What would you do if competitor was using workers on disability to build business?

People on disability are allowed to make up to a certain amount per month without affecting their benefits. I'm not sure what it is right now, but it was $820 net a few years ago. I'm pretty sure it's higher now.

Many people on disability will also work under the table (for cash, off the books) because the benefits are no where near enough to live on. I know a woman who's getting $658 per month to live on. This is not enough when rents here start at $600. That leaves her $58 for the month. She has to do something to survive.
 
REP: "Thank you for calling the Maryland Unemployment Office, how may I help you.

ME: "Hi, my name is ...., I just received a notice of possible benefits being awarded to an employee I terminated about 4 weeks ago. I know for a fact this former employee is employed at an area business, being paid cash."

REP: "Oh no he isn't!"

ME: "Yes mam, I'm pretty certain he is."

REP: "May I have the name of the business you believe he is working for?"

ME: "Yes, it's ....."

REP: "We're gonna investigate this. Is there anything else I can do for you today?"

ME: "No, I think that will be all for now. Thank you, have a nice day."


This former employee was denied benefits and my unemployment insurance rate stayed the same which is what I was after. A friend who knew my former employee saw the former employee in line at Walmart. He was bragging how he was working under the table and getting unemployment.
Bottom line, I pay my taxes. If I have a high suspicion that someone is committing fraud that will directly interfere with me, I'm reporting it.
 
REP: "Thank you for calling the Maryland Unemployment Office, how may I help you.

ME: "Hi, my name is ...., I just received a notice of possible benefits being awarded to an employee I terminated about 4 weeks ago. I know for a fact this former employee is employed at an area business, being paid cash."

REP: "Oh no he isn't!"

ME: "Yes mam, I'm pretty certain he is."

REP: "May I have the name of the business you believe he is working for?"

ME: "Yes, it's ....."

REP: "We're gonna investigate this. Is there anything else I can do for you today?"

ME: "No, I think that will be all for now. Thank you, have a nice day."


This former employee was denied benefits and my unemployment insurance rate stayed the same which is what I was after. A friend who knew my former employee saw the former employee in line at Walmart. He was bragging how he was working under the table and getting unemployment.
Bottom line, I pay my taxes. If I have a high suspicion that someone is committing fraud that will directly interfere with me, I'm reporting it.

I think this is different than the OP situation. In your situation, oh yes, in a heartbeat!
 
I say get a hover-round, wheelchair, and a Segway. Don't forget some Cains, a walker, and crutches. Put an american flag out and proudly put something like "veteran owned and operated" in a prominent location.

Driving a scooter, using a wheelchair, or Segway is totally legal even if not disabled. Just don't tell people you are disabled. Overtly being dishonest is fraudulent, but you can imply anything you want. An American flag will attract plenty of patriotic Americans though you may not fair well with Latinos - oh well.


.. and of course you are a veteran, which is just a person who has had a long service or experience in a particular organization. It does NOT always mean "military." If anyone asks, just don't talk about it unless you really served.

What do you mean the American Flag may not fair well with Latinos? I'm a Latino Business owner, and on all my vehicles I proudly display the American Flag!
 
I spent 2 months and 10 days in there (The Army) before I got a medical discharge. Does that make me a Vet? I have a DD214.

What do you mean the American Flag may not fair well with Latinos? I'm a Latino Business owner, and on all my vehicles I proudly display the American Flag!


Yes you are a Vet; you served. Did you really do anything... I don't know. Surely you get VA benefits right?


Anyway, you are not a typical Latino Busienss Owner... Unlike some places in California with an influx in illegal (undocumented) immigrints, you more likely licenced, certified, insurred, a U.S. Citizen, and a proud/patriotic American.

All of this is good, but it puts you into a different category. You think differently and belong to differerent demographics. I know of one computer shop in California that flies a big Mexican flag, plays hispanic-heritage music, talks in all Spanish, rents a place in the ghetto, and works for like $15 an hour.

The Latinos in this area are drawn to the Mexican flag, often burn American flags in demonstrations, protest that illegal/undocumented people who are not supposed to be here should have the right to vote, and they WILL go to a computer shop like this one where they feel right at home. In contrast, they will think that you are like ALL Americans just wanting to rip them off because you might charge $60 - $80 an hour.

What they do not realize is that it costs you much more because you have to pay your help, pay taxes including employer taxes for employees, you have education, licencure, insurrance, spent the money for a couple certificates, and have rent that is probably $1,000 more a month than they pay. In short, your over-head is MUCH higher because you do everything above-board. You are also probably better at diagnosing & correcting problems because you have more experience & education.


That is all I am saying. Nothing wrong with being a hard-working Latino that plays by all the rules and proudly displays the American Flag. If I had problems I was too lazy to fix myself, I would go to you.

I hope this makes sense. Surely, you know what I mean being a business owner. It is VERY expensive to play by the rules and your customers don't see that. All they know is that they pay what they consider a lot.
 
So other than some vague hunch that the woman might be on disability benefit....do you have anything else to go on?!

You really have no idea at all that anything dodgy is going on.
 
But here is the big thing. There is a woman there that always seems to be on drugs or something, she is always dressed in dirty/grungy clothing, has a foul look on her face, doesn't answer questions politely and doesn't seem to know much about anything in the shop, yet she is there to man the shop when the owner is out on the job (which seems like 80% of the time).
......
Now for the worst part and this is just a gut feeling that I got the first time I went to his first shop. I don't mean to be negative but this could explain how he is doing so well with charging $20/hr. I have a suspicion that the woman who tends to the shop may be on disability or at least unemployment.

So how do you know it isn't his daughter/neice or some other relative. How do you know she is getting paid for this work. I know many family businesses where the kids or relatives will watch the shop for no pay when the owner isn't there. When I first took over the business I have now, my mother helped watch it a few times while I was away, shes an old lady and knows nothing about computers ( well at the time she knew nothing). I suppose you would report her for working there and receiving aged benefits ?

My point is, you don't know their situation, your only guessing from a bitter competitor point of view. Leave the situation alone, and if they are as crappy as you are making out then they will be gone within the next 12 months or so.
 
Why are you even worried about this? Best advice is what everyone is saying, Who Cares and don't get involved.

Your making it too personal. If he is doing business that way you describe, then let him do it that way. Good Clients would not find that acceptable.

So the only people he is getting is the customers you don't want to have any way.
 
"Veterans gained special protection and help last week when Gov. Gary Locke
signed Senate Bill 5861. The bill makes it illegal to impersonate active or
retired military personnel for personal gain or to facilitate any unlawful
activity."

Most of the time I work in my Ninja outfit and on the weekends my Stormtrooper suit.
 
I spent 2 months and 10 days in there (The Army) before I got a medical discharge. Does that make me a Vet? I have a DD214.

Yes, you are obviously a Vet if you served. Being in combat or in an active theater isn't what determines if you are a vet (unless you're talking about federal vet pref points)
 
Ok, I'm in the middle of a very strange situation with a local competitor. He is offering rates that are 1/4 that of regular shops yet he seems to be growing very nicely. Looking at his inventory things just don't add up unless he just came into a LARGE amount of $$ and this guy is also not quite what 99% of us would consider professional, meaning ratty tee-****, crummy jeans, nasty bikers pony-tail and a mouth you wouldn't want your kids to be around, AND he freely and openly disparages competition. His one cert is A+, from god only knows when. I'd say he is upper 30's early 40's.

But here is the big thing. There is a woman there that always seems to be on drugs or something, she is always dressed in dirty/grungy clothing, has a foul look on her face, doesn't answer questions politely and doesn't seem to know much about anything in the shop, yet she is there to man the shop when the owner is out on the job (which seems like 80% of the time).

I've been to a lot of computer shops and this one is fairly nice as far as inventory but as soon as I started talking to the people it was like (get me out!!). The owner CONSTANTLY interrupts when the customer is telling him what the issue is with the computer, I have never heard a customer finish a sentence.

Now for the worst part and this is just a gut feeling that I got the first time I went to his first shop. I don't mean to be negative but this could explain how he is doing so well with charging $20/hr. I have a suspicion that the woman who tends to the shop may be on disability or at least unemployment. This feeling snapped into my head the first time I talked to her and it was such a nagging feeling and wouldn't go away. It's like it was telling me that I had figured the truth out and now what was I going to do about it. I will say that I am not alone in these feelings as neighbors to the store have said that something isn't right in "there"....

So, if she is on disability is she allowed to work at a place like that? I would think if she were on unemployment she wouldn't be allowed. If what I suspect is true then they have an income from the state while she is there making money for the business which is a TOTALLY unfair advantage and might explain why he can charge $20.

So, what do you think of this situation? This is really a pisser for me as it makes my rates look outrageous, but then I go to my car shop and they are charging $100/hr so go figure.

Honestly, who cares?

If they are as scummy as you make them out to be then it won't be long before people just don't go there, regardless of rates.
 
Ok, I'm in the middle of a very strange situation with a local competitor. He is offering rates that are 1/4 that of regular shops yet he seems to be growing very nicely. Looking at his inventory things just don't add up unless he just came into a LARGE amount of $$ and this guy is also not quite what 99% of us would consider professional, meaning ratty tee-****, crummy jeans, nasty bikers pony-tail and a mouth you wouldn't want your kids to be around, AND he freely and openly disparages competition. His one cert is A+, from god only knows when. I'd say he is upper 30's early 40's.

But here is the big thing. There is a woman there that always seems to be on drugs or something, she is always dressed in dirty/grungy clothing, has a foul look on her face, doesn't answer questions politely and doesn't seem to know much about anything in the shop, yet she is there to man the shop when the owner is out on the job (which seems like 80% of the time).

I've been to a lot of computer shops and this one is fairly nice as far as inventory but as soon as I started talking to the people it was like (get me out!!). The owner CONSTANTLY interrupts when the customer is telling him what the issue is with the computer, I have never heard a customer finish a sentence.

Now for the worst part and this is just a gut feeling that I got the first time I went to his first shop. I don't mean to be negative but this could explain how he is doing so well with charging $20/hr. I have a suspicion that the woman who tends to the shop may be on disability or at least unemployment. This feeling snapped into my head the first time I talked to her and it was such a nagging feeling and wouldn't go away. It's like it was telling me that I had figured the truth out and now what was I going to do about it. I will say that I am not alone in these feelings as neighbors to the store have said that something isn't right in "there"....

So, if she is on disability is she allowed to work at a place like that? I would think if she were on unemployment she wouldn't be allowed. If what I suspect is true then they have an income from the state while she is there making money for the business which is a TOTALLY unfair advantage and might explain why he can charge $20.

So, what do you think of this situation? This is really a pisser for me as it makes my rates look outrageous, but then I go to my car shop and they are charging $100/hr so go figure.

Havent read the thread so sorry if Im stating anything thats been said already.

the burning question when I read what you're saying is that you state the business is growing, but it sounds like a really rough outfit thats (from your description) probably doomed to failure. The thing about their appearance / lack of knowledge / awful communication skills sounds like a death knell for any small business. Are you sure they're actually making money?

In any case, The other thing that occurs to me is that this type of outfit will attract the lowest common denominator. People gravitate to like-minded people and customers/service providers are no different. That means if he's a bottom-price ponytail/tee shirt kind of guy, thats the sort of customer he will generally attract. The benefit to you is that this type of customer will go his way, leaving you free to focus your attention on the middle and upper ends of town.

Its an interesting one and I can relate to your frustration, particularly on the lack of customer service and professionalism, both of which are particularly hot buttons for me (it pisses me off when I hear other people in the industry arent upholding these aspects of the work).

As far as his employees go, I think the old addage is true: "Pay peanuts and get monkeys". If he wants to run his business with people who dont have technical skills/knowledge or even basic interpersonal skills, thats actually great for you. Every time a customer goes into that shop and gets that kind of reception, they will be a step closer to seeking out a real service provider with proper service standards, and at least a pleasing personality to deal with. There's your opportunity.

As a consumer, I will NEVER deal twice with a business that does not uphold a basic standard of respect and professionalism. Some people may give them a second chance but if they strike out twice on the relationship aspect it will be all over for many customers, except the lowest denominator - and you have to ask yourself whether you want 'bargain hunters' in your customer base. (people who dont care about service and just want the cheapest possible price)

Good luck with it, but I think definitely its in your interests for him to have the worst possible staff (Im not making any generalisations about people with disability - merely noting your comments about his front of house staff's manner and lack of skill)

I hope he keeps up this practice - as it could actually be very good for you.

Jim
 
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Seemed painfully obvious to me that he was kidding.

He's got a valid point about "Veteran Owned". It is the same kind of idea, though. Given that most people in the military never see combat, to aggrandize one's self in order to cash in on it is kind of pathetic.

"This business is Veteran Owned!"
"But you were a supply clerk in Sheboygan. You were a high school dropout and had no other job potential."
"Yeah, but I might have been sent somewhere. I'M A HERO!"

Just because someone didn't see combat doesn't mean they served their country in a lesser capacity. By the same token I think touting "Veteran Owned" is pretty lame regardless if you saw combat, disabled, etc...
 
Just because someone didn't see combat doesn't mean they served their country in a lesser capacity. By the same token I think touting "Veteran Owned" is pretty lame regardless if you saw combat, disabled, etc...

I'm a combat veteran (OIF with 1st Cavalry Division in 2004) and I don't put "Veteran Owned" on anything. I'm a member of the American Legion (veterans group) and I see a lot of business from fellow members, and I can think of maybe 2 that have "Veteran Owned" in their marketing.

People around here are pretty patriotic, and all but my status as a veteran doesn't effect my ability to do business.
 
If you get too busy why not give them a pc to fix and see how well they do, pay the $20 and charge your customer the full $60 or whatever you charge.
It's all profit as you haven't spent any time on fixing it yourself. ;)
 
I will take Lisa's (CallThatGirl) advice over anyone else in this forum. She is a highly successful businesswoman with two open shops and one up and coming shop in the summer. She has a billboard (those things are expensive) and great marketing skills and not to mention a very beautiful smile (Don't tell my wife I said that, okay?)

I would like to also +1 to the "Stay out of it" crowd. There are just too many variables involved and you can never know the full story without actually running the show. There is an old Hungarian saying that goes "ne keltsd fel az alvó oroszlánt" which means, Leave sleeping lions lie.

There is more danger in getting involved then there is just leaving it as it is.
 
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