The Hard Sell
The nation's 2 million inmates and their keepers are the ultimate captive market: a $37 billion economy bulging with business opportunity.
Business 2.0 Magazine
By Michael Myser, Business 2.0 Magazine
March 15 2007: 12:37 PM EDT
(Business 2.0 Magazine) -- Brian Prins is an affable salesman who touts the benefits of his prepaid collect-calling service in a distinct Long Island accent. He's also an ex-con who served five years in a Pennsylvania state prison for aggravated assault and possession of stolen car parts, so when he explains that he's simply helping families stay in touch, stay together, and stay out of debt, you might want to listen.
"I know how much phone calls from prison cost, and how much an inmate needs to talk to his family and friends," says Prins, who himself racked up $1,000 in monthly phone bills from behind bars.
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SECURITY PRODUCTS: A surge in prison populations means booming sales of modernized versions of the gear used to control inmates. Market size: $1.5 billion.
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SUICIDE WATCH: Combo toilets are designed to prevent inmates from hurting themselves.
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PRISON-BOUND: Among the 21st century twists on an age-old security device - barbed wire in a box.
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Upon his release in 2002, Prins founded Outside Connection in a bid to undercut the collect-calling services that contract with prisons. Those contracts create virtual monopolies that charge a big premium - as much as four times the standard rate for collect calls.
With Outside Connection, family members and friends buy discounted phone time, and prisoners are given a direct-dial local number that routes calls straight to a family's chosen phone. Calls can also be sent to cell or Internet phones, which isn't possible with traditional collect calls.
SOURCE: CNNMONEY
