keitha
Member of DD Central
2024, hopefully the year I get out of P2P
Posts: 4,586
Likes: 2,616
|
Post by keitha on Apr 26, 2023 11:07:55 GMT
As many of you will know I follow a couple of auction houses that deal in administration stock.
one had a sale yesterday of Lights etc from a company fairly local to me that's gone into administration.
Now we are talking decent light fittings etc here, a lot of the stock had RRP in the £350-400 range, I found a few items I can sell on and can post easily.
As is my practise I placed my bids and went about my day. I also found a couple of fittings that I liked as upgrades to what I have in the house.
looked mid afternoon to see if I'd got anything and I'd won everything I bid on. 3/4 of the items at £2 the rest under £10.
this means in this instance I've purchased items at < 3% of RRP, creditors will probably be furious that stock has sold so cheaply, as the stock will make up the majority of the assets, even if the stock was valued at cost I think I probably got it at < 10%.
|
|
|
|
Post by Deleted on Apr 26, 2023 12:03:27 GMT
well done keith , just out of interest I thought RRP was dead...
"Manufacturers are generally prohibited from outrightly regulating the prices. This kind of interference with the market is called Resale Price Management or RPM. The only time RPM is allowed is when prices are cut for marketing purposes starting from the launch of a product, up to a maximum of six weeks.
However, manufacturers are allowed to set maximum resale prices. As long as they don’t end up dictating the price at which a retailer would need to sell the product.
Manufacturers, suppliers and retailers have to be very careful when discussing the RRP because such communications can be interpreted as an attempt to engage in RPM which is illegal in the UK, as well as the EU."
just for interest
|
|
agent69
Member of DD Central
Posts: 6,038 
Likes: 4,435
Member is Online
|
Post by agent69 on Apr 26, 2023 12:39:53 GMT
well done keith , just out of interest I thought RRP was dead...
"Manufacturers are generally prohibited from outrightly regulating the prices. This kind of interference with the market is called Resale Price Management or RPM. The only time RPM is allowed is when prices are cut for marketing purposes starting from the launch of a product, up to a maximum of six weeks.
However, manufacturers are allowed to set maximum resale prices. As long as they don’t end up dictating the price at which a retailer would need to sell the product.
Manufacturers, suppliers and retailers have to be very careful when discussing the RRP because such communications can be interpreted as an attempt to engage in RPM which is illegal in the UK, as well as the EU."
just for interest
So why is this allowed?
|
|
Greenwood2
Member of DD Central
Posts: 4,377
Likes: 2,780
|
Post by Greenwood2 on Apr 26, 2023 12:45:06 GMT
As many of you will know I follow a couple of auction houses that deal in administration stock. one had a sale yesterday of Lights etc from a company fairly local to me that's gone into administration. Now we are talking decent light fittings etc here, a lot of the stock had RRP in the £350-400 range, I found a few items I can sell on and can post easily. As is my practise I placed my bids and went about my day. I also found a couple of fittings that I liked as upgrades to what I have in the house. looked mid afternoon to see if I'd got anything and I'd won everything I bid on. 3/4 of the items at £2 the rest under £10. this means in this instance I've purchased items at < 3% of RRP, creditors will probably be furious that stock has sold so cheaply, as the stock will make up the majority of the assets, even if the stock was valued at cost I think I probably got it at < 10%. Trying to give us a heart attack, thought you were going to say another P2P....
|
|
|
|
Post by Deleted on Apr 26, 2023 13:01:54 GMT
well done keith , just out of interest I thought RRP was dead...
"Manufacturers are generally prohibited from outrightly regulating the prices. This kind of interference with the market is called Resale Price Management or RPM. The only time RPM is allowed is when prices are cut for marketing purposes starting from the launch of a product, up to a maximum of six weeks.
However, manufacturers are allowed to set maximum resale prices. As long as they don’t end up dictating the price at which a retailer would need to sell the product.
Manufacturers, suppliers and retailers have to be very careful when discussing the RRP because such communications can be interpreted as an attempt to engage in RPM which is illegal in the UK, as well as the EU."
just for interest
So why is this allowed?
Not sure it is, just some dodgy company trying it on with customers who know no better.
|
|
keitha
Member of DD Central
2024, hopefully the year I get out of P2P
Posts: 4,586
Likes: 2,616
|
Post by keitha on Apr 26, 2023 16:03:29 GMT
I see that sort of thing regularly on booze in the local shop
caused a lot of consternation when the WG introduced the alcohol tax as people were saying the price is on the bottle you can't charge more
|
|
adrianc
Member of DD Central
Posts: 9,993
Likes: 5,132
|
Post by adrianc on Apr 26, 2023 16:03:46 GMT
There's a difference between regulating prices (thou shalt not sell at a price other than £1, else we shall refuse to resupply you) and recommending. Lots of things have prices printed on packaging - books, for a start - but retailers are free to sell at other figures.
As for the auction - yep, that's what an auction's for. Lousy marketing by the auctioneer if they couldn't get more than one bidder interested in anything. To which, of course, the solution is in the hands of the vendor - the creditor, in this instance, to sell through a more lucrative channel.
|
|
keitha
Member of DD Central
2024, hopefully the year I get out of P2P
Posts: 4,586
Likes: 2,616
|
Post by keitha on Apr 26, 2023 16:13:20 GMT
There's a difference between regulating prices ( thou shalt not sell at a price other than £1, else we shall refuse to resupply you) and recommending. Lots of things have prices printed on packaging - books, for a start - but retailers are free to sell at other figures. As for the auction - yep, that's what an auction's for. Lousy marketing by the auctioneer if they couldn't get more than one bidder interested in anything. To which, of course, the solution is in the hands of the vendor - the creditor, in this instance, to sell through a more lucrative channel. I have a feeling this is a bit out of the norm, normally they get "fair" prices of course the creditors don't decide who sells it the administrators do, and I get a feeling that some administrators have cosy arrangements with auction houses, ie XXX admin will often use YYY auction house in this area. be interesting when I collect to see if I can spot any businesses that have bought the stock, or if I can get the info from staff.
|
|
keitha
Member of DD Central
2024, hopefully the year I get out of P2P
Posts: 4,586
Likes: 2,616
|
Post by keitha on May 2, 2023 9:44:34 GMT
2 other local lighting retailers were there with trucks having bought a lot of stuff.
one had several large cartons full of assorted bulbs, so me being me I asked the guy loading them what they would do with hundreds of used bulbs, "we will use some in display lights, others we will put in a box on the counter at 50p each."
I was feeling rather good and driving home when I got forced into a barrier by a speeding scaffolding truck. It tore the wing mirror off the drivers side and scratches down the other side. Another motorist set off after the truck and got a picture and his number plate.
went to report it to local police, the advice I was given, " You don't want to go upsetting them, we have to visit the site they live in in riot vans with the screens down"
basically police are saying as the damage is only a couple of hundred quid its not worth getting involved in a row with a bunch of travellers, what a state this country is in
|
|
|
|
Post by batchoy on May 2, 2023 10:23:36 GMT
well done keith , just out of interest I thought RRP was dead...
"Manufacturers are generally prohibited from outrightly regulating the prices. This kind of interference with the market is called Resale Price Management or RPM. The only time RPM is allowed is when prices are cut for marketing purposes starting from the launch of a product, up to a maximum of six weeks.
However, manufacturers are allowed to set maximum resale prices. As long as they don’t end up dictating the price at which a retailer would need to sell the product.
Manufacturers, suppliers and retailers have to be very careful when discussing the RRP because such communications can be interpreted as an attempt to engage in RPM which is illegal in the UK, as well as the EU."
just for interest
So why is this allowed?
This has more than likely been set by the retailer and not the manufacturer, or the manufacturer running a marketing excercise. I'm involved in the manufacturer of packaging, making runs of film for brand manufacturers specific to one of their customer is quite common. The worst ones are where a specific customer has a slightly different weight printed on the pack but to all intents and purposes the packaging is identical.
|
|
michaelc
Member of DD Central
Say No To T.D.S.
Posts: 5,690
Likes: 2,977
Member is Online
|
Post by michaelc on May 2, 2023 20:23:44 GMT
As many of you will know I follow a couple of auction houses that deal in administration stock. one had a sale yesterday of Lights etc from a company fairly local to me that's gone into administration. Now we are talking decent light fittings etc here, a lot of the stock had RRP in the £350-400 range, I found a few items I can sell on and can post easily. As is my practise I placed my bids and went about my day. I also found a couple of fittings that I liked as upgrades to what I have in the house. looked mid afternoon to see if I'd got anything and I'd won everything I bid on. 3/4 of the items at £2 the rest under £10. this means in this instance I've purchased items at < 3% of RRP, creditors will probably be furious that stock has sold so cheaply, as the stock will make up the majority of the assets, even if the stock was valued at cost I think I probably got it at < 10%. Trying to give us a heart attack, thought you were going to say another P2P.... Can't understand why you'd invest somewhere where you can see the almost certainty of losing your money if it were to go belly up. If my main stock broker toppled over it wouldn't bother me at all. FSCS and the underlying investments in stocks would see me through. Here, in P2P you are dead in the water the minute that administrators message appears on the platform website. What are the underlying investments worth without the platform?
|
|
Greenwood2
Member of DD Central
Posts: 4,377
Likes: 2,780
|
Post by Greenwood2 on May 3, 2023 5:35:22 GMT
Trying to give us a heart attack, thought you were going to say another P2P.... Can't understand why you'd invest somewhere where you can see the almost certainty of losing your money if it were to go belly up. If my main stock broker toppled over it wouldn't bother me at all. FSCS and the underlying investments in stocks would see me through. Here, in P2P you are dead in the water the minute that administrators message appears on the platform website. What are the underlying investments worth without the platform? Sense of humour failure? It was a joke!
|
|
keitha
Member of DD Central
2024, hopefully the year I get out of P2P
Posts: 4,586
Likes: 2,616
|
Post by keitha on Mar 16, 2024 17:14:50 GMT
Chatting to a friend who is a creditor of a company that has gone bust.
a few weeks ago he was saying he'd had a good meeting with then administrator, this week he's annoyed as administrators have charged thousands of pounds for meetings with creditors, he's discovered his meeting was charged at £350 per hour.
he found out where the assets were being sold, and decided that he would go. as this was an electrical contractor he expected lots of cables, trunking, sockets, tools etc etc. Given he does mainly electrical works he thought that he could get some stock cheaply.
looking around he found none of the stuff he expected, apparently even 2 of the vehicles had no wheels.
It looks like the ex-Staff ( or management ) took anything they could get their hands on. Stock rooms stripped bare.
Administrators are investigating whereabouts of computers etc Obviously as well as the value of the equipment they should contain a lot of financial information. Of course it is possible that owners don't want that information found.
|
|
