Need4Speed Posted December 13, 2005 Share Posted December 13, 2005 I know some people have a particularly low (probably justified) opinion of Halfords, but I've just read they are putting all their suppliers on 120 days terms! Any of you who are in business will know this sort of big customer bullying strategy and what it means to small suppliers. I, for one, am boycotting them. Quote Link to comment Share on other sites More sharing options...
Todd Posted December 13, 2005 Share Posted December 13, 2005 they are putting all their suppliers on 120 days terms! So what does this mean then Quote Link to comment Share on other sites More sharing options...
terribleturner Posted December 13, 2005 Share Posted December 13, 2005 Quote Link to comment Share on other sites More sharing options...
Angarak Posted December 13, 2005 Share Posted December 13, 2005 I think it means a suppliers contract with Halfords is only for 120 days, not a year, etc. If this is the case, I guess the supplier would have to do their best not to mess up any orders or else 'risk' losing their contract come renewal. Quote Link to comment Share on other sites More sharing options...
JohnA Posted December 13, 2005 Share Posted December 13, 2005 I'd think it's paying terms we're talking here. I.e. they'll repay their invoices within 4 months, instead of the 'usual' one. Quote Link to comment Share on other sites More sharing options...
MARTIN R Posted December 13, 2005 Share Posted December 13, 2005 Another case of Big firm screws little firm. unlikely to see anything different as a consumer but will make it a tough business to supply if cash flow is tight Quote Link to comment Share on other sites More sharing options...
monkey76364 Posted December 13, 2005 Share Posted December 13, 2005 Thats crap we are a huge firm and deal in pallets and have to pay Chep a multie million £ company on a 15 day basis !! thats harsh Quote Link to comment Share on other sites More sharing options...
Need4Speed Posted December 13, 2005 Author Share Posted December 13, 2005 If you are a supplier, you agree that they have 4 months to pay you. The reality if this probably means that Halfords do a cheque run after 4 months and then the cheque sits around waiting to be signed etc. and by the time you've got money in your account, cleared, it's probably five months after you delivered the goods. If you're in business, waiting 5 months to get paid is no fun. Quote Link to comment Share on other sites More sharing options...
monkey76364 Posted December 13, 2005 Share Posted December 13, 2005 Its not a fair way to work, 30 days is more than right!!!! Quote Link to comment Share on other sites More sharing options...
Todd Posted December 13, 2005 Share Posted December 13, 2005 eek.....thats harsh, so going on the fact that hafrauds are a huge company I am guessing their orders will be rather large and a substancial pound value. So in effect your giving them an interest free loan for 4 months, holy shite!! Quote Link to comment Share on other sites More sharing options...
MARTIN R Posted December 13, 2005 Share Posted December 13, 2005 eek.....thats harsh, so going on the fact that hafrauds are a huge company I am guessing their orders will be rather large and a substancial pound value. So in effect your giving them an interest free loan for 4 months, holy shite!! Its bang out of order IMO Quote Link to comment Share on other sites More sharing options...
carl0s Posted December 13, 2005 Share Posted December 13, 2005 I think I'll buy my stuff elsewhere too. My local autoplace usually gets things in same-day if asked. Not sure about where to buy cleaning stuff though. Quote Link to comment Share on other sites More sharing options...
RobSheffield Posted December 13, 2005 Share Posted December 13, 2005 is this a sign of the end for the big H? surely most suppliers will tell them where to go - erm, Autoglym for one for example (first one into my head) Quote Link to comment Share on other sites More sharing options...
carl0s Posted December 13, 2005 Share Posted December 13, 2005 is this a sign of the end for the big H? surely most suppliers will tell them where to go - erm, Autoglym for one for example (first one into my head) Unlikely. Most of the suppliers will have been overjoyed to have their products available at Halfords outlets. Now they know that Halfords really do see it as a privelidge to them. Quote Link to comment Share on other sites More sharing options...
Pete Posted December 13, 2005 Share Posted December 13, 2005 Some of our customers slip into 60 or even 120 days. They're lucky we're nice guys. It's not on really is it? Quote Link to comment Share on other sites More sharing options...
suprasport Posted December 13, 2005 Share Posted December 13, 2005 i am asked to put tenders in for large companies where in theory there could be good money, but i just bin them its not worth the risk and the wait, they prefer to deal with smaller companies as they think they are easier to fob off, one i did do for £18,000 took 4 months to pay as they were supposedly waiting for a cheque to clear. they are a multi million pound company, i had to threaten the manager in the end to get paid. never again. Quote Link to comment Share on other sites More sharing options...
Mike Posted December 13, 2005 Share Posted December 13, 2005 It's full of overpriced crap anyway.....? I haven't been in one for years.... what are you buying ftom Halfords on a regular basis that you can't get cheaper on-line somewhere...? ... and their bike section is terrible.. can't really understand why they've been around so long? Quote Link to comment Share on other sites More sharing options...
black cat Posted December 14, 2005 Share Posted December 14, 2005 what about my car shampoo.................... where can i get cheap good stuff if i dont go here.????????/ Quote Link to comment Share on other sites More sharing options...
Kip Posted December 14, 2005 Share Posted December 14, 2005 Think the OFT maybe interested in this, if they have more than 40% of the market share it will/could be classed as Abuse of Dominant Power, which the OFT don't like. If any one does business with them, ie supply - suggest, contacting your trade association and ask them to look into it. Meanwhile I will have to find somewhere else to get my Zymol - any ideas?. Quote Link to comment Share on other sites More sharing options...
Parksy Posted December 14, 2005 Share Posted December 14, 2005 Typical large company practice... Tescos have driven down supplier pricing, especially farming. Microsoft sell buggy/inferior products due to its market share. Halfords give there suppliers shit payment terms. Big businesses do this because they can... simple economics. Suppliers can't do anything as they depend on the revenue companys like these generate for them. Boycotting Halfords will do absolutly nothing to help suppliers situations so why bother? Leave it to the regulating body to possibly, if it is deemed as unacceptable business practice to do something about it. Not on the side of Halfords by any means, 90 days terms is very poor, especially for a small trader. At least there telling there customers they are paying in 90 days. Unlike some of mine who have 30 days terms and then do pay after 90/120 days after legal letters have to be issued... Quote Link to comment Share on other sites More sharing options...
how_supra Posted December 14, 2005 Share Posted December 14, 2005 I think it means a suppliers contract with Halfords is only for 120 days, not a year, etc. If this is the case, I guess the supplier would have to do their best not to mess up any orders or else 'risk' losing their contract come renewal. Its payment terms as everyone has just said. Supplier deliver goods to the Halfords ndc I suspect and 120 days later they can expect payment for it. This has implications not only on the first tier suppliers to Halfords, but also the supplier suppliers further down the chain. It means that all their cash flow is tied up for 120 days. For smaller suppliers this is obviously much more of an issue. Incidently its properly 120s end of the month, so its more like 150 days til they expect to see the money. Payment terms is a negotiation technique and is generally employed when top tiers have squeezed as many cost downs from their suppliers as possible. It is not uncommon and does not surprise me at all. We experience this type of badgering from the OEMs everyday. Quote Link to comment Share on other sites More sharing options...
how_supra Posted December 14, 2005 Share Posted December 14, 2005 Think the OFT maybe interested in this, if they have more than 40% of the market share it will/could be classed as Abuse of Dominant Power, which the OFT don't like. If any one does business with them, ie supply - suggest, contacting your trade association and ask them to look into it. Meanwhile I will have to find somewhere else to get my Zymol - any ideas?. If you have over 25% it is considered to be anti competitive I believe - correct me if I'm wrong I'm not sure this is 100% competition law tbh. Halfords can argue they supply many different segmented markets which would reduce the 40% significantly. They may have some scope with unfair contract terms [uccta] though. Be interested to see what happen with this. Quote Link to comment Share on other sites More sharing options...
Scoboblio Posted December 14, 2005 Share Posted December 14, 2005 Surely this could backfire on Halfords massively. As people have already pointed out, buying online is much cheaper and the service is quite often miles better. Personally I use Halfords in the same way I use other big chain suppliers - as a showroom. Take a look around, then if I like a product I'll go home and buy it cheaper online How much would it cost these small suppliers to ship to internet shops instead, or start selling to the consumers directly? It seems to me that Halfords are making a big mistake here, having tried to advertise ripspeed as "the place to go for modifying", they're now encouraging the major brands (who are still small companies in the grand scheme of things) to go elsewhere! If the likes of momo, pipercross, K&N etc start turning their back on Halfords because of this they'll have next to nothing going for them. Every single product Halfords sell can be bought for cheaper and higher quality somewhere else. I don't think Halfords are as invincible as they think they are. I also found out recently that their chain of garages which were jointly owned by the AA were sold off by Halfords, and are now run by the rejects from other small garages and MOT centres (I know this because I saw my local "do any job whenever you like" centre turn into "do whatever we like whenever we feel like"). Quote Link to comment Share on other sites More sharing options...
how_supra Posted December 14, 2005 Share Posted December 14, 2005 You're right It could back fire, but it won't. Buyer Power rules. Halfords represents consumer convenience. Whilst the business's that produce parts for Halfords properly don't make any profit on those parts, it more than likely recovers their overheads, which will enable them to be more competitive to their other customers Unfortunately its the way of the world Quote Link to comment Share on other sites More sharing options...
Kip Posted December 14, 2005 Share Posted December 14, 2005 How Supra I have had to contact the OFT recently with regards to some of the associations (which I work for) members being told they have to pay a 5k charge to go on a suppliers list!!! and yes it's 40% market share. You are quite right - I have had a wee think and it's probably not a case for the OFT. Quote Link to comment Share on other sites More sharing options...
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