Can I refuse to sell to someone ? B2B

[VEIGHT]

I have a customer that we have been supplying for many years. A new customer nearby has bought from us and is effecting my old customer's sales. They want me to stop supplying them.

Can I refuse? Obviously it will damage my reputation but any other issues?

I was going to go down the route of 'we didn't realise it was so close and we only supply one customer in an area in the interests of fairness' or similar?

Any advice on how best to approach?

[marshalla]

You can choose not to sell for anyone, but the reason you give sounds horribly like market manipulation or even an attempt at price fixing. Tread carefully.

[Lost soul]

VEIGHT said:

I have a customer that we have been supplying for many years. A new customer nearby has bought from us and is effecting my old customer's sales. They want me to stop supplying them.

Can I refuse? Obviously it will damage my reputation but any other issues?

I was going to go down the route of 'we didn't realise it was so close and we only supply one customer in an area in the interests of fairness' or similar?

Any advice on how best to approach?

I have done this once it did not work out , the larger customer who asked me to give him sole supply to ended up thinking he owned me and would push for more and more discount and faster delivery while at the same time he would not take all the product I could souse

[VEIGHT]

marshalla said:

You can choose not to sell for anyone, but the reason you give sounds horribly like market manipulation or even an attempt at price fixing. Tread carefully.

Thanks I thought it might open a can of worms. What reason can I give?

[Lost soul]

VEIGHT said:

marshalla said:

You can choose not to sell for anyone, but the reason you give sounds horribly like market manipulation or even an attempt at price fixing. Tread carefully.

Thanks I thought it might open a can of worms. What reason can I give?

I do not know which industry you work in so my experience could not be the same as you ,I would talk to the guy if you do this for him what is he going to give you in return

[Mr Overheads]

VEIGHT said:

I have a customer that we have been supplying for many years. A new customer nearby has bought from us and is effecting my old customer's sales.

If Old customer is ordering less because their sales are down, but New customer is ordering the shortfall are your overall sales up or down or static? If it's up or static then you've spread your risk across 2 customers instead of 1 (Assuming the old customer was a decent percentage of your turnover that benefits from de-risking)

[VEIGHT]

In the scheme of things it is more a loyalty issue than sales (we would be up overall with 2 accounts pushing our stuff) however it's pretty small business. The first customer would use a competitior for the same stuff if I don't do what she says. (She hasnt said that to me but thats what I / she would do).

I like the customer and have dealt with them for 15+ years so dont want to upset them regardless of sales TBH.

The issue is what to say to the new customer...

[Mr Overheads]

No worries, just playing devils advocate.

[Lost soul]

VEIGHT said:

In the scheme of things it is more a loyalty issue than sales (we would be up overall with 2 accounts pushing our stuff) however it's pretty small business. The first customer would use a competitior for the same stuff if I don't do what she says. (She hasnt said that to me but thats what I / she would do).

I like the customer and have dealt with them for 15+ years so dont want to upset them regardless of sales TBH.

The issue is what to say to the new customer...

OK so if it is readily available products then I can see your problem , in my case I had a special supplier in Israel who would only sell to me and customers were fighting over the products

[VEIGHT]

If they are readily available products would price fixing etc come into it if I say we only supply one shop per town?

It's interesting that the new customer gave us their home address and not the shop address so didn't know where he is selling - that could be our reason for giving them orders in the past but not now?

It's not a huge issue just trying to reduce the ear bashing that I'm about to get!

[PurpleMoonlight]

Surely, if your old customer can source elsewhere if you refuse to comply then the new one can source elsewhere also if you do. The original customer will not be any better off, but you will be worse off either way.

[P-Jay]

You could, but personally I wouldn't.

So you say "no thanks" to 'new customer' because their business is in competition with 'old customer' - firstly that's not really any business of yours, but it's not like 'new customer' is going to say "oh well, we can't buy XYZ, we'll call it a day then" they're just going to buy elsewhere which is going to effect your business.

18 months later and 'old customer' is buying a 3rd of what they used too because 'new customer' is taking all their business and you're double screwed - because you're not going to have much luck trying to get in with the new guys anymore.

[VEIGHT]

Yes you guys are right it's a lose, lose for me however the old customer spends a LOT more than the new customer. The old one has 25 years on the new one but regardless of sales (and it's not a huge amount) my loyalty lies with the old customer.

[blindswelledrat]

Difficult one that.

Telling the truth is the only way forward I think. Report back please

[Magic919]

I'd tell them I try to look after my long-established customers and drop the new one.

[Mr Pointy]

Put the price up to the new customer so they go elsewhere without you having to reveal why you don't want to deal with them. Then in the future if you need to try & get them back you can drop your price again.

[bobbylondonuk]

Mr Pointy said:

Put the price up to the new customer so they go elsewhere without you having to reveal why you don't want to deal with them. Then in the future if you need to try & get them back you can drop your price again.

This is how you do the deal! well said Mr. Pointy.

[VEIGHT]

I called but no answer!

I'll just be honest without mentioning names and have a contact for a competitor (that I like) that will look after him. Hopefully that will sweenten things a bit.

[PurpleMoonlight]

VEIGHT said:

Yes you guys are right it's a lose, lose for me however the old customer spends a LOT more than the new customer. The old one has 25 years on the new one but regardless of sales (and it's not a huge amount) my loyalty lies with the old customer.

Seems that loyalty only goes one way though and your customer will happily go elsewhere if his blackmail doesn't work.

He isn't the sort of customer I would want to retain any longer.

[Chrisgr31]

Or could you offer the old customer a loyalty discount?