Return Policies

[shoplineca]

I have had 2 Buyers wanting to return instruments they purchased as gifts over Christma because they were not exactly what they person receiving the gift wanted.

My UNWRITTEN policy is to refuse the return and my reasons are many. First, I consider a musical instrument (which I mostly sell) to be used once shipped, opened and tested and therefore I am unable to re-sell it as new. So why should I be out of pocket potentially a couple of hundred dollars because someone changes their mind or it doesnt look like they thought it would look once they got it home?

Aside from my own reasons, I notice that many other PSers dont post a return policy in their listings unless they accept the return of items.

I havent posted a return policy (or in my case a NO return policy) as I feel I have enough in my terms and conditions that protects me to not add any more and by not posting one, it should not be assumed that there is a return policy, rather assumed that there isnt.

At the same time, there have been instances where I have taken something back at my expense. This is something that is entirely discretionary and that is the way I prefer it to be.

I have no problem telling anyone who emails me in advance of purchasing what my policy is in the event of damage, or a manufacturing problem nor telling them that there are no other reasons I would take back their item.

How about others who do not post your policy in your listings, is there any positive reason or benefit to posting a no return policy in your listing?

Malcolm

[shoplineca]

Jeff
We're not talking about music books here, its music instruments. Again, most are considered 2nd hand once taken out similar to a new car driving off a car dealer's lot.

Once you pay for it, its yours unless you decide to upgrade and pay the difference, with the few exceptions where I heard of some car dealers are offering 10 day full refund policies.

Malcolm

[recped]

with the few exceptions where I heard of some car dealers are offering 10 day full refund policies.

If you are referring to new cars (I assume you are) these are funded by the manufacturer just like 0% financing, rebates, bonus options etc.

In the record biz, HMV, when they first opened in Canada, offered a no questions asked return policy, they gradually reduced this kindness (read stupidity) as they were being burned left and right.

At my store the policy was simple, if it's still sealed and you have a receipt you can return it, if it's open we'll give an extra generous price as a used record/cd (as store credit ONLY).

One of the original merchants to offer the classic "satisfaction guaranteed or money refunded" was Eaton's.....where are they now?

Ben

[shoplineca]

Ben
Eaton's went down because of greed by the Eaton family, not because of their 'generous' refund policy.

The whole fiasco was a result of internal family bickering over control. The bankruptcy was a planned move to build up inventories and reduce family obligations to the banks, a tired old trick employed by many US and Canadian companies back in the 1980s, with Eatons being one of the last large ones to try it in 1998(?).

My cousin was a Toronto lawyer who made all the press as he represented the major creditors in the resulting bankruptcy. The Eaton's case one of the major ones he had that catapulted his career on Bay Street shortly after he moved there from Ottawa.

I do agree however that alot of retail stores like Eatons did have that full refund policy where people would purchase an item such as a dress, wear it out a couple of times and then return it a week later for a full refund, no questions asked.

That follows what I was saying that advertising the policy, while likely increasing traffic and sales may not be reflected in the net profit. In the case of major retailers, they cannot be discretionary with such a large staff however in a privately owned business, I can decide on my own, if the request is legitimately being made.

A disadvantage with strictly an online business is that we dont have the ability to see the customer's facial expressions and body language to assist us in assessing their honesty.

Similarly, they dont have the ability to see and test what they are purchasing in advance. Their advantage however is a far cheaper price (in most instances) than they might pay in a brick and mortar store, so they give up the ability to test and see the item for a chance to pwn it for considerably less money.

Malcolm

[ospreylinks]

Malcolm...

1) I said Music Stores, no reference to music books. As a matter of fact when I was replying I was thinking more in the line of recorded music (CD's, LP's Tapes, Videos, etc).

2) You ask a question about return policy's, we answer with quantifying our policy and reasoning for its existence and you seem to lap in into a statement about how it affects the bottom line. We have had only two returns in five years, both with goods able to be resold for no less than normal selling price.

3) I do believe that by offering a return policy, it helps create a sense of security between the buyer and seller, hence creating additional sales.

You are right, you know your business and the nature of goods once taken out of the box, so after reviewing your intial post, I don't think it is so much a policy that you are looking for but rather for people to support your position on refusing these two returns. I support your decision.

Jeff

[shoplineca]

Jeff
1. When you said music stores, they sell instruments and music books and as I dont know of anyone that can take a musical instrument home and make a copy out of it, I assumed you were talking about music books. Music stores dont sell CDs and LPS or cassettes except for an ocassional training CD.
2. I mentioned affect to bottom line as, just as Ben pointed out, some stores saw such a dramatic increase in returns that it had a negative impact on profitabilty which certainly is an adverse affect to having a policy to increase sales when it decreases one's profits.
I simply made the comment as there are others reading these posts and sometimes people dont look at their profitability, rather they concentrate on eBay FB and number of sales.
3. I wholeheartedly agree with you about having a return policy and the assurances that it gives buyers as being a positive tool and one that should have a predominent place on the listings.

I dont look for people to support how I run my business, except my customers to support the way I run it by buying from me.

What I look for are options in how to run the business adn offer a return policy that will be good for the customers and my business.

In light of my 2 receint incidents with requests to accept the return of 2 items, I have been pondering with implementing some sort of a return policy so I came to the board to see what others do and how they do it and why they do it.

What I learned is that you use it as a marketing tool to entice new buyers but have relatively few requests for returns. Both of those facts lead me to examine the frequency of requests that I have had and what I know about the musical instrument business. Addtionally, I had not thought of the policy being marketed as a sales tool, so that helped in giving me food for thought.

Ben brought up some excellent points about some return policies marketed that ended up costing some retailers enormous amounts of revenue, to the point of bankruptcy or brink thereof.

Other Power Sellers also raised some interesting reasons for having or not having a policy highlighted within ones terms of sale.

I would think that if other PSers were considering whether they would post a return policy or not that this discussion would present some reasons for it and reasons against it.

In the end, I may elect to continue doing what I am doing but it is now the result of making a more informed decision having looked and examined various pluses and minuses for doing it, rather than peer support for the way that I am currently handling it.


Malcolm