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What would you do?

knc

Aluminum
Joined
Dec 19, 2007
Location
Ellensburg, WA.
The buyer for my biggest customer quit about 3 weeks ago. He didn't leave on good terms. Two of my friends are the owners of this company. I used to run their company until about 3 years ago when I decided to start my own shop. The problem is the buyer has since decided to buy into a shop and wants to off-load work to my shop. While this would normally be great news, my biggest customer may not be too happy about it. I believe they would eventually find out, its a small world. Would you try to establish a new customer with the risk of pissing of a existing one?

Ken
 
The buyer for my biggest customer quit about 3 weeks ago. He didn't leave on good terms. Two of my friends are the owners of this company. I used to run their company until about 3 years ago when I decided to start my own shop. The problem is the buyer has since decided to buy into a shop and wants to off-load work to my shop. While this would normally be great news, my biggest customer may not be too happy about it. I believe they would eventually find out, its a small worlds. Would you try to establish a new customer with the risk of pissing of a existing one?

Ken

ask your customer what they would do....or just bid the work and see what shakes out.
 
Your a contract machinist, you make for anyone.

Take the job on, if you get found out just remind everyone that in a perfect world you wouldn't but as a contract manufacturer you don't have the luxury of picking and choosing.
 
Your a contract machinist, you make for anyone.

Take the job on, if you get found out just remind everyone that in a perfect world you wouldn't but as a contract manufacturer you don't have the luxury of picking and choosing.

Plus 1, and remember there aren't any freinds in business, that can be a toughie, but IMO it's a painful fact.

Look after #1 because in that situation, nobody else will.
 
If you are on good terms with both of them, then I'd say take it. I think whatever that have going on between them is their problem and they shouldn't involve you in it. Unfortunately in this world people don't always reason that way.
 
I've had a similar situation but with suppliers. I recommend speaking frankly with your friends at the first company and feeling them out so see what their view is. If they are reasonable, they will understand that business is business. If they don't like it and they find out on their own, there will be feelings of mistrust. That's a problem because they want their information held in confidence.

In my case, I had to not buy from the second supplier or lose the first supplier altogether. There was a court battle between them and during the discovery phase the first shop had complete access to the second shop's bookkeeping records and found out who was buying from them. What a show that was. :eek:
 
I believe they would eventually find out, its a small world.

That's funny! Everyone knows everyone in Ellensburg.:D

If the two competing companies are making the same product, you may have a problem. If not, there should be no problems as long as your friends know it's purely a business relationship.
 
That's funny! Everyone knows everyone in Ellensburg.:D

Ya you are right! My customers are from the Auburn area. I moved my shop to eburg at the start of the year to get away from the westside. Should've done it years ago.

By the way, I went ahead and took the job from the new customer, its business!
 
I agree with hesstool. I would not do it if they were competetors and I wanted to keep the original customer. Otherwise, I would talk to the original customer, not to ask "permission" but to get their reaction. If they don't mind, you have not caused them to dis trust you. If they do mind, base your desision on which customer you want in the long run.
 
Oh yes, when an employee leaves and decides to copy the product or make it very similar to compete with his old employer. It is a whole different story, and in that case I wouldn't deal with guy #2. But if one guy wants apples and the other wants tomatoes, I don't see much problem.
 
Would you try to establish a new customer with the risk of pissing of a existing one?

They don't own you.
Definitely take on customer #2 as well.
If they don't like it, tell them to buy you out or pay you a retainer to work exclusively for them.
It's too risky to just have one customer.
Of course tell your customers that the work you do for them is confidential.

SM
 
This is, I'm gonna guess, aerospace work?
I'd most likely take the work. Most companies have their own long running contracts so in that case, no toes are getting stepped on. I would most likely call up company #1 and get their reaction though. Them guys are a tight knit group. It ain't just in E'burg that everyone knows everyone else.
 








 
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