Idiotic Business Practise!

There's one thing that is really bugging me at the minute, and that is short-selling. I know I have talked about this before, but I'm utterly bewildered by the fact that companies are still doing this in a time when profits absolutely MUST be made!


We've had a company quote for a house full of windows £1k+ less than us! When we've worked it out, if we were to match that price we would be making a loss on that job. And this isn't the first case of such a thing happening. My theory is that this particular company know when they are up against us, so they feel they have to sweep the job in order to win the business, as they know we're more likely to win the order. The problem is there that in Wakefield, we come up against each other quite a lot. So God knows how much they will have lost.


Other companies are guilty of this idiotic business practise too. What I can't fathom is how these companies think they are going to manage years down the line when they have to honour their guarantees? That why businesses make profit, to stay in business to serve their customers in the future.


The squeeze on public finances mean it's going to get tougher to win orders over the next few years. What is the point of signing up business if you're not going to make any profit?! Some of you reading this may be guilty of this sort of selling. So would anyone be able to explain to me how selling like this on a regular basis, seemingly not making profits on contracts, is good business practise, and how you expect to still be here in the next 5 years?


I personally would rather lose a contract then sign one up for no profit or commission. I'm not working for free, especially in times where customers are being ever more cautious about spending their money.