BBBEE wrong

[Blurock]

point is the customer always want to pay less
so we have to find ways to that

do i want to import cheaper stuff? no
do i have to import cheaper stuff? yes

blame the customer

There are certain things that have to be imported, but most things can be sourced from local manufacturers or suppliers. By supporting local industry, one is preserving local jobs as well as the skills to keep that industry going. Once we lose those skills we will never get it back. The problem with local industry is that we do not have the required volumes to be really competitive. If we all support local industries, it may eventually happen. Manufacturers should also look at their quality and aim to export as that will give them critical mass to be truly competitive.

Quality should be a much higher consideration as it will be cheaper in the long run. Cheap, low quality imports are devastating to any economy as it destroys all the economic principles. The poor people suffer most as they cannot afford the better quality and then opt for a cheaper alternative which does not last and has to be replaced soon. So they end up paying over and over to replace the same thing. As they say in Afrikaans "goedkoop is duur koop".

[Greig Whitton]

point is the customer always want to pay less

Maybe you are targeting the wrong customers?

[IanF]

Greig
Thanks for the links I filled out the affidavit and had it sworn at the police station. Nice and easy, I will post if there are any hassles.

[bones]

Maybe you are targeting the wrong customers?

beggars cant be choosers and there are no wrong customers
just a few jerks

i tell them point blank i dont have bbbee if that is a problem
i have a nice door they can use

i dont know how bbbee works i know some guy wanted to
charge me a lot to get the bbbee thing going

some customers told me they cant use my services if i dont
have it sh_t luck i dont care

i rather spend that money on stuff i need like equipment and
so on

[Greig Whitton]

the customer always want to pay less

beggars cant be choosers and there are no wrong customers

i dont know how bbbee works

some customers told me they cant use my services if i dont
have it sh_t luck i dont care

blame the customer

Pretty much what I assumed. Good luck with that.

[Greig Whitton]

Thanks for the links I filled out the affidavit and had it sworn at the police station. Nice and easy, I will post if there are any hassles.

Just remember that the affidavit only gives you Level 4 as an Exempt Micro Enterprises (unless your business is 51%+ black-owned, in which case it will be Level 1 or 2). Normally Level 4 would be perfectly fine, but I expect that the automatic entitlement to Level 1 and Level 2 for black business owners will "raise the bar" and make Level 4 sub-par. That said, a 100% white-owned business cannot achieve a rating higher than Level 4 on the scorecards anyway, so your options are either "bank" the Level 4 (if your annual turnover is under R10 million) or re-structure your ownership to achieve a higher level.

[IanF]

Lets see if the level 4 means anything then!

[bones]

Pretty much what I assumed. Good luck with that.

what a mind blowing insight that was so
no "bbbee is not that expensive anymore"

i was right it is still expensive process

no "you have options" suggestions ??

guess you have to pay extra for that

well thanks

[IanF]

My objective is to tell my customers I am BEE rated. No comebacks from the customers who asked for the rating.
This whole BEE system just adds another layer of bureaucracy to business in South Africa

[BusFact]

This whole BEE system just adds another layer of bureaucracy to business in South Africa

Exactly. To do business you generally need:

Company number (used to be CM1 form)
VAT number
Income Tax number
Tax clearance certificate
Employers numbers
BEE certificate
Workmans Comp number
Proof of address
ID books
.... plus a few others.

Its just part of the "game". I understand that its far more important when you're tendering for Government contracts or if you supply a large percentage of your customers input, but for many of us its just an irritating extra tax.

Take my one company for example. Average monthly sale to a customer is about R5000. The average annual sales of this type of customer is R10 million plus. My piddly BEE rating has absolutely no affect to their score what so ever. I could be level 1 or 8. They actually don't care. They just want a piece of paper to keep the bureaucrats happy.

Annual financial audits and BEE audits add no value to my business at all. They are merely a form of tax to keep SARS and the parastatals respectively happy. So I suck it up and cough up.