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In Short Supply
Listed under: One Voice
Published: Thursday, April 17, 2008
Whilst attempting to buy British, retailer Beatrice Pozzera has hit resistance. She shares her struggle
I sell beads and findings online. Visiting Craft Hobby + Stitch International however, I found only a handful of stands were of interest to me. Some companies I already knew of, but they can't be considered true wholesalers as their reduced prices are available to anyone who buys in large quantities. One company insisted on only serving customers with a bricks and mortar store, so that ruled me out. In the end, I only found two or three new suppliers that I hadn't heard of, and another one who I didn't know did wholesale.
However, out of these new suppliers, the one I thought I would do business with didn't have the best prices when I checked prices against those of my current US suppliers. So, I ordered from my existing supplier and not the new one. It was only a couple of pence more per gram for some beads, but it soon adds up. I was disappointed to find once again that British suppliers are not offering true wholesale prices. I order more from the US and Europe (a bit direct from China) than the UK. I did use a second supplier but I've been extremely disappointed. Half my first order was out of stock and they are messing me about with the next. They don't have the products and they keep changing the expected delivery times. Needless to say, I'm not impressed. Again, I'll have to look abroad.
It's frustrating trying to find wholesalers in the UK only to realise they are not up the job. With some items I need constant stock but I cannot hold as many products as the wholesalers, so I rely on them maintaining good supplies.
If the wholesalers can't keep up the supply, I don't have the products and my customers will go elsewhere. I have a big issue with one company at present. My customers are now asking for refunds as it's been three weeks since I should have received the items. I still don't know when the goods will be available. Wholesalers know it can take one to two months to receive stock, so I don't understand why they can't plan better. Instead they're losing customers. Why can Americans do it and not the British?
Beatrice Pozzera is the owner of Just Beads
However, out of these new suppliers, the one I thought I would do business with didn't have the best prices when I checked prices against those of my current US suppliers. So, I ordered from my existing supplier and not the new one. It was only a couple of pence more per gram for some beads, but it soon adds up. I was disappointed to find once again that British suppliers are not offering true wholesale prices. I order more from the US and Europe (a bit direct from China) than the UK. I did use a second supplier but I've been extremely disappointed. Half my first order was out of stock and they are messing me about with the next. They don't have the products and they keep changing the expected delivery times. Needless to say, I'm not impressed. Again, I'll have to look abroad.
It's frustrating trying to find wholesalers in the UK only to realise they are not up the job. With some items I need constant stock but I cannot hold as many products as the wholesalers, so I rely on them maintaining good supplies.
If the wholesalers can't keep up the supply, I don't have the products and my customers will go elsewhere. I have a big issue with one company at present. My customers are now asking for refunds as it's been three weeks since I should have received the items. I still don't know when the goods will be available. Wholesalers know it can take one to two months to receive stock, so I don't understand why they can't plan better. Instead they're losing customers. Why can Americans do it and not the British?
Beatrice Pozzera is the owner of Just Beads
Whilst I sympathise with the writer not being able to find bonefide suppliers in this country who will supply her, I have little sympathy with her overall problem. Having a retail outlet which I pay dearly for in the way of rent, business rates (£30k per year)and having to collect the dreaded VAT along with paying wages, utilities, insurance etc. I wonder if the writer works from home, does not pay insurance, business rates etc? She states companies will not supply her because she does not have “bricks and mortar store”. I refuse to do business with wholesalers who supply people without proper stores as supplying customers who only sell online and possibly avoid all the VAT, Tax and insurance liabilities as well as avoiding complying with Trading Standards legislation only damages the retail business. I know of no beads manufactured in this country and have recently visited China to source the goods direct but as a established retailer I am fortunate to have the ability to buy direct as the most important factors are being VAT registered, having a shipping account and holding a dollar bank account. We are one of the only retailers in the UK to be licenced to sell Swarovski and use the logo. So maybe the writer would do well to think about the fact she is not valued as a preferential customer because of how she trades and where she trades from rather than a lack of suppliers as we have no problem getting deliveries within 3 days from Asia, USA or Europe and more importantly the suppliers we do have in the UK give us excellent service.
Just thought I’d say that I agree with ‘Euro Crafts’ entirely. I sell on ebay but, (stranger than fiction I know) I am vat registered, pay tax & insurance AND comply with trading standards legislation. I find it frustrating that so many wholesalers will supply anybody who meets their minimum first order requirements - often as little as £50.00 - trade references don’t seem to be required either!!! I have yet to find a genuine (by that I mean will supply genuine trade only) who gives less than an excellent service. I’ll just add here that I am more than impressed with ‘Flowersoft’ who will only supply online shops who are VAT registered - if only all suppliers would follow their lead.
As a retailer who runs a “bricks & mortar” outlet i totally agree with the other comments.
I would be very interested to know if Just Beads is registered for VAT and if she pays tax etc on her earnings like I have to.
I will now only buy from wholesalers/suppliers who do not compete against me by dealing direct AND undercutting me. I am about to close my account with Ellison for that very reason. Unfortunately many suppliers from the USA will deal with anyone who will pay the going rate with no checks on who they are.
As retailers we do have the power to stop these unscrupulous suppliers if only we all got together and said we would not buy from them any more.
I am the writer and I think I may have been misunderstood here. I am VAT registered and pay all my taxes, business insurance, etc. Yes, I run an online business. The cost of setting up shop was put to me by business link who steered me away from opening one! I have talked at great lengths with my accountant, etc, but I choose to attend shows instead, which are also a lot of work but enables to find customers for my online shop.
My point was that there are hardly any bona fide wholesalers in the UK, they have either a very low minimum order or run retail shops as well, as mentioned above. I do buy from Europe as being VAT registered is an advantage since the companies I deal with in mainland Europe only sell to VAT registered businesses - at least in the rest of Europe wholesale IS wholesale. However, most of my supplies come direct from the USA or Asia too.