timber

I work for a timber company. I am a timber spotter for the man that owns the company. He has 4 or 5 timber companies that he will give a price to the customer. He will send one in at a low price, then one in at a slightly higher price, and then another in just below that price. I own a fence company and I am used to the bid process. I think there are some laws being broken. I dont know what to do. All the timber owners are individual land owners .

So what is your point?

Are you suggesting that it is illegal for the 4 or 5 separate companies to offer different prices? That it is an unfair business practices?

Would you have the buyers conspire to fix the same price to all potential customers and thus be guilty of violating the Sherman Anti-Trust Act?

Maybe you’ve been out in the woods too long.

I believe what he is suggesting is the owner is using the multiple companies to deceive the timber owner by offering multiple prices. The business owner is essentially bidding against himself but it is not intended as an actual bid but to make the customer believe the different companies are in fact bidding against each other.

In doing this, he can cause the customer to believe that the prices being offered are fair and true market prices when in reality, all 3 of them could be very low bids. With the two lower prices, it would make it appear the high bid is a good price.

A customer may not seek any other bids simply because they have already had 3 bids so they take the highest bid thinking they got the best price.