Hello ,
Greetings from Spain.
My wife just flew in from China, so we are actually trying to have a little holiday.
But it's ridiculously busy, here, in the UK and in China (ok everywhere) so our phones are in a constant state of buzz.
Last week I was in the UK, you can read about my update here.
Next week we will be off to Slovakia.
Regular readers will know about the Slovakian adventure, we have been forced (by Brexit) to start a distribution warehouse in central Europe. Almost half our sales are into the EU, so we are very worried that any friction to trade will cause a big drop in sales. The answer is to be trading from within the EU. We picked Slovakia, close to Bratislava because it is located in the middle of lots of different markets, and because it's Tomas's (main man in our marketing dept) home town - so lots of connections.
The EU business is ready for action.. only problem, is the usual problem.. delays in stock delivery. There are two containers from China and one from Indonesia.. all delayed. Right now the first China one is been searched for drugs and checked to make sure we are not doing some dodgy under invoicing. Or more dodgy over invoicing.
OK I'll explain some import frauds for you, not that you will want to do this.
Under invoicing. This is where you change the value of the container, say you put €20,000 on the shipping invoice when really you have sent €100,000 - the duty is calculated on the lower amount to say the duty on your products was 5% - you have just made a dodgy €4000.
Over invoicing is going to work better if your stuff is low or zero duty... here your supplier is going to claim excess export tax back from the China government - and typically for your help in this fraud give you a percentage kickback. There are stories of ballpoint pens been invoiced at $10,000 each. Vast sums of money have been made by Chinese gangs like this. Often goods get effectively subsided by the dodgy money and sold below cost dumped on the market. Last year some big players ended up in jail.
Another method is the "missing trader fraud" - here you simply start a new company - import a container to one country and sell it to the new company in a second EU state. No VAT is chargeable across EU boarders. So the first company pays the vat on delivery into the EU - later claims it back on a vat return. The second company sells the container plus vat.. pocketing the extra 20% - and promptly goes missing, ceases trading - before the vat is due. You can easily make £20,000 on a container like this. Especially since you can sell fast stock at cost or a bit below to get a quick turnaround.
So now you know some seriously dodgy tricks :)
I can honestly say that AW we have never engaged in anything like this - ever, and never will.. although I know of traders who have.
But even though we are pure, innocent and white - they still stop our containers for regular checks.. and you have to pay for the privilege - this China container is costing €300 and for sure they will mess up some stock and break stuff.
Anyway, that's life.
So we are just waiting for a bit more stock.. but you can visit the English language version of our EU distribution warehouse here: AWGifts.eu we also have a Slovak site, and eventually there will be Czech, Polish, German, Hungarian and others.
It's called AWGifts - so as not to confuse our customers too much. It's AW products but in Europe.. and delivery charges of course are much better if that's where you are.
Forward us to your EU friends :)
I'm going there soon.
Meanwhile, as I'm writing this another much delayed container just arrived in the UK..
Yes.. it's true - some salt lamps came, I think there are some new designs on it - which may take some time to be online for sale, but key products are back in stock as of now.
We are sadly a long way behind with orders, despite extra shifts, agency staff and overtime. I really apologise, last week I was there trying to find ways to speed things up.
The problem is we just have too many fast running lines right now. A friend of mine suggested putting prices up to slow demand (and profiteer) - I thought about it a bit, then decided that, that is just kinda dodgy, we have a relationship with our customers that we hope is long term, ripping them off short term is not good. But the downside is your order might be a little delayed. Please bare with us.
So it's here.. the granddaddy of Bank Holiday weekends.. August Bank Holiday.. Hope you are both busy and find time to relax with your family's and friends.
Take care, thank you so much for your trade..
David