Some years back I was the CEO of an air-conditioning company. A leading nationalised bank had its head quarters close to our company and we were regularly supplying air-conditioning units and our services to them. Our relationship was cordial.
Times changed. Banks were asked to enquire from atleast three sources before they placed an order to purchase an air-conditioner. I was now with another air-conditioning company. The very same bank used to ask me for quotations which I faithfully sent.
One day I jokingly told the officer in charge: " Madam, I have become a supplier of quotations to you!" She said: What did you say? I explained to her that while I have submitted to them innumerable quotations never once have they placed an order with me.
To this she replied: But Bhargav, you have to give yourself an order. It was now my turn to ask her: What did you say? She replied, You see, if your quotation is lower than all others then you will surely get the order.
Next time round, I deliberately quoted a very low price and I did get an order!
Subsequently I refrained myself from quoting lower and lower until I lost all my margin and more! How could my business sustain?