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Contending with unlicensed businesses


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Any one had experience dealing with illegit sign/neon manufacturing businesses soliciting your clientele ?

There are 2 such businesses in my area that i'm aware of that have been operating from their garage for some time now and recently have become more aggressive in their attempts to woo some of my clients away with pricing that is almost to good to pass up.

Granted most of the companies that use these guys are barely operating legit businesses themselves but I think the poor economy may have others looking at them as a way to save a buck.

I'm pretty sure one is using a local sign company to get his material for him and is giving them their neon in return.

All transactions are done in cash so there are no taxes ,no work comp ,no overhead period. Pretty tough to compete with.

Not sure what the best way to approach the problem is so I'm looking for advice from anyone that has dealt with this problem with success.

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  • !llumenati

Shoot 'em? Find out their addresses and tell the local zoning people. If they know its a commercial sign company operating - most will shut will 'em down. Or go back to option #1.

gn

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Shoot 'em? Find out their addresses and tell the local zoning people. If they know its a commercial sign company operating - most will shut will 'em down. Or go back to option #1.

gn

Option 1 sounds good : )

They seem to show up here straight off the boat with a sense of entitlement and an attitude that the rules don't apply to them. "No comprende" business license

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I come across these business's from time to time. For me, I'm in Cali, so one thing I always stress to clients is my abnormally long electrical warranties, & in the fight against unlicensed business's it's "consumer protection", protection for the end user, protection of the Property Owner. I stress a couple of points of using unlicensed contractors.

1. There is no bond to go after should they walk or screw up

2. There is no insurance protection for contracts with an unlicensed contractor (No Property owner protection from lessee's choice)

3. No contractors insurance to go after should something go wrong

4. No legal permits are being pulled, so how will the end user know if the job is done right if there is no permit followed by inspection

5. Did they pay their subs and suppliers? No bond, means a lien on the Property owner of the lessee. The property owner will be very angry that a unlicensed contractor was hired.

Other than the unlicensed stuff, I encourage potential and clients to view all possible vendors work at night, and jobs installed 4-5 years ago.

Costs for jobs that were to good to pass up means corners were cut. Cheap now, pay a lot more later

You have enemies? Good. That means you've stood up for something, sometime in your life. - Winston Churchill

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Any one had experience dealing with illegit sign/neon manufacturing businesses soliciting your clientele ?

There are 2 such businesses in my area that i'm aware of that have been operating from their garage for some time now and recently have become more aggressive in their attempts to woo some of my clients away with pricing that is almost to good to pass up.

Granted most of the companies that use these guys are barely operating legit businesses themselves but I think the poor economy may have others looking at them as a way to save a buck.

I'm pretty sure one is using a local sign company to get his material for him and is giving them their neon in return.

All transactions are done in cash so there are no taxes ,no work comp ,no overhead period. Pretty tough to compete with.

Not sure what the best way to approach the problem is so I'm looking for advice from anyone that has dealt with this problem with success.

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