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Archive for August, 2011

The cost of doing business in Spain – a Spanish Parcel Courier’s point.

Wednesday, August 31st, 2011

I recently read in The Economist that it had become more difficult to do business in Spain than previously. So I have just confirmed the facts with DoingBusiness.org co-sponsored by the World Bank .  It appears that in nearly every way (other than paying taxes!) it is getting more difficult in Spain.  Out of 183 economies surveyed, Spain has now fallen to 147th for the difficulty of starting a business – just 36 from the bottom!  As far as I can make out this puts it below all “rich” countries including Equatorial Guinea and Greece.

One of the problems we suffer is being owed money in Spain by companies and individuals who seem to take a distinctly cavalier attitude (actitud arogante) to paying their debts.  We have discussed the situation with lawyers and debt collectors (cobradores) and there doesn’t seem much that anyone can do to legally collect a debt from a company that says they can’t pay, won’t pay.  I suppose the same is true in the UK but the margins on Spanish discount courier work are very slim and it can take €80,000 of turnover to make up a €10,000 bad debt.

So, those courier parcel customers in Spain who have failed to pay are clearly pushing up the costs for other people, we have to recoup somewhere.  And they are forcing us, at least, to become less trusting to new clients and therefore restricting the amount of business that those companies can take on.  It is, I suppose, a vicious circle and not unlike the mortgage, CDS and junk bond fiasco that brought down a couple or more banks and may yet bring down a couple or more currencies.

Anyone else who has experience of getting paid in Spain, please help, all advice welcome.  In the mean time we are not granting credit to any new customers without a deposit and we are shrinking the business rather than expand into unprofitable markets.  Our core internet courier and Citibox office business is unaffected.  I recently had the priviledge of seeing the Guardia Civil excecute a bit of summary justice on a Spanish local who was being quite unecessarily difficult about running into the back of my wife’s car (demanding compensation for an accident of his own fault).  I wonder whether the Spanish State would allow them to do a little private business after hours?

Courier Security Procedures, Important for parcels to and from Spain

Sunday, August 21st, 2011

The Spanish International Courier Companies rely on us to make a full disclosure of the package contents and we, in return, rely on our customers to tell us exactly what is in their parcel. Throughout the EU all couriers are really tightening their security procedures. I have told in a previous blog of the gun sent to the USA http://blog.courier-spain.co.uk/courier-parcel-spain-firearms-citibox/ (it was a fishing rod but declared as papers!). Let’s look at a few recent events:

A lady wanted to send some items from the UK to Spain. When the FedEx agent arrived to collect the box was not ready so later it was taken down to the local FedEx office where it was opened and two packets of crisps and a Sky card were removed before the remainder was re-packed in a FedEx box for delivery the following day to our office in Javea. The customer protested but you have to understand that not only are FedEx entitled to know exactly what they are carrying but they also are just acting under Government directives following EU laws. It is illegal to send food via FedEx (although crisps are not strictly illegal) and it is illegal to watch most Sky television outside of the UK and Ireland (because of issues with advertising and sponsorship).

A customer sent some childrens clothes via UPS and declared them in full but enclosed a free gift of chewing gum in an aluminium tube. The object was stopped at the x-ray machine and we had to submit a new invoice disclosing the content.

Another customer tried to import from Germany a whole load of perfectly innocent kit but forgot to tell us there was a single aerosol can of paint in the box. FedEx stopped the box at the x-ray and it will take a week to get it back to the sender and another week to have the parcel in Spain to our customer by UPS ground service. Aerosols on aircraft are dangerous goods.

Just yesterday, a shipment stopped by UPS in Madrid was explained. The customer had omitted to tell us there was perfume in the package. Perfume is highly inflammable and therefore dangerous in aircraft. On Monday we will try and re-route via the truck based service.

I hope from this that you can see that there is virtually no possibility of sending any goods that are dangerous or illegal without fully declaring the contents. Citibox is a courier expert in what you can and can’t send and in how to declare the contents to allow for security and customs clearance.

Box of luggage from Spain to USA, left with MRW, retrieved by Citibox

Tuesday, August 9th, 2011

Imagine this problem. A lady from the United States of America has a certain shopping excess and suddenly finds herself unable to carry all her kuggage on the next stage of her European journey before heading back to her home country (European low-cost arlines give hardly any allowance). What could be more sensible than going down to your local Spanish courier office, in this case MRW in Barcelona, and asking for the extra package to be sent on to the UK which is her next stop in Europe?

As we all know, budget airlines luggage allowance within Europe is very mean, some charging for any suitcase taken on the aircraft, but full-fare international airlines allow 30kg or so. The lady wanted to have her package sent to Exeter in the UK so she could incorporate it in return luggage to the USA.

What then happened? Despite the fact that she had gone in to the local MRW office in Barcelona and paid in cash €100.30 (Citibox’s price is 25% lower) and left her package there it did not move. MRW wrote to the lady and demanded additional monies merely to send the box to the UK. As I have often said, there are only four international carriers of repute and there is not a single Spanish carrier among them. So this poor lady is being blackmailed, pony up even more money or we will not send your package for which we have already taken a large amount of money. What is more, they would not accept payment by credit card, they insisted on a wire transfer.

Clearly the customer got extremely worried by these bullying tactics (not to mention the high prices once she had found out how cheap the package could have been on the Citibox website). So what does a damsel in distress do then – well, in the absence of Superman, she has to resort to contacting Citibox. Citibox send in their excellent local agents in Barcelona (and Madrid) IndySpain who also have the franchise for the Spanish network ASM in Madrid.

Now, let’s not think anyone is stupid. We had asked the client for a copy of her passport, a copy of her receipt from MRW and an email saying that we could collect the box – come on we are Spain’s registered FedEx agent. On arrival, IndySpain’s Barcelona messenger had to leave empty handed – MRW did not have €100 in the till. On the third attempt, I am delighted to say, that the package has been collected and the money too. The box is tonight on its way to the USA via FedEx.

But let’s consider the case. The lady wanted the box in the UK (she left there long ago which is why it is going to the USA). She overpaid a Spanish Courier Company for a service they did not provide and then they tried to extract even more money out of her. She was completely helpless and sought Citibox’s aid (who clearly deliver, quite necessary in this industry). To our cousins and friends in the United States of America who need packages to the USA or parcels to the USA or luggage to the USA delivered from Spain I urge you please to use those great American companies either FedEx or UPS. You may go to them direct or you can save 50% or so by coming through Citibox, Spain’s only internet discount courier. But please don’t go to the man down the road, overpay, and then have to get us to sort the problem out (although we will always be here for you if you need us).

As a matter of record, Citibox made no charge whatsoever for the collection (at the third attempt) and the customer is paying only the price on our website (less the €100,30 that we recovered from MRW).

 

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