Newspaper Delivery

[z4z4]

I run a newspaper delivery business and I am experiencing encroachment from another deliverer. He has gone from giving me some of his old customers as they have moved from his area into mine, which is something all of us agents do from time to time, to now taking my customers off of me knowing full well that they are in my area. He generally does this by offering a far cheaper rate for the delivery than I do. He says that when two busineses offer exactly the same service it then boils down to price and he says that I charge too much, I say that he doesn't charge enough! He has probably taken about 12 of my customers over the past few months! When I came into this business some 12 years ago I was told that there was an unwritten law/gentlmans agreement that an agent would not encroach in to anothers teritory. My question is what can I do to stop him, is there anything that can be done to stop him legally? I did read on a prevoius thread that someone did threaten someone with legal action if they encroached in his area.

Cheers,
Steve.

 

[ob1]

To be honest with you steve its fair game, if one of your competitors is taking your customers off you buy offering a lower price, theres not much you can do other than either ride it out or lower your prices

 

[roydmoorian]

When I came into this business some 12 years ago I was told that there was an unwritten law/gentlmans agreement that an agent would not encroach in to anothers teritory. My question is what can I do to stop him, is there anything that can be done to stop him legally? I did read on a prevoius thread that someone did threaten someone with legal action if they encroached in his area.

Cheers,
Steve.

A bit like milk rounds used to be

I was told by a rival roundsman who had just mortgaged his home to buy his "Goodwill"from N****ern Dairies that there was a "gentleman's agreement" with N****ern Dairies, to which I replied there are no gentlemen at N****ern Dairies.

N****ern Dairies then proceeded to supply the supermarkets direct and maintain their overall market share and pocket the "goodwill" value of the milk rounds into the bargain.

Now that was good business, but not by gentlemen.

Goodwill is what YOU make it, simples.:redface:

 

[infogreed]

Talk to a lawyer for advice, there might be some regulations you are missing. Try to offer to your customers added value: more timely service, additional info sometimes (you should know what they are interested in try cross-selling them another product they might benefit from but have not been aware about), offer great attitude, apart from that... you know your public is quite price sensitive.

Good luck

 

[KidsBeeHappy]

If he really is not charging enough, then he won't be around too long. No-one can operate below cost for too long.

 

[Mike W]

Talk to a lawyer for advice

Are you serious?!?? lol!

 

[infogreed]

haven't you heard for competition protection, there are certain regulations if you wish even to the amount you are allowed to decrease the price offered of a common product

 

[davek17]

Lowering prices like this is the race to the bottom!!

Why don't you have think about how you can better than the other guy and set your business model up so you are doing something unique and only available with you. You could approach this as a service offered to the households or the people you deliver for.

Monkeys can negotiate on price but not everyone can offer unique, innovative services so sit down and get thinking because this is what the businesses of tomorrow will be made of.

Someone mentioned Milkmen, just look what has happened to this industry, its all but gone and when this huge super dairy is built that I saw on the news, there will be 1 dairy supplying supermarkets only and milkmen will be a thing of the past. Milk prices will only go one way for us poor milk drinkers. See where price wars get you?

 

[Mike W]

haven't you heard for competition protection, there are certain regulations if you wish even to the amount you are allowed to decrease the price offered of a common product

I didn't consider any competition issues like that as, unless I've misinterpreted, it doesn't apply here at all.

I don't think we're talking about the price of the newspapers themselves. We're talking about the charges for delivery. And if that's the case, there's not a law in the land or a lawyer who could argue that you haven't got a right to charge what you like.

 

[roydmoorian]

haven't you heard for competition protection, there are certain regulations if you wish even to the amount you are allowed to decrease the price offered of a common product

Try telling that to a Tesco's dairy buyer - they will laugh in your face