Corporate Ethics

EOSturgeonFisher · 12-20-2005, 07:08 PM

Today I am faced with a huge dilemma. I am employed by a large corporation in a service sector. It seems as if lately if my company isn't making numbers, (whatever they are) then they just pass a price increase along to the customers. Leaving us as the route employees to deal with the wrath. There has been 3 price increases over that 1 year. Everything from fuel, to natural gas, etc. Now they just let us know tonight that they are planning another increase after the first of the year. I can't take it. I just get on situation resolved, and they create a whole new problem! I personally don't beleive this practice to be ethical. What do you guys think? The service is a contracted service, and in the contract it states that there can and will be a annual rate increased tied to inflation, but not 2 & 3. Is this fair business practice? I'm at my wits end. Need the job for insurance purposes or I would be gone! You think I'm overreacting? Sorry about the rant. I just had to blow some steam!

12-20-2005, 07:19 PM

Quote:

Corporate Ethics

Sorry for the laughter but "ethics" in todays corporate structure are rare.

Your employer needs to make a profit or they will not be in business for long. They do not need to **** their customers and if they do it to hard they will not be in business long...unless you work for an energy related company or a monopoly.

Ni! · 12-20-2005, 07:39 PM

Do you expect your company to operate at a loss? They're in business to make money, not lose it.

Ni!

STGRule · 12-20-2005, 08:47 PM

But if it is in the contract, they can't just modify it. They need to re-negotiate the contracts if they are changing the rules.

Old Coot · 12-20-2005, 08:54 PM

Are you sure that there isn't some sort of COLA or CPI kicker in the contract?

Seems like the customers must be pretty docile to allow the vendor to violate the contract without objection or action.

Silver Hilton · 12-20-2005, 09:36 PM

I feel for you, but it's not your problem. It's not even really an ethical issue, in my view, it's just a business issue. Your company is raising it's prices. It's customers are the party that is offended, or not, as the case may be. I would just shrug, tell the customers that you are sorry, but the business environment required your management to raise the prices, would they like your manager's phone number.

If the company is mistreating it's customers, they'll eventually take care of the problem by taking their business elsewhere. You might consider a polite memo to the company managaement expressing your concern about the potential impact to customer loyalty that this latest increase might have, and suggest that it might not be in the companys interest to pursue the increase. I suspect that will fall on deaf ears, but that would be the right thing to do, and you would be being loyal to both your company and your customers. (and yourself)

12-20-2005, 09:42 PM

I don't have a clue to what product/service you provide but transportation and raw material costs are up. If your employer doesn't make a reasonable profit you will be on the street looking for work.

Take it from someone that has been long term unemployed, work is better than no work.

Hooked on Fish · 12-20-2005, 09:43 PM

More important than what we believe to be kosher is what you believe to be ethical. My

is to discuss your concerns with the next guy up the ladder and at least try to change it. Unless you work for a non-profit business is all about making the doe ray me. Without knowing more about your company if you happen to work for one that relies on high quatinites of fuel consumption there most likely have been adverse impacts on your bottom line. In the bigger picture 3 increases in a year due to external factors might make one question the ability of your companys leadership to forecast and budget.

Anyway, you probably already know the answer to your question. Good luck to you and most of us have been there in one form or another.

EZLoader · 12-20-2005, 10:45 PM

Your firm's suppliers passed their increased costs on to you, and your firm is passing those costs onto their customers who will either absorb those increased costs or pass them on to their customers. That's business.

It's happens most often when monopolies and/or controlled markets exist without competition which is the direction the world is headed.

jimh · 12-20-2005, 11:09 PM

I can't say if you are overreacting or not. You feel what you feel.

If it isn't illegal, and you aren't making the decision, try not to think about it. I think it's like working for a car dealership and not selling a car for the minimum amount.

If the market won't support the price increases, your customers won't be able to continue to pay it. If the market can support it, it isn't your place to say you are charging too much. My two cents...

nitrobass · 12-21-2005, 04:08 AM

I'm in a similar situation, put in a position of passing along increasing prices to all my customers. My company is publicly held and needs to show growth each year to shareholders. This past year has been unreal as far as price increases to us - overseas issues, hurricane issues, weather issues, gas prices..it all affects parts of distribution. You absolutely have to stay informed and give your customers accurate information on why the increases are coming. If necessary your customers then need to raise their prices to keep pace. If you communicate with your customers and they communicate with their customers about whats affecting prices you wont see much of a drop off in sales. Customers appreciate the info.

A company tied in heavily to the price of gas that didnt raise prices to cover some of this expense wont be in business long.

You are in business to make money for you, your company, and your customers - not to be their friends and say "my company is doing this to you".

Thumper · 12-21-2005, 04:59 AM

Quote:

I am employed by a large corporation in a service sector.

I would be interested in the nature of your business.

12gaugeshtr · 12-21-2005, 05:20 AM

The contract states that the price can be adjusted....The customer signed the contract. When the contract expires the customer can re-negotiate or switch vendors. Customers in my business can "cancel" if they give a 30 day notice.

PS. I don't mean to be a bearer of bad news...I was having lunch at the Slammer tavern the other day and Liz informed me that beer prices are going up Jan, 1st. Seems the distributor is raising his price....Sorry toi hear that.

jvp · 12-21-2005, 06:36 AM

Higher prices, less product and poorer service seems to be the norm as of late.

northriver1 · 12-21-2005, 07:20 AM

Quote:

Higher prices, less product and poorer service seems to be the norm as of late.

Not to much wiggle room there.

Where I shop I have not found that to be the case unless we are talking about gas stations.

Kevin M. Kelly · 12-21-2005, 07:53 AM

It all comes down to a business decision on the part of your company and the customer. If your company needs to raise prices to offset an increase in costs, they can do so. The customer has a choice of accepting the price increase, finding a new supplier, or trying to enforce the contract and limit the price increase to the terms of the contract.

If the customer really wanted to enforce the contract, the it would end up with a Lawyer.....

You've been caught in the middle and the best suggestion that I have

is to let the customer know that you are only the messenger, that you understand his frustration, and that if he called your supervisor and expressed his frustration, that it might result in a lesser increase, or a decision not to pass along that increase in the future.

reeldick · 12-21-2005, 02:37 PM

We raise our prices when our costs increase otherwise we can just shut the door and our customers get no service.
Our cost of goods has gone up this year and our labor rate has gone up. We pass that along to our customers but...we don't let service or customer support slip, even for a moment.
We give the best service and charge a fair price for our product. We haven't lost a single customer.
They understand, they're getting hit too.

PeterMac · 12-21-2005, 02:43 PM

Your customer probably won't be surprised that you are raising prices, as they are more than likely getting increases on everything else they use / buy right now too.

Freight prices are killing me!

PeterMac

BCF · 12-21-2005, 02:50 PM

Quote:

PS. I don't mean to be a bearer of bad news...I was having lunch at the Slammer tavern the other day and Liz informed me that beer prices are going up Jan, 1st. Seems the distributor is raising his price....Sorry toi hear that.

I am making a little doll of Pearl that I can burn and poke with pins.

SAVE OUR BEER ,SAVE OUR BEER,SAVE OUR BEER.

take your companies' price increases in stride. You stay calm ,and your customer will stay calm. Emphasize the positive and that would be you and your quality service.

Relax....... what else can you do??????

BCF out

EOSturgeonFisher · 12-21-2005, 07:12 PM

Thanks for all the responses. I may have been overreacting, it just gets so frustrating. I'm in such a competive market. the competition is always almost willing to give the service away just to pick up business. By the way I am a route sales rep for a large uniform and linen supplier.