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.

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Wasyl Bodnar, President
Ventana Design, Sales, and Manufacturing

The advice we received from Dave Yoho Associates enabled us to increase our volume with 19% less leads in the first year alone!

Joe Francis, President
Shiner Roofing, Siding and Windows

Dave Yoho Associates’ consultants are the sharpest in the industry, and are incredible communicators, very engaging, and always inspiring. Their industry insight is unmatched, as is their creativity.

Todd Miller, President
Isaiah Industries

Your consultant introduced many thought-provoking, exciting concepts that were implemented and drove our net profit. We look forward to a long and prosperous relationship with Dave Yoho Associates!

Mark Watson, Owner
Exterior Medics

Recently, Dave Yoho Associates performed ‘role-play’ scenarios for three hours with our salespeople. The eye-rolling is gone and their confidence has grown substantially. Can’t wait for your visit next month!

Jason Phillips, CEO
Phillips Home Improvements

Dave Yoho Associates are the leaders in business consulting and sales training for the industry. We utilized their services to grow from a small business to averaging over $10 million annually.

Wendy Patterson, Co-Owner
Patterson Homes & Construction

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

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

When it comes to consulting advice for the home improvement industry, Dave Yoho Associates has no equal. We have worked with them for over 15 years and we are ecstatic about the results!

Daniel Green, Sr. Vice President
Solarshield

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

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