Reference no: EM132253495
Selling has always been fun for you, maybe because of your success in selling high–priced merchandise to the automotive industry. The only thing you do not like is the length of time it takes to sell someone. Our average sale takes about eight sales calls, 30 to 40 hours analyzing the prospect's operation, and submitting a bid in competition with six to eight other suppliers. Your average sale last year was $425,000.
During prolonged negotiation with a large customer, it becomes apparent that the purchasing agent wants to do business with you. For example, he has indicated in subtle ways that he wants to work with your firm and has offered to share prices from your competitors with you. If you accept the list of your competitors' bid prices, you will not have to spend so much time compiling the bid, plus you will be guaranteed business that will produce 20 percent more sales than expected. You also realize that this explicitly breaks the confidentiality of your competitors and your business could suffer if word got out about your transaction.
What is the most ethical action to take?
Take the competitors' bid prices your prospective customer offers. It will save you time and earn you and your company more money in the long run.
Do not take the offered competitors' bid prices. Not only could it affect your business, but it is also not fair to your competition. You need to work for each sale you get.
Don't take the competitors' bid prices because it would break your competitors' confidentiality. However, tell your customer that were he to tell you a good "number" to bid (based on what he knows about the competitors' bids), you could submit an appropriate bid.
Post Only: What would you do? Explain how you would handle this situation.