September 20, 2024
Business

Maine merchant gets bad deal from wholesaler

With increasing regularity, local merchants are contacting COMBAT’s Maine Center for the Public Interest when they find themselves in the role of consumer. One such business is a small coastal florist who, like many small, family-owned businesses, is struggling to compete with larger national stores.

The Maine florist received a catalog from a California wholesaler offering remarkably lower prices on florist supplies such as flowerpots, decorations, figurines, and gift cards. As a small business with tight margins, the florist saw opportunity to realize improved profits by ordering in bulk. After reviewing his inventory and last year’s volume, the Maine merchant ordered ahead in quantities he felt would last at least six months. His total order was $16,352, which included shipping. He ordered in July so that Halloween, Thanksgiving, and Christmas theme items would be on hand.

By late August, when the shipment had not arrived, the florist became nervous and called the wholesaler to ask about the status of his order. The company responded that they were experiencing a considerable backlog of requests due to the success of their catalog mailing and problems with Asian suppliers, but expected to be caught up on orders by early September at the latest. September came, and still no shipment. When our Maine florist called the company again, he got a recorded message. He left messages, but his calls were not returned.

Fearing that he had been ripped off, he contacted state and federal agencies but was told that though they could help consumers with similar problems, business transactions were not within their jurisdiction. The florist was certain he had been “had.” He was even more concerned when he received his credit statement including the charges, even though the amount was not supposed to be charged to his account until the order had been shipped.

Then, he had a stroke of luck. The florist discussed his problem with a customer who was a COMBAT member. The customer suggested that the business contact us to see if COMBAT helps merchants as well as consumers.

Indeed we do, and when the florist called, we told him to immediately send the wholesaler a return receipt requested letter demanding the status of his order. We also contacted the California Attorney General and the Better Business Bureau and Chamber of Commerce in the wholesaler’s area. The news was not good.

The company was known to the California Attorney General and under investigation for questionable business practices. It was also likely that the company would soon be filing for bankruptcy, asking for protection from its creditors. We needed to act swiftly.

After additional research, COMBAT located and talked to the owner of the wholesale firm, who was at first not very helpful. We told the California businessman that we understood his problem but all that concerned us was that our Maine florist’s merchant credit account be expunged of the $16,352 in charges. We also told the Maine florist to contact his credit card representative requesting that the transaction be canceled, much as any consumer could do.

Since he was in enough trouble and didn’t need more, the California wholesaler agreed to cancel the order and clear the account. Our client called us several days later to confirm that his credit company verified that the charges had been removed from his account.

“I am certain,” the florist told us, “that if COMBAT had not intervened on my behalf, I would have become part of a bankruptcy action and been lucky to receive a few cents on every dollar if anything at all. Thank you for your help. Does COMBAT allow businesses to join?”

Indeed we do, so he joined. We love stories with a happy ending.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast COMBAT/The Maine Center for the Public Interest, Maine’s membership-funded nonprofit consumer organization. For help or to request individual or business membership information write: Consumer Forum, Bangor Daily News, PO Box 1329, Bangor 04402-1329.


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