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
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.
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.
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.
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