Overcharging competitors?

[mc_blue]

Good morning all,

Here's an ethical question for you. Basically we sometimes have to release cars from police contractors and initially have to produce the cheque/cash for the release fee. Looking at the charges I am quite simply shocked by the behaviour of these contractors. A typical job that should cost £105 and £12 per day storage is inflated to a simply ridiculous sum. The police scheme managers seem not to care about this either.

I've always preferred to take the ethical view and to charge fairly (and legally) regardless of if it is a punter off the street or an insurance company paying. What about your businesses, are you often surprised by competitors who quite simply bring the industry's name into disrepute?

Regards

[JustinP1]

Interesting.

The immediate answer is 'business is business' and prices rise and fall to an acceptable level. If prices are too high then the company doesnt get used.

What changes this is most likely where a public sector body comes in the way. They don't have to make money like normal businesses so in a way they don't need to watch the total cost. Indeed, in some instances I have been in a situation where a public sector body is looking to 'use up' the rest of it's budget!

What is even more awkward in this situation is that I am guessing that the 'customer' has no right to complain. They can only complain against the police not the company which the work is subcontracted to and thus there is little right to reply against inflated prices.

I would be contacting the police to undercut them - and if that doesn't work I would suggest offering to donate a percentage of turnover to the police benevolent fund!

[Chrisgr31]

JustinP1 said:

I would be contacting the police to undercut them - and if that doesn't work I would suggest offering to donate a percentage of turnover to the police benevolent fund!

I suspect you need to contact the Police and offer to "overcut" them! I think that the Police subcontract this work, and are probably paid a fee by the contractor. The contractor then has to pay his own costs plus the police fee, hence the high charges.

Seem to recall there was a big row in Kent some time ago when the a rescue service (poosibly the 5th one) became the Polices contractor for dealing with mtorway breakdowns. What happens is if you have no breakdown cover the Police sent their contracted one, who charges you for the priveledge. But it was worse than that as even if you had a breakdown service they had to get there in x minutes, or the Police would say your car was in a dangerous position and sent their own contractor.

Yes turned out the Police were paid by the contractor.