case $2\mathrm{.}2$ Dominion Manufacturing

Dominion Manutacturing is a controct manufacturer, meaning that they make parts that go into other companles' products. Pat Conroy represented the company in the Mid$-$Atlantic area, calling on companies in Virginia, North Carolina, South Carollna, and parts of Tennessee and West Virginis. Most of his customers have some defense business, and one in particular, Thurmond Turblnes, relled heavily on the marine business. Pat visited with Ron Thurmond, a tough negotiator but a long$-$time customes.

"Look;" said Ron, as he pounded the desk, "McCormick underbld us on the Newport News ship contract by $10$ percent. You must be offering them a better price than us$,$ and I want to know why:

Pat knew McCormick bid that job at o slight loss. The founder, Bill McCormick, wanted to retire and sell the business but felt like he had to get sales up to $$100$ million to get the price he wanted for the business. In fact, he asked Pat if he knew any polentlal buyers.

"Ron, there is nothing In the agreement with McCormick I wouldn't offer you."

"C'mon. Bill's pretty stingy, moybe even stingler than I am$,$ You had to cut him a sweet deal and I want the same sweet deal on the Colonna job or l$\text{'}$ll find another vendoc," replled Ron, pointing a finger at Pat.

"Look, Ron, atter all the time we ve worked together, you know how I operate. I didn't give them any kind of a deal,"

CHAPTER $2$: Ehical and Legal laves in Selling $55$

"Well, I heard a rumor thet Bill's thinking of selling out You know anything about that? What's he going to do on the Colonno job? is he going to lowball that, loo?

I don $1$ know what his plan is$,$ Ron, but if I did, I would no more tell you that than I would tell Bill your plans."

"All I can say is you better find a way to shave $10\%$ ofl the price of that cowing for the Colonna job."

"I can do that, Ron, If you are willing to take liventory of all cowings up front and still meet the $2/10$ n$30$ terms."

Ron laughed. "That aln't heppeningl"

Questions

How should Pat respond to Ron regarding the cowlings? Would your answer change under any of these circumstances? Answor each individually.

A$.$ Ron's company accounts for $20$ percent of all of Pat's sales, and is four times larger than ony other customer,

The two customers are of equal impontance to Pat.

C$.$ There is no company policy on pricing or margin, Pat just has an annual margin goal he hos to meet, glong with a total revenue goal.

Should Pat tell Ron that Bill wanits to sell his company and is loaking for a buyer?

Describe Pat's relationship with Ron. Where should he go with this account in the future?