Is there anything wrong with offering nearly free service to quell voracious competitors?
A local guy in a nearby town that I got tons of business from is taking away all of my business. Not due to lower prices, or better service. Just the fact that he's local, and I can't get work where I live since a millionaire on a government pension is applying weedkiller for free.
Would there be anything wrong with advertising $1 weed-spraying for the first 50 customers who apply in that specific town's newspaper? Or legally would it have to apply to every potential customer in the state?
Customers already on my list of regulars(...which is 2 customers in that town) will automatically receive the 1$ spraying. I won't lose much in the long run, since the weedkiller I have stockpiled is useless to me without customers
Nothing wrong legally, but eventually your prices will come back up if you want to make money going forward. Guess what will happen, when you raise your prices back up, the pensioner will call his old customers and get them back. He wont get them all back, but he will get some.
If I am your customer in another town, I would drop you immediately if I got wind of this discount you are offering elsewhere.
You can legally limit the coupon/discount to a particular town, just be prepared for the backlash from the adjacent towns.
I kind of doubt there would be legal consequences for doing something on such a small scale, other than the possibility of the cutthroat competition driving both of you out of business. It's really not that different from discount coupon specials.
There are I believe regulations that deter large businesses selling at below cost just to drive competitors out of business.
China is said to be selling some products at no profit in order to dominate a marketplace.