Ethical, or not????

[big acres]

Okay, I've ran into this situation only a couple of times.

A prospective or current customer, let's say an on-site manager of an apartment complex, knows your service and wants to use you.

Due to the structure of their larger management company, they are required to use the old "three-bid" procedure, which will result of course in the low bidder (or likely the low-baller) getting the work.

The on-site manager knows that they will only get too deal with more of the same poor quality (like not showing up for nine inches of snow) if they are forced to replace one crappy vendor with another in the same price range.

So, the manager asks if you know of anyone who they could get two more bids from (wink, wink, nod, nod). Of course you have networked enough to have a couple of guys who will bid to make you look good.

The question is "If the customer wants your service and is willing to work the system to get it, are you shady for following through with it".

Personally, I don't think so if this is the buyer's request. I know of a few instances of local companies using dba's in order to be all three bids without the buyer's knowledge... now that is much more questionable. Your opinions please!

[Rcgm]

LOL sometimes you do what you have to do to get the job. I have done it on a apartment complex before and sure others have done it to me. Alot of apartment complexes get four bids here highest and the lowest go in the trash then they look hard at the other 2. Lowballers have killed the business here for example I bid a apartment complex last fall for this year at 450 a cut another company bid it at 200 how is that possible. But they said they are tired of crappy service well you get what you pay for. So call your buddies and have them submit there bids and get the property.


RCGM
Brad

[cwags73]

LOL sometimes you do what you have to do to get the job. I have done it on a apartment complex before and sure others have done it to me. Alot of apartment complexes get four bids here highest and the lowest go in the trash then they look hard at the other 2. Lowballers have killed the business here for example I bid a apartment complex last fall for this year at 450 a cut another company bid it at 200 how is that possible. But they said they are tired of crappy service well you get what you pay for. So call your buddies and have them submit there bids and get the property.


RCGM
Brad

I love when those places call back begging you to help in mid season. I love to tell them " I know I told you $XXXX but I filled your spot in the schedule. I can squeeze you in for $xxx+$100." I make them sign two or three year contracts when they pull those games. These places are slowly realizing that you do indeed get what you pay for.

[lifetree]

I would think it's not an ethical issue ... because you have been asked for the other LCO's and the manager is the one that asked you !!

[easter's lawn]

I can tell you that in the Sales industry, which is my background, that the majority of state federal and larger organizations require a three bid procedure. It is normal for the decision influencer who knows the needs for the service to have already picked out the provider and is working his system to benefit his needs. It might or mightnot be unethical to you but to someone else it is common place. What you have to worry about is when your competition is golf buddies with the company owner. Now is that unethical?

[dougaustreim]

If you have to ask if something is ethical, then it probably isn't. What you're talking about is bid rigging. People go to prison for that.

Doug
Austreim Landscaping

[AI Inc]

The manager is asking you to go home and do your bid along with fake paperwork for 2 non existing companies that are higher. Do you want the job, because he wants to give it to you.

[Mrs. H]

I love when those places call back begging you to help in mid season. I love to tell them " I know I told you $XXXX but I filled your spot in the schedule. I can squeeze you in for $xxx+$100." I make them sign two or three year contracts when they pull those games. These places are slowly realizing that you do indeed get what you pay for.

I agree. It's a pain to have them call later, when it's too late in the season to add Pre-em and the weeds have already taken over. Just more work that you didn't think you were going to have. Adding the extra $$ is a good idea.

[JimmyStew]

Price is not the only component of a bid!

If the manager wants to hire you because of the quality of your work and he gets two other bids that are lower, from companies he knows will not perform to the level he is looking for, then he should hire you regardless of your price. If he doesn't, and goes with an inferior company - he's not doing his job!

As far as the ethics go, he asked for the names of two LCO's to get bids from - give him the name of two you know will bid higher than you. Don't tell the other LCO's what you bid and expect them to bid high because, as Doug said, that's illegal and definitely unethical.

[JustCut]

Something else to consider... He has already made his mind up that he wants you to have the job based on quality of your work.....HOWEVER... now he wants to see if you will do the right thing even when no one will know......by giving you an opportunity to do the wrong thing......What will you do.....just a suggestion....give him a copy of the yellow pages and let his fingers do the walking.

[ExcaliburLawnCare]

I agree with JustCut. All the manager has to do is go online or in the phonebook to find someone. That is his job, not yours.

[B & B Yardscape]

I would give him names of two companies that are repretable and I KNOW their bid would be higher than mine. Higher over head, etc. I would not tell the other companies what my bid was.

Even if you weren't the low bidder, the manager should be able to tell corprate that you are the one to go with based on quality of service. It probably won't happen that way, but it should.

[big acres]

I can tell you that in the Sales industry, which is my background, that the majority of state federal and larger organizations require a three bid procedure. It is normal for the decision influencer who knows the needs for the service to have already picked out the provider and is working his system to benefit his needs. It might or mightnot be unethical to you but to someone else it is common place. What you have to worry about is when your competition is golf buddies with the company owner. Now is that unethical?

I agree, and sales is also my backround. There is so much incest in big business that this thread would get long fast if we listed all the ways we've all been unfairly shut-out of opportunities.

"If you have to ask the question, then it is probably unethical". To this, I can say that yes, it is a good rule of thumb. But if you don't wake up in the morning scheming about ways to get business other than promoting your quality service, and once in a great while a situation like this falls in your lap... then you should think it through right>

"Hand 'em the yellow pages" Okay, this is a property manager for a large company who could open big doors. They are approaching you with a problem. Their company requires three bids, and they choose the bidders, but must go with the lowest. They know that with the lowest bid they will get crappy service and have to make phone calls and babysit. They know your work will make their job easier... which is my main selling point. Do you add to their problem by handing them the yellow pages, or craft a solution to become a key vendor that makes management easier.

I surely would not waste my time creating false companies, or even legally setting up dba's to due this, but I would recommend vendors from across town who I know to have similar price structures.

Thanks for the input, keep it coming.