Selling to my employer?
Discussion
I would like some clarification on the legality of this please. Personally I think it sounds fine but I dont know too much about law.
Im going to use a newsagents and coke (the drink, not the powdered variety) as an example.
If i was employed by a newsagent and was in charge of ordering stock and coke costed 50p a bottle from our current wholesaler, is it legal for me to:
Start my own business as a wholesaler, buy lots of coke for 20p, inform my boss that I have discovered a new wholesaler who sells coke for 49p and get him to switch suppliers to me.
Thus the business makes more money and I reap the reward for being the new wholesaler.
Add into the equation that i wouldnt be telling my boss thats the new wholesaler was infact me.
Would any of this be illegal in anyway? Im not worried about the ethical implications, that for me and my conscience to deal with.
Im going to use a newsagents and coke (the drink, not the powdered variety) as an example.
If i was employed by a newsagent and was in charge of ordering stock and coke costed 50p a bottle from our current wholesaler, is it legal for me to:
Start my own business as a wholesaler, buy lots of coke for 20p, inform my boss that I have discovered a new wholesaler who sells coke for 49p and get him to switch suppliers to me.
Thus the business makes more money and I reap the reward for being the new wholesaler.
Add into the equation that i wouldnt be telling my boss thats the new wholesaler was infact me.
Would any of this be illegal in anyway? Im not worried about the ethical implications, that for me and my conscience to deal with.
Edited by simple101 on Tuesday 16th March 14:47
simple101 said:
I would like some clarification on the legality of this please. Personally I think it sounds fine but I dont know too much about law.
Im going to use a newsagents and coke (the drink, not the powdered variety) as an example.
If i was employed by a newsagent and was in charge of ordering stock and coke costed 50p a bottle from our current wholesaler, is it legal for me to:
Start my own business as a wholesaler, buy lots of coke for 20p, inform my boss that I have discovered a new wholesaler who sells coke for 49p and get him to switch suppliers to me.
Thus the business makes more money and I reap the reward for being the new wholesaler.
Add into the equation that i wouldnt be telling my boss thats the new wholesaler was infact me.
Would any of this be illegal in anyway? Im not worried about the ethical implications, that for me and my conscience to deal with.
So to protect your back.... my new company will buy coke from your wholesale company at 35p a bottle and sell it to your newsagent at 49p!Im going to use a newsagents and coke (the drink, not the powdered variety) as an example.
If i was employed by a newsagent and was in charge of ordering stock and coke costed 50p a bottle from our current wholesaler, is it legal for me to:
Start my own business as a wholesaler, buy lots of coke for 20p, inform my boss that I have discovered a new wholesaler who sells coke for 49p and get him to switch suppliers to me.
Thus the business makes more money and I reap the reward for being the new wholesaler.
Add into the equation that i wouldnt be telling my boss thats the new wholesaler was infact me.
Would any of this be illegal in anyway? Im not worried about the ethical implications, that for me and my conscience to deal with.
Where shall we sign?
Total failure to disclose a conflict of interest, I'm afraid, and would justifiably result in you losing your job. At least, I would fire you if you were my employee.
How can you perform an honest job for an employer if you, as a supplier to your own employer, would be doing your best to maximise YOUR profit at the expense of his (and therby undermining his business).
A totally incompatible situation.
How can you perform an honest job for an employer if you, as a supplier to your own employer, would be doing your best to maximise YOUR profit at the expense of his (and therby undermining his business).
A totally incompatible situation.
Eric Mc said:
Total failure to disclose a conflict of interest, I'm afraid, and would justifiably result in you losing your job. At least, I would fire you if you were my employee.
How can you perform an honest job for an employer if you, as a supplier to your own employer, would be doing your best to maximise YOUR profit at the expense of his (and therby undermining his business).
A totally incompatible situation.
I understand, however, he would be getting the best deal in the marketplace!How can you perform an honest job for an employer if you, as a supplier to your own employer, would be doing your best to maximise YOUR profit at the expense of his (and therby undermining his business).
A totally incompatible situation.
And he is maximising his profit at the expense of my time and poverty. Im sticking to the big man!
on a serious note though- Its not illegal, just wrong and i will be fired. Is this the correct assumption?
simple101 said:
Eric Mc said:
Total failure to disclose a conflict of interest, I'm afraid, and would justifiably result in you losing your job. At least, I would fire you if you were my employee.
How can you perform an honest job for an employer if you, as a supplier to your own employer, would be doing your best to maximise YOUR profit at the expense of his (and therby undermining his business).
A totally incompatible situation.
I understand, however, he would be getting the best deal in the marketplace!How can you perform an honest job for an employer if you, as a supplier to your own employer, would be doing your best to maximise YOUR profit at the expense of his (and therby undermining his business).
A totally incompatible situation.
And he is maximising his profit at the expense of my time and poverty. Im sticking to the big man!
on a serious note though- Its not illegal, just wrong and i will be fired. Is this the correct assumption?
He wouldn't be getting the best deal in the marketplace though, that'd be if you went direct to the 20p man (on behalf of your employer) and bought from him for 20p a can.
If you are open about the situation you might be able to cut a deal. I've sold to past employers in this manner and everyone was a winner but of course I had to somehow add value to the deal (and that not being something that I'm being paid for anyway).
Nothing illegal about it mind, just likely to be against your terms of employment. If you do want to do it, then do as the others say and use a proxy and you might get away with it.
If you are open about the situation you might be able to cut a deal. I've sold to past employers in this manner and everyone was a winner but of course I had to somehow add value to the deal (and that not being something that I'm being paid for anyway).
Nothing illegal about it mind, just likely to be against your terms of employment. If you do want to do it, then do as the others say and use a proxy and you might get away with it.
Edited by rpguk on Tuesday 16th March 15:13
rpguk said:
He wouldn't be getting the best deal in the marketplace though, that'd be if you went direct to the 20p man and bought from him.
Correct, but he would have to buy far too much stock to get the same discount.I failed to mention that i would be supplying to other newsagent too. Thats quite an important point.
simple101 said:
rpguk said:
He wouldn't be getting the best deal in the marketplace though, that'd be if you went direct to the 20p man (on behalf of your employer) and bought from him for 20p a can.
Correct, but he would have to buy far too much stock to get the same discount.I failed to mention that i would be supplying to other newsagent too. Thats quite an important point.
If I were you I would be honest and let them know that I could supply at 35p a can if they want (they don't need to know it would cost you 20p). They'd be stupid not too really.
As an employer, I'd be happy with this so long as I was satisfied you really were bringing something to the table (that I wasn't already paying you for)
Edited by rpguk on Tuesday 16th March 15:22
He is using his position with his employer as a lever to obtain a favourable deal from a supplier which he hopes to use to his own advantage. In reality, if he can obtain this deal, as an employee, the deal should really be negotiated on behalf of his employer.
If he wants some sort of personal financial gain to be obtained from brokering such a deal with a supplier, maybe he should negotiate some sort of commission based bonus with his employer rather than set up a separate deal behind his employer's back.
If he wants some sort of personal financial gain to be obtained from brokering such a deal with a supplier, maybe he should negotiate some sort of commission based bonus with his employer rather than set up a separate deal behind his employer's back.
Eric Mc said:
He is using his position with his employer as a lever to obtain a favourable deal from a supplier which he hopes to use to his own advantage. In reality, if he can obtain this deal, as an employee, the deal should really be negotiated on behalf of his employer.
If he wants some sort of personal financial gain to be obtained from brokering such a deal with a supplier, maybe he should negotiate some sort of commission based bonus with his employer rather than set up a separate deal behind his employer's back.
This commission based bonus is where the urine in the face came from in the first place. It was a flat out NO!If he wants some sort of personal financial gain to be obtained from brokering such a deal with a supplier, maybe he should negotiate some sort of commission based bonus with his employer rather than set up a separate deal behind his employer's back.
So what have I learnt....
Tell my employer exactly what my plan is, ask if its in breach of my contract, ask if they would consider it, set up a long term deal and try not to get fired.
(and thats its a really really bad idea.)
Unfortunately, your employer will see it as an attempt by you to use your buying position within his organisation to sort out ann arrangement for bettering yourself, rather than him.
If you are so good at negotiating business deals, perhaps you are in the wrong occupation and should start up your own business.
If you are so good at negotiating business deals, perhaps you are in the wrong occupation and should start up your own business.
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