What exactly is a Restocking Fee?

[irishsquid]

As a consumer, I don't pay much attention to re-stocking fees as I usually make sure I really want what I'm purchasing. On the other hand, I will not purchase restocked items. Call it a quirk if you will, but I can't bring myself to buy anything that looks like it has been opened and then repackaged.

 

[spectrum]

Ok, so quite a few say the fee is justified. However, do you also say that the more expensive the item was, the more they should charge us? They should charge us by percentage?

The risk is directly proportional to the selling price so yes and yes.

 

[jefffalcone]

Restocking fees are fair to the extent that they cover actual costs. Businesses should not loose money on returns, but they also shouldn't make money. On the other hand, if the business is somehow responsible for the necessity of the return (eg. they told you something fits that does not), then restocking fees are completely out of line.

 

[almitywife]

I didn't want to hijack this thread. http://www.scubaboard.com/forums/ba...06134-questionable-lds-behavior-policies.html

This is what I mean.
Let's say I buy an HID canister/light. $1200. I return it and they charge me 10% restocking fee. That's $120.
I also return a $45 hood. That's $4.40 in restocking fee.(10%)

If they can restock one item at a cost of $4.40, why does it cost $120 to restock the other item?

What exactly are they getting paid so much for? Why can't it just be a flat fee for restocking?

huh..... you an return stuff!!!!!!!!!!!!!!

someone has to tell my hubby this

 

[Tom Smedley]

You own a fishpond and catch most of the fish. You call American Sportsfisheries and order 1000 Bass Fingerlings. Barry comes out and dumps them in your pond then sends you a bill. This is a restocking fee.

 

[Gombessa]

You own a fishpond and catch most of the fish. You call American Sportsfisheries and order 1000 Bass Fingerlings. Barry comes out and dumps them in your pond then sends you a bill. This is a restocking fee.

That is a more delicious form of restocking.

 

[DeepSeaExplorer]

Ok. A store has 10 generators. A storm is forcasted. He's happy because now he's going to sell all 10 at $1000 each. The generators are now sold. That's $10,000 made.

Oh Oh. 5 customers returned theirs. "Looks like I'm only going to make $5000 form this storm." Well I'm going to charge them money for my taking the generator from the service desk to the shelf, and I'll call it a restocking fee. So now I can make $500 from the guys who decided to return their generators.

If the storm was never forcasted and never came, $0 would have been made. Yet because of the forcast he made $5000 when all was said and done. Greed or anger made him want another $500.

That's the way I see it.

And then what? He's still out $4,500. The business is supposed to sit on those generators until next year's hurricane season, eventually selling them at a loss? Maybe next time, he won't stock generators for hurricane season. Then where are you going to get yours next time?

I was in-line at a sporting goods store where everyone was buying stuff for ski trips. The group in front of us was reading the posted return policy and trying to figure out how to return everything they were buying AFTER they got back from their trip. It was thousands of dollars worth of stuff.

If you're returning something just because you don't want it, you should pay a hefty fee, to avoid those costs being passed on to those of us who don't do that.

 

[mike_s]

Ok. A store has 10 generators. A storm is forcasted. He's happy because now he's going to sell all 10 at $1000 each. The generators are now sold. That's $10,000 made.

Oh Oh. 5 customers returned theirs. "Looks like I'm only going to make $5000 form this storm." Well I'm going to charge them money for my taking the generator from the service desk to the shelf, and I'll call it a restocking fee. So now I can make $500 from the guys who decided to return their generators.

If the storm was never forcasted and never came, $0 would have been made. Yet because of the forcast he made $5000 when all was said and done. Greed or anger made him want another $500.

That's the way I see it.

If he didn't stock generators, would he be blamed for not carrying them also?

It's supply and demand.

However, Lowes and Home Depot typically don't have restocking fee. But I've seen in times of storms that it's hard to find a generator right before one. (supply and demand again). Yet Home Depot & Lowes don't jack up the price on them.

They are though starting to put a sign up in the generator department that says basically "there will be a 10% (or 20%) restocking fee on returned generators" because people buy them and then return them.

They have inventory, insurance, employee costs, building costs, etc to cover. Chances are those generators have been there all year in stock and when hurricane season starts, everyone wants one. (supply and demand).

Just like Valentines day, roses cost twice as much. It really doesn't cost the florist twice as much to deliver the product, but you can be assured their supplier raises the price then also.


Another insight into items such as generators, pressure washers, etc is that customers will buy them, use them once and return them after using them. This is extremely unfair to the vendor as he now can't sell the product as new and takes a loss on selling it as 'used clearance'.


Now... back to the orignal subject of restocking fees. I typically don't buy stuff from places that have them, but in some cases it's clearly warranted. (especially on special order items, etc).

 

[DeepSeaExplorer]

A lot of stores are starting to put up signs that hurricane supplies are non-returnable, including generators. That's the unfortunate outcome of so many returns. Stores help us by stocking up with huge quantities, only to have them returned after the threat passes. So don't complain if next time you need hurricane supplies, they don't have enough on hand. You can't have it both ways...

 

[all4scuba05]

In some cases it's clearly warrented is right. In all cases? Not. Imagine if Walmart decided that they will no longer accept returns of ANY item. People will take their money to another store and Walmart will file for bankruptcy. Businesses have to accept that returns is part of business. Does Walmart go broke because massive amounts of people are returning things? I think not.

Now the LDS. If my LDS decided to charge a restocking fee on everything, more customers would go elsewhere. The LDS wouldn't care unless they need those customers. Not too far from my house are 3 gas stations. Usually all three are about 1 cent off on their price of gasoline. My buddy who used to work there told me that one day one station lowered it by 7 cents. Then his boss was pissed because he new that in order not to lose customers he would have to do the same. It's business. There's ways to make a profit. One of them shouldn't be restocking fees.