Licensing

August 26, 2011

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Question

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Ken –

    I was hoping you might be able to share some info on your email forum.

    From a professional perspective I see the value in licensing.  I would never go to an unlicensed doctor or chiropractor.  It appears that often prospective customers do not see the know of the benefit of hiring a licensed security company for their needs aka computer guy.  Would you happen to have some information to share that we could use as a marketing perspective to enlighten the customer why it is important to choose a licensed provider for their security?

Thanks,

John

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Answer

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    Licensing has achieved at least some of it's touted goals.  Typically licensing ensures no criminal background for those involved in providing the security services, and certain minimal levels of training or expertise.  Not everyone is permitted to hold themselves out as an alarm technician or alarm company - not if you're in a state that requires a license.  So the benefits of a license should be readily apparent to the consumer.

    Another advantage to a licensed tradesman is oversight and enforcement by the licensing agency.  An unlicensed person or business is off the radar of the licensing agency.

    Unlicensed activity takes place in all trades and professions, so the alarm industry is not unique to that problem.  Consumers rarely check out licenses or licensing agency websites for complaints or disciplinary proceedings.  A recommendation from a friend or relative is often all a consumer needs to trust a contractor.  It's not likely that licensing agencies are going to do much to promote license holders, so industries, such as the alarm industry, need to self promote, perhaps emphasis the fact that its members or licensed.  Local associations should fulfill that role by posting names and license information on their websites. 

    Most state licenses require that the license holder disclose the license number and licensing agency on all papers and other things [like trucks] that consumers see.