Can I ask a competition seller to stop price decrease

[jason-sellz]

Basically another seller and I have similar prices, and in competition for the past few weeks after both being forced to lower our prices (for me by $3.50) a bit things have been going smoothly but before when I was selling at a slightly higher price, there were the same number of buyers as now.

Just curious is it against Ebay selling practices policy to for example make an agreement to raise our prices by like 10% or 20%? I probably won't do it because me staying at this price and not doing natural price changes as the competition changes, is because I'm kinda cautious and what if the smaller seller doesn't follow the agreement and instigates a price war? I don't know how much lower I can go to still have profit for real.

I'm sure it's not an unfair price or "price gouging" by any means.

[inhawaii]

I think that's called "price fixing".

I'm not sure if it's allowed here?

Price Fixing

Price fixing is an agreement (written, verbal, or inferred from conduct) among competitors to raise, lower, maintain, or stabilize prices or price levels.

[kensgiftshop]

Do you really think the other seller cares if you make a profit or not?

[stainlessenginecovers]

That is price fixing and is a FEDERAL OFFENSE. 

QUIT talking to the other seller before you wind up in Levinworth. 

[m60driver]

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@stainlessenginecovers wrote:

That is price fixing and is a FEDERAL OFFENSE. 

QUIT talking to the other seller before you wind up in Levinworth. 

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I really doubt that two small Ebay sellers discussing pricing rises to the same level as the former ADM price fixing scheme with lysine, and even that case did not result in prison time.

[luckythewinner]

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@jason-sellz wrote:

Basically another seller and I have similar prices, and in competition for the past few weeks after both being forced to lower our prices.

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You were not "forced" to lower your prices. You chose to. 

[slippinjimmy]

It's low class and also dangerous, I do not recommend "poking the bear".

I have literally thousands of items I will never waste my time listing here because the going prices don't justify the effort.

[janet9988]

Ebay user agreement.

https://www.ebay.com/help/policies/member-behaviour-policies/user-agreement?id=4259

3. Using eBay

In connection with using or accessing our Services you agree to comply with this User Agreement, our policies, our terms, and all applicable laws, rules, and regulations, and you will not:

• breach or circumvent any laws, regulations, third-party rights or our systems, Services, policies, or determinations of your account status;
• use our Services if you are not able to form legally binding contracts (for example, if you are under 18 years old), or are temporarily or indefinitely suspended from using our Services, or are a person with whom transactions are prohibited under economic or trade sanctions;
• fail to pay for items purchased by you, unless you have a valid reason as set out in an eBay policy, for example, where the seller has materially changed the item's description after you bid (see our Unpaid item policy);
• fail to deliver items sold by you, unless you have a valid reason as set out in an eBay policy;
• manipulate the price of any item or interfere with any other user's listings;

[cardsforauction]

I would not communicate with the seller.  First of all, it's not ethical to price fix and it may be a violation of eBay rules.  I would  either lower your price just below the other sellers price and sell some of these at a lower price or keep your price a little higher than the other sellers price.  If you have a lot of these items than you may have the advantage long term since once the other seller sells out of this item (may not be able to get more in the future) then you can raise your price on the item.  That's my thinking.  Of course if this item is one of those "latest fad items" or "hot items" then holding on to your large inventory may not be wise.  In that case, lower the price and sell them  all quick.

[jason-sellz]

3. Using eBay

In connection with using or accessing our Services you agree to comply with this User Agreement, our policies, our terms, and all applicable laws, rules, and regulations, and you will not:

• breach or circumvent any laws, regulations, third-party rights or our systems, Services, policies, or determinations of your account status;
• use our Services if you are not able to form legally binding contracts (for example, if you are under 18 years old), or are temporarily or indefinitely suspended from using our Services, or are a person with whom transactions are prohibited under economic or trade sanctions;
• fail to pay for items purchased by you, unless you have a valid reason as set out in an eBay policy, for example, where the seller has materially changed the item's description after you bid (see our Unpaid item policy);
• fail to deliver items sold by you, unless you have a valid reason as set out in an eBay policy;
• manipulate the price of any item or interfere with any other user's listings;

PRICE MANIPULATION IS PRICE GOUGING, AND A AGREEMENT WOULD NOT BE INTERFERENCE BOTH PARTIES MAKE THE CHOICE

[slippinjimmy]

It sounds like you competitor may be intentionally undercutting you. On the other hand there are probably other sellers who think YOU are undercutting THEM.

If you make contact two things are likely to happen;

1 - They will know their efforts are working

and/or

2 - You will encounter a seller who is not receptive to your idea and might just mess around with YOUR listings (worse than simple undercutting).

[mam98031]

@jason-sellz 

It is unlikely that joining this other seller in a race to the bottom will not do you any good expect maybe bankrupting your business, their business or both.  Talking with them isn't something I would do either.

Set your prices to what you feel are fair prices and move on.  Maybe every month or so, use the Markdown Manager to run a sale, that often will help sellers bring in buyers.  And check your pricing about quarterly.  

Learn to ignore other seller, they will then learn to ignore you as well.

"I'm sure it's not an unfair price or "price gouging" by any means."  It is neither.  Both are pretty serious legal things and this is not what is happening here.  There are always people, companies, etc that will sell the same thing for different prices.  They all aren't breaking any law because if that were true, then we get in the Price Fixing area and that is a Federal crime.  America is still a democracy and hopefully we stay that way.  But only time will tell.

As for Price Gouging that too is a legal term and it is SPECIFICALLY for times of natural disasters, pandemics, etc.  Where something that normally cost $5 is being sold for $25 or something like that.  Protected things.  Necessities of life as well as people to repair things.

[theteamsetguy]

@jason-sellz ,

I don't know why so many sellers are obsessed with having the lowest price. Most people don't shop on price alone.

Here are the prices of a 10.75 ounce an of Campbells condensed chicken noodle soup locally.

Walmart $1.26

Big Lots $1.29

Target $1.39

Cub Foods $1.69

Hyvee Market $1.79

Fleet Farm $1.89

Jerry's Foods $1.89

Kowalski's Markets $2.29

Lunds & Byerlys Foods $2.29

All the above stores have been around for a long time.

[richard1rst]

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@jason-sellz wrote:

Basically another seller and I have similar prices, and in competition for the past few weeks after both being forced to lower our prices (for me by $3.50) a bit things have been going smoothly but before when I was selling at a slightly higher price, there were the same number of buyers as now.

Just curious is it against Ebay selling practices policy to for example make an agreement to raise our prices by like 10% or 20%? I probably won't do it because me staying at this price and not doing natural price changes as the competition changes, is because I'm kinda cautious and what if the smaller seller doesn't follow the agreement and instigates a price war? I don't know how much lower I can go to still have profit for real.

I'm sure it's not an unfair price or "price gouging" by any means.

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Ignore

Wait a minute - let me make this perfectly clear so that there is no misunderstanding

IGNORE

what your “competition” is doing. Because of the way searches work on any given day your listing may be shown to potential buyers and your competitors may not be. On that day you have a good chance of making the sale, and they don’t. On some other day your competitors listing may be shown to potential buyers and yours may not be. On that day they have a good chance of making the sale, and you don’t. It’s the exposure, not the price.

I sell many products that others also sell. Some are higher than me, some are lower than me. But I still make sales. It’s the exposure, not the price.

I find it interesting that you say “but before when I was selling at a slightly higher price, there were the same number of buyers as now.”

Here is a little tidbit that accountants and marketing specialists understand that most people, not trained in those skills, do not. If you cut your price by 10% you need to increase your sales by 40% just to make the SAME profit you were making before you cut the price. (Actually the specific % depends on your mark up but the general relationship is valid). Yet you say the numbers remained the same. Other than a very minimal difference in FVF your costs remain the same regardless of your selling price. A discount comes right out of profit and from nowhere else. You just threw away money over a false presumption.

[jamalkh_2]

While it's not against eBay's policies to mutually increase prices, it could be seen as price fixing which is generally illegal. It's wise to be cautious, as you can't control other sellers' actions and a price war could harm your profits.