Advice

• Prevention
• Check list
• Current cases
• How do I?
• F.A.Q.

Areas

• Business
• Clothes and Footwear
• Communications
• Electrical Goods
• Employment
• Entertainment
• Finance
• Food and Drink
• Consumer Goods
• Government
• Health and Safety
• Holidays
• Home Services
• Hotel and Hospitality
• Insurance
• Internet Trading
• Mail Order
• Medical Matters
• Motor Vehicles
• Scams and Frauds
• Taxation
• Travel Services
•  
• Contact Us

Money Refunds.org.uk

FREE Practical Advice and Tips on how to get money back, replacements, credits, compensation and more for poor service and shoddy goods across the UK  

Business and Commerce

"The contract is king!"

Selling goods and services to businesses big and small is sought after in a big way, as it offers volumes sales and regular repeat business.

A contract to supply a supermarket with a toy or food can mean success and big profits for even small firms so no wonder the competitive world of business is a minefield for both buyers and sellers.

Business buyers in the main are canny negotiators demanding top quality, reliable delivery and best prices, often price matters above all else, yet they retain high standards of their suppliers. This section look at, warns and advises about the problems associated with buying from suppliers, a sort of tips for business buyers if you will. Feel free to tell us your experience and throw us more ideas and advice, we thrive on it and it helps build information on this site to benefit all - give us feedback

Sales people send direct mail, make regular telephone calls and sales people visit, a bane of all business, taking up time to fight off a constant stream of sellers trying to secure contracts with your firm.

You may be a small one man firm buying supplies from a few local merchants or a national chain buying supplies for dozens or hundreds of outlets. Each business is unique and they vary in type, size, and profitability, they are constantly changing - winning, losing, starting and ending.

In the main business buying and selling is essentially done on a contract basis, ideally in writing so that both sides know the terms of the deal, this is the guiding light of day to day dealing and makes it easier for both sides to know how to handle a situation when things go wrong.

It is vital buyers ask and see terms and conditions laid down by sellers before considering offering a contract, get to know what is on offer and the rules offered to go with those goods and services. The terms are just as vital as the goods or services themselves.

As a buyer when offering a contract make sure your conditions are laid down and accepted (in writing) by the seller - keep it simple and to the point.

A Business contract in the main is the outcome of negotiations and becomes unique to the two parties

Let's look at both side of a typical business deal, it can be adapted to suit most goods and service contracts regardless of size.

Basic Principals of selling to business - buyers

• Volumes - outline the potential for numbers - a one off deal or a regular contract to supply for a period

• Description - make sure what is being supplied is described in as much detail, perhaps brochures, plans, specifications or other written material. Get examples supplied (free) to test.

• Trial - perhaps there is to be a short trial or test option for both sides to "run in the deal", a way of testing the seller and the quality.

• Quality - define how one decides what is "sub standard" and how goods are rejected. time scales, notification procedures etc

• Reliable delivery - define when and how deliveries are to be made and the consequences of non or late delivery.

• Damage - define responsibilities for damage, one assume once goods are accepted by the buyer damage is their responsibility, but goods packed in outer containers may contain internal damaged goods where are the sellers responsibility.

• Refund policy - define how and under what conditions refunds - or credits can be made and issued. Provide option for buyer to choose as unused credits may be useless unless they can be converted to a payment in the event of a contract ending with credits in hand.

• Returns policy - define how goods can be returned - "sale or return" items, damaged goods etc

• Payment terms - define when and how payment is to be made, put onus on seller to invoice correctly only for goods delivered and accepted or services completed

• Deposit - define if, when and how any deposits are due or paid

• Pro-forma  - define any prepayment terms or options

• Discounts - define volume extra discounts or based on turnover value

• Penalties - define penalties for late deliveries, rejected goods, poor quality etc

• Cancellation - define under what conditions the contact can be cancelled

• Term - how long does the contract last, can it be renewed etc.

Basic Principals of selling to business - sellers

In one respect the buyer - the customer or client rules the roost, they are the one with the money, and the potential to offer long term business, just what attracts a buyer to your business?

• Good product or service much in demand

• Good reputation - your business, the product or service

• Awards that may have been won from independent or trade bodies

• Keen price

• Attractive discounts or payment terms

• East to understand contract terms

• Friendly staff

• Personal interest by owners/directors in success

• Professional approach to quality and performance

So things go wrong - where do we as buyers go next?

Contract is king - understand where in the contract the seller has fallen down - tell them and that should fix the problem, if not check the terms to terminate the contract or use other penalties. If the contract does not specify refunds are due look at the general sale of goods act which general define good as being "fit for their purpose", including any breach of safety or/and health laws and conditions. Poor or missing packaging, damage, bad printing and similar cosmetic features may also be considered grounds for refunds.

Check contracts in regard to the way they are issued and used day to day in practical terms. See if any modifications are needed. Check the contract against several "what if" scenarios to see how it stands up.

Compare suppliers contracts to see what you can learn about negotiations, you may learn something to your advantage.

Check out the commercial and business support web sites in the Useful Links Section there you will find vital advice and follow up info on legislation and current scams.

If you fail to find an answer to your query here, click>"How do I?"

Please tell your friends and relatives about our site