Savvy Consumer: Research Business Before You Buy

Sept. 1, 2006 — -- Here's how so many of my "Ask Elisabeth" e-mails go:

"I'm writing because I want you to do a story about CCC Carpet Cleaners. I had a coupon and they told me it was only going to cost eighty dollars. Then they refused to leave my house until I paid them $350. They didn't even clean under the furniture and they soaked my carpets so badly that now they're all rippled. I just called the Better Business Bureau, and CCC Carpet Cleaners has an unsatisfactory record. So, I think you should do a story about this. I need your help."

What's wrong with this picture?

My tipster called the BBB after having a bad experience. Trust me. It's much easier to research a crooked company and not pay them any money in the first place.

Word of mouth is still one of the best ways to find a good business. Ask friends and family whether they can recommend a good carpenter, contractor, car dealer, carpet cleaner.

Approach neighbors, if you like their landscaping or admire their paint job, and ask who did it.

Get referrals from other professionals. If you know a good plumber, chances are he knows a good electrician.

Don't rely completely on these initial sources, though. I once used a hardwood-floor guy just because a neighbor had recommended him. He turned out to be lousy, and my neighbor turned out to be an airhead.

Another source? Cut out admiring articles about businesses from local newspapers and magazines. Make sure they're not advertisements, but articles!

Just because a company advertises in a reputable newspaper or on a big TV or radio station does not mean it is reputable. Media companies have no legal obligation to check the reputations of their advertisers.

Years ago when I worked for a different network, I prepared a devastating story about a local mortgage broker.

In an attempt to block the story from airing, the broker bought advertising time on my station. Even though the news department knew this guy was crooked, the sales department sold him ad time. Typically the news and sales departments operate independently from each other -- which is actually a good thing.