I have always tried to run an ethical business and have thought that our industry as a whole is pretty well-intentioned. Today for the first time, however, I came across what I feel is highly unethical. I'd like some feedback and suggestions as to recourse if appropriate. I am so angry right now that I am not thinking clearly.

We are the integrator on the early stages of a job of a 7-year client of ours who is moving in to a new home.

He has asked an interior designer to design the theater room and in her capacity she sought a quote from a competitor of ours for seating not realizing we sell theater seating. She was shocked at the pricing and checked in with us, we let her know that as the integrator we could also provide chairs.

She had chosen a particular model from the Fortress Seating company website and said she would like those in a particular arrangement. She did not share the competitors quote.

We contacted Fortress for a quote. The Fortress sales person then, once he hung up with me, called the competitor, tipped them off to our request for quote and the competitor has since lowered their price.

I called Fortress back and made it very clear that I thought their actions were unethical. They are unapologetic about their action but apologetic that I should feel upset.

Not sure if I am over-reacting but this is $40K+ of seating, so I'm pretty pissed off.

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additional info has changed my mind on this whole thing

Run fast. Don't look back. Never do business with them again.

As for the interior designer...let her and your competitor provide the chairs at the "lower price". Bill hourly (consulting) whenever she asks you a question about them. Include any time already spent.

Or just tell the client what cost on the chairs...making it impossible for the ID to mark them up. I would sell seating from someone else at cost plus installation just to spite all three of them. (ID, competitor and manufacturer)

Are you a dealer for Fortress? Do you do much with them?

Did you give info regarding the job? How did they know there was another company in the mix?

I don't think any manufacturer should ever favor 1 dealer over another. I don't like tiered pricing plans either. Product cost is x, markup is y, and sell price is z, plain and simple.

I would probably try to turn the client and/or designer on to a competitor. Fortress is nice but they certainly are not the only game in town. I probably wouldnt shy away from letting Fortress know they f'd up if I sold $40k of United Leather or whatever.

additional info has changed my opinion on this whole matter

I would do this. It would require more work to prove why someone else is better than Fortress but it would be worth it. I'm very vindictive and would do this out of spite even if it meant I had to waste 2 days just researching why United was better.

Boo

that is super shady. I wouldn't even care about the money ls as the ID could have gotten something from one of their other vendors.

I would however tell everybody at Fortress to kiss my Arse. they just lost all future business from me and I am sure many others on here so they will feel this for some time.

This is one of those things I will bring up in passsing at CEDIA just to let them know we know how they operate.


Side note United is pretty awesome.

The ID is actually a TV set designer for our client and is entirely blameless, she just didn't know better. I have no hard feelings against her at all.

We are not a Fortress dealer but contacted them in good faith that we could certainly fulfill any dealer commitments. The sales guy at Fortress told me he would be getting back to me with a quote and dealer paperwork. Within minutes I got a call from the ID who had been contacted by our competitor saying that they had been contacted by Fortress and could offer a discount.

I'll be filing an ethics grievance with CEDIA against both companies.

OUCH! I wonder if the ID is on the take with your competitor? ID's are always looking for liberal hand outs, or a cut of the pie.

I agree with stamp. Sell the chairs at cost just to piss them all off. Make sure the client sees the price to be sure the decorator can't figure out a way to get a cut

This is a great move but be prepared that no one will care. Not CEDIA nor FORTRESS.

CEDIA cares about floor space revenue.
FORTRESS cares about sales revenue.

There are two types of sales people, those who want 'THE' sale, and those who want an ongoing relationship with YOUR business.

1) The sales guy who ratted you out is 'THE' sale guy and he's already picked his favorite dealer.

2) The manager who will hear the grievance is the same guy that hired him.

I will first consider United because of this thread.

Tell the ID what happened and see what she wants to do. You might be surprised what she thinks of the whole situation.

Classic. That actually made me chuckle.

I rarely let crap get to me, life is too full of undrunk beer, but today did and it shouldn't. I'm going home to pick up my daughter from swimming then see if I can give her the wrong math answers on her homework while drinking said beer.