Re-Stocking FEE? [Archive] - Audio & Video Forums

PDA

View Full Version : Re-Stocking FEE?



Mark111867
10-18-2005, 04:30 PM
Is a re-stocking fee standard practice in mid to high end audio shops?

ToddL
10-19-2005, 07:20 AM
Not here. No return on some items, some within a certain timeframe. This procedure seems to be heading out. Other stores around here have "you bought it, its yours". On speakers you should be able to swing something, but ask yourself this: Do you want to pay retail for something that has already been returned?

kexodusc
10-19-2005, 07:32 AM
Not here. No return on some items, some within a certain timeframe. This procedure seems to be heading out. Other stores around here have "you bought it, its yours". On speakers you should be able to swing something, but ask yourself this: Do you want to pay retail for something that has already been returned?

I don't think it's standard, but it's an understandable practice. A lot of audio specialty shops have a hard time making a go of it. A revolving door policy like Walmart's won't help them.

Most decent retailers will have demo models for this purpose. Restocking fees can discourage hasty decisions to return, and even buy. They also compensate the store for their losses.

Margins continue to erode in this industry. Good for us, bad for them. Go easy on your audio dealer.

E-Stat
10-19-2005, 07:54 AM
Is a re-stocking fee standard practice in mid to high end audio shops?
When I worked at an audio shop back in the 70s, our practice was to "loan" out-of-the-box demo components to a prospective buyer for the weekend. We took their credit card for the purchase and held the transaction. This gave them the ability to test it in their enviroment at no cost to them and to the shop.

If that required opening the box of a brand new component, however, the situtation would be different as the resale value would immediately have dropped.

rw

Mark111867
10-19-2005, 10:25 AM
Thanks for your responses. The reason that I ask is that I am looking into purchasing a receiver/amp. The dealer does not have the exact model in stock that I am interested in, but the dealer tells me that they have another amp/receiver of the same brand that is very similar that I can try at home. If I like the similar model then the dealer will order the model that I am interested in but only after I pay for the item . If I'm going to lay out $500 or $600, I would feel much more comfortable hearing the exact model and not purchase it sight unseen. When I asked the dealer what his return policy was, he told me that it was a 20% restocking fee if I decide to do a return. On the one hand, I hear what you are saying about giving the specialty shops a break. I try to buy most of my gear there. On the other hand, I'm not so sure that I want to buy an item that I've never seen or heard before and take the chance of having to spend over $100 for nothing. I'll give some thought to what everyone responded with. Thanks again.

Woochifer
10-19-2005, 10:36 AM
It depends on the store and the product type. Some stores have more generous return policies than others. Restocking fees are very common when mail ordering computer or digital media products, and generally more normal with independent stores than national/regional chains. All of the independent stores I've bough from either charge a restocking fee, or will only give you store credit for any open box returns, or they won't take it back at all. The onus is on the consumer to make sure that the product they purchase is indeed what they want, and I don't think it's unfair of them to put restrictions on returns, since any open box return that the store accepts will likely have to be sold at a discount and the store might still get charged for the item even if it sits in their showroom for months. Even chain stores like Best Buy that have very liberal return policies will charge restocking fees for notebook computers, digital cameras, and projectors.

Woochifer
10-19-2005, 10:50 AM
Thanks for your responses. The reason that I ask is that I am looking into purchasing a receiver/amp. The dealer does not have the exact model in stock that I am interested in, but the dealer tells me that they have another amp/receiver of the same brand that is very similar that I can try at home. If I like the similar model then the dealer will order the model that I am interested in but only after I pay for the item . If I'm going to lay out $500 or $600, I would feel much more comfortable hearing the exact model and not purchase it sight unseen. When I asked the dealer what his return policy was, he told me that it was a 20% restocking fee if I decide to do a return. On the one hand, I hear what you are saying about giving the specialty shops a break. I try to buy most of my gear there. On the other hand, I'm not so sure that I want to buy an item that I've never seen or heard before and take the chance of having to spend over $100 for nothing. I'll give some thought to what everyone responded with. Thanks again.

With independent stores, borrowing the demo unit is usually the best that you can do, since they lack the deep pockets and high volume that chain stores offering those 30 or 60-day return guarantees have. Chain stores typically have higher volume with more customers coming through their doors, so they can afford to put out the open box returns, since they are likelier to have a short turnaround time. Independent stores might have returned/exchanged items sitting on their showroom floor for a year or two before finally turning over. The restocking fee protects their margin since an open box item cannot sell for full price, but they're still on the hook for the cost of any items that the customer returns.

SlumpBuster
10-19-2005, 11:55 AM
Wow, I didn't know shops could be so restrictive. My dealer has 30 day return, one year up-grade (apply full purchase price of old component to new componet purchased within a year), and life-time trade in on all products with fair market value given. I've heard of shops in my area also do in-home demo on higher end stuff. They bring it out and set it up. I've only ever seen restocking fees on special order stuff. But granted, there is alot of competition in my area with at least five high end shops within a mile or two of my house. Again, competition benefits the consumer.

Woochifer
10-19-2005, 01:37 PM
Wow, I didn't know shops could be so restrictive. My dealer has 30 day return, one year up-grade (apply full purchase price of old component to new componet purchased within a year), and life-time trade in on all products with fair market value given. I've heard of shops in my area also do in-home demo on higher end stuff. They bring it out and set it up. I've only ever seen restocking fees on special order stuff. But granted, there is alot of competition in my area with at least five high end shops within a mile or two of my house. Again, competition benefits the consumer.

The caveat on these upgrade credit offers that independent dealers make (all of the stores in my area also offer a one or two year upgrade) is that whatever you upgrade to has to typically cost at least 50% more than what you previously purchased. These offers are great, but they are also geared towards locking you in as a customer and spending progressively more with each upgrade.

A 30-day return guarantee though is a rarity for an independent audio store.