Sending products back ? Or discounts for next year ?

Clive

Staff Member
Arable Farmer
Location
Lichfield
The fact much product comes through distributors is immaterial. If you've beaten them down on price for years through whatever means I doubt they will be willing to add much service into the equation.

Dunno what the rigamarole is. For big accounts im sure there can be arrangements made to delay the need for payment.

beaten down on price ! You do know just how much distribution margin there is don’t you ?
 

Clive

Staff Member
Arable Farmer
Location
Lichfield
Danger here is the smaller distributors , this season might be the straw that brakes the camels back leading to it falling into the hands of the larger boys.

there are no small distributors - it’s all controlled by 5 big ones

the smaller “man and van” sellers and buying groups all live of their scraps, special deals when they over buy and a bit of parallel importing when exchange rates are right mostly
 

David.

Member
Mixed Farmer
Location
J11 M40
Not sure chems are much different to fertiliser, you order in good faith, even if it is the previous July, you take it and pay. Seems to be how it works.
Perhaps in future, we should produce our own terms of business, saying something to the effect that orders made in good faith are subject to cancellation if no crop gets planted.
 

teslacoils

Member
Arable Farmer
Location
Lincolnshire
Has anyone tried the reverse, and rung the supplier and told them you want a 20 percent rebate or they can have it all back?

Its probably a conversation a lot of folk ought also be having with their independent agronomist re crop walking fees for non existent crops. Imagine being an indy in mid lincs with zero planted or surviving crops.

In both cases I'd rather not be writing a cheque when I could pay nothing.

Retention of title clauses mean exactly that - the buyer does not own the goods until paid for. The notion of good faith is funny - let's see how the grain market works if we all put a "subject safe harvest" clause on all forward sold grain.
 

Clive

Staff Member
Arable Farmer
Location
Lichfield
No idea but if you fudge people about why would they worry about after sales service?

people in low margin businesses don't usually make it onto the Times rich list! Distributors are not beaten down on price that's for sure


distributors will be pushing manufacturers to take product back and welching out of forward buying commitments so don't feel guilty when you ask them to do the same !
 
Last edited:

ajd132

Member
Arable Farmer
Location
Suffolk
Has anyone tried the reverse, and rung the supplier and told them you want a 20 percent rebate or they can have it all back?

Its probably a conversation a lot of folk ought also be having with their independent agronomist re crop walking fees for non existent crops. Imagine being an indy in mid lincs with zero planted or surviving crops.

In both cases I'd rather not be writing a cheque when I could pay nothing.

Retention of title clauses mean exactly that - the buyer does not own the goods until paid for. The notion of good faith is funny - let's see how the grain market works if we all put a "subject safe harvest" clause on all forward sold grain.
Good point, agronomy on most spring crops can be done with you’re eyes closed.
 

ajd132

Member
Arable Farmer
Location
Suffolk
people in low margin businesses don't usually make it onto the Times rich list! Distributors are not beaten down on price that's for sure


distributors will be pushing manufacturers to take product back and welching out of forward buying commitments so don't feel guilty when you ask them to do the same !
Isn’t a certain Hutchinson on the rich list? As Ollie said so where else we have pushed chemical farming so hard in the U.K. they now don’t work, pretty obvious who has won in this one!
 

teslacoils

Member
Arable Farmer
Location
Lincolnshire
Might also find that if you do your figures on all spring crops for turnover you can get a rebate for your business insurance too. And much reduced overdraft requirements.
 

Clive

Staff Member
Arable Farmer
Location
Lichfield
Has anyone tried the reverse, and rung the supplier and told them you want a 20 percent rebate or they can have it all back?

Its probably a conversation a lot of folk ought also be having with their independent agronomist re crop walking fees for non existent crops. Imagine being an indy in mid lincs with zero planted or surviving crops.

In both cases I'd rather not be writing a cheque when I could pay nothing.

Retention of title clauses mean exactly that - the buyer does not own the goods until paid for. The notion of good faith is funny - let's see how the grain market works if we all put a "subject safe harvest" clause on all forward sold grain.


exactly what I'm suggesting - just what discount is 10 months storage and money upfront worth to a distributor ? if they say nothing them send it back


they will be pushing manufacturers exactly the same
 

Flat 10

Member
Arable Farmer
Location
Fen Edge
I’ve got a decent amount of pre-em in stock but it was bought at a decent price and I wouldn’t expect them to take it back without a handling charge. I ordered it so why should they take it back? I don’t expect grain buyers to send stuff back. Anyway I can’t see them dropping prices next autumn so probably worth keeping for that alone.
 

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