Self Employed Idea Help/Guidance

edinburgh88

Hi.

I am new to the forum so firstly hello.

I have been looking at ways to make some extra money part time and have thought of what i consider as a good idea.

i know there are going to be lots of different variables however in terms of regulators and if i am able to even do so.

what i am wanting to find out is who i would approach to see if it is even a goer?

what i have in mind is basically acting as a compare the market type face to face adviser.(non advice)

anything ranging from insurance products, holidays, clothing and household goods.

the idea being tell me what you have been quoted on the highstreet and i wil do the donkey work online. I realise that my customer base will be people who are to busy to do so or people that cant use computers. I do realise that this will be few and far between as a lot of the time people do have family members etc.

I would appreciate any constructive feedback (positive if poss:))

InsideInsurance

Regulation will be a pain as you point out for any industry like financial services.

I am wondering where in the process however you add value. If for example you are looking at a commodity product like Insurance then in most cases the delta between the easy to get to lowest price and the true lowest price is going to be to small to absorb any fee.

If you start looking at more MNW type people and the time poor/ cash rich then you are getting into the concierge space which is already fairly well catered for and often included "for free" in financial service products aimed at the same group (eg "Premier" bank accounts, American Express etc). You are then looking to get hard to find items rather than best prices and you need a massive network of contacts so you can get access to sold out events/ fully booked restaurants etc.

There could be a market for those with low/ no internet but then how to find them becomes more costly.

edinburgh88

hi thanks for the reply.

to be honest the market i am looking to attract would be locally.

i am thinking from the angle of your typical over 65 type that is apprehensive around using the computer.

for example they will typically go to thomas cook and book a package holiday via them.
we all know that if you are handy with a computer you can get like for like cheaper even through the same provider by booking online.

i will do the donkey work for them online and provide them it cheaper by say £100 and take a £30 fee.

the same for televisions, clothing and household appliances.

take a percentage of the saving.

as i said i am aware that maybe i will only attract a small customer base but even £25 per week is still £100 more a month for very little work.

the idea with home insurance etc was just to enhance the level of service.

InsideInsurance

The most obvious problem is going to be over consumer rights etc. Either you have to sit with them and so they actually buy the goods themselves direct from the retailer in question and thus preserve the rights against the retailer but then you getting your £30 from them may be difficult when they see the actual price being paid.

Alternatively if you take full payment from them and then you buy the goods then you are legally the merchant and so their Sales of Goods Act rights etc would be against you. As you will have bought the item as a business from the vendor you would have no statutory rights and so if the TV breaks after 14 months you are the one left carrying the can.

edinburgh88

excellent.

in that case i will refer back to your original reply. i have one of these bank accounts that provide extended warranty haha.

is there anywere you could suggest i contact to allow my payment mechanism for the customer means they are fully protected and not apprehensive that i could take their money and run. would that be an invoice of some sort?

Mistral001

This is a non-starter. What if you find the customer the cheapest holiday and charge a fee and the holiday turns out to be very unsatisfactory? You recommended the holiday as a professional charging a fee. That is totally different from helping a friend who is not computer literate to navigate the web to find a holiday.

This can be applied to anything. Cheapest insurance for example will not necessarily be the best.

The cheapest supplier on certain products may not in fact be signed up to comparison sites and can offer cheaper prices because they do not have to pay the comparison site fees. Can you guarantee the cheapest? What if after you advise someone to buy a certain productand later they find that there is a similar product slightly lower, how will they feel towards you?

edinburgh88

thats why i was saying if the customer finds the package via a travel agent i will then go online match it and get it cheaper.
as long as your honest and upfront with your presentation and state that i cant be held responsible for that sort of thing then why not?

InsideInsurance

edinburgh88 wrote: »

is there anywere you could suggest i contact to allow my payment mechanism for the customer means they are fully protected and not apprehensive that i could take their money and run. would that be an invoice of some sort?

They would be fully protected, but it is you that is providing that protection.

If you were above board etc you would have contracts with your suppliers that protects you and/ or would be paying into a 3rd party scheme like the FCOS or ATOL to cover catastrophic loses that you cannot afford to cover.

As these are commercial relationships between you and your "supplier" it all comes down to your own negotiations rather than statutory rights. The less protection you want from your suppliers, the cheaper their price is to you etc.

Now you could try and hide your commercial operations from your suppliers etc but evidently your opening yourself up to big issues if they discover your fraud.


The only way to avoid these issues is to only act as an introducer, so the person ultimately buys directly from Amazon or Direct Line etc. The challenge then is, as per my original post, getting them (a) to do it and (b) get yourself paid.

I ask you to find me a TV, you find it on Amazon for £50 cheaper. You then walk me through the process of buying it on Amazon and then try and get me to pay you £25. (1) I am likely to tell you to go away (2) next time I just go to Amazon myself and/ or (3) I dont want to put my card details in Amazon which is why I didnt do this in the first place myself.

Mistral001

The OP needs to define their service. That will determine what contract will be formed between you and the client. There will be a contract as you are offering to provide a service for money. Remember a verbal contract is just as binding as a written one in law.

If you are offering to find the cheapest, then that is what you will be contracted to do. If you happen to overlook one supplier who is slightly cheaper than the one you found, then you will be in breach of contract. It is as simple as that.

If you are not offering to find the cheapest then what are you offering?

PS: The idea is not a terrible one, but perhaps you need to think about how you go about it so that you are protected. If you are really serious about it you need to get professional indemnity insurance.

edinburgh88

thanks for the help as i said on my original post at present it is just an idea i thought of.
is there any government services available that could provide me with guidance around regulators, insurances and payment mechanisms etc.
that was what i was originally asking to be honest.
i would rather find this sort of thing out before even considering it as a starter.