There’s more to the price-fixing story that I shared a few weeks ago. I’d like to share it today because it needs to be told and I’m still shocked that this goes on in 2011. Call me naive, I guess.
So, for those of you late to the story, I’m a woman in a man’s industry. I’ve known all along that I was not part of the Good Old Boys network but for that being said there are many truly good men in this industry and I’m proud to call them friendly competitors. We did good business for years in Sanford and Lake Mary and are very pleased to do great business in South Orlando at our second location for One Fat Frog Restaurant Equipment.
Back to the story of a few weeks ago, when another dealer called the Frog and told us One Fat Frog Restaurant Equipment was selling equipment too cheap and that we needed to agree to sell six burners with griddles at a fixed price. I was in shock, how could anyone have the guts to call and demand this? I knew right away this was price fixing (see Wikipedia encyclopedia article on this and how it’s a Federal Offense here: http://en.wikipedia.org/wiki/Price_fixing ). In fact I think my under the breath mutter was something like, it will be a cold day before I price fix.
So later in that day another man called me from the same business, he was mad that we had posted on the internet that a competitor (his company which I never referred to by name) called us and complained that we were selling equipment too low. I confronted him and said, well XYZ from your company called this morning and said exactly that. He couldn’t deny it and it was a moot point.
Next he went on to tell me I should agree on price. I told him One Fat Frog Restaurant Equipment will never price fix and that was not up for discussion. He then said sarcastically he hoped the strategy of selling low worked well for the Frog. I said, it’s been doing well for almost seven years and we have numerous employees and locations so we’re quite happy with it.
(Truth be known we are a larger company than he is.) We have no need to take advantage of any one client to sell them at the highest profit margin. At this point he told me that I would need to get ready for a “war with the other dealers in Orlando” (obviously he’s never heard that the only group in the US that can declare war is the US Congress- but that civics lesson is available for him again on Wikipedia – just search Declaring War US Wikipedia and it will readily come up).
My response, ” The FROG WILL NEVER PRICE FIX, IF IT MEANS A WAR THEN I SUPPOSE WE WILL ALWAYS FIGHT TO DO THE RIGHT THING.”
His next response may surprise you, as it took me aside, he told me, “Well, I hope you have deep pockets to survive this!” I was speechless, this man just threatened One Fat Frog that if we didn’t collude on prices he would put us out of business. My thoughts, I will eat top ramen every night of the week and live in a homeless shelter before I ever price fix… there you go… right from the horse’s mouth. Better to live an honest life then to compromise your morals and integrity.
The phone call ended rather quickly after that. I took a few moments to calm down, said a few prayers and then really just thought about it for the past few weeks.
I feel better now that I’ve shared this. Sometimes it’s amazing how petty humans can get. I’ve always instructed employees to say nothing about the competition. They are never to say anything bad or get into any sort of character discussion about other dealers. It’s not our place, this is a free market and customers can shop where they want. I won’t price fix and I won’t slander… I’ve got my own businesses to run and am busy enough with that.
Since the few weeks ago I am disappointed that it seems everything we’re doing on the internet seems to be duplicated by this dealer. I really wish they would come up with some of their own marketing strategies and plans, but as my best friend reminds me that imitation is the best form of flattery, so while they may have been in the industry for years longer than I have, if they gain a little from my business strategy.
Beyond that the price fixing… I’m still flabbergasted. You’re right, I don’t come from generations of food service equipment dealers. I’m not hampered by the motto “we’ve always done it this way” … I like to think I bring a lot of common sense to the Frog (or maybe you’ll say it’s illogical woman think… lol) and maybe a little of my prior career as a teacher and school principal. I have completed graduate school and know a little about running a business as the Frog is not our only venture, and moreover I know that at the end of the day I wouldn’t sleep well by price fixing… IT’S JUST NOT RIGHT.
I’ve always just said thanks for the ability to do good straight business. That’s our plan and we’re sticking to it. Get up in the morning, put in an honest day’s work, know I did the right thing by myself and my higher power and go to sleep with no troubles.
About a week ago had a real nice guy come in, said he’d heard about me and came down to talk to me about setting up a restaurant to lease in one of his properties. As we got talking I actually talked him out of the deal and gave him some advice on how to save money and rent his facility without cashing in his 401K. He thanked me and said, you know you just talked yourself out of a sale. My philosophy on that is taking advantage of someone is not good business. I was able to help him with what the real estate market is providing in Central Florida and how he might best lease his property without making a considerable investment. I told him, your sale will not make or break the Frog, it’s more important to me that I sleep well at night. A week later he sent me a very sincere email thanking me for everything.
Folks, this is what life is about. It’s about doing the right thing when you need to. It’s not about threatening other people. Life is too short. “And where ever you stand, forgive”… I forgive you, I’m sorry you felt that was the only way to resolve the issue you had.
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