Jump to content

Fury over Premier Foods ‘pay to stay’ scheme


Recommended Posts

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...........................................

 

Do Ebay charge to advertise on their site?

 

Do Autotrader?

 

Does it cost to list in The Star?

Link to comment
Share on other sites

Do Ebay charge to advertise on their site?

 

Do Autotrader?

 

Does it cost to list in The Star?

 

Do Ebay charge you an upfront fee, whether you sell something or not?

Does autotrader charge an upfront fee, whether you sell something or not?

Does the Star charge an upfront fee, whether you sell something or not?

Link to comment
Share on other sites

But that's not the analogy...

 

PF are saying that if you bung us £xxxx then we MAY if we feel happy consider you and may buy stuff from you. But someone else may be cheaper. But we will still take your £xxxx anyway.

 

It's not just a lowering of prices. If it was, it'd be fine - and PF would just say we are going to pay less like it or lump it. This is subtly different, especially since PF are a large part of the market, possibly dominant in the market and this may therefore be abusive of a free market.

 

They aren't saying they may - they are saying it will SECURE the business.

 

This is no different from my customers coming to me and saying 'if you drop your prices by X then we'll guarantee you Y amount of business'. I'd see if it adds up, see if the security was worth the cost, and see if I'd be saving by not having to spend time selling to someone else. And it it all adds up then I'd go for it. If not then I'd walk.

 

All businesses incur sales costs (the worst ones being for pubic sector work!). If you can reduce those and secure business then it's very often worth it.

 

---------- Post added 08-12-2014 at 09:13 ----------

 

Do Ebay charge you an upfront fee, whether you sell something or not?

Does autotrader charge an upfront fee, whether you sell something or not?

Does the Star charge an upfront fee, whether you sell something or not?

 

Ebay no - the others yes.

 

Either way that's irrelevant - these charges were to SECURE work. You are suggesting it isn't.

Link to comment
Share on other sites

They aren't saying they may - they are saying it will SECURE the business.

 

This is no different from my customers coming to me and saying 'if you drop your prices by X then we'll guarantee you Y amount of business'. I'd see if it adds up, see if the security was worth the cost, and see if I'd be saving by not having to spend time selling to someone else. And it it all adds up then I'd go for it. If not then I'd walk.

 

All businesses incur sales costs (the worst ones being for pubic sector work!). If you can reduce those and secure business then it's very often worth it.

 

---------- Post added 08-12-2014 at 09:13 ----------

 

 

Ebay no - the others yes.

 

Either way that's irrelevant - these charges were to SECURE work. You are suggesting it isn't.

 

Oh I see.....So you send the Star and or Autotrader a payment, with a view that one day you might advertise something....WOW

 

---------- Post added 08-12-2014 at 09:26 ----------

 

That's a shame because I was in the process of contacting Premier Foods demanding a small payment every week for me to consider buying their goods.

 

I wonder what will happen with those suppliers who have coughed up over the last 18 months?...Will they get a refund? :suspect:

Link to comment
Share on other sites

Oh I see.....So you send the Star and or Autotrader a payment, with a view that one day you might advertise something....WOW

 

---------- Post added 08-12-2014 at 09:26 ----------

 

 

I wonder what will happen with those suppliers who have coughed up over the last 18 months?...Will they get a refund? :suspect:

 

You pay before you advertise.

 

But again - that bears ne relevance to this situation with PM foods at all. They aren't saying pay us an we may use you. They are saying pay us and we WILL use you.

Link to comment
Share on other sites

You pay before you advertise.

 

But again - that bears ne relevance to this situation with PM foods at all. They aren't saying pay us an we may use you. They are saying pay us and we WILL use you.

 

No that's not what they're saying at all (or should it be in the past tense now, as they have done some furious back-pedalling)

 

Just because you pay them a payment does not guarantee orders from them. The payments were purely and simply to be included on a list of potential suppliers.

 

Your assertion would mean that a supplier who has paid money up front is guaranteed orders....That being the case, what's to stop him from raising his prices to compensate for the money he's paid up front? In your world he's sitting pretty because he has a guarantee of orders....The real world however is very different.

Link to comment
Share on other sites

No that's not what they're saying at all (or should it be in the past tense now, as they have done some furious back-pedalling)

 

Just because you pay them a payment does not guarantee orders from them. The payments were purely and simply to be included on a list of potential suppliers.

 

Your assertion would mean that a supplier who has paid money up front is guaranteed orders....That being the case, what's to stop him from raising his prices to compensate for the money he's paid up front? In your world he's sitting pretty because he has a guarantee of orders....The real world however is very different.

 

The article reads:

 

The Federation of Small Businesses said the revelations were only the latest example of bad payment practices stretching suppliers to breaking point. It said one small business in the south-west had been asked to pay £1,700 to secure its future business with Premier Foods.

 

The key word there being 'secure'.

 

The details behind any specific supplier arrangement we would only be able to speculate.

 

But if a customer came to me with an arrangement that secured me business (at an agreed cost so I couldn't up my rates) then I would consider it.

 

But I would not be obliged to accept. I could take my supply elsewhere.

 

That is the real world. That is how I run my business.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.