Issue link: http://psai.uberflip.com/i/1331134
ASSOCIATIONINSIGHT Portable Sanitation Association International News BIWEEKLY EDITION JANUARY 20, 2021 Page 16 What to Do about Competitors Who Don't Play Nice…continued from page 15 It is definitely not okay to talk with your competitor and say something like, "Hey, we are both getting killed in this price war. What if we both agree not to go below $XX per month on a construction unit?" Be especially cautious about conversations related to pricing in open settings, or whenever a permanent record can be created (e.g., written documents, social media posts, phone logs, smart phone video, etc.). Even if the talk was innocuous, a disgruntled party could cost you time and lawyer fees to sort out accusations that the conversation crossed a line. Associations like the PSAI can create reports showing what average pricing is for certain types of services. Historically the PSAI hasn't done this because there hasn't been a groundswell of demand for such a report, but it is something we would consider if members were open to it and willing to provide data on a routine basis. Such a report would have to be constructed such that: • Data were blind or aggregated, so details could not be associated with any particular company • Pricing information was at least three months old Allocating Markets One thing that sometimes frustrates callers to the PSAI is when a competitor has been purchased by different, outside owners or when "new kids on the block" and their scrappy little start up start acting differently than you are used to seeing in the marketplace. Suddenly the status quo has been disrupted. Perhaps you and your existing competitors had a "gentleman's agreement" that you would not go after contracts of a certain type if they left your contracts of another type alone. Now the newcomers are blithely unaware of how well this has worked for everyone over the years. They have started bidding for things that you view as "yours" and approaching some of your customers with new offers. Yes, they can do that. Frustrating as it might be, if you and a competitor had a "gentleman's agreement" about how you serve your community, be aware that this could potentially violate anti-trust laws. In general, it is one thing to have an unspoken understanding and quite another to formalize it or retaliate if a competitor does not honor it. So, tread very carefully in how you try to restore balance to the markets. This situation is one where you definitely want to talk to your attorney first. Boycotts Another type of question we receive at the PSAI is from operators who are frustrated with the conduct of a supplier. Sometimes they ask us if we know how this supplier treats other customers, or if anyone else has complained about Product Y. Once in a while they will say things like, "Yeah, I've talked to some other guys, and if the supplier doesn't make this right, none of us are ever going to buy anything from that company again." In general, if you are upset with a supplier, it is best to tell the supplier and try to get a resolution to the issue from the company. If that doesn't achieve the results you want, talk with your attorney. Be careful about whom else you tell —especially other customers or competitors—and how you relate your bad experience. Continued on page 17