Distributor wants proof of a ltd company

[Faddy]

Hello there,

I have been trying to persuade a distributor that I will have a ltd company very shortly but was keen to get a trade account with them so I could see their prices to help with my forecasts. Whats the point in that when someone needs to know the price of what they're going to be selling? Anyone recommend a solution to this?

Thanks

 

[JamieM]

Hello there,

I have been trying to persuade a distributor that I will have a ltd company very shortly but was keen to get a trade account with them so I could see their prices to help with my forecasts. Whats the point in that when someone needs to know the price of what they're going to be selling? Anyone recommend a solution to this?

Thanks

Have you tried calling them to discuss your plans? Sometimes it's easier to get some info over the phone.

Do they not deal with sole traders?

 

[Faddy]

Have you tried calling them to discuss your plans? Sometimes it's easier to get some info over the phone.

Do they not deal with sole traders?

Haven't tried calling them but have had numerous email conversations that ultimately, end in them simply saying they don't deal with non-limited companies or eBay and amazon resellers. Maybe a phone conversation would be easier to get my point across as they are based in Germany.

No, they don't deal with sole traders at all.

 

[Esk247]

Hello there,

I have been trying to persuade a distributor that I will have a ltd company very shortly but was keen to get a trade account with them so I could see their prices to help with my forecasts. Whats the point in that when someone needs to know the price of what they're going to be selling? Anyone recommend a solution to this?

Thanks

Well think of it from their point of view. You want access to the price list for retailers but you're not a retailer (according to the terms they've stated) so why should they hand over all the price lists and all the details if you don't meet their minimum requirements for a trade account?

In their view you could be anyone, even a competitor, so they want some assurances that you are who you say you are before they give you a detailed price list.

Bear in mind that a lot of those suppliers also won't deal with you unless you've been established for 12 months or so, even as a Limited Company. #

At least they're not selling to any old Discount Dave who comes along...thank god.

 

[S-Marketing]

Decent distributors have an ability to sniff out a time waster from 100 paces. They may just be politely telling you they don't value your custom.

 

[Faddy]

I know what you are saying but I have had discussions with them were they have made very clear all they want me to do is hand over business registration and a URL for my website. I have read the terms of registration and there is nothing preventing newly registered companies from signing up.

 

[Latebloomer]

It's like going in a job interview. You won't get plus points by just mentioning that you are going to have your credentials some time soon.

If you tell them that you are going to have your limited company soon, they may even expect it tomorrow as it is not that hard to set up anyway.

 

[Faddy]

So would you recommend just registering now even though I won't be ready to trade for around 2 months?

 

[Alan]

If you are definitely going to do it then there is not reason not set up the company and buy the domain and link a 'professional' e-mail account to it and get a basic website up there (it takes time for Google to start to 'trust' a new domain, so this is worth doing earlier rather than later). After all the cost and effort is close to nothing, and it will all help when you get round to applying for bank accounts / insurance etc.

 

[Faddy]

If you are definitely going to do it then there is not reason not set up the company and buy the domain and link a 'professional' e-mail account to it and get a basic website up there (it takes time for Google to start to 'trust' a new domain, so this is worth doing earlier rather than later). After all the cost and effort is close to nothing, and it will all help when you get round to applying for bank accounts / insurance etc.

This is definitely happening! I already own the domain I want to use but what would be the point in getting a basic website up and running when I won't have what I want to sell on it yet?

I agree with you roibot and I am leaning towards just doing this and setting the company up. Can you possible advise me as to what the pros/cons would be of doing this before actually trading? (if any).

 

[Alan]

The pros I think are
1. you get the price list you want
2. you start getting some exposure to your website, if your strategy involves getting traffic from Google, then you will be wanting a blog on your website (along side what ever you are selling) as this is a valuable SEO strategy, to start getting content up there
2a. You can start setting up your social network (facebook / twitter / linked in) and refer this back to your own domain
2b. You can start listing your business in free directories, and google places
3. When you start to open bank accounts etc you will have everything in place
4. you will be more confident when people challenge you in a couple of months 'how long have you been in business' you can say a couple of months, not a couple of days
5. you will be confident in your company name and registration number, so you can work on any stationery you might be considering (biz cards / letter heads) in advance

The cons
1. your company year end (and hence account filing) will come two months earlier - but that said - most accountants would adjust your company filing date to 31st March even if you set up your company in May, as it makes the company year / dividends etc much neater. (if you set up your company 1st March 2013 I think it will automatically be set to 31st March 2014 - so in a way this is a pro )
2. if you currently are employed and you contract of employment requires you to declare any third party directorships, then you should in theory declare

Can't think of any other cons

 

[Faddy]

I think the pros pretty much outweigh the cons, which is what I thought. I don't want to rush into things but, to me, the obvious thing to do is register asap and get things moving!

Thanks for your help roibot!

 

[CSnotepad Virtual PAs]

I completely agree with Roibot, the pro's he listed far out weigh the cons so I reckon you're best off going ahead with it

 

[Mosschops]

Thumbs up for Roibot.

The only additional thing is - your accountant (and you should get one) could make your first year longer, e.g. 18 months, particularly if you didn't earn anything in that time, and you incurred costs.

Therefore - do start to keep a log of all payments, keep all of your receipts. (we'll leave VAT registration for another time!)

 

[Mister B]

For sure a trade price list will help you with your forecasting, but in the interim period can you not estimate?

Most industries work to a standard mark up and presumably you have other price lists which should allow you to make an educated guess at what your cost prices will be.

As long as you err on the cautious side I don't see it as being a problem.

Mister B

 

[Faddy]

I managed to track down suppliers individually and get what I needed!