Business tricks!?

[emow]

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In today's business environment, there will always be people who will try to cheat you right under your nose. Most of these tricksters succeed in pulling their modus because most people believe that they are smart enough to smell if something is fishy or not... unfortunately, many businesses fail because of these "tricksters."

So, I'm starting a thread for people to post some of their experiences, if ever they have, with these kinds of people....

I learned this from an agent of an Electrical Distributor Company. There is a certain client who ordered large amounts of stock from 3 hardware stores. The sum total may be just over a million from these hardware stores. The client issued a post dated check (this usually happens since there is usually a 30-60 day term of payment) for each store. Each store checks the account of the client by calling the bank (which is a standard procedure). The bank said that the client's account was good and has a sufficient amount of money. So, everything is in order. The stocks were delivered at a designated place set by the client. When the time came to en cash the check, all 3 checks bounced and the client can no longer be seen.... "He can't do that, the bank says his account was good!," said one of the stores... but, the bank can't stop the client from withdrawing all his money. Can they? of course they can't....

[cirext]

Yes, i have heard some stories about this. This happens on risky agreements.
But hardwares would usually gamble because of the bulk money promised.

But naa pud unpredictable things that happened.
One contractor actually died because of heart attack out of his debts from hardwares.
The owner actually backs out of the contract & decide to get other contractor
In that case, that is not a business trick.

May he rest in peace.
He was a good neighbor.

[emow]

in business, accountants play a very important role.... just don't trust them.... an acquaintance of mine had an accountant for many years and they were like family. Later did she know that her accountant did not remit her payment to various payables which amounted to very huge sums of money! Don't trust accountants! This is not an isolated case, this is actually very prevalent. Most people just don't give a damn about their own finances because its a "headache" and just leave it to their accountants till they realize it too late and now have a "heartache."

[Rafalga]

Tips, tricks, underhanded agreements, shady practices or a series of unfortunate events... if you have more stories

and experiences to share, please do.

These are valuable lessons not seen or heard everyday

[loutsu]

wow, helpful tips.

[Earnest]

this is a nice thread
tnx TS

[emow]

have you ever wondered why a big hardware store in your town suddenly went bankrupt? A senior of mine personally know at least 5 hardwares in cebu who went suddenly bankrupt.... all for the same reason... well at least to what i've heard. It is vital to the success of a business to have loyal employees whose trust you can always count upon. This is the reason. Loyal long time trusted employee,(even upto 20 years in service), suddenly quietly shipping stocks from the bodega to their own home. This is called bogus shipment. And the Amo, ever trusting to his RIGHT HAND MAN, just keep on signing thoses release for the stocks without actually double checking anymore. Time will come, the amu will discover he just lost millions in his bodega. BANKRUPT! other techniques will be with the release of checks. There is always a secretary, the trusted employee, who prepares all the checks for payments for the stocks, who secretly made a "consabo" with a supplier, who adds tiny numbers in one of the checks. Example: Amount 40,000.00 can easily be transformed to 400,000.00, obviously this will be done in a creative manner.... time comes, Amu will run out of money in bank. Bankrupt!

[emow]

Be careful with strangers who easily befriends you.... most probably, he/she's after something from you... In large business transactions, all of us want to be dealing with easy, cooperative counterparts, the ones who would not give us the hassles and the headaches... but be warned with people who are very friendly, with angelic face, who is ever-agreeing with you, who gives you favors even outside the business transaction...these people can pull a fast one on you.... Many will be disarmed by their seeming kindness but all they are doing is dismantling your defenses before they pull their trick....i have been a victim of this....