Do buyers have to follow same ethics principles as seller

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Reference no: EM133419515

Assignment:

Travis Bruns is a sales representative for Crown Lift Services in Houston, Texas. In his own words, he describes an ethics issue with a buyer:

I was in a real cutthroat bidding war for a $300,000-plus sales opportunity. Over the course of two months, the competitive field had been narrowed down to two organizations, the incumbent organization and mine. The customer had set up a set of strict guidelines for the bidding process. One of those was that they had designated a "point of contact" (POC), which was to be the liaison through which all bids and proposals were to channel through to the VP. My organization and I had truly put our best foot forward on pricing and proposed service after the sale. Although the negotiations had been rough, we were able to sell the value of our solution, retain a fair amount of profit, were able to sell the value our solution, retain a fair amount of profit, and were told we had the deal: a true win-win. On the final day that the bid was open, I received a call from the POC asking me to lower my price. I was confused, I inquired about the previous discussions that had taken place in which we had mutually agreed that the price of our proposal was fair and good. I could hear some level of discomfort if not embarrassment in the POC's voice, so I came right out and asked him, "I get the sense that you are not comfortable with what is happening here either. What happened?"

He replied, "Well, Travis, your competitor called one of the other managers in the office and was able to find out the pricing in your proposal. He then went around me, called the VP directly, and offered much lower price. The VP then called me and asked me to get you to lower your price or the other company will get the business."

I was dumbfounded; I asked the customer, "If I cannot lower my price, are you telling me this deal is over for me?"

"I think so," he replied.

Based on this scenario, please answer the questions.

What would you do? Do you lower your price or walk away? Why? Write out specifically what you would say next
Do buyers have to follow the same ethics principles as sellers? For example, sellers have to fully disclose all information. Do buyers? Why or why not?

What ethical principle violation occurred here?

Reference no: EM133419515

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