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I have similar examples in my experience. If you run operations it is something you need to watch out for because, in my experience, every vendor extends feeler
by ChuckMcM 7y ago
I have similar examples in my experience. If you run operations it is something you need to watch out for because, in my experience, every vendor extends feelers to see if this is a possibility. It goes unnoticed by accounts receivable because the vendor marks the price up with the 'extra' so they see an invoice, and pay it and get the equipment, none the wiser that is some % higher than it "could" be. This is amplified by vendors of IT gear that quote a "high" MSRP, and then offer a big discount. So the vendor has rack switches for $4500 MSRP they are selling you for $3000 when the 'standard' discount would be $2500 (45 points off list). The accountant sees the 33% off list so they are happy, the vendor gets more than they need to make their margin, and the IT guy on the inside manages to pocket a few thousand that arrives via a side channel.
Everyone gets a little something and everyone is happy as a clam. It is fairly insidious and difficult to combat unless you can pit distributors against each other or vendors in order to force out what their real bottom line is.
- yummypaint 7y agoThis cancer has been finding its way into academic purchasing offices. Researchers could use procurement cards to buy what they needed with their grant money, now administrators are chipping away at this to force people to use shopping portals that directly enable this. It almost never saves money, and the extra time and delays associated with it probably cost money overall, yet its of critical importance to purchasing admins that everyone use this nonsense so they can get their kickbacks.
- bgorman 7y agoHow does using a shopping portal facilitate kickbacks?
- extrapickles 7y agoThe shopping portal vendor gives the kickbacks to the people that made it mandatory for everyone.
- i_am_nomad 7y agoI can tell you that University of California is like this. It’s infuriating.
- Invictus0 7y agoIs this actually even a crime?
- sujNansnam 7y agohttps://en.m.wikipedia.org/wiki/Commercial_bribery https://en.m.wikipedia.org/wiki/Commercial_bribery TLDR: it’s a felony in most states. There’s no federal law prohibiting it explicitly but it often falls under mail or wire fraud.
- Spooky23 7y agoFor real? That is a pretty obvious fraud.
- ip26 7y agoPaying a price that's too high is not a crime. Paying a price that's too high with someone else's money, and getting a kickback for doing so, definitely a crime, no question.