White van speakers
From Wikipedia, the free encyclopedia
White van speakers is a scam sales technique in which the buyer is convinced he is getting a good price on merchandise on the premise that it has been stolen or embezzled from the salesman's employer. The salesmen in this type of scam refer to themselves as "speakermen".
The typical series of events starts with at least two people, usually dressed in business uniforms, drive around in a commercial vehicle (usually a white commercial van, giving the scam its name), sometimes with a company logo on the side of the van. The van operators set up in a moderately trafficked areas (parking lots, gas stations, colleges, large apartment complexes) or even wave people down in heavy traffic, and attempt to attract the attention of suitable targets: usually affluent young men, college students, or other demographics thought to have large amounts of disposable income.
After the people in the van attract someone, they immediately start into a loud, fast-paced, and relentless sales pitch. The premise of the pitch is that the van operators work for an audio retailer or audio installer, and that through some sort of corporate error (warehouse operators, computers, etc.) that they have accidentally received a large number of extra speakers without management knowing, and that they need to quickly dispose of the speakers (pocketing the cash) before returning to the office, and are willing to sell you the speakers at "well below retail" prices. The speakerman will repeatedly state the "value" of the speaker as anywhere between $1800 and $3000 and will often show a brochure or an advertisement in a magazine verifying this price.
If the potential customer declines the offer, various high pressure negotiation and sales pleas are used in attempt to pressure them into accepting the offer, including producing glossy sales brochures detailing the quality of the speakers and a high "retail" value, often using a bunch of technical audio jargon (correctly or incorrectly used) to convince the customer that he is turning down an incredible offer. The minimum offer accepted is typically $200. Upon payment, the speakerman will sometimes suggest that because such a fine deal was made, the buyer should include beer money.
The brand name of the speakers is often intentionally confusingly similar to a well regarded speaker manufacturer. For example, the excellent reputations of manufacturers such as Klipsch, Paradigm, Dahlquist, and Wharfedale are used to sell speakers with the respective brand names of Kirsch, Paradyme, Dahlton, and Grafdale.
The speakers sold by the speakermen are of exceptionally poor quality, typically obtained for less than $50 from a local distributor. The speakers themselves have been reported as potentially damaging to any amplifier they are connected to. The risk of damage stems from an impedence curve that in some cases may drop below 2 ohms, which may overheat, short out, or permanently damage an amplifier not designed to handle such loads.
The term white van speakers is also used more generally to refer to these same speakers, or similarly low-quality speakers, offered for sale via the internet, such as through eBay and craigslist. Similar sales tactics are used, promoting them as having a value far higher than the sale price, often with some reason as to why they need to be sold urgently. Instead of a brochure, however, the distributors set up websites such as Matrix Audio Concepts or Millenium Theater Systems. Recent registration dates for the websites and lack of real contact information are among the indicators that the company is not a legitimate maker of high end electronics.
Law enforcement officials are generally reluctant to get involved because the speakermen are engaged in what is technically a legitimate business. The speakermen in the white vans out on the street are usually hired as independent contractors by an employer with proper business licensing. Furthermore, buyers of the speakers are usually successful in obtaining a refund if dissatisfied (locating the speakermen and their warehouse is another matter). Therefore, although the legality of the business model is questionable with regard to trademark infringement, unfair competition, false advertising (and possibly evasion of sales tax), there is generally little legal recourse that can be taken by the buyer directly.
The buyer may file a complaint with the state Attorney General, alleging that the seller intentionally misled him to believe he was purchasing high quality goods from a reputed manufacturer. The manufacturer should be sent a copy of the letter. A complaint should also be filed with the Better Business Bureau. The "scambuster" at the local television news station might also be interested.
[edit] References
A great deal of information and warnings on the topic of "white van speakers" can be found using search engines. Some of the more informative links include:
- A Kuro5hin story on "The Great International White Van Speaker Scam".
- This American Life did an html episode called Suckers, one segment of which concerned white van speakers.
- Scamshield entry on white van speakers.
- Crimes-of-Persuasion.com on Speaker Scams
- DCS Digital Audio, Inc -- one product sold by white van employees
There is a Speakerman in the Glenwood Springs Aspen area who employs some of the same tactics. He will tell you he is selling to you at his cost and provide you with documentation he claims backs him up.
