Is it illegal to discuss pricing with a fellow lco?

Discussion in 'Business Operations' started by ealbertson, Nov 10, 2009.

  1. ealbertson

    ealbertson LawnSite Senior Member
    Posts: 256

    I have a friend who is in this business as well who has one of my old customers and was curious as to how much I charged them for a service I used to do for them that he is about to do. Is it legal for me to give out this information? If not what law would we be breaking?

    Thanks,
    Ed
     
  2. sven1277

    sven1277 LawnSite Senior Member
    Posts: 635

    No its not illegal.
     
  3. ADVANCEDOHIO

    ADVANCEDOHIO LawnSite Member
    Posts: 92

    Its not illegal. It prob would however be "unethical" for a business man to discuss what their company paying a company on a large commercial account that they are taking sealed bids for. But I have found lately that you can ask to talk to someone in the "purchasing" and discuss a price range they are in. They get big brownie points for saving the company money (as long as the service is the same or better) Prob not a govt account because its public info.

    (FYI: when yer going to bid on an account for a city, county, etc... go to the auditors office and see what they are paying - its public info.)
     
  4. Landscape Poet

    Landscape Poet LawnSite Gold Member
    Posts: 3,637

    LOL - maybe if you and your buddy were the only two LCO's in your town it could be considered price fixing - but I do not think that you would ever have to really about that and even if you did, you could just come to FL were there is a billion LCO and never have to worry about the price, because there is always someone willing to due it for less, LOL
     
  5. hackitdown

    hackitdown LawnSite Silver Member
    Posts: 2,490

    It is illegal, it is considered price fixing if two competitors discussed a pricing strategy on a particular customer.

    The chances are ZERO that the FBI or Interstate Commerce Commision or whoever enforces those rules will come after you.
     
  6. procut

    procut LawnSite Bronze Member
    Posts: 1,853

    You can tell them how much you were charging. (Just think the Burger King guy can walk into McDonald's and see how much they are charaging for a Burger.)

    It becomes collusion if you said something like, "Okay, I'll ket you have this one, I'll go in and bid $40.00/cut, then you can go in and bid $35.00 and get it"

    Like the previous post said, you don't really have to worry about any of this being inforced or investegated, though.
     
  7. TroutBum

    TroutBum LawnSite Member
    Posts: 50

    NO. It is not illegal. Talk about prices often. Stay up to date on national average rates and local average rates for the services that you offer. If you are in an area like mine where over half LCOs are bidding at about what the local average was TEN YEARS AGO you certainly would be wise to talk prices and strategies with every competitor who will listen. The bar is getting lowered everyday! The current economy will separate the men from the boys.
     
  8. bohiaa

    bohiaa LawnSite Fanatic
    Posts: 5,220

    We discuss our cost all the time, in fact, I see it here on this site almost every day.
     

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