Cheap shot at a competitor

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1. For centuries the guideline for business transactions was the Latin term caveat emptor (let the buyer beware). This principle suggests that the seller is not responsible for the buyer's welfare. Is this principle still appropriate in modern business transactions? Why or why not?

2. Dub Oliver runs the maintenance department at the paper mill, and he buys lots of hardware to fix equipment. Right now, he orders most of it through a website at NCH. If you work for Home Depot, how would you try to make a sale to Oliver? You can assume you have a website he can order through, too.

Read this case and answer the questions below. Your case answers should be 1 page, have a title page, reference page and any in-text citations that are needed to support your statements.

Jesse Fernandes joined Plaxico, a major provider of engineering services in the plastics industry, straight out of college in sales support. After a couple of years of working on proposals and bids, she moved into the field, calling directly on manufacturers who could use Plaxico's services. Things went well-the territory she took over had not been worked very hard, so she was able to show some significant increases in the first year. But shortly after the first of the year, she began to get the same e-mail from client after client. "Jesse, please explain your firm's pricing to us, line item by line item." After the fifth such e-mail, she forwarded it to her manager, Marty. As soon as he saw the e-mail, Marty picked up the phone and called Jesse. "Looks like you've got Notelli & Associates moving in," he told her. "Their strategy is to tell customers our prices are higher and prove it by showing a line-item comparison. But actually, it's how they define each line that differs, and when you add it up, we're less expensive by some 15 to 20 percent." "How do I prove that we're not more expensive?" asked Jesse. "It's hard because they won't show the client a full price list. To make matters worse, we also have filed a lawsuit against them because they keep telling clients we're going out of the environmental engineering business."
"Oh, that explains why I've gotten that question a few times recently."

3. How do you respond to the pricing issue if you can't actually prove Notelli is lying until a customer tries them and then realizes it is more?

4. How do you respond to the question about leaving the business? What if a client asked about the lawsuit directly, saying, "I hear your company filed suit against Notelli. Wasn't that a cheap shot at a competitor?" Refer to material from the text or other sources in your answers.

Reference no: EM131228093

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