Is this legal? Confused.

[SB420]

Hi all,

New here and am hoping someone can help.

I am looking at buying a newsagents in my area that is doing well, though could be doing better.

I've noticed a lot of the stock has a higher "wholesale" price than what is sold through the supermarkets. One example would be...

6x2ltrs Coca Cola with VAT from Booker comes to £9.18
However get the same from your local Asda's and it will cost you £6.00! :|

Now I know the big chains have all the buying power and thats fair enough but my question is, Is it legal to buy stock from your local supermarket and then sell it on?

I've read some threads say it is as long as you are not advertising the stock as new, i.e. games, dvd's etc etc. And then I've seen some threads say that its not legal, though with no reason why :|

I've read of a lot of people doing this, though am unsure if its legal or not so clarification would be great.

 

[SB420]

I'm grateful for the reply though am more interested in the legal side of things, as I never said I was looking to order all my stock from the supermarkets.

 

[kelvin1950]

The trick is to monitor a variety of wholesalers, not just one. I don't find Bookers to be cheap for anything really, not when compared to Costco, Makro and Hancocks for example. Keep an eye open for special offers. You won't be able to outprice Sainsburys or Tesco but you will be able to match One Stop and the like with care.

Is it legal? Why not?

 

[andygambles]

Some of the local clubs buy all their bottled booze from Tesco because it is cheaper than the wholesales. The store has no problem with that. They just order enough in.

Booker is the same as a supermarket but without VAT on the shelf price.

The only problem could be returns but then it depends on what your selling.

 

[Banned]

Legality wise you can buy from whomever you so wish.

On the coke example Booker only stock UK goods, other wholesalers will stock coke items made in Ireland which are cheaper but not exactly the same - do a test with coke uk and another, it's subtle but there is a difference, will your customer know - probably not. If you have free chillers from coke though they are not to happy if you buy the Irish version, you need to weigh up the savings on buying and servicing a chiller to the extra cost of buying uk coke.

Despite what Andy says above, Booker are cheaper on most items than a supermarket. Sorry Andy but it's true, it's just most of what Booker sell are main line products that have low margins so the difference isn't that great.

 

[andygambles]

Despite what Andy says above, Booker are cheaper on most items than a supermarket. Sorry Andy but it's true, it's just most of what Booker sell are main line products that have low margins so the difference isn't that great.

I never said the supermarket was cheaper. The OP did .

The other obvious (although not to some corner shop retailers I have come across) is you can not sell price marked items for more than they are marked!

 

[Banned]

I never said the supermarket was cheaper. The OP did .

The other obvious (although not to some corner shop retailers I have come across) is you can not sell price marked items for more than they are marked!

You said they were the same

I'll accept I mis-quoted you on the cheaper bit though :redface:

You can however sell price marked items at whatever price you like, and this often happens in corner stores, same goes for items marked "multi pack, not to be sold individually" although often these items don't have the ingredients on the individual items so prevent you doing so.

Personally I wouldn't sell either as it's not the image I wish to project.

 

[Homshaw]

I do know someone who does this. The profit margins normally are so low on corner shops he has no choice.

There are websites that monitor all the supermarket 2 for 1 offers etc. The supermarket manager sometimes pulls him to one side and stops him buying large quantities.

I think as long as you avoid own labels you should be fine. As for being pulled by the manager if it happens it happens he can only ask you to put them back on the shelf

As for profit margins - the fig biscuits I buy in Aldi are 39p - £1 in a corner shop.

Contrast this with cigarettes where the profit is 4%, Sell £500 worth you make £20.

Running a shop and finding time to visit a load of supermarkets is time consuming and makes for a long day

 

[Homshaw]

On a different note I would really do my homework because most independant newsagents are struggling and with the economic situation people who would normally use them are spending more at the supermarket

 

[Banned]

I wholeheartedly disagree I can tell the difference immediately and some coke tastes do different from our coke it's untrue, for the sake of a couple of pence it's not worth upsetting your customers

Just looking at fliers, UK coke from Booker £7.79 per case (24), non Uk from Hancocks £5.89 so 8p plus vat a can difference.

Non UK Pepsi (marked Pepsi light) from Hancocks £4.69 per case.

Not sure why I posted that, maybe I'll get a free case of coke next time I'm at Hancocks!!!

 

[kelvin1950]

Just looking at fliers, UK coke from Booker £7.79 per case (24), non Uk from Hancocks £5.89 so 8p plus vat a can difference.

Non UK Pepsi (marked Pepsi light) from Hancocks £4.69 per case.

Not sure why I posted that, maybe I'll get a free case of coke next time I'm at Hancocks!!!

Not if I get there first.

 

[Steve Sellers]

Perfectly legal. One of my client's does it all the time. He will see stuff in B&M and sell it on. It's capitalism at it's best, nothing wrong about it at all.

The only business argument against it if you are a small local shop owner is that you are supporting the big chains.....but then a small shop can never compete in terms of buying power.

 

[Banned]

Just thought I would share, that Pepsi light - it's from the Netherlands. Just doesn't strike me as being a cheap country.

 

[SB420]

How did this turn into a Coke vs Pepsi thread? lol

And yes the supermarkets are DEF cheaper than some of the wholesalers such as bookers.

I've seen Tesco's have T&C's to say if they work out your a business they will refuse your order. Guess in store its a different story, sometimes.

 

[thelegalstop]

Hi, buying from the supermarket is not illegal, but please note that most of the products in the mutipacks at a very good price say "Not to be sold separately?.If you sell them separately, you may get into trouble.
On the other hand I have seenn people stocking from wholesalers, but when they see something good at the supermarket, they buy it as well. So in this case, you can do both.
All the best

 

[Banned]

H mutipacks at a very good price say "Not to be sold separately?.If you sell them separately, you may get into trouble.

From who?

The multipack police!

 

[Talay]

If you go to Asda, they are actually geared up to supply in whatever quantities you desire. I know people who buy pallet loads of baby food and milk and have had no problems in sourcing thousands of cosmetics, all at the seriously reduced offer price, with no advance payment at all.

 

[Consistency]

From who?

The multipack police!

Yes, otherwise known as trading standards.................

One of the biggest enemies of British businesses is the stupid consumer who will do anything to reap publicty and havoc on any business whatseover, if they have any hint of a sniff that they are................wait for it...............being "ripped off".

There are consumer programmes such as watchdog, rip off britain who can't wait to do an "exposay" yes, I know I have spelt that wrong!

These pathetic organisations and sleazy journalism feast on trivial things but it is their career and gives them a job and also makes the customer feel empowered.

Back to the main question, I would think you can buy from wherever you want to that is selling it so long as you get a receipt.

I am not too sure on that and common sense should prevail but how often is the law common sense?

It is your livelihood and with any question like this, I would seek legal advice to make sure. If you are in FSB, then use their legal line. You will get a reference number and are covered if there advice is wrong.

 

[Banned]

Yes, otherwise known as trading standards.................

Connie, it has nothing to do with trading standards as long as the individual items are labelled correctly (which often they are not). The "not to be sold individually" is just what the manufactures would like to happen - no laws apply to it.

I agree that the likes of Watchdog might claim you are ripping people off, not sure how they really figure that out though as you are getting exactly the same product in most cases. Again though it's not something I would do as it does project a certain "image".

 

[Consistency]

Years ago somebody brought a pot noodle. It was marked something like 75p with a big star. The corner shop charged 90p. This neighbour went to trading standards and was told that if the price is definite then the shop was breaking the law. If the price was marked RRP (recommended retail price) 75p, then the shop can charge what they want to as it was only recommended.

Of course if the she would have been charged 60p instead of 75p she would not have complained!

This is going back a long time now. It is just best to be sure as these things are so fickle. It should be common sense and I have seen it on crisps and such "not to be sold seperately" but I have not really given it much thought.

 

[Talay]

Sounds wonderful, pallet loads, seriously reduced price and no advance payment. Perhaps you could share how to do this with the op

Quite simple really. Go to Asda and ask.

They will bring someone from stores to take your order, you exchange mobile numbers, they give you an indicative date for collection and telephone / sms you when it is ready to pick up.

The price is the shelf price, which in the case I referred to, was £2.49 versus a regular retail price in Asda of £4.99. Referring back to the OP, this price of £2.49 was much cheaper than any wholesale price at the time.

 

[Banned]

Years ago somebody brought a pot noodle. It was marked something like 75p with a big star. The corner shop charged 90p. This neighbour went to trading standards and was told that if the price is definite then the shop was breaking the law. If the price was marked RRP (recommended retail price) 75p, then the shop can charge what they want to as it was only recommended

Of course if the she would have been charged 60p instead of 75p she would not have complained!

This is going back a long time now. It is just best to be sure as these things are so fickle. It should be common sense and I have seen it on crisps and such "not to be sold seperately" but I have not really given it much thought.

.

Any price is just an offer to trade. Although if they continually charge a different price to what is displayed without making it clear when money exchanges hands then that's a different matter altogether.

Got sod all to do with multipacks though

 

[Consistency]

.

Any price is just an offer to trade. Although if they continually charge a different price to what is displayed without making it clear when money exchanges hands then that's a different matter altogether.

Got sod all to do with multipacks though

I would not know I am not in the business but I still think anyone taking this advice should just make sure of it, in case you are wrong. You may well be right...........

 

[Banned]

I would not know I am not in the business but I still think anyone taking this advice should just make sure of it, in case you are wrong. You may well be right...........

I'm right, always am

But your right as well, if anyone is in any doubt check it out.

 

[GBIMPORTEXPORTRETAIL]

As someone who is supplied by Bookers, I can say Bookers are not cheap.

Take baby-milk formula for example, Booker's Cow & Gate 1-2yrs is 60p more expensive than the supermarkets, and they don't stock Aptamil 1-2yrs which I need.

Sadly, Bookers are, as far as I've found, the only wholsesaler to sell Cow & Gate and Aptamil so it leaves me with a problem.

I solve this by buying from the various chain stores I have in my Mum's town - there are a few, but it is true that supermarkets will not sell in bulk and they will not sell to supply businesses. Tesco and Sainsbury's and Boots were just three to state this. Even Mothercare won't supply me with stuff and they are struggling as a business.

So, you can't do it, and they do put limits on what a customer can buy, and a good store manager who manages his stock levels will start monitoring who is buying 6 tins of milk every day on the same two bank cards because a lot of people do it.

 

[Banned]

According to Talay on this very thread Asda will supply you wholesale and at a better price, so who is correct here?

Well seeing as you ask.......

Co-Op supply a local tea rooms with discounted goods (bread mainly). I guess like any other retailer if they are approached with a large/regular order they are happy to discount.

Those multi-buy alcohol deals they tend to limit numbers with are to ensure stock levels don't deplete, not because of the price/margin.

 

[GBIMPORTEXPORTRETAIL]

According to Talay on this very thread Asda will supply you wholesale and at a better price, so who is correct here?

Never tried Asda, and have just read that post.

I can tell you, next month I will go there and ask them myself if they will do it because, if they do, I might start using them. In saying this, will they supply me in boxed cases like Booker do - Ocado and Tesco insist on delivering in carrier bags!

 

[Talay]

According to Talay on this very thread Asda will supply you wholesale and at a better price, so who is correct here?

If you are going to quote me, have the decency to use it in context please. Twice now in this thread you have referred to my posts but twice twisted it to suit your own purposes.

I latterly replied

The price is the shelf price, which in the case I referred to, was £2.49 versus a regular retail price in Asda of £4.99. Referring back to the OP, this price of £2.49 was much cheaper than any wholesale price at the time.

I do not know where in here you see a wholesale price ? The price is the shelf price but Asda will honour the shelf price in bulk.

 

[Talay]

Never tried Asda, and have just read that post.

I can tell you, next month I will go there and ask them myself if they will do it because, if they do, I might start using them. In saying this, will they supply me in boxed cases like Booker do - Ocado and Tesco insist on delivering in carrier bags!

I got my goods in their shelf boxing, which was itself boxed. So that the shelf box would carry 5 units, the boxes I received were 5 boxes of 5 units, making 25 units in one box, if that makes sense. The pallets were put in the customer's van. The Asda store in question was Farnborough.

 

[QuickHomeBuyers]

You have missed a very basic point here, OP is comparing full price booker item to promotional price asda item. Flaw in comparison, likewise you may find promotional item in booker cheaper than asda.

But booker is probably the most expensive wholesaler in the country, using right wholesaler and correct stock management I am sure you can do better.

 

[GBIMPORTEXPORTRETAIL]

Booker are not very goood with Customer Service either.

 

[GBIMPORTEXPORTRETAIL]

Talay,

Were the pallets wrapped with shrink wrap film?

Was this only on the basis you collected?

 

[Talay]

Talay,

Were the pallets wrapped with shrink wrap film?

Was this only on the basis you collected?

Their regular ordering is going to be JIT I presume so I was told large orders would come either as additions to their own and need picked from the rest of the delivery but if you ordered enough, it could be palletised separately.

I suppose the reality is down to how much you order.

 

[thelegalstop]

From who?

The multipack police!

The multipack items do not have bar codes, so this might cause the problem, as you need to make generic barcodes etc. Also as @Consistency says, the consumers may get you into trouble, if they notice it.
I am not saying it is illegal.

 

[Homshaw]

Is there any money in corner shops? In the last few years they seem to have been hit hard

I have a number of clients who have corner shops and they are squeezed from every direction. There is little margin on tabacco, newspaper margins are not generous, lotto and top-up commision is a joke and there is increasing pressure from supermarkets on alcohol.

The only way they seem able to scrape a marginally living is hunting around supermarkets to get better prices.

Add to this shoplifter, assaults, attempted robberies and disfunctional customers and It adds up to a hard way to earn a living

 

[Steve Sellers]

Is there any money in corner shops? In the last few years they seem to have been hit hard

There is if it is run well with a good location - and without a tesco/mini tesco next door.

 

[Talay]

Is there any money in corner shops? In the last few years they seem to have been hit hard

I have a number of clients who have corner shops and they are squeezed from every direction. There is little margin on tabacco, newspaper margins are not generous, lotto and top-up commision is a joke and there is increasing pressure from supermarkets on alcohol.

The only way they seem able to scrape a marginally living is hunting around supermarkets to get better prices.

Add to this shoplifter, assaults, attempted robberies and disfunctional customers and It adds up to a hard way to earn a living

Decades ago I looked at the corner shop idea and came to the conclusion that in order to turn a decent coin, you had to be open before the crack of dawn and stay open until as late as possible and that it was only possible if you lived above the shop and had numerous members of the family around to help out as there wasn't really enough in a small shop to pay for staff.

 

[kulture]

Regarding multi packs, forget the lack of bar code, or the off putting "not to be sold separately" the main problem would be the lack of the ingredients list and potentially the lack of a use by/sell by date. These would be illegal to sell.

 

[Consistency]

Regarding multi packs, forget the lack of bar code, or the off putting "not to be sold separately" the main problem would be the lack of the ingredients list and potentially the lack of a use by/sell by date. These would be illegal to sell.

On multipack bags of crisps that I opened in the last few weeks, there was no use by or sell by date whichever it is, it says for use by date see outer packet.

Sometimes as well, the measures are slightly different, I think in crisps particularly, multipack packets are 25 grams but an individual bag is 30 or 35 grams. Something like that. I think with cans they are the same amount.

 

[MASSEY]

The multipack items do not have bar codes, so this might cause the problem, as you need to make generic barcodes etc. Also as @Consistency says, the consumers may get you into trouble, if they notice it.
I am not saying it is illegal.

There was a thread about this yonks ago. The outcome was you can break up multi packs and re-sell them...