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?

[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?

[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...

[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!

[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.

[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.

[VEIGHT]

I spoke to the customer. Explained I would do the same to him if the shoe was on the other foot. He took it fairly well, I gave details of a competitor that would look after him which means I'm in their good books to.

I told the old customer what I did and he was very grateful. I will use it against them if ever stop pushing our products

Could have gone a lot worse!