Company required to make purchases

Ridsharc

Free Member
Dec 12, 2017
15
0
Hi,
For the last couple of years, I've been developing a remote monitoring device as a DIY project. Recently I've run into some vendors who won't sell me components for this project as an individual. I'm trying to delay incorporating as much as possible as I'm not really keen on the responsibility / distraction right now. I incorporated an ltd in 2013 and dissolved it in 2018. Did everything (book keeping, filing vat and corp tax returns) myself and not really looking forward to doing it again. I'm open to using an accountant + freeagent / xero this time around - but also wondering if I can get away with "borrowing" an existing company to make purchases of some electronic / electrical components?
More generally, are there any companies that only makes purchases (no sales) on behalf of directors / members - something like a buyers / purchasing club ?
 
The components are not available anywhere to buy as an individual? Or is these vendors in particular needed?

Yes there are buyers clubs, probably not suitable as they'd likely want you to prove your credentials as a business in that field.
 
Upvote 0
Do you know why they won't supply you as an individual?

If you want to remain unincorporated but still want a trace at Companies House (that may be the reason they're refusing), consider forming an LP, with a friend/spouse putting in some token amount of capital. You'd want to stipulate in the partnership agreement that your friend only earns a return above some unrealistic amount of total profit. You'd need to complete a partnership tax return each year (but you can keep that very, simple and can use cash basis if you like), but you do get a footprint at CH that way.

Better check that would meet their requirements, and as LPs are rare you might have to push a little, but all the rules about criminal liability for inaccurate filings apply, so they could be reassured.
 
  • Like
Reactions: Ridsharc
Upvote 0
I can't be certain that the products aren't available anywhere to individuals. I tried posting a link to one such product but UKBF doesn't trust me with links yet. The vendor forwarded my request to a distributor who insisted on dealing with businesses only. It's not the first time I've encountered it. Many businesses (don't want to generalise but German SMEs and their distributors come to mind) seem more interested in keeping their customer records straight than making sales.
 
Last edited:
Upvote 0
Thanks for the suggestion re LP. I'll look into it but my instinct for now is to try and avoid CH altogether. Maybe that'll change ...
I've asked friends/acquaintances who run unrelated businesses and people also seem reluctant to resell goods unrelated to their business. For instance, is it illegal for a coffee shop to purchase some electrical equipment and resell it ?
 
Upvote 0
Many businesses (don't want to generalise but German SMEs and their distributors come to mind) seem more interested in keeping their customer records straight than making sales.
That is not the reason! The law and costs are the reason.

German consumer laws are draconian and give the customer all kinds of rights such as a three-year guarantee, plus all the rights to return goods even if used slightly and for that reason, they want to have B2B deals only.

They also do not want to have what they call 'Karteileichen' (corpses in the filing cabinet) as each account costs time & money and wage costs are far higher in Germany than here. That means that they need low-mark-up customers that buy regularly and in bulk.

They may also be contractually obliged to sell parts to registered dealerships/retailers only.

As @Financial-Modeller says, buy retail!
 
  • Like
Reactions: Financial-Modeller
Upvote 0
Can you buy the components on a retail basis from a retailer, rather than from the manufacturer/wholesaler/distributor?

From the content of my posts, you'd have to assume I've tried. Even asked the manufacturer and distributor whether/where it was available for retail. Canned response is that they don't deal with retail individuals. I'd post a link to the product if allowed. Here's an attempt at getting around the link posting restriction:

(dubdubdub) phoenixcontact (com)
online
portal
gb(query)uri(equals)pxc-oc-itemdetail(colon)pid(equals)2202529(amp)library(equals)gben(amp)tab(equals)1

key:
/ newline (pxc-oc-itemdetail doesn't have a newline - that string's just too long)
? (query)
= (equals)
: (colon)
& (amp)
 
Upvote 0
That is not the reason! The law and costs are the reason.
German consumer laws are draconian and give the customer all kinds of rights such as a three-
...
They also do not want to have what they call 'Karteileichen' (corpses in the filing cabinet)...

Thanks for that useful information. Timely as well because I'm learning German - A2.2 currently.
 
Upvote 0
Even if you set up your own business there is no guarantee they'd sell to you. Businesses can decide who to sell to.
Often restricting sales to just agreed buyers.

Its a problem even asking other businesses to buy it for you - they may not be approved as buyers either.
 
Upvote 0
Many manufacturers will only sell to established companies as it ensures that their resellers achieve a margin. So rather than sell to the end user they use the more traditional/pre-internet approach of selling to resellers who in turn sell to the end user. Even if you were to set up a company, there's no guarantee that they'd allow you to set up an account without some trading history.
 
Upvote 0
Why bother selling to people wanting one or two items when you can spend the same time selling thousands to your known buyers

Maybe if you tell the forum what it is you are looking for they may well be able to help

Depending on what you want large wholesalers like RS supplies may hold the items depending on the product type
 
Upvote 0
Never heard of Google FFS!

Farnell sell them. Rapid sell them. RS sell them.

You could probably have had them in yout hands by now if you had done some BASIC research, rather than posting here.

I see it on Farnell now. I would've sworn I searched for it on Farnell before contacting Phoenix and their distributor. Sorry for the bother :(. Now onto track down a couple of others. Thanks.
 
Last edited:
Upvote 0
Astonishing!

Can you buy the components on a retail basis from a retailer, rather than from the manufacturer/wholesaler/distributor?

From the content of my posts, you'd have to assume I've tried...

errm, from the content of your post, I didn't!...

Never heard of Google FFS!

Farnell sell them. Rapid sell them. RS sell them.

You could probably have had them in yout hands by now if you had done some BASIC research, rather than posting here.

I see it on Farnell now. I would've sworn I searched for it on Farnell ...

...because it turns out you hadn't!

Timewaster.

:rolleyes:
 
  • Like
Reactions: The Byre
Upvote 0
Astonishing!
errm, from the content of your post, I didn't!...
...because it turns out you hadn't!
Timewaster.
:rolleyes:

I did apologize for the bother caused due to a poorly picked example (I've a long list). Here's a better example (and more relevant to my previous posts):

(dubdubdub) solvimus (de)
en
m-bus-products

In particular the MBUS-M13-S module which to be fair is listed for "OEM customers". If a retail version or an equivalent product is found, I'll be even more grateful than I already am.

Same key:
newline = /
 
Last edited:
Upvote 0
From the content of my posts, you'd have to assume I've tried. Even asked the manufacturer and distributor whether/where it was available for retail. Canned response is that they don't deal with retail individuals. I'd post a link to the product if allowed. Here's an attempt at getting around the link posting restriction:

(dubdubdub) phoenixcontact (com)
online
portal
gb(query)uri(equals)pxc-oc-itemdetail(colon)pid(equals)2202529(amp)library(equals)gben(amp)tab(equals)1

key:
/ newline (pxc-oc-itemdetail doesn't have a newline - that string's just too long)
? (query)
= (equals)
: (colon)
& (amp)

You sure you can't get what you need from RS Components/Farnell/Rapid Electronics/CPC etc?
These companies will accept 'consumer' orders using credit card payment
 
Upvote 0
I did apologize for the bother caused due to a poorly picked example (I've a long list). Here's a better example (and more relevant to my previous posts):

(dubdubdub) solvimus (de)
en
m-bus-products

In particular the MBUS-M13-S module which to be fair is listed for "OEM customers". If a retail version or an equivalent product is found, I'll be even more grateful than I already am.

Same key:
newline = /

So use something else https://www.aliexpress.com/item/32853884383.html
 
  • Like
Reactions: Ridsharc
Upvote 0
I really do need to search harder, smarter.

I don't think you really tried at all.

What's harder, or smarter, than simply typing "mbus to uart ttl" (the description of the "oem only" product) into google?

You seem to be just leveraging the generosity of other forum posters to do the work for you.
 
  • Like
Reactions: The Byre
Upvote 0

Latest Articles