Iron bought from Makro - are they exempt from consumer rights?

Bowling_4_Gold

oliverp wrote: »

Makro sells many lines which are priced at around the same as high street shops, I can't think of one non food line which has any resale potential.

From this week's Makro Mail:

Philips Freeview Recorder (160gb) £99.99

Sony 10.1 Mega Pixel camera £69.99

Men's Bike £79.99

Adidas Tshirts £8.79

to name but a few.

Seriously though, these are prices that ensure a very high mark up can be obtained. Just remember the Benefits of Scale.

Tozer

Bowling_4_Gold wrote: »

I'm not exactly a lawyer, nor do I ever attempt to be, but I am sure the Consumer Protection Act(s) do not apply to 'Trade to Trade' companies, and as the only customers Makro and the like deal with are Trade customers (that's a fact), the CPAs do not apply. As a contract was never formed between Makro and 'the consumer', how can 'consumer rights' apply?

Personally, I feel the OP is over the moon when s/he finds a bargain at Makro, but has a rant when they find out the same 'protection' does not apply. This is the exact reason why Makro and the like should be exclusive shops for genuine trade enquirers only.

Sorry for the rant:D

Not actually sure what the Consumer Protection Act has to do with any of this. Generally, the main parts of the CPA relate to product safety which is not an issue here unless I've fundamentally misunderstood something....?

Read above posts as to the point about consumer however.

Tozer

Bowling_4_Gold wrote: »

From this week's Makro Mail:

Philips Freeview Recorder (160gb) £99.99

Sony 10.1 Mega Pixel camera £69.99

Men's Bike £79.99

Adidas Tshirts £8.79

to name but a few.

Seriously though, these are prices that ensure a very high mark up can be obtained. Just remember the Benefits of Scale.

Those prices are exclusive of VAT.

I think you meant "economies of scale". And no, there is very little scope for mark-up and retail.

OlliesDad

Hi,

When you sign up for use of a Makro card it is not the individual that is signing up, it is the company, hence why company registration details etc needs to be provided.

So when items are bought, it is the company buying them (i.e. it wouldnt be John Smith buying them, it is Smiths Electricals) therefore there is no denying it is a business to business sale and therefore it comes down to contractual law, not consumer.

Of course if there is any confusion, speak to Trading standards who will clear up any confusion.

Bowling_4_Gold

Here you are, an image of the back of a Makro reciept. The 1st viewable paragraph shows the policy, which details how different 'rules' apply.

I think you meant "economies of scale". And no, there is very little scope for mark-up and retail.

Nope, I meant what I said. Your second comment is debateable.

Bowling_4_Gold

Tozer wrote: »

Those prices are exclusive of VAT.

Which the company then claims back on their VAT return.

The player sells, on average, on the internet for £200-£250. A simple bit of maths shows a gross profit of £100-£150. If a company then sells 10 of these a day, they have made £1000-£1500 gross profit. If this is not a 'good enough' markup for an individual product line, what is?!?!

oliverp_2

Bowling_4_Gold wrote: »

Which the company then claims back on their VAT return.

The player sells, on average, on the internet for £200-£250. A simple bit of maths shows a gross profit of £100-£150. If a company then sells 10 of these a day, they have made £1000-£1500 gross profit. If this is not a 'good enough' markup for an individual product line, what is?!?!

It's available brand new on ebay for £129.95 from very large sellers. It's most likely a discontinued model and as such they are shifting it, so what are the chances someone will pick it out and pay full whack?

Not to mention that getting these deals is like getting blood out of stone, the stores rarely have 10 of anything total, never mind a single customer buying 10.

The point I'm trying to make is that Makro must expect customers to occasionally buy things for personal or consumer use. I struggle to see how some of their products could ever be used in the course of a business or be resold at a reasonable profit.

OlliesDad

oliverp wrote: »

It's available brand new on ebay for £129.95 from very large sellers. It's most likely a discontinued model and as such they are shifting it, so what are the chances someone will pick it out and pay full whack?

Not to mention that getting these deals is like getting blood out of stone, the stores rarely have 10 of anything total, never mind a single customer buying 10.

The point I'm trying to make is that Makro must expect customers to occasionally buy things for personal or consumer use. I struggle to see how some of their products could ever be used in the course of a business or be resold at a reasonable profit.

I'm sure they arent naive and are fully aware that people are breaking their trading contract with them and buying it for home use, but you are still buying it in the name of the company, and therefore it is a business to business transaction.

As for the profit margins, alot of people who see it being sold in a shop wont be aware that its cheaper on Ebay or may not trust online shopping, so would be happy to pay an extra £50-60.

Tozer

Bowling_4_Gold wrote: »

Which the company then claims back on their VAT return.

I've got a Makro card. But i haven't got a company. I am not VAT registered.

As mentioned above, NOBODY has the power to contract out of consumer legislation. Whether someone is acting in the course of a trade or business is a matter for a judge to determine.

Tozer

OlliesDad wrote: »

Hi,

When you sign up for use of a Makro card it is not the individual that is signing up, it is the company, hence why company registration details etc needs to be provided.

So when items are bought, it is the company buying them (i.e. it wouldnt be John Smith buying them, it is Smiths Electricals) therefore there is no denying it is a business to business sale and therefore it comes down to contractual law, not consumer.

Of course if there is any confusion, speak to Trading standards who will clear up any confusion.

But they know damn well in so many cases that it is not a company purchasing the products.