Showing posts with label cavet emptor. Show all posts
Showing posts with label cavet emptor. Show all posts

Tuesday, June 10, 2008

Restocking fee

Do you remember when it all started? During Super Bowl Weekend, it became common for some people to go purchase a new large screen TV to watch the big game, then return the "used" TV the next week for a full refund. Stores began to see a trend and decided because they had the added expense of reboxing, reinventory, and loss of revenue for "open box discount" they needed to charge a restocking fee (normally 15%).

I received an email earlier this week from an friend who purchased something of higher than normal price from Best Buy, paying cash, and then decided to upgrade to a different model. He had an interesting story which included a $45 restocking fee even tho'  he wanted to increase his purchase on a newer model; additionally, the local store could not refund his money as it was over $200 and he would receive a check from corporate in 2 - 3 weeks. He was somewhat upset and felt if he had used a credit card he could have canceled the transaction and not been charged 15% and the credit would be immediately back in his account.

This week Apple unveiled the 3G iPhone, something that was anticipated. Additional news included AT&T increasing the monthly charges for data billing and a change from Apple's business model for the phone. What I found interesting is that if you purchased an iPhone since May 27 you could return it for a new one, with a new handset charge and a restocking fee.

I understand that stores have some expense in returned merchandise and consumers may take advantage of their pricing policy. I wonder why in this circumstance the customer is assumed to be "ripping off" the business, particularly when an upgrade is involved. It would seem there should be a waiver of the fee if an additional purchase is involved.

I doubt this will change but be aware anytime you're working with a "corporate" environment, policy outweighs customer satisfaction. First I would recommend shopping locally where possible (even for national brands), use a credit card for large purchases (cheap insurance if there is any problem) [btw - pay the account off when you get the bill, it's easier to get behind on credit card payments than you think], and be aware of fees that will be charged if you're unsatisfied with your purchase.