The Untenable State Of The Home Improvement Industry

You receive a phone call or letter from the Attorney General’s office in your state indicating an interest in your sales and marketing practices. Are you positive that what you are doing passes the test for acceptable practices in your state?

In one state, the Attorney General sent a letter to 30 companies, indicating their alleged use of improper practices. Eight of these companies have already signed consent decrees. A manufacturer providing products to one of the eight also signed a consent decree. Three of the retail companies are no longer in business. Fines and reimbursement of the state’s legal fees total as high as $120,000 per case.

On Wednesday, November 24th, the most recent company signing a consent decree did business in Washington state and has offices in 17 other states. These consent decrees are being shared with the Attorney General’s office in the other states. Review the alleged infractions (how would your company react?):

1. Materially misrepresenting, directing or by implication, the price, cost, quality or comparative value of its products and services

  • Quoting an unsupported list price (without proof that sales were made at this price) – misrepresenting that a product or service ordinarily sells for an inflated price but is offered at a discounted price
  • Creating bogus justifications for taking steep (or multiple) discounts on artificially inflated prices utilizing similar price or product in rehash

2. Using unfair or deceptive sales or advertising tactics that have the capacity to create in customers a false sense of urgency to purchase defendant’s products or services

  • Creating a false sense of urgency by misrepresenting the scarcity of a product or a limited time offer
  • Misrepresenting directly or by implication a special sales price which, by continued use, implies the “actual” price
  • Representing that customers are specially selected recipients of limited introductory offers, when, in fact, that is not true

3. Failing to clearly and conspicuously disclose or misrepresenting, directly or by implication, any material term, condition, or limitation of any offer, pledge, guarantee, rebate, refund or discount offered to customers

  • This “catch-all” can be related to “type size”, positioning or the specific language contained in any advertisement, brochure, presentation book, retail sales contract or contact information provided to the customer

What are the implications or possible outcomes?

  • This information can/will be shared as an implication of unlawful marketing and sales practices with the Attorney General in your state.
  • The use of “energy saving” pledges and the use of testimonials and other support information was a major issue in most of the consent decrees
  • Look for more citations of both retailers and manufacturers
  • The home improvement industry has become a target. No consideration is given to purposeful intent, knowledge (or the lack of it) in response to enforcing laws; many with broad interpretations, some while intended as consumer protective, become a base for overzealous prosecution

What are your options?

You can:

  • Curse overzealous prosecution
  • Deny the validity of the law/rule
  • Excuse yourself by comparison to other industries (i.e. real estate, automobile or mass retailing)
  • Or – – start to review what you are doing

Make sure you register for our complimentary tele-seminar on December 16th which will respond to your Q&A and give opinions on how you might protect your interests and your business.

Don’t forget to e-mail your questions in advance to admin@daveyoho.com.

Immediately after your training, I ran my first solo appointment and got the order for $16,088! I beat out a reputable local remodeling company whose bid was $4000 less and was referred to by the customer as a slightly ‘better’ product.

Sara Zarndt-Brickey, Operations
Re-Bath of Illinois

Our remodeling business had annual sales of under $9 million when we became contract clients of Dave Yoho Associates. Due to their training and systems, our revenue soared – – we are headed for over $35 million this year.

Vince Nardo, President
Reborn Cabinets

We have been working a long time to reach a “million-dollar month”, and this September we finally accomplished our goal! The Dave Yoho Associates model and training tools are without a doubt the keys to our success.

Chuck Cometti, General Manager
RbA of Central New York

I’ve had the privilege of using Dave Yoho Associates consulting services for the last three years. It’s by far the best single business decision I’ve made. Their structure, training, and business coaching are second to none.

Michael James, CEO
Classic Exteriors

We’ve used the consulting services of Dave Yoho Associates for several years now. Much of our success can be attributed to following their systematic teachings and practices.

Michael Hoy, President
Great Day Improvements

I want to thank the entire team at Dave Yoho Associates for meeting with our Canvassing Managers last week. The knowledge we learned in only one day was invaluable.

Jason Hollister, Proximity Marketing Manager
RbA Southard Corporation

We found Dave Yoho Associates extremely professional and knowledgeable in evaluating our current business model and recommending specific solutions that will improve our efficiency and profit.

Wasyl Bodnar, President
Ventana Design, Sales, and Manufacturing

One of the primary takeaways from your most recent visit to our company was that the words, promises, and tone of our call center reps need to speak directly to the prospect’s needs, followed by a professional, systematic sales presentation which builds immediate rapport and trust.

Dave Cerrone, President
Fitch Construction

I learned an abundance from your canvassing training. Thank you so much for helping us revise our methodology!

Lynann Everett, Interactive Marketing Manager
RbA of Northeast PA

Dave Yoho Associates provided guidance, advice, best practices, and support to our entire staff. Our company has improved across every level after working with them.

Cris Keeter, Owner
All-States Exteriors

OUR PARTNERS

Get a FREE 30 Minute Consultation A FREE GIFT
Call Us Now