Kogan the online retailer who says business is great and growing but won’t release any financial details, is now trying to get consumers to fund his cash flow without any guarantees that he won’t go broke.
Kogan the online retailer who say’s business is great and growing but won’t release any financial details, is now trying to get consumer to fund his cash flow without any guarantees that he won’t go broke.
Using a concept called LivePrice; Kogan is asking consumers to pay up front for goods claiming that they will get unprecedented prices on the latest products”. However it appears that he is not prepared to put the money into an independent trust fund with a third party like a solicitor, which in the event of Kogan going broke would have the powers to refund consumers.
Kogan claims that if you “buy a product while Kogan are still busy creating it, you’ll be rewarded with a price that you never thought was possible”. Using language more associated with a High Street spruiker Kogan is in reality asking consumers to fund his business, paying for products before they are made by Chinese factories, who often want money up front before they ship or even manufacture a product.
Another problem for Kogan is there are no guarantees that the factory making his products will not go broke.
Kogan claims that “consumers have the power to choose when in the production cycle they buy a product, when in production, shipping, or when the product is in stock in Australia”.
He claims that he earlier a customer buys the product, the greater the saving.
Kogan who has been labelled by Gerry Harvey as a “Con” has also incurred the wrath of the Australian Competition & Consumer Commission for engaging in what they have described as “misleading consumers about savings” has also been slammed by consumers who have purchased Kogan branded products with some labelling them as rubbish.
See what the ACCC had to say about Kogan here:
