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A Competitor is Posting Fake Reviews About my Business. What Should I Do?

An ex-employee has opened up shop, what to do with shy salespeople, and more questions from Ask INSTORE.

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A Competitor is Posting Fake Reviews About my Business. What Should I Do?
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I suspect a competitor is posting negative reviews about my store on google reviews. What should I do?

You can flag and report suspicious reviews directly via your Google Business Profile dashboard. Locate the review, click the three dots next to it, and select “Flag as inappropriate” or “Report review.” Google promises to then review it and can remove reviews that violate its policies, such as fake reviews, spam, or reviews containing prohibited content. It helps to have evidence like proof the reviewer’s account is new, suspicious wording, multiple fake reviews, etc.

Even if you’re absolutely sure the review is fake and the poster’s motives are malicious, respond professionally — taking the high road will demonstrate your commitment to authentic feedback and customer service. (And definitely don’t attempt to retaliate or post fake reviews yourself, as this can violate platform policies and harm your reputation in the long run).

Other things you can do:

  • Actively solicit honest reviews from genuine customers with a goal to drown out any fake ones.
  • Monitor reviews regularly so you can react quickly to suspicious ones and flag them promptly.
  • And if you believe fake reviews are part of a larger defamation or smear campaign, consulting with legal counsel may be appropriate for further action.
One of my salespeople recently resigned and opened his own jewelry store up the street. What should I do?

Unless he did something that was in violation of his work contract, you should forget about it. There’s always going to be competition, and the only way to keep a step ahead is to stay focused on building your business. People waste a lot of time and energy worrying about ex-employees who become competitors. Just concentrate on being the best you can be, and he’ll either need to find his own niche or he’ll face some tough market realities.

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I recently hired a nice young girl as a sales assistant, but I’m starting to think she’s too much of a wallflower to ever be successful. Is it worth persisting with shy people?

Absolutely, says retail expert and author Rick Segel. “These shy types can become great salespeople because they want the customer to talk. That gives them more information to service and sell the customer.” Your job is to let them know that their talents and potential are much greater than all of the other attributes that make up a good sales associate.

Explain that good salespeople ask short questions that generate long answers from customers. Let the customer feel important; shy people generally do this effortlessly. You just have to teach them to be a little more aggressive with asking customers questions.

“Some of the best salespeople I have ever seen started at this point,” Segel says.

I’m curious to know if you can put “no cash value” next to items given as prizes, and if this escapes having to do a 1099?

No, there’s no way around it, our legal sources tell us. Section 74 of the Internal Revenue Code specifically includes amounts received as prizes and awards as gross income. There are only two exceptions:

  • When the prize or award is made in recognition of “religious, charitable, scientific, educational, artistic, literary or civic achievement” provided that the recipient did not take an action such as entering a contest.
  • When the award is given to an employee, provided the cost to the employer does not exceed the amount allowable as a deduction for the cost of such an award — currently $600.

But it doesn’t stop there; the taxman is not done yet showing you just what a hardhearted character he is. As the store owner, you are allowed to deduct only the cost of the jewelry as an advertising expense. The law does not allow you to deduct the fair market value because it is inventory. The only time you get a deduction at fair market value is if you gave it to charity and it was your personal property, not business inventory.

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