Pressure from suppliers
Discussion
Hello. I have just signed up here looking for a bit of advice, I was recommended this forum from a colleague.
At the moment I run an UK LTD company which imports electrical products from within the EU, I have been doing this for approx 2 years now and its been great and trouble free. The brand I import from from other EU countries does have a UK distributor who initially emailed me but after a very brief conversation he realised there was nothing he could do under the free trade agreement. Anyway over the last few weeks they have been sticking there nose in again and causing me serious problems, I dont think they are directly contacting me clients but they are making it known they will void all UK warranty and I am getting the back lash from customers.. Extremely annoying and not great on my part. Even telling the customers it has manufacturer warranty they are still kicking up a fuss and going down the legal route, this has resulted in a few refunds just to get the pressure of me.
What I would like to know is if there is something I could do to avoid this, take legal advice on the UK distributor? dissolve company and start again (maybe even in another EU country to get the UK off my back?).
All help is appreciated as this is really getting to me at the moment.
Thanks in advance
At the moment I run an UK LTD company which imports electrical products from within the EU, I have been doing this for approx 2 years now and its been great and trouble free. The brand I import from from other EU countries does have a UK distributor who initially emailed me but after a very brief conversation he realised there was nothing he could do under the free trade agreement. Anyway over the last few weeks they have been sticking there nose in again and causing me serious problems, I dont think they are directly contacting me clients but they are making it known they will void all UK warranty and I am getting the back lash from customers.. Extremely annoying and not great on my part. Even telling the customers it has manufacturer warranty they are still kicking up a fuss and going down the legal route, this has resulted in a few refunds just to get the pressure of me.
What I would like to know is if there is something I could do to avoid this, take legal advice on the UK distributor? dissolve company and start again (maybe even in another EU country to get the UK off my back?).
All help is appreciated as this is really getting to me at the moment.
Thanks in advance
You would think the uk disty would use my customer base and knowledge as an advantage and ask me to come on board but as I do not fit the 'criteria' to become a dealer they wont even consider it.
I dont get it cheaper than the UK disty, I get it from one in Europe so I probably get the same price at the dealers in the uk, maybe even slightly higher.
I dont get it cheaper than the UK disty, I get it from one in Europe so I probably get the same price at the dealers in the uk, maybe even slightly higher.
In the event of a warranty claim the customer would come to me, I would then send the product off to the distributor I got the bike from. I have done this a few times and it always works out fine.
However the UK disty have started the scaremongering tactic that your product is without warranty cause its not from an official retailer
However the UK disty have started the scaremongering tactic that your product is without warranty cause its not from an official retailer
PCUK said:
In the event of a warranty claim the customer would come to me, I would then send the product off to the distributor I got the bike from. I have done this a few times and it always works out fine.
However the UK disty have started the scaremongering tactic that your product is without warranty cause its not from an official retailer
Get a friend to enquire and get this in writing then challenge the manufacturer, I think they would "persuade" the UK disty to take you on.However the UK disty have started the scaremongering tactic that your product is without warranty cause its not from an official retailer
I am guessing you need a shop to buy them trade and you are online only ?
Simpo Two said:
There's still nothing he can do - we're still in the EU and every trading agreement is still in place and will be for at least several months.
Apart from EU law, I'd say it's up to the manufacturer what selling rights they give to whom.
Typically the manufacturer will change a barcode (meaning amazon selling is made harder) or create an artificial UK version and label the stock with UK Spec thus the OP would not have UK Spec labelled stock. Legal but cynical.Apart from EU law, I'd say it's up to the manufacturer what selling rights they give to whom.
Correct regarding the shop/online situation.
The UK company (distributor) is the sole distributor in the UK, obviously they then filter the product out through their dealer network.
Legally I know there is nothing they can do and the products are all the same, they all come from the manufacturer over seas then spread out to distributors throughout europe. As I was not given the time of day initially from the UK disty I found one abroad willing to sell to me in the UK.
I can then sell cheaper than the RRP and maintain a reasonable profit.
The problem is there scaremongering which is causing me problems. I need a solution to this headache.
The UK company (distributor) is the sole distributor in the UK, obviously they then filter the product out through their dealer network.
Legally I know there is nothing they can do and the products are all the same, they all come from the manufacturer over seas then spread out to distributors throughout europe. As I was not given the time of day initially from the UK disty I found one abroad willing to sell to me in the UK.
I can then sell cheaper than the RRP and maintain a reasonable profit.
The problem is there scaremongering which is causing me problems. I need a solution to this headache.
Why cant you buy from the UK distributor, its in both your interests. What is their reasoning? I could see your current supplier suddenly having supply problems from the factory should they continue to sell to you. Of course it would be illegal for the factory to stop selling to the dealer just because he is selling to you but its amazing how quickly businesses fall into line when there are suddenly a lot of unavoidable delays and problems with their stock orders.
I think as I carried on selling years ago and didn't bow down to them I have blew all chances however they are very strict with criteria, if you fit the bill then thats it, your not becoming a dealer.
They know my supplier, well I think they do anyway. They have contacted them one time however I actually use 2 supplier abroad, if the manufacturers start causing problems with them then its only them losing out at the end of the day and I think they know that which is why the manufacturer at the top of the chain has not done anything.
The local dealer thing isn't that easy. The products we sell are expensive and they would likely require a minimum investment of approx £30,000 I would imagine. Getting a local shop to commit even though I would be paying initially would be tricky. Its a good suggestion but not ideal, thanks though.
They know my supplier, well I think they do anyway. They have contacted them one time however I actually use 2 supplier abroad, if the manufacturers start causing problems with them then its only them losing out at the end of the day and I think they know that which is why the manufacturer at the top of the chain has not done anything.
The local dealer thing isn't that easy. The products we sell are expensive and they would likely require a minimum investment of approx £30,000 I would imagine. Getting a local shop to commit even though I would be paying initially would be tricky. Its a good suggestion but not ideal, thanks though.
The UK Distributor probably had to make a large financial investment to get sole distributor rights for that territory.
He will be having to pay all the UK advertising as per the contract of being a sole distributor.
He has all of the risk - and all of the costs.
And you want to ride on his tail coats and feather your own nest.
I have to say - I would have to side with the official distributor on this.
He will be having to pay all the UK advertising as per the contract of being a sole distributor.
He has all of the risk - and all of the costs.
And you want to ride on his tail coats and feather your own nest.
I have to say - I would have to side with the official distributor on this.
If you are not willing to make the investment required, you mentioned £30k of stock, then why should the distributor cut you any slack?
By not purchasing from them you are not contributing to their marketing and advertising budget nor defraying the costs of any warranty work done in the UK.
If they ask the manufacturer to lean on other people supplying you, particularly if the manufacturer is outside the EU, practically you can do nothing and nor should you expect to.
By not purchasing from them you are not contributing to their marketing and advertising budget nor defraying the costs of any warranty work done in the UK.
If they ask the manufacturer to lean on other people supplying you, particularly if the manufacturer is outside the EU, practically you can do nothing and nor should you expect to.
Ean218 said:
If you are not willing to make the investment required, you mentioned £30k of stock, then why should the distributor cut you any slack?
By not purchasing from them you are not contributing to their marketing and advertising budget nor defraying the costs of any warranty work done in the UK.
If they ask the manufacturer to lean on other people supplying you, particularly if the manufacturer is outside the EU, practically you can do nothing and nor should you expect to.
The UK disty doesnt want it all over the net for 5% on cost I guess but a reasoned and sensible compromise would increase sales. It is illegal to agree prices in an open market but in my experience retailers who extract the urine on price may find items out of stock a lot of the time - more than one way to skin a wabbit.By not purchasing from them you are not contributing to their marketing and advertising budget nor defraying the costs of any warranty work done in the UK.
If they ask the manufacturer to lean on other people supplying you, particularly if the manufacturer is outside the EU, practically you can do nothing and nor should you expect to.
I would be willing to put the investment in, I spend in excess of £10,000 every month with the EU supplier, some months it can be 20k+.
However I dont meet there criteria and thats it, no ifs or buts.. Just a simple no.
They also basically know my supplier/suppliers and have never stopped them at source.
My supplier is a major one who has been with the brand for years, I think cutting him out of lowering his stock is a big mistake for them and they know that.
However I dont meet there criteria and thats it, no ifs or buts.. Just a simple no.
They also basically know my supplier/suppliers and have never stopped them at source.
My supplier is a major one who has been with the brand for years, I think cutting him out of lowering his stock is a big mistake for them and they know that.
Lots of markets don't like bedroom traders upsetting the apple carts. Id be surprised if the interests of the manufacturer lay with allowing your supplier to continue supplying you rather than with the official sole UK distributor. Such grey importing through an existing distributor into another distributors market wouldn't last two mins in my industry. Its just not cricket. Id be mightily pissed if I was the sole UK distributor. You're lucky its still being allowed.
Why don't you go 'legit'?
Ive nothing against trading from home by the way, that is how we started and we support a lot of trade customers who do the same. As long as they arent destroying the brand using their lower overheads to operate on lower margins then its fair game.
Why don't you go 'legit'?
Ive nothing against trading from home by the way, that is how we started and we support a lot of trade customers who do the same. As long as they arent destroying the brand using their lower overheads to operate on lower margins then its fair game.
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