The sudden and unexpected demise of Kleenmaid came as a shock to most people. This popular and well respected manufacturer of electrical goods was an icon and the brand name stood as a symbol of all that customers look for.
The failure serves notice that the safety of buying a known brand is no longer the guarantee that it once was.
There is no longer an enterprise that is simply too big to cease trading and call in the receivers - and if that happens any money already paid as a deposit on goods - and any warranties on goods already purchased will cease to have legal application.
That applies right across the whole spectrum of manufacturing, and that includes motor vehicles, the second biggest ticket item on the public's shopping list. These days a five year warranty is usual on cars and light trucks, but the problems being faced by General Motors gives an implication of what shaky ground underpins trading giants.
The day has come in which potential purchasers would do well to think long and hard before signing on the dotted line. Long warranties should be taken with a grain of salt, and under no circumstances should deposits be paid until the selected item is in the store and ready to be delivered.
We are in a recession and more company failures are to be expected.
The wise will protect themselves as much as possible by weighing in the risk factor - and proceeding with big ticket purchases only after eliminating the logical loss that could arise should undelivered goods be pre paid.
The old maxim of " cash on delivery " could be a wise purchase plan !
No comments:
Post a Comment