Is this allowed?

iguy

Don't know if this is the right place to post this, but here goes,
The owner of a local convenience (solely owned,not branded) store of mine,
is buying products from lidl in bulk and then selling them on for a Roughly 12 percent profit margin,
He's buying everything from biscuits to perishable goods, except frozen food.
He has a van and he would go nearly everyday and maybe buy ten items of everything, sometimes if he thought the staff was getting suspicious, he'd send his wife or son,etc in.
He also goes to different Lidl's,
the town we are in there is a lidl 15 mins either side of town.
I know people don't mind and will pay the extra instead of driving to the bigger towns, he sometimes even gets stuff from Tesco's and aldi.
Its just that me and a good friend of mine owns a convenience store and was wondering is that sort of thing allowed,
because the fella who owns the shop is taking a lot of business from the other local stores, including supervalu, centra, gala, and the sole ran stores including my friends.
sorry for such a long post.
sincerely,

iguy

Atlantic Dawn

I'd say allowed, however might be messy him him putting it through the books, most likely he's just pocketing the cash and not running it through the till properly.

Atlantic Dawn

Atlantic Dawn wrote: »

I'd say allowed, however might be messy him him putting it through the books, most likely he's just pocketing the cash and not running it through the till properly.

What would be the point of that? If he's spending money on stock, he must be putting it through the books.

Wicklowandy

An accountancy issue maybe, but if you see success in what hes doing maybe if you can't beat him join him?

Wouldn't think the multiples would take too kindly to him though. If you're that concerned, maybe a word with a few of the store managers of aldi etc.

iguy

Wicklowandy wrote: »

Wouldn't think the multiples would take too kindly to him though. If you're that concerned, maybe a word with a few of the store managers of aldi etc.

That's what myself and my friend was thinking. I thought that there might be some sort of consumer/trader law etc.
I wouldn't mind if he bought from the wholesaler's, I wouldn't say that he'd have the buying power like the big guys.
I have to say though he is honest and lets his customers know where the stock has came from etc.
He's doing well though, considering this time last year he was driving a Toyota carina
and there about 2 weeks ago he has a brand new Toyota landcruiser!!!
I would not think he's putting it through the books though, as some things he is only selling for maybe 4 cents more than lidl.

"I would not think he's putting it through the books though, as some things he is only selling for maybe 4 cents more than lidl."
I can't see the point in him buying stock, selling it and not putting it through the books! Does not make sense. I would also thing that theres nothing wrong with him buying and selling anything, unless the shops he's buying from get cheesed off with him selling it dearer than they are. They may be glad of the business, though.

iguy

Deleted User wrote: »

"I would not think he's putting it through the books though, as some things he is only selling for maybe 4 cents more than lidl."
I can't see the point in him buying stock, selling it and not putting it through the books! Does not make sense. I would also thing that theres nothing wrong with him buying and selling anything, unless the shops he's buying from get cheesed off with him selling it dearer than they are. They may be glad of the business, though.

Its a known fact that he doesn't pay tax on the products that he get from the other stores, surely that's illegal, as he's buying and then he selling for a maximum profit of maybe even 50 cent in some cases.
That's what bugging the other stores, nobody seems to be reporting him,
and my friend is Indian and he doesn't know much much about the rules,taxes and all that like I mean.
My friends business partner who owns 15% sorts out my friends taxes.
Also it should be noted that the man does pay taxes on cigarettes, sweets, alcohol, frozen food and the certain Irish products he'd get in.
However the Aldi,etc products he gets in accounts for at least 70-75% of stock he sells, so that is very little tax he does pay.

Arciphel

Sounds like sour grapes from you OP, don't think he is breaking any laws. Time to buck up your ideas instead of wingeing on the Internet.

iguy

Arciphel wrote: »

Sounds like sour grapes from you OP, don't think he is breaking any laws. Time to buck up your ideas instead of wingeing on the Internet.

Eh, why should I 'buck up my ideas'?
I actually don't give two monkeys, I don't own a store or anything.
He has to be breaking some sort of law though as he pays no tax whatsoever on the the profit he makes from the Lidl, Aldi,etc stuff.
You don't seem to have read this thread properly.

galwayjohn89

iguy wrote: »

Eh, why should I 'buck up my ideas'?
I actually don't give two monkeys, I don't own a store or anything.
He has to be breaking some sort of law though as he pays no tax whatsoever on the the profit he makes from the Lidl, Aldi,etc stuff.
You don't seem to have read this thread properly.

There is nothing illegal in buying stuff from Aldi and reselling it.

How do you 'know for a fact' he's not paying Tax on the profits from selling those goods?

mikemac1

Nothing illegal about it.

Eventually Lidl management may put an end to it. Or maybe they won't and are happy for the sales, that's for them to decide.


Our local off license used to buy slabs in Tesco and then sell them on.
Tesco didn't stop it but they did restrict everyone to two slabs per sale.

iguy

Vuzuggu wrote: »

There is nothing illegal in buying stuff from Aldi and reselling it.

How do you 'know for a fact' he's not paying Tax on the profits from selling those goods?

Everyone in the whole town knows, because he has a bar beside the shop and he drinks there obviously, and he has 'let it slip numerous times'.

iguy

iguy wrote: »

Its a known fact that he doesn't pay tax on the products that he get from the other stores, surely that's illegal, as he's buying and then he selling for a maximum profit of maybe even 50 cent in some cases.
That's what bugging the other stores, nobody seems to be reporting him,
and my friend is Indian and he doesn't know much much about the rules,taxes and all that like I mean.
My friends business partner who owns 15% sorts out my friends taxes.
Also it should be noted that the man does pay taxes on cigarettes, sweets, alcohol, frozen food and the certain Irish products he'd get in.
However the Aldi,etc products he gets in accounts for at least 70-75% of stock he sells, so that is very little tax he does pay.

If he's buying from a retailer, he's paying the same tax as any other customer. Please explain the logic of someone buying from any source, then selling it on without accounting for where he spent his money in the first place? Your posts make no sense to me. Am I missing something? Do you have access to his accounts? If he is doing something illegal, have you reported this to the relevant authorities? If not, why not?

juice1304

He isn't doing anything wrong or illegal and he is paying tax on the items the same as anyone else.

Arciphel

Double post

Arciphel

iguy wrote: »

Eh, why should I 'buck up my ideas'?
I actually don't give two monkeys, I don't own a store or anything.
He has to be breaking some sort of law though as he pays no tax whatsoever on the the profit he makes from the Lidl, Aldi,etc stuff.
You don't seem to have read this thread properly.

Did you not say in your original message "Its just that me and a good friend of mine owns a convenience store" ? Oops, guess I must have not read the thread ""correctly"". Does the fact that he is driving a bigger car than you really bother you that much, does it keep you up at night?

DubTony

The c-store owner isn't breaking a law by buying from Lidl. This kind of thing has been going on for years. Ask any seasoned supermarket manager and he'll tell you the same. Supermarket managers are judged based on the highest volume of sales achievable, coupled with the lowest cost of making those sales (primarily wages and waste) and have little control over anything else. They love these guys.

The only way he may be breaking the law is if, as has been claimed, he isn't paying the correct tax on his sales. While using Lidl as his wholesaler he pays the same vat as everyone else, he should be reclaiming that and paying vat based on the higher selling price. Having said that, most foodstuffs are zero rated for vat.

If he's just adding on a few cents to each product, he's not making a killing, but is using a very clever strategy to ensure his business remains in business. There's the possibility he could be a busy fool by filling his van every day for little profit, but if it's bringing customers into his store, he's doing something right. His ingenuity is to be admired.

iguy

Arciphel wrote: »

Did you not say in your original message "Its just that me and a good friend of mine owns a convenience store" ? Oops, guess I must have not read the thread ""correctly"". Does the fact that he is driving a bigger car than you really bother you that much, does it keep you up at night?

Oh sorry, my bad sorry for getting smart with you,
I meant to say my friend owns the store and that I was wondering and himself was wondering is that sort of thing allowed...
Sorry once again, bad grammar on my behalf.

apintpls

I remember this topic has been discussed in this forum before. I am not sure what the legal implication is but if I am the owner of Lidl or Aldi I will sue this guy for reselling our products without permission.

Let's think in this way, in particular if the perishable food products become bad due to poor handeling of the goods, and consequently cause illness to customers, who is going to be responsible for the bad food? Him or Lidl? Once our poducts leaving the store we are going to be responsible for them. Therefore, allowing some stranger to take a large quantity of Lidl food and resell them under a uncontrolled condition imposes potential but serious danger to Lidl's reputation.

YellowSheep

Begrudgers...Begrudgers...Begrudgers!
A person works hard. He gets up everyday going shopping for stuff he than resales. The rest are assumptions. .. does he pay taxes etc.
If the OP thinks the guy is cheating than report him, otherwise give it a rest.

rainbowdash

iguy wrote: »

Everyone in the whole town knows, because he has a bar beside the shop and he drinks there obviously, and he has 'let it slip numerous times'.

That's absolute nonsense, I do cash deals sometimes and have a laugh and joke about not paying tax, then in reality I go straight to the bank, lodge the cash and pay the taxes.

Loose pub talk does not mean you know he pays no tax for a fact.

He is doing nothing illegal by buying for 1 price and selling for a profit. People selling chocolate bars and cans of coke outside matches probably just buy multi buys in dunnes or aldi, and sell them on at a profit.

Unless yer man is involved in tax evasion and you have no proof about that, even so it's an entirely different matter to your question about the legality of buying in lidl and selling stuff on.

rainbowdash

Deleted User wrote: »

What would be the point of that? If he's spending money on stock, he must be putting it through the books.

The point would be to evade tax surely?

Buy and sell for cash, pocket the cash, illegal, yes but pointless, no.

Hunter21

apintpls wrote: »

I remember this topic has been discussed in this forum before. I am not sure what the legal implication is but if I am the owner of Lidl or Aldi I will sue this guy for reselling our products without permission.

You'd be laughed out of court
Aldi and Lidl won't care about what he's doing as he is moving perishable stock for them, also its up to the consumers to realise they need to shop around as they might save a little bit by going to lidl.

Or are they too worried that aldi and lidl products are not good enough, the Irish taboo that still exists against these two retailing giants all over Europe

Peterdalkey

Some of this thread stinks to high heaven of Green-Eyed Monster doodoo!!

It is absolutely outrageous that this guy would introduce and use such use unfair innovation to build up his business, very frowned upon in the golf club I can tell you!! Next he will be calling himself an entrepreneur, has he no shame at all?!


Sincerely
Outraged in Dublin

GoodBridge

We did this a couple of weeks ago actually with IKEA. We spoke with their Head Office and got express permission first though.

monkeysnapper

I work for aldi and we get loads of people in buying stock for their businesses , granted mostly catering supply's , ie. burger buns/ veg /Chocolate But it's all the same.

The manager in our store it ok with this but will approach a person and ask if they want a large quantity of stock to order it with him rather than empty his shelf of stock and penalise another member of the public of their shopping . Plus he gets agro from area manager if he has off sales.

I can assure you all these retailers care about is sales sales sales . And they don't care how they go about in getting them. It's the only way to make a Buisness work these days folks

GoodBridge

When the Nintendo DS first went on sale I know there were at least two retailers who bought a lot of stock from another one who was selling @ below cp to get the punters in.

The Corinthian

What an odd thread.

You buy from one location at one price, then sell at a higher price at another location; it's called trade and has been around for millennia.

Most retailers do exactly the same thing as the OP's 'friend', however normally they go through wholesalers - big trade warehouse 'supermarkets', where you typically need a trade card to be allowed to buy. For whatever reason, OP's 'friend' is using Aldi instead (who knows, Aldi could be cheaper than many Irish wholesalers). It's called trade.

There is absolutely nothing illegal about it. It may, however, be against Aldi trading policy because they may prefer customers to go into their shop as in doing so they're almost certain to buy more than just the one item (how often do you pop into a supermarket for 'one thing' and leave with only that 'one thing'?). If so, they can simply refuse to serve him - if his operation was huge, perhaps even sue him for 'lost revenue', but he's obviously at a scale where this isn't realistic.

By the sounds of things, from monkeysnapper, this kind of practice is either not encouraged or not allowed by Aldi. However, store managers (being judged on only store sales) are willing to turn a blind eye to this.

As to the tax evasion issue, this is not only completely separate, but the OP really hasn't given us any reason to believe that this Aldi merchandise is being used to this end.

An odd, and pointless, thread, imo.