JEDDAH, 19 April 2006 — Used furniture businessmen say they’re facing unfair competition from unlicensed businesses that post fliers on busy streets. Their unlicensed competitors often don’t even have a storefront or follow scrupulous business practices. Despite repeated calls for assistance to the Ministry of Commerce and the municipality, the illegal businesses continue their practice driving legal businesses out of the market.
What used to be a reputable and profitable business has become a suspect one as the fly-by-night operators cheat furniture sellers and then turn around and gouge customers. “I can’t trust the ads on the street anymore,” said Maha Ahmad, a Jeddah mother of two. “I only trust the ads in the newspaper now.”
The unlicensed businessmen prey on people trying to get a fair price for their old furniture, hoping that an extremely low offer will still be accepted once made.
“It’s a rip-off,” said Abu Fadel, a Saudi businessman. “I know that people could deduct 20 percent from the actual value of the furniture, with which most of the sellers would agree with depending on how old is the furniture. But to deduct 85 percent from the value of the furniture is a total rip-off. They come to your house, and you think that you will get a good price from them. I was shocked that all of the people who advertise their furniture sales on the street are same. They are all crooks. They do not have a store from which they run their businesses. They have no licenses, yet they are allowed to advertise.”
In fact, many longtime furniture sellers are being driven out of business. The practices aren’t benefiting Saudi consumers either.
Khaled Al-Johani worked in the furniture business for three years before the unfair competition forced him to close his shop. He said there is no way for him to compete with the unlicensed upstarts. “It’s a risky business,” he said.
Al-Johani said he does not believe in advertisement in the first place, neither on streets nor in newspapers.
“It’s our business, and we have to be there like the others,” he said. “If the illegals are allowed to do it freely without fear from authority, then I have the right to do so, too.”
Despite the legal ban of street advertising, legitimate furniture sellers are now adopting the practice to stay afloat. One 15-year veteran of the furniture business said that the problem has grown dramatically in the last year.
“We found ourselves forced to do the same to save our business from sinking,” said Bandar Al-Jahhaf. He said he knows the practice is illegal. “I have to risk it, or else I will be risking my business.”
Until authorities step in to enforce the laws, furniture buyers and sellers will be at the mercy of the shifty operators and con men.
“Many people who advertise have no authorized license,” Al-Jahhaf said. “They just buy a phone number and write it on a paper and hang it on a traffic light. It doesn’t cost much, and it attracts people.”
