Having completed some recent research using keywords relevant to my own business, it is surprising how many of the results that are prominent on Google are for companies that are no longer viable or may supply sub-standard product due to their low pricing. It seems that regardless of Penguin or Panda updates or whatever they do, Google just can’t get it right, with some unreliable sites still maintain a lofty position whilst other more quality sites are penalised due mainly to not adopting the black hat tactics of these lesser sites.
Further analysis of some of these sites through our financial checker, shows that they are actually trading beyond their means. They are simply not in a liquid enough state to carry on trading. If their customers are placing orders and paying in advance and they could finish up without product or the cash they paid for the goods because they may just be on the edge of bankruptcy.
One company who appears on the first page for the search term CD Duplication is Duplication Centre LIMITED (05279829), they have the audacity to claim to be the UK’s leading CD, DVD and Blu-ray Duplicator but have a working capital of minus (-£103,907), most worryingly for customers is that they also have a company which was incorporated in May 2007 but is not trading yet called Duplication Centre Service LIMITED (06250953). Not long ago, I was embarrassingly caught out like this by a company call Magellan who I had paid a sum of money to for equipment, they went bust soon after, I lost my money and they started trading again under a very similar name.
Another company called Max Duplication who also appears on the front page of Google for CD Duplication amongst other keywords they rate highly for has tangible assets of £937 with a working capital of minus -£7316. I wish someone could tell me how this works because the whole thing seems illogical. Yet another on the front page called Xpress Duplication Centre cannot even be found under that name at Companies House. Then there is Amstore who seems to have been dissolved and whose site is down still has a prominent presence in Google. TVV Productions also has a minus working capital!
In conclusion, I know it’s normal that you credit check your customers before offering credit but now you’d better check your suppliers too, especially if you pay up front for your product! Having said all this, there are of course sites that do have a high presence that are quality companies, many of these appear on lower pages too so it’s well worth doing thorough research before placing your order, if a similar product is so much cheaper than rivals, there’s a good reason why and it’s usually because the product on offer is sub-standard.
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