companie doing this-but is it legal?

madmik

Is it ethical or legaal to resell the services or products of another companie and add on say 20% for your trouble?

for example opening a bookstore and using stock from amazon etc at a 20% markup

it has just come to my attention a companie is doing this after i recieved a product from them today

conolan

Absolutely legal. Anybody can sell any product at any price. No matter how outragous.
I'm not saying it's right, just that it's legal. Price controls don't exist except for telecoms and energy (due to monopoly situation).

professore

If they are just buying it and selling it for the same price how do they pay their wages ?

DubTony

Nice idea. Sell stuff on a web site that you don't hold stock of, order it as needed from a company that offers next day or 2 day delivery, and then ship to customer for a profit. Cash flow winnaaaa.

When you buy a couch in Reids Furniture, you wait 12 + weeks. Many places don't actually keep stock of big ticket items like fridges, cookers, furniture, cars. It's pretty much standard practice to take the order and ship within an agreed time period. Bringing that down to low priced, easily shipped consumables is bloody good business if you can do it.

Harpz

It has come to my attention that every business in the world does this in some shape or form.

delllat

it might not be illegal but to answer your first question ,yes,it would definately be unethical

the problem (this has actually happened to me already) is that a competitor was using my company to do their work(without permission) and we confirmed this by placing a few test orders!

normally this wouldnt be a problem but when they started offering our speciality produccts that only we were in a position to offer and also becasue when they started taking advantage or our U.S.P,s then we decided to strike back

it was quite obvious to spot patterns and trends and then we started treating orders accordingly

they werent long stopping and went out of business soon after since they wereent able to compete with out our resources (stolen)

i would advise anyone against such an endeavour since its blatently obvious and anyone who spots it happening to them has u by the cahones because theyre dealing first hand with your custsomers

CamperMan

madmik wrote: »

Is it ethical or legaal to resell the services or products of another companie and add on say 20% for your trouble?

for example opening a bookstore and using stock from amazon etc at a 20% markup

it has just come to my attention a companie is doing this after i recieved a product from them today

nothing wrong with this.. I buy caravans from a dealer and I add a big markup, sometimes more than 20%, it's business, I have to pay overheads and wages, it's up to the buyer to shop around!!

dh0661

Sell it first - buy it then. Oh boy I'd love to run a business like that.

Phototoxin

Fairplay to above poster

While its unethical, its legal. I can sell jars of my own toenail clippings and if people will pay what I ask (€995.95 for 50grams) I can sell it

delllat

dh0661 wrote: »

Sell it first - buy it then. Oh boy I'd love to run a business like that.

trust me-theres too many variables to make it work welll

its impossible to run a business completely relying on someone else to do the work or provide the stock

resellling is good but only if you have permission-try it without and see what happens:rolleyes:

Mmcd

The whole idea of a business is to either buy and sell on or make and sell on a product so of course this is legal.
And as for the morals - Id be wondering more about why the original company dont either have a higher price or why the consumer doesnt look aroung more if theres a significantly lower price!

dh0661

delllat wrote: »

resellling is good but only if you have permission-try it without and see what happens:rolleyes:

The business I would be aligned to is selling perishable items, if it could sell first and order accordingly = little or no waste. Happy days

waxon-waxoff

madmik wrote: »

Is it ethical or legaal to resell the services or products of another companie and add on say 20% for your trouble?

for example opening a bookstore and using stock from amazon etc at a 20% markup

it has just come to my attention a companie is doing this after i recieved a product from them today

Your spelling of "company" and "legal" is both unethical and illegal

delllat

waxon-waxoff wrote: »

Your spelling of "company" and "legal" is both unethical and illegal

u must have one discontented little life to come on boards and correct someones spelling
I bet you felt real proud of yourself after that one.....;)

bistro

why would simple economics be illegal?
Is business not buying one place at one price and selling else where at another price? As long as your paying vat to government, then all is cool.

"resellling is good but only if you have permission-try it without and see what happens"

??? Done this and still doing over a range of businesses, for years and years. (all actual goods, not software or intellectual property). Have tried it, and guess what - Nothing happens! People dont care as long as they sell their goods and make their mark up!

"it might not be illegal but to answer your first question ,yes,it would definately be unethical"

Whats unethical about being clever enough to make a couple of quid?

waxon-waxoff

delllat wrote: »

u must have one discontented little life to come on boards and correct someones spelling
I bet you felt real proud of yourself after that one.....;)

Its a joke, lighten up

Tony

Guys buy stuff from me all the time and sell it on. Most but not all of the time they also install this equipment so obviously they add a service. I've absolutely no problem with this as its more sales for me in fact as soon as I realise its is happening we offer a discount because of the extra business these guys put my way. Many companies such as Pixmania also offer a "drop ship" service for guys who wish to sell on. Really dont see any issues with this, its commerce in action.

delllat

another problem is the mark up

why not buy whole sale and make a real margin instead of making a small % ?

kazzer

Seen a story in the paper recently about some shopkeeper buying stock from LIDL and selling it at a mark up in his own store. They were making him out to be the devil! Dont see any problem with it at all. As the cliche goes - no one put a gun to your head.

Classic example of this is an item in Spar that will cost more than the same item in Dunnes. Whats wrong with that? Just avoid Spar Technically Spar could buy it from Dunnes sell it for their usual price and make a profit. So I dont see why its a crime for someone doing this sort of thing 'on the side'.

delllat

kazzer wrote: »

Seen a story in the paper recently about some shopkeeper buying stock from LIDL and selling it at a mark up in his own store. They were making him out to be the devil! Dont see any problem with it at all. As the cliche goes - no one put a gun to your head.

Classic example of this is an item in Spar that will cost more than the same item in Dunnes. Whats wrong with that? Just avoid Spar Technically Spar could buy it from Dunnes sell it for their usual price and make a profit. So I dont see why its a crime for someone doing this sort of thing 'on the side'.

Actually I think there might be a problem with doing this......

I recall a guy who owned a 2euro shop in dublin who was stocking it with aldi products and i think aldi had a problem with it

im not a lawyer so dont know the legalities of it but i do know the shop doesnt do it anymore (store is on camden st btw) so maybe he was forced to stop

kazzer

Yes I see your point, and why LIDL might have a problem with it, but the concept I see no problem with it.

Tony

LIDL and ALDI make it a condition of sale that goods are not re sold. Fair enough in their case.

delllat

seems like he wasnt the only one doing it:

http://www.mybusiness.co.uk/YSNUllho6VWuDg.html

hkcharlie

Phototoxin wrote: »

Fairplay to above poster

While its unethical, its legal. I can sell jars of my own toenail clippings and if people will pay what I ask (€995.95 for 50grams) I can sell it

I think your price is scandalous, you should be able to get at least 100g for that!

The Apprentice

I find this laughable..
Poor little old aldi lol good on the shop keeper

Probably my first and last comment on this topic. Go to ebay brother and search for websites for sale. U can find 100.s of similar type questionable sites on there that specialise in finding products from amazon and selling them onto other members. U get a 20-35% discount and u get a dropship account basically

I had one of those Years ago and it was successful the only downfall is low profit margins really and the cost of getting decent consumers to consistetly buy from your site. Marketing being the biggest slice of the pie

To answer your question as above Unethical to some business,s but not to others but Pefectly legal in every way..

And a quick gripe to lidl and aldi .. Fack off u put 100.s of small shops out of business.s with the whole idea of cheap goods just because its a social taboo to buy stuff thats cheap !
Overcharge and find a mug to pay for it , its capitolism and apparantly part of our irish heritage :P

Thomas_S_Hunterson

Tony wrote: »

LIDL and ALDI make it a condition of sale that goods are not re sold. Fair enough in their case.

I don't believe any such condition could be legally binding. The right of the people to own and sell property is constitutionally protected.

They might try and prevent reselling by imposing purchase limits, but that can't stop it and it's not illegal.

seanybiker

Harpz wrote: »

It has come to my attention that every business in the world does this in some shape or form.

exactly. Op might be from lala land. How does anyone make money if they sell stuff for what they paid for it.
Unless people start calling to farmers to by a cow to milk it then kill it to make dinner and a nice leather jacket outta it, i can only assume its always gonna be like this.