"restrictive trade"? your opinion

[simplepeddler]

Here is the scenario

Contractor sends me a bid for a job, three contractors are bidding the job directly to the owner.....let's call them Plant T

during the bid process I am asked to bid a manufacturer that my competition had done the work on and specified, although I am also a distributor for that product.

So, I go to said manufacturer and asked for quote and was told I could not quote the job.
So I just took my published stocking distributor price and marked it up.

My contractor does not go even go to the distributor that specked the job for a price. That distributor is teamed up trying to help another contractor steal the job away from the contractor I am quoting.

Job gets awarded to my guy.
I go to place the order at the REGULAR in to stock every day normal one at a time price and was told I HAD TO BUY THEM FROM MY COMPETITOR AT A 35% PREMIUM!!!

is this restrictive trade? Price fixing? Collusion??
The plant specked the product, but the contractor is buying them based on the scope of their contract.

MY CONTRACTOR gave me the purchase order and now, although I am a stocking authorized distributor, these guys WILL NOT accept our PO.


What do you guys think?

Lawyers out there?
Our contract to the manufacturer does not have any situational restrictions in it.

But we were asked to stand down and we choose to quote it anyway thinking the other guys had a BETTER price so we went skinny. Happens every day and I would concur with that IF the end user was doing the purchase, but they sent out a hard money bid.

[gonzalesdave]

I would talk to an attorney. I think its at least worth the time to find out an opinion from an "expert".

[Big Flounder]

So the manufacture that you would normally get this product from is telling you that you have to get the product from your competitor at a 35% mark up? But you have a contract with this manufacture that has no such restrictions in it?

[simplepeddler]

Originally Posted by Big Flounder

So the manufacture that you would normally get this product from is telling you that you have to get the product from your competitor at a 35% mark up? But you have a contract with this manufacture that has no such restrictions in it?

Yup.......dat about sums it up.
My company will not pursue, so I am just making sure that I am not off my rocker here when I tell these guys they are no longer welcome in the building.

While my company will not support me legally, and I understand, it's really a chump change order.......they will support me not wanting to work with the manufacturer again.

I am a "light one candle, curse the darkness" kinda guy.
Must be that morality thing that is so underrated these days.

[Big Flounder]

That should be a breach of contract case. Sounds like there is some under the table bussiness going on there. Maybe some fishing or hunting trips. I work in construction and I see it every day. We worked our butts off to get on a bid list for a plant and when we finally did we were awarded the job but we were required to rent material from the mainenance contractor. So we did just to get our foot in the door and since then they have been kicked out of the facility for safety violations and now we have the maintenance contract! There is so much cut throat competition out there but they are making bad names for themselves. Cheap work ain't good and good work ain't cheap.

[Raymond]

Sounds like collusion which is a federal crime. An anonymous call the the federal prosecutor could stir the pile, I would do it in a heartbeat. Bet the customer would also be interested in what is going on, anonymously that is. Drop a dime and see where the $hit storm ends up.

[Finfeatherfur]

Man that sucks......but I see it more and more. I would do this:

Document an email from work to none other than yourself. Then print the email that describes everything you are faced with and here is the ticket..................mail it to yourself in a company envelope. That way should the shat hit the fan, you can go to work somewhere else w/o make a stop in jail!

[elebouef]

I know this is a little off topic but it sounds a lot like when this happened.

When old fast Eddie was in office he wanted to get the steps of the capitol repainted so he put out a bid. Well a contractor from Shreveport came in with a bid of $10,000, then another contractor from Alexander came in with a bid of $20,000 and then the contractor from Crowley came in with a bid of $30,000. Fast Eddie was reviewing the bids and he called that contractor from Crowley and wanted to know why he was higher. He told Eddie that he had figured it out real good and that what it would take to paint the steps.

There was $10,000 for him, $10,000 for Fast Eddie and then he would hire that contractor from Shreveport to do the job. So who you think got the job?

[simplepeddler]

Originally Posted by Finfeatherfur

Man that sucks......but I see it more and more. I would do this:

Document an email from work to none other than yourself. Then print the email that describes everything you are faced with and here is the ticket..................mail it to yourself in a company envelope. That way should the shat hit the fan, you can go to work somewhere else w/o make a stop in jail!

Damn great advice

[Raymond]

Originally Posted by Finfeatherfur

Man that sucks......but I see it more and more. I would do this:

Document an email from work to none other than yourself. Then print the email that describes everything you are faced with and here is the ticket..................mail it to yourself in a company envelope. That way should the shat hit the fan, you can go to work somewhere else w/o make a stop in jail!

Think you missed something in the explanation Bryan, SP said his mfgr is working in collusion with the loosing contractor to jack his bid and win job by default. SP has not legal liability in the matter.

[simplepeddler]

Originally Posted by Raymond

Think you missed something in the explanation Bryan, SP said his mfgr is working in collusion with the loosing contractor to jack his bid and win job by default. SP has not legal liability in the matter.

Correct Bryan, but damn good advice.
I tend to get fired every ten-twelve years for "philosophical" differences.
May help me in the future.

[Frank Buck]

We get this from time to time as well....Are they a preferred distributor???? I find they use that line as well....or they say that where they fall on the map encompasses the other guys territory....Or because of the type of transaction, our building location, my competitor is my distributor for this deal....or other bullshizzle excuse....The way I battle it is retention of information. It sounds to me like you had to put too much information out there because you had so much red tape to go through on the front side of the deal....Likely you are dealing with a specialized piece or equipment or product and when the industry sees the order, they realize what job it is being bid on.....It is a dog eat dog world out there and loyalty is not a readily available commodity....In the end, the end user gets hosed because next time your margins are fatter to cover fubars such as this....Can't deliver a great product at a great price because there is too much cut throat, brother in law, back office deals that wind up hymming up good people like you just trying to do their jobs...>Do like my wife does....move on but under no circumstance, do you EVER forget! Depending on the product, I usually find another to support from another manufacturer that focuses on relationships, trust and great products. Generally requires a little selling on your end....I FEEL YOUR PAIN, MORE THAN I'D LIKE TO ADMIT, REGULARLY....