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This is when a buyer says (or lies, sometimes) that another seller has quoted a particular price and that if you (seller A) want the contract or project, you must bid lower than seller B.
In response, Seller A agrees to match or bid lower than seller B. If he or she is smart, seller A will ask the buyer for something in return
Alternatively, Seller A asks for the name of seller B, saying he is so sure that price is impossible, given the environment, suppliers or industry standards.