restocking fees


More high end manufacturers are selling direct and offering home auditions, and many are charging restocking fees of up to 20%. I absolutely respect the right of any manufacturer to charge whatever he sees fit. It's expensive to have product in the field, and companies want to discourage tire kickers, but I see no reason to risk paying a restocking fee when the market offers me so many other choices. Do restocking fees discourage you from trying a product, or is the risk worth taking.
84audio

Showing 5 responses by 84audio

I don't like to work for free either, and manufacturers shouldn't be expected to work for nothing. But would they have more sales if they didn't charge the fee? If they really believe in their product, and think it's better than the competition, would it make more sense to encourage in home trials with no fees? Sometimes you have to spend money to make money. It's great to claim the morral high ground and say you shouldn't be expected to work for free, but it's even better to make some sales. In any case, I absolutely respect whatever decision manufacturers make about restocking fees, but my decision is not to deal with those manufacturers who charge them. There are too many other good choices.
Onhwy61, Shoppers are potential buyers. I'm both a shopper and buyer, and I'm afraid I have the bank statement history to prove it.

I was looking for a cable recently and budgeted $150. I narrowed my choices to 3. One manufacturer bragged that his cable was the best, and he would gladly sell it to me but did not take returns. That left me with 2 choices. Another manufacturer agreed to give me a 30 day trial saying he would recredit my card minus shipping if it was returned. The 3rd manufacturer asked lots of specific questions about how and where I was planning to use the cable. He said he had a cable for $100 more that would be absolutely perfect. When I said I wouldn't go there, he asked if he could send me the cable for audition at no charge, and asked me to evaluate it against the competition's cable.

Sure, he's trading me up, but I respect a guy who is confident in his product, and is unafraid to take a risk. He isn't worried about getting screwed or feeling sorry for himself for maybe working for free, and he's not counting pennies thinking about a restocking fee. That's a real sales person!

Granted, speakers and components are different from cables, but the principal stands. Of course it's safer to get the fee, but does it cost you more business in the end? It would be intersting to hear from dealers and manufacturers.
Boa2, I see your point, but this "chump" isn't giving away anything if I buy the cable. Maybe he is sure of what he has, and knows it's much better than the competition. If it's a losing proposition for the manufacturer, I trust he won't make the deal.

There are many roads to success. Plenty of dealers and some manufacturers offer in home trials with no restocking fees. Others charge, and If you are willing to pay them that's great!

I'm not in the audio industry, but I work daily with sales people in a high pressure situation. The most successful sales people are those who are confident and unafraid. They don't count hours and whine about working for free, they understand their market, and they go out and make something happen.

While I enjoy high end audio, I'm out of my league about that market. Let's not pretend that buying and listening means we understand how it's best sold. The high end dealer model is going away, and my guess is that manufacturers who charge restocking fees will eventually suffer. Granted, I'm shooting in the dark--who can really say. Again, I would really appreciate any dealers or manufacturers thoughts.

Thanks
Understood. I would expect nothing less than a company owner acting in his best interest. In some cases, that may be finding a way to get rid of tire kickers. But the model for no obligation returns is out there. Circuit City, Sound City, Amazon, Crutchfield, Audio Advisor, Music Direct, J&R and countless others offer such a policy for on line electronics shoppers. While they don't all sell high end products, there policies make it less likely that high end consumers will be willing to pay a restocking fee.
Boa2, My point is that those companies I mentioned in my last post create a climate that will make it difficult for high end manufacturers to demand restocking fees. I doubt that consumers willtake the risk when they have so many other options including products from other high end manufacturers that don't ask for a fee. In any case, the horse is long dead, and I'm going to stop beating it now. Thanks