Fury over Premier Foods ‘pay to stay’ scheme

[PeteMorris]

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.

 

"Secure" actually meaning. If they don't pay, they definitely won't be a supplier. You consider that completely normal good practice? Crikey!

 

Can you speculate as to why they have now backtracked with this policy?

[F. Sidebottom]

"Secure" actually meaning. If they don't pay, they definitely won't be a supplier. You consider that completely normal good practice? Crikey!

 

Can you speculate as to why they have now backtracked with this policy?

 

No, I don't consider PF's actions as anything other than 'vulgar'.

 

I'm not defending their actions at all.

 

For me, as a supplier, there is nothing worse than an arrogant customer who tries to bully and beat you down all the time. They have no respect for good customer/supplier relationships, and I've told a few where to go over the years (and believe it or not, they usually come back to us in time).

 

All I am saying is that it's not the big furore that everyone is making it out to be. Arrangements like this can work in everyone's favour if it secures you (the supplier) work for a period of time at the right price.

[PeteMorris]

No, I don't consider PF's actions as anything other than 'vulgar'.

 

I'm not defending their actions at all.

 

For me, as a supplier, there is nothing worse than an arrogant customer who tries to bully and beat you down all the time. They have no respect for good customer/supplier relationships, and I've told a few where to go over the years (and believe it or not, they usually come back to us in time).

 

All I am saying is that it's not the big furore that everyone is making it out to be. Arrangements like this can work in everyone's favour if it secures you (the supplier) work for a period of time at the right price.

 

I appreciate what you're saying....But as I understand it PF (by their own admission) said they were having 'difficulties' with Money.

Now Premier has said it is willing to alter the scheme, which was part of its Invest for Growth programme, launched last year to revive the company's ailing finances.

 

So in my book their actions were nothing short of a cynical money generating exercise to prop up their ailing business, at the expense of their suppliers.