Advice needed please

[MedEdSoluntions]

Hello

I am in a very difficult situation and I dont know what step to take next.

Im sure I will get slated here for not knowing the answers to these questions and not having written contracts detailing what happens in these events but I dont, but if there is a next time i definetly will.


Staring out as a small business I imported massage tables from china straight from manufacturer. I basically sourced the best deal, paid up front and waited . I built up a good email relationship with my manufacturer and thought everything would work out.

we did not exchange contracts etc.


The goods arrived last friday and I delivered one to a customer and was so embarressed. The joints were cracked and hadnt been welded properly. Every screw on the table was rusted and around each screw someone had taken the paint off while screwing so the area around the screw was also rusted(from being at sea I guess). I came home and checked ten tables out of 60 and they are all the same.

They are now unsaleable by me and the best I could do is sell them as seconds and get back just what I paid for them with a lot of time and effort.


I contacted manufacturer yesterday(doesnt speak good english so it has to be done by email) and he said he is willing to help me out to rectify problem. He has asked me what do I want him to do?

Before I get back to him I was hoping anyone here could tell me what they would do i they were me so I can take the right approach.


They way I would see it is that I can send them all back to him at his expense and he reimburses me or else he refunds me a percentage of my payment so that I can sell them as seconds.

I dont really know????



Another question is this-when you have faulty products and a customer returns them to you and your manufacturer is all the way over in china how do you go about getting the manufacturer to replace the table. Does he just trust you and reimburse you the cost of one table per time?


I bet your thinking im really stupid, and I would agree with you. I am also a full time mature student and have a part time job and just didnt have the time do get business advice and find out every corner I had to cover. But now I know and will seek advice from my local dev agency when I find the time.


I really will be very grateful for any answers and you will be helping me out a lot by sharing your knowledge.

Thanks in advance.

G

[Ian J]

That is one of the problems of buying blind from a company on the other side of the world but I don't suppose that you want a lecture about that.

At least the manufacturer is making positive noises about being helpful which is a step in the right direction. Are you saying that 10 of the 60 tables are damaged or that you have only checked 10 tables and they were all damaged.

I would take photographs of the damaged goods and email them over to China as proof of the problem although you may not be the first one to report problems like these so they may already be aware.

If it is only a proportion of the tables that are damaged it would be right for the manufacturer to ship out replacements to make good your losses.

Dependant on how much these tables cost it will probably not be economic for them to be shipped back to China and if I were you I would make an offer to the manufacturer to sell them as seconds on their behalf at a lower price.

[MedEdSoluntions]

Thanks so much for the reply Ian.


I have only checked 10 tables of the 60 but it goes without saying that if every single one i checked is damaged then they all are. Its rust therefor it would have gotten them all.



I know it would no be economical for the manufacturer to get them shipped back.


Can I ask for your advice-How would I best follow up on your recomendation of asking the manufacturer to sell them as seconds on their behalf? I think this would be the easiest option albeit not so easy.


Do I say I will sell them as seconds at the priceI paid for them? But then I will be putting in all this effort and still come out none the better with interest on the loan I got out to purchase them. I would love some advice on this??

Look forward to hearing from you or anyone else who can offer advice.

Cheers

[Ian J]

If the whole batch is now faulty you could always ask them to replace the whole consignment and tell them that the faulty ones are awaiting collection by them.

If you feel that you could sell the faulty ones at a discount it may be an idea to tell the manufacturer that there is still a market for faulty goods but you could only get £XX instead of the original £YY that you wished to sell them for and that if they cared to make an allowance of ££YY - £XX you would sell them on their behalf to save further inconvenience.

[MedEdSoluntions]

Thanks again Ian.

I responded giving 3 options
Option 1
You arrange for the tables to come back to you and cover all costs involved and we can start again with a new shipment.

Option 2
You refund me 50 % of my payment to you.I sell the tables as damaged goods/seconds. This will take considerable time and effort and 50% refund is not enough but I will compromise.

Option 3
If you have an agent in the UK who can take them from me and reimburse my costs(see spreadsheet) and then the agent can sell them as damaged goods for you.



I dont know how these options will appear to the manufacturer. Ill let you know.



Im so annoyed that the manufacturer could have let these goods leave the factory. The tables are of sound structure but using screws that rust is just beyond me.

[Eagle]

Bad situation to be in. I hope this resolves well for you.

Keep us informed!

[Cougar]

A few further comments ...

First of all, sorry to hear of these difficulties for you...

Second, it will be worth seeing whether, in the response you receive, the supplier admits that the screws were actually rusty when the tables left the factory and what state generally they were in. If he does not, this may imply that the rusting occured while the tables were on the high seas. If a load fell off during port loading or a container was not sealed properly ...these could result in damage after departure of the tables. The issue then is at what point responsibility for risk passed from supplier to purchaser and this in turn depends on the shipping/delivery term. What does the shipping document or invoice say about shipping terms? Shipping terms are not really just about transport, they are about who bears risks for loss or damage and at what point in the supply chain.

Third, if you agree a lower price for the tables because you can strike a deal onm selling as seconds ect, you will be able to get some of the import customs duty back (if you paid any) and some of the import VAT (unless you are VAT registered) because your import value will be adjusted downwards. However you will have to seek this as UK Customs will not offer it. There is pelnty of time to do this, so spend your time now on your negotations with the supplier.

[MedEdSoluntions]

Thanks for that cougar.

I hope it doesnt get that technical. The manufacturer is being very quiet and hasnt responded to my options yet.
I think my entrepreneurial spirit is fledging!!!

[MedEdSoluntions]

The maufacturer has offeredme 20 tables as compensation and to sell the 50 duds he sent me as seconds. Im not happy with this. I asked him for 50 replacements.

If I agree to this it will have to be on the terms that they are delivered tomy door. Last time it was CIF.


Does anyoen knowthe trade term I would use so that the onus is on him to get them to my premises?

[inbakumar]

Hi,

Glad to hear you are making some progress with the manufacturer.

I think the INCO Terms you need is DDP - Delivered Duty Paid. Under this everything is the responsibility of the seller. Anyway, please check with Cougar. It is his field of expertise .

Good luck.