what are "trade" prices?

Jun 23, 2005 16 Replies

There's an electronics store in Ashfield that advertises prices for "trade". Does this mean that possession of an ABN will get you these good prices, or what exactly does one need to do to be eligible for their "trade" prices? It doesn't have anything to do with the quantity of goods purchased, does it?



Would it be enough to given them my sister's ABN (her "Majestic Cake Decorations" business or something) and let them know I am picking up an order for the boss?


John Savage (my news address is not valid for email)

"John Savage"

** Who could that be ???

** Supply proof of being " in the electronics trade ".

** Nope.

** WES require a written order on each occasion that indicates the buyer is someone involved in the electronics repair trade or a professional user of electronics.

It is basically a trade discount.

............. Phil

All that's required for a WES account is an ABN and a pulse.

** As I do not have an account with WES I have no experience of what rules they apply for opening one - WES management can make 'em up and break them at whim.

But the OP's question was not about opening an account.

It was about making a counter purchase.

........... Phil

It's quite legal to operate a business without an ABN, and some do. Nor is there any reason for a supplier to require a customer's ABN unless they're writing a tax invoice for more than $1,000 and don't have an address -- ATO requires one or the other.

I still use their pre-GST order form, since I 've never bothered to scan the current one, and they've never asked for an ABN (which I do have). I also have a customer number.

Originally they required an account application, though if they're like most trade suppliers they probably accept cash orders over the counter from non-account customers.

-- John H

"John_H"

** As I read the rules, to avoid having an ABN a business must have income below the threshold AND not supply goods or services to other businesses - or else withholding tax must be taken from those invoices.
** They can still ask for it as an identifier.
** The WES customer number is to let them keep track of your buying habits and allow mail outs.
** Read the heading - what is it asking ??

........... Phil

It usually just means that they claim to be selling the items for what a retailer would pay for them.

Thats often a lie.

Usually not, few advertise like that with real trade prices that require an ABN to get.

If they are real trade prices, its often just claiming to be in the trade.

It can do.

Depends on the operation. Many just want an ABN and dont give a flying red f*ck what business its in.

And its better not to ask, just act as if you are in the trade, provide the ABN if its asked for, and dont say anything if it isnt.

Correct.

Incorrect. Tho many of those would prefer to be able to claim the GST credit on their inputs, some dont necessarily care with minor transactions.

You've mangled that completely. Thats what applys to PAYMENTS, not to purchases.

The customer number is that.

Its there for more than just that.

Impossible to say with any certainty.

"Rod Speed"

** Wait for the rest of the sentence - F****IT !!

** Try learning to read - F****IT .

** Learn to read - F****IT !!!

** Learn to read - F****IT !!!

............ Phil

Go and f*ck yourself, TOASTER MOLESTING WELFARE BLUDGER.

"Rod Speed"

** ROTFLMAO - the mad robot could not possibly be more wrong.

............ Phil

Some terminal f****it welfare bludging toaster molester claiming to be Phil Allison desperately attempted to bullshit its way out of its predicament in message news: snipped-for-privacy@individual.net... and fooled absolutely no one at all. As always.

On Thu, 23 Jun 2005 00:55:48 GMT, John Savage put finger to keyboard and composed:

WES seem to be fairly relaxed about this. Tell them you will be paying cash up front (credit card is perfect), and occasionally order five or more of something. The repair trade is dying, and much of the otherwise uneconomical repair work is done by very small businesses, retired techs, and backyarders. WES appear to understand this. After all, which thriving business would buy a $30 video head for a $50 VCR, or a $50 laser for a $100 music system?

- Franc Zabkar

Please remove one 's' from my address when replying by email.

I thought that trade just got you a discount off the RRP whereas buying an item for what a retailer does was considered wholesale??

Mike

** Back when we had the old wholesale sales tax system, the amount of tax was calculated on the price paid at the transaction immediately prior to sale to an end user.

So a retail shopkeeper paid sales tax on his ( taxable) purchases, so would a tradesman buying materials etc. The tax was collected by tax office registered wholesalers - who then paid it to the tax office.

However, any retailer could offer a "trade discount" to customers who were intending to "on sell" the items - as a means of attracting business. The discounted prices would often be the same as or better than those offered by regular wholesalers - particularly if the retailer was making bulk purchases from manufactures or was involved in direct importing.

As any sales tax would have been paid at an earlier stage in the chain it would be a smaller amount.

This is what WES Components have long done.

........... Phil

Nope, 'trade' is another name for someone in the industry.

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