for address changes to take effect. Subscription Prices - United States $96 per year; Canada $96 per year; Foreign $140 per year. Single copy price - $8; Fact Book - $35. Please allow 4 to 6 weeks to receive your first issue. Please address Editorial and Advertising correspondence to the Executive Offices at 3520 Challenger Street, Torrance, California 90503-1640. The contents of this publication may not be reproduced either in whole or in part without consent of Bobit Business Media. All statements made, although based on information believed to be reliable and accurate, cannot be guaranteed and no fault or liability can be accepted for error or omission. ken@kirschenbaumesq.com

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