KRCS increasing price after order had been confirmed and paid for

Kwisatz

Hi,

I'm looking for some advice on a situation I have with the KRCS Group and the recent Apple price increase. So the time line reads like the below

1. Made an order for a MacBook 2 weeks ago - It was a built to order / custom build so according to their T&Cs I was unable to cancel for a full refund as they would be sourcing it from Apple directly. Money paid and order confirmed.
2. On Tuesday I received an update that Apple had accepted my order and it was being manufactured with a delivery date on 20th July.
3. Apple increased their prices on Thursday night.
4. Yesterday, I received an email from KRCS stating that as Apple has increased their pricing, I need to pay more for the laptop or cancel my order. I went back to them saying I already paid for it and it was confirmed by Apple but they're holding strong.

I guess my first question is, is this legal? Considering it was confirmed that Apple received my order and I got an estimated delivery date and from what I'm reading online that orders with Apple directly are being honouring and price increases are on new orders only. Looking at Reddit there's a lot of customers in this situation with one I saw where they wanted another £2k before delivery for an order that was placed in June.

Considering sending a letter before action and getting it sorted through small claims if they aren't going to honour it for the price difference between what I paid and how much it's for sale on the Apple website but I'm not sure how effective that would be. I have the strong opinion that they're just going to keep the 'cheap' order open and take the item into stock and then sell it at the increased price. I've asked for the order number with Apple so I can ask Apple directly to see if Apple boosted the price of it or if KRCS are just trying to pull a fast one.

Note I put this through my company rather than my personal name so it's probably not covered under consumer rights. Also I wiggled the dates by a couple of days here and there for privacy but the timeline is still in order.

Any advice or opinions would help!

Grumpy_chap

What was the original price?

What is the increased price?

This is a business purchase so there are no consumer rights.

What do the T's&C's say about price fluctuations in the agreed B2B contract?

Hi,

I'm looking for some advice on a situation I have with the KRCS Group and the recent Apple price increase. So the time line reads like the below

Made an order for a MacBook 2 weeks ago - It was a built to order / custom build so according to their T&Cs I was unable to cancel for a full refund as they would be sourcing it from Apple directly. Money paid and order confirmed.

On Tuesday I received an update that Apple had accepted my order and it was being manufactured with a delivery date on 20th July.

Apple increased their prices on Thursday night.

Yesterday, I received an email from KRCS stating that as Apple has increased their pricing, I need to pay more for the laptop or cancel my order. I went back to them saying I already paid for it and it was confirmed by Apple but they're holding strong.

I guess my first question is, is this legal? Considering it was confirmed that Apple received my order and I got an estimated delivery date and from what I'm reading online that orders with Apple directly are being honouring and price increases are on new orders only. Looking at Reddit there's a lot of customers in this situation with one I saw where they wanted another £2k before delivery for an order that was placed in June.

Considering sending a letter before action and getting it sorted through small claims if they aren't going to honour it for the price difference between what I paid and how much it's for sale on the Apple website but I'm not sure how effective that would be. I have the strong opinion that they're just going to keep the 'cheap' order open and take the item into stock and then sell it at the increased price. I've asked for the order number with Apple so I can ask Apple directly to see if Apple boosted the price of it or if KRCS are just trying to pull a fast one.

Note I put this through my company rather than my personal name so it's probably not covered under consumer rights. Also I wiggled the dates by a couple of days here and there for privacy but the timeline is still in order.

Any advice or opinions would help!

Reptilion

Hi, I have a similar situation. I placed an order with KRCS on 5th May for a Mac Studio M4 Max. The order was confirmed on 6th May at a set price, and I paid a deposit to secure it. It was supposed to have it by now, my next delivery date is next week.

This week, I received an email from the retailer saying that Apple has announced a price increase and they're now asking me to either accept the new price (around 20% higher) or cancel the order. I've since spoken with Apple directly, and they confirmed that the revised pricing applies only to orders placed from 25th June onwards.

The retailer's own T&Cs contain no clause allowing a price increase to be applied to an already-confirmed order, and as far as I understand, UK consumer law (Consumer Rights Act 2015) means the agreed price at contract formation is binding. I paid a deposit and a financial agreement for 24 months.

I had a discussion by email with the director, and they keep holding strong. Accept the increase or cancel the order.

Is this legal? Is a way to make them honour the order at the original price. How do I approach this situation?

Thanks you.

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/comment/82049789#Comment_82049789

Is yours a personal purchase or business purchase (like the OP)?

Hi, I have a similar situation. I placed an order with KRCS on 5th May for a Mac Studio M4 Max. The order was confirmed on 6th May at a set price, and I paid a deposit to secure it. It was supposed to have it by now, my next delivery date is next week.

This week, I received an email from the retailer saying that Apple has announced a price increase and they're now asking me to either accept the new price (around 20% higher) or cancel the order. I've since spoken with Apple directly, and they confirmed that the revised pricing applies only to orders placed from 25th June onwards.

The retailer's own T&Cs contain no clause allowing a price increase to be applied to an already-confirmed order, and as far as I understand, UK consumer law (Consumer Rights Act 2015) means the agreed price at contract formation is binding. I paid a deposit and a financial agreement for 24 months.

I had a discussion by email with the director, and they keep holding strong. Accept the increase or cancel the order.

Is this legal? Is a way to make them honour the order at the original price. How do I approach this situation?

Thanks you.

Alderbank

Note I put this through my company rather than my personal name so it's probably not covered under consumer rights. 

Whether you are a consumer or not is determined by the facts of the case.

A key definition of the Consumer Rights Act says that “Consumer” means an individual acting for purposes that are wholly or mainly outside that individual's trade, business, craft or profession.'

So it's how you use the goods or intend to use them which decides whether you are consumer. If it's just for your business use then you're not a consumer even if you pay with your personal credit card. If it is mixed use but more than 50% not for business use then you are a consumer, however you choose to pay.

If the trader disagrees he has to prove it.

Kwisatz

https://forums.moneysavingexpert.com/discussion/comment/82049771#Comment_82049771

So the original price is £2,339 and the new price is £2,739 so an increase of £400. Nothing in the T&Cs about price increases. Is there relevance in the amount - i.e. too low?

https://forums.moneysavingexpert.com/discussion/comment/82049827#Comment_82049827

Yes this is business purchase as it will be used for work - I understand consumer rights don't work for this but I'd expect this argument stems on if this is legal to do - there is nothing in the T&Cs about it. It looks like small claims court can still be done B2B.

The only relevant part of the T&Cs are that as this is a custom build it is not refundable order once paid. If they're holding me to that, surely I can hold them to it as well?

Reptilion

https://forums.moneysavingexpert.com/discussion/comment/82049797#Comment_82049797

It is a personal purchase.

GDB2222

Are the T and Cs on the website the only conditions? Nothing on an order form or during the checkout process?

Reptilion

https://forums.moneysavingexpert.com/discussion/comment/82050056#Comment_82050056

I got just the invoice without any additional T&Cs. Basically, all T&C are on their website. I saved a copy in case they think to update it.

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/comment/82049827#Comment_82049827

I know it is moot in this case as the OP confirmed the primary use will be business but I really think there has to be some consistency here - the OP chose to put this purchase through the business. That has tax advantages. The Supplier might very reasonably consider that the sale is business on that basis. If an individual could then choose after the event, when there is some issue, to say that this is a consumer purchase rather than business purchase, does that then mean the tax position alters etc?

It does not seem reasonable that a single transaction can just pick the most favourable of all pieces of legislation.

I happen to have purchased some items from Dell in the past week and when making the purchase, Dell ask if the purchase is for business or personal use. They also won't allow the order to be placed in a business name and tick the personal use option. They are clear that there are two different sets of Ts&Cs and that consumer rights do not apply to the business purchase.

https://forums.moneysavingexpert.com/discussion/comment/82049866#Comment_82049866

"The only relevant part of the T&Cs are that as this is a custom build it is not refundable order once paid. If they're holding me to that, surely I can hold them to it as well?"

Are they holding you to that?

Upthread, you said that you have now been given the option to "pay more for the laptop or cancel my order."

So, you are not being held to the "not refundable" clause, assuming that if you now cancelled, you would be refunded.

Do the T's&C's include a frustration clause or clause about raw materials costs? Essentially, the price is going from £2,339 to £2,739 so £400 increase is 17% of the original price. I suspect that the supplier simply does not have that amount that they can absorb and still complete the order. The option to cancel might be back-to-back with Apple.

You asked about whether there is significance in the amount of the price change. Legally there is not but, if the delta was smaller, say £40 rather than £400, your odds on negotiating a more favourable position would be greater. For £400, the supplier will push rather harder. You really need to read the full T's&C's in detail to see if there is anything at all that covers this type of scenario. I'd be surprised if there is nothing as this can't be the first time such an outcome has arisen.

GDB2222

https://www.krcs.co.uk/terms-and-conditions/

I think those are the right ones? I scanned quickly and didn’t see anything to justify the price difference.