The situation I possibly have is that a current customer is trying to
negotiate price for a large manufacturing contract job within my job shop.
The customer is saying my pricing and hours are to high compared to a
specific competitor here in the states. They maintain they have received a
price and hours from a specific competitor and want me to come down to
fall
in line.
If this statement is not true and they are blowing smoke does this fall
under some anti trust laws [Robinson-Patman Act], besides being unethical.
Not only do I know the competitor did not even bid on the job, but I know
they cannot even offer the lower price without loosing their shirts.
Guidence or direction or where I could find more related information on
this
sort of topic is appreciated. Info on penelties and judgements.
IANAL, but I can't see that this has anything to do with the Robinson-Patman
Act, which says (more or less) that as a vendor you can't charge one price
to client A and another to client B for the same products if it creates
unfair competition. However as a small businessman I've seen every kind of
lie imaginable from clients and customers. To say that they got a lower
offer elsewhere but you can have the job if you'll match it, whether they
actually do or not, appears to be a common practice. How many times have you
told a new-car salesman that the dealer down the road offered you the car
for $500 less?
If they are really bluffing, tell them sorry, but you can't do the job for
that amount. Be firm. They will probably come around unless you really don't
offer competitive prices for your services. If they are not bluffing and
your competitor really will lose his shirt on the job, let them. They'll be
back when the competitor goes under or they get a poor job for their money.
In the long run quality work for a fair price will keep your shop in
business.
--
John Goulden
