Fury over Premier Foods ‘pay to stay’ scheme

[biotechpete]

Ultimately if enough people did protest by removing support for buying the products it may work. Or Premier go under and drag all their suppliers down.

 

IF they are in a dominant market position these payments would be illegal I think. Either way they are a distortion of a free and fair market and should be opposed for that reason alone.

 

---------- Post added 05-12-2014 at 14:31 ----------

 

 

What's £1700 multiplied by say a million annoyed households?

 

2 trillion is still real money these days..

 

They aren't doing very well. That's why they want the payments. They are basically using their suppliers to get money instead of borrowing at market rates.

[InigoMontoya]

I am sure primier food shares will drop a few points on stockmarket now you are not buying their product.

 

Whats £1700 when contacts can be multimillion a year?

 

I'm sure their sales and subsequent share price will drop if everyone follows Pete's example and decides to withdraw their custom from this enterprise as a result of this revelation.

[Member]

I like how they're stressing its not illegal, as if that makes it all OK.

 

Im amazed it isnt illegal but its certainly immoral.

[PeteMorris]

Just imagine if every company in the land used these tactics?....It would be bedlam....It really should be illegal, and quite frankly, now it's been revealed, it wouldn't surprise me in the least if it's pretty swiftly in the high court....

[tzijlstra]

I am in two minds about this, it is actually a far more common tactic than people realise I suppose. Just think of the negotiating that goes on between massive retailers and massive suppliers. (Think Mars Inc. and Tesco sort of scale)

 

I think in this case it is different though because it seems unfair to target small suppliers in this way. I do wonder what the reasoning is, this seems a sly move by Premier to rapidly increase cash-flow more than anything else, otherwise they could just negotiate the prices down.

 

Rather odd situation.

[landlordshef]

I'm sure their sales and subsequent share price will drop if everyone follows Pete's example and decides to withdraw their custom from this enterprise as a result of this revelation.

 

95% of people in UK wouldnt have a clue what premier food is, never mind what they products are

 

---------- Post added 05-12-2014 at 15:37 ----------

 

Just imagine if every company in the land used these tactics?....It would be bedlam....It really should be illegal, and quite frankly, now it's been revealed, it wouldn't surprise me in the least if it's pretty swiftly in the high court....

 

It happens in most countries shame you never had a chance to see it.

It happens in UK too, Suppliers take customers out for dinners, sports events and so on

[PeteMorris]

95% of people in UK wouldnt have a clue what premier food is, never mind what they products are

 

---------- Post added 05-12-2014 at 15:37 ----------

 

 

It happens in most countries shame you never had a chance to see it.

It happens in UK too, Suppliers take customers out for dinners, sports events and so on

 

It used to happen, and anyway, that's called hospitality....These suppliers don't even get a dinner with the amount of money they have to pay up front just to be included on a supplier list, and even then those on a list aren't guaranteed any orders....

 

:suspect:

[F. Sidebottom]

It's been worded badly that's all.

 

Let's for argument sake say they stand to make £1m from this. If they went to each supplier and said 'drop your prices by x% or we'll go elsewhere' then they would probably make a saving, possibly the £1m they are getting from this.

 

Those that didn't agree would lose the business.

 

Nobody would bat an eyelid at that, and everything would be the same.

 

And that happens everyday.

 

so, other than the bad presentation, there isn't really much to complain about.

[ubermaus]

If this happened in any other country, we'd call it "asking for a bribe".

 

http://www.theguardian.com/business/2014/dec/05/premier-foods-pay-stay-supplier

 

The suppliers in question can go to premier foods rivals and get a better deal. In a free economy it works both ways.

 

---------- Post added 05-12-2014 at 16:21 ----------

 

I won't be buying and of these brands until they have reversed their demand:

http://www.premierfoods.co.uk/our-brands/

 

Boycott the brands, good idea!

 

---------- Post added 05-12-2014 at 16:31 ----------

 

I won't be buying and of these brands until they have reversed their demand:

http://www.premierfoods.co.uk/our-brands/

 

Boycott the brands, good idea!

[PeteMorris]

It's been worded badly that's all.

 

Let's for argument sake say they stand to make £1m from this. If they went to each supplier and said 'drop your prices by x% or we'll go elsewhere' then they would probably make a saving, possibly the £1m they are getting from this.

 

Those that didn't agree would lose the business.

 

Nobody would bat an eyelid at that, and everything would be the same.

 

And that happens everyday.

 

so, other than the bad presentation, there isn't really much to complain about.

 

So if for instance you wanted to sell something on this forum, and Geoff said to you before you advertise I'll charge you £100....you'd be quite happy with that?

 

Geoff...........................................