Do not pre-purchase in Iran! | The Iran Project

According to The Iran Project, an Iranian Economist said, "I've been asked many times whether to pre-purchase or not?"

If you are going to buy something and you've been told to take the stuff and pay later, certainly, do the purchase!, Mahmoud Olad wrote in a note.

But if you've been told to pay the money and take the stuff a few times later, utterly do not the pre-purchase, he added.

"First, in inflationary conditions, a seller who pre-sells, or does it to finance his/her company, he/she thinks that the cost of this financing (selling cheaper and ignoring future inflation) is lower than the cost of financing from other methods (such as loans from the bank and...)."

In this case, if the inflation is higher than the expected inflation of the seller, on one hand, his/her production costs go up, and on the other hand, the price of the goods he/she is going to supply is much higher in the market than the price he pre-sold (even considering the interest rate), he stated.

Therefore, it is very likely that he/she will try to spoil the deal, or they force you to pay more, the Iranian economist added.

Delays in the delivery schedule, disrupting the deal even by paying losses (which are generally less than the price growth due to inflation), incomplete delivery, and all kinds of fraud in the transaction are among the measures may the seller take, he stressed.

The main point here is that the costs of legal follow-up of these violations are so high that the buyer complies or ends up complaining in cyberspace, Olad noted.

"Second, the seller's calculations were wrong from the very beginning or he/she intended to defraud in advance. This case takes place when the goods or their raw materials are to be smuggled in or the raw materials are imported and the currency rate is a determining factor and the novice seller does not have an estimate of the risk of production and smuggling and offers very low prices."

"It is even possible due to the lack of access to suitable financing methods, even with the knowledge of being risky, from the start the seller has planned to delegate the problem to the pre-buyers if it faces trouble, by disrupting the deal or fleeing the scene."

Then, I advise you not to pre-purchase in Iran. it doesn't make a difference if the pre-seller is a government company or a private one, the expert concluded.

Translator : Fatemeh Khoshroo