Price Fixing ....

[rubberdubber]

Last week I had a competitor email me about "coming to an agreement" about selling our products at the same price.

This other company massively undercuts everyone else and has obviously realised that they aren't making any profit.
I did say that I would look at the prices and get back to them but I was going to put up mine soon anyway and make all my prices consistent across all selling platforms.

I am presuming that if I put up my prices and then they followed this isn't price fixing or vice versa.It makes it difficult as they contacted me

 

[Gecko001]

What on earth were you thinking about even replying to this email with anything other than to say "no thanks". I would take legal advice on the wording of your "get back to you" email that you promised so as to protect yourself.

 

[Lloyd N8N]

No need for legal advice, just email back (getting back the him/her as per your previous email) and say you have had a chance to read his email now and that no, you would not like to agree a selling price.

 

[Gecko001]

No need for legal advice, just email back (getting back the him/her as per your previous email) and say you have had a chance to read his email now and that no, you would not like to agree a selling price.

The fact that the OP said that he/she would look at their prices means that they were indicating that they would consider the proposition rather than ignoring the email or giving a straight refusal in my view. Maybe if the Op consulted a solicitor they would get it spelled out to them what a serious thing they were being asked to do. It is a bit like some being asked by someone if they would be the get-away driver on a bank raid and they replied that they were not sure if the car would do 0 to 60 in 5 seconds but would check and get back to them ..

 

[myfairworld]

Distance yourself from this without delay. Say 'no' right now and then refuse to respond to any further requests. The approach from the competitor was highly improper and you must disentangle yourself from this without delay. As others have said get legal advice too from your solicitor (or from the legal line of your business organisation if you happen to belong to one such as the FSB).

Businesses have every right to compete with each other on price. Your competitors can try to under cut you or they can charge the same as you (by copying the stated prices on your website or in your shop or whatever) or they can charge more than you and try to compete on customer service issues. All of that is completely legal and above board but you must not conspire with them to fix a price, doing so puts you into very difficult and dangerous territory.

Businesses have every right to 'investigate' each others prices. Long ago my grandmother ran a small commercial hotel and one of the jobs of any family member (such as my father) or friends coming round was to phone other similar hotels and pretending to be a potential customer ask the price of a single or double room and enquire if there was a reduction for a stay of more than one day and so on. Doing investigations of that type is a case of all's fair in love or war and you expect that when the other hoteliers have family or friends around they will be ringing you and making the same enquiries. I was watching 'The Hotel Inspector' recently and in one episode Alex was making the point that the hoteliers she was trying to help had been failing to undertake this sort of investigation which is part of normal commercial practice. But any suggestion of 'agreeing' prices with another business must be avoided at all costs.

 

[Grimsby]

Its simple, reply saying you have considered what he suggested, that you do believe it to be legal or ethical and that you will have no part in his scheme.