Ethics - Would you cut someones Lunch?

The Leader · Posted: Mon Jan 11, 2010 2:20 pm

If someone rang you up and asked for a quote to do some work you knew your fellow transport company was doing, would you quote on it or how would you handle it?
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hayseed · Posted: Mon Jan 11, 2010 3:39 pm

Observer · Guest

Yep, take the work if it is profitable. If the proposed work is worth $500k, fits into your infrastructure and doesn't require significant capital investment, why wouldn't you quote on it if the EBIT was good enough? Do you believe your competitor call you if one of your contracts were up for grabs? Seriously, so long as you dont significantly undercut each other, and all maintain reasonable margins, then we have sustainable revenue and that equals competition. By the way, how would the ACCC view you calling your competitor and discussing prices ? Having said all that, maybe there is more to it and the customer is being sneaky. But, isn't that the customers right to approach the market for an alternative based on price vs. service ?

The Leader · Posted: Mon Jan 11, 2010 3:46 pm

Observer · Guest

Ah, the plot thickens Smile

Not always necessary to undercut your competitor. If you're pitching rates which are profitable, and are deemed fair and reasonable by market (customer & industry) standards, and you believe you can as good as (or better job), then take a crack at it. But, if you eleive the customer would be better served in the LONG TERM by a joint arrangement, follow that path instead. If you do, broach the customer on the possibility of jointly servicing the contract and get their opinion xxx ?

I do agree that it is a shame for any incumbent to lose a contract when they are doing a good job at fair rates.

dude · Posted: Mon Jan 11, 2010 4:33 pm

Depends how close the compeditor is, a real good mate, that works together with me, id ring and spill my guts to him immediatly, and give him the heads up, if anything less than a good friend.... that is open slather as far as im concerned.

What goes around comes around, dick a good mate, and you will pay for it ten fold.

Case:-

I had a "Mate" screw me over on a job, we were both in the client together, the contract was split in half, and he went behind my back, slandered me, made up non truths, and the client eventually terminated me because my so called mate had tainted me that badly over 6 months.

Well, this so called "Mate" had a number of clients, and i knew his rates so i went undercutting to the clients that i knew would be receptive to a dutch auction, and the clients took my rates to him and told him to match them, which he had to do to keep the work. Ofcourse i had no intention of doing the work, i just wanted to get even.

Cost him a hell of a lot in the end....

Smile

Tess · Posted: Mon Jan 11, 2010 8:28 pm

No mates in business.
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hart attack · Posted: Tue Jan 12, 2010 10:34 am

If you can fold the new work into your existing business model without adding risk by sourcing additional equipment, there is no reason not to tender....

But those who live by the sword, die by the sword.. so your contract with a company needs to incorporate a "last right of refusal" to be the final offeror of a price on any given work..
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The Leader · Posted: Tue Jan 12, 2010 10:37 am

I just don't want to be used as a 'stalking horse' to push the incumbents rates down.

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hart attack · Posted: Tue Jan 12, 2010 10:40 am

The Leader · Posted: Tue Jan 12, 2010 10:43 am

hart attack · Posted: Tue Jan 12, 2010 10:46 am

The Leader · Posted: Tue Jan 12, 2010 11:42 am

BrewGuru · Guest

I use smaller transport companies to do some of my work, they sometimes use subcontractors as well., I have never gone to their subcontractors direct for work I still go through the main supplier.
I had a transport company that begged me for all my heavy transport that I subcontracted out from a particular client, I gave him the work as I new him from another heavy haulage company, when my contract ceased with my client I had to re-tender for the work, guess who stuck their name in the hat and still wanted to work for me up until the new contract was awarded?
Needless to say we on the contract back and my heavy haulage contracter never worked for me again and lost over 100,000 worth of turnover pa

The Leader · Posted: Mon Mar 01, 2010 10:12 am