Shop Talk
restocking fees
How many of your companies (corporate or dealer) charge customers a restocking fee on returns or exchanges?
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We are working on it... too many customers are abusing our 30 day exchange policy now that we are one of the few stores that don't charge... What's really killing us are people doing this with blackberries.
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our company has a 30 day exchange policy as well, and only way we charge restocking is if we see damages on the phone, or anything is missing. Ppl abuse our policy all the time though
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what about no damage, phone is in perfect condition (looks like it was never used)
basic phone....
basic phone....
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what are the call timers? If it's over an hour of talk time, it's not new.
is the original plastic covering still on the device? are the books still in their sealed wrapping?
How many customers have you had who ask for a different phone if you bring one out and just the battery isn't in a sealed sleave?
The really annoying ones will want to play with a phone, and then when they decide they want it, want another one besides the one they played with (even if they were first to use it... we tell them no)
Customers are really picky, and with lawsuit happy as the average consumer is, you have to have really specific what is "new"
Also, the restocking fee is there for phones that are like new, but cannot be sold as new. if the ...
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is the original plastic covering still on the device? are the books still in their sealed wrapping?
How many customers have you had who ask for a different phone if you bring one out and just the battery isn't in a sealed sleave?
The really annoying ones will want to play with a phone, and then when they decide they want it, want another one besides the one they played with (even if they were first to use it... we tell them no)
Customers are really picky, and with lawsuit happy as the average consumer is, you have to have really specific what is "new"
Also, the restocking fee is there for phones that are like new, but cannot be sold as new. if the ...
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our return policy is 30 days ("no-risk") usage doesnot matter, and the customer can return it as long as it is in like new condition, box, manuals, packaging all has to be there.
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we used to do that, but too many people are getting high end phones for "the looks" and then bringing it back on day 29.. so then we are left with a $600 phone that we can't sell as new, and our store has a no used phone policy.. so we basically eat that cost.
And these are customers we try talking out of getting these phones, because we know they'll return them.. the restocking fee would at least make them think twice.
And these are customers we try talking out of getting these phones, because we know they'll return them.. the restocking fee would at least make them think twice.
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our dealer tries to charge a restocking fee, but his contract with the carrier (according to our rep) says he cant charge a restock fee. and I am losing customers because word is getting around that he does
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Yeah, if you can't charge it because if your contract, you don't charge it.
We're not allowed to at the moment, so we don't. We are particular with how the phones look though. If the phone isn't "like new" we don't have to accept it back.
We've had people try to return phones with cracked screens, white-out "stencils" on the back of hearts, etc.
We're not allowed to at the moment, so we don't. We are particular with how the phones look though. If the phone isn't "like new" we don't have to accept it back.
We've had people try to return phones with cracked screens, white-out "stencils" on the back of hearts, etc.
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TMob has a $10 fee, but i dont charge it unless theyre doing a exchange because they just dont like their phone. If its for a reason like a defect or someting, i wont charge them.
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any return/exchange within a 30 day period is subject to a 25$ restocking fee unless there is a manufacturer defect with the device...
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Corp. T-mobile charges a $10 restocking fee if the customer is returning or exchanging the phone. If there is a defect with the phone we don't. The reason is once a customer uses that phone we can't resell it.
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my restocking fee is more of the "annoying customer being a douche trying to return fee" its at the sales persons discretion.
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Sprint's restocking fee went up 140%! Customers had better chose their wireless devices wisely unless they don't mind getting the shaft of $35.
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I half blame customers for this and half blame fellow sales reps. Don't sell someone the "free" or cheap phone and tell them to come back on payday to get the one they really want. If they look/sound like they can't figure out a PDA then maybe don't suggest a Touch Pro.
Some of the exchanges I see are of the, "what were you thinking" variety. Imagine going car shopping, getting a loaded BMW then taking it back to trade for a Hyundai or vice versa. People need to look into it a little more and not buy a phone based on impulse. Sales reps should help with that qualification process, not just go with the option of least resistance just to make an easy close.
Some of the exchanges I see are of the, "what were you thinking" variety. Imagine going car shopping, getting a loaded BMW then taking it back to trade for a Hyundai or vice versa. People need to look into it a little more and not buy a phone based on impulse. Sales reps should help with that qualification process, not just go with the option of least resistance just to make an easy close.
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True its partly the reps fault for trying to make more money on the phone sale or being lazy and not qualifying a customer to fit their needs. But recently I've found a lot of the blame falls on the customer. Ever since the iphone came out everyone wants the flavor of the month phone. Their friends have it so they need to have it. Some people just can't be talked out of a phone that why you have people using the G1 and can't figure out how to get no the internet with it.
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I blame the customer all the way. When I go shopping I don't get pushed around and buy something I don't want, get scared when its too complicated, and expect to return it because I can't make my own decision. A salesperson tries their best to educate the customer but as we know that their mind is made up. I am not responsible for poor decisions unless I lie about the phone. I will not decide what phone they get. Return if broken, and only if you had nothing to do with it breaking. Be responsible for your own actions.
Whatever happened to player got laid and lady got played?
Whatever happened to player got laid and lady got played?
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frontncenter said:
I blame the customer all the way. When I go shopping I don't get pushed around and buy something I don't want, get scared when its too complicated, and expect to return it because I can't make my own decision. A salesperson tries their best to educate the customer but as we know that their mind is made up. I am not responsible for poor decisions unless I lie about the phone. I will not decide what phone they get. Return if broken, and only if you had nothing to do with it breaking. Be responsible for your own actions.
Whatever happened to player got laid and lady got played?
I totally agree, customers need to use there brain and make a informed decision. Just because everyone a...
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Average retail cost of a phone: 200-500 lets say 350.
That means that the "restocking fee" is only 10% of the average retail cost. Considering that most phones returned this way cannot be resold without significant loss, I really don't understand why people are making a big deal of it.
Granted, our store doesn't try pushing people into one phone or the other (the way our commission works makes this not profitable, so it is a double win) But at the same time I've seen a giant increase in the number of people who "just want a free phone" or "want a blackberry" when you KNOW it's not a good phone for them and no matter how much you try to talk them out of it, they take it anyway.
If we had a restocking fee, it would give us one more...
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That means that the "restocking fee" is only 10% of the average retail cost. Considering that most phones returned this way cannot be resold without significant loss, I really don't understand why people are making a big deal of it.
Granted, our store doesn't try pushing people into one phone or the other (the way our commission works makes this not profitable, so it is a double win) But at the same time I've seen a giant increase in the number of people who "just want a free phone" or "want a blackberry" when you KNOW it's not a good phone for them and no matter how much you try to talk them out of it, they take it anyway.
If we had a restocking fee, it would give us one more...
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Menno said:
Average retail cost of a phone: 200-500 lets say 350.
Yes that's true except for the really low end phones you guys try to push on people. But that's irrelevant. What your entire post does NOT take into account is the fact that the company is rembursed on the contract and then some.
First of all, the phone is discounted because a dealer is buying them in bulk and they have an agreement with a master dealer. This means that the retail phone of 350 just got bought for 150. When a contract is signed the 150 is rembursed to the master dealer and a small profit is made on the phone. The real money is on the contract which the dealer will get anywhere from 300 to 500 dollars on however it will...
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Yes that's true except for the really low end phones you guys try to push on people
First of all, who is "you guys"??? If you're referring to cell phone reps, and you aren't one, why are you in this forum in the first place?
the phone is discounted because a dealer is buying them in bulk and they have an agreement with a master dealer.
wow, is THAT how it works??? I just thought if a company buys in bulk, they sell it at that same price. What? You mean businesses actually
make PROFIT from these phones?? Get outta here!
So if you sell two phones you just made 900 dollars.
🤨 how do you figure selling two phones makes you 900 dollars? If that person ...
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Yes I sell cell phones stop trying to play the in card because most likely I've been doing this longer, and obviously, better. Second of all with your 900$ comment you don't understand how the industry works or how the store you work in works. I suggest speaking to your manager since you don't understand anything about how your company generates money.
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Yes, because every company uses the EXACT same accounting methods, the same commission structures, and the payout from carriers is exactly the same across markets. 🙄
NO ONE was talking about how much you made on a sale until you brought it up. Everyone else was talking about RESTOCKING FEES, as in, the fees charged if a customer returns a phone because they don't like it, and not because the phone/service is defective.
We were talking about the money lost when customers did it. This has nothing to do with Commission, it is all about COGS. Don't say we don't know what we're talking about when you can't even reply to a topic properly.
NO ONE was talking about how much you made on a sale until you brought it up. Everyone else was talking about RESTOCKING FEES, as in, the fees charged if a customer returns a phone because they don't like it, and not because the phone/service is defective.
We were talking about the money lost when customers did it. This has nothing to do with Commission, it is all about COGS. Don't say we don't know what we're talking about when you can't even reply to a topic properly.
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Try asking your 2nd grade teacher how to read, apparently I've been doing that longer, and obviously better since you fail to even realize the topic of discussion.
Menno and myself have tried numerous times to explain this situation to you, yet you just don't get it.
Menno and myself have tried numerous times to explain this situation to you, yet you just don't get it.
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Actually, you have no idea what you are talking about. If you actually saw what I was replying to, Midnight Toker was complaining about restocking fees. This means he is talking about phones that a customer buys, tries, and returns.
80% of phones returned this way CANNOT be resold as new phones, meaning that the company takes a huge hit on these phones.. they are either sold as refurbs (for a significant profit loss) or broken down for spare parts/used as fru phones. Stores to NOT get compensated when a phone is lost this way, unless the return was handled by corporate.
A phone that we sell for 400 retail costs us (at minimum) 360, if not more. That is my COGS, with no profit, no NOTHING built in but how much that phone costs me...
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80% of phones returned this way CANNOT be resold as new phones, meaning that the company takes a huge hit on these phones.. they are either sold as refurbs (for a significant profit loss) or broken down for spare parts/used as fru phones. Stores to NOT get compensated when a phone is lost this way, unless the return was handled by corporate.
A phone that we sell for 400 retail costs us (at minimum) 360, if not more. That is my COGS, with no profit, no NOTHING built in but how much that phone costs me...
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brother man set you straight on that....
ITS ALL ABOUT THE EBDA...
now lets all read
"WHO MOVED MY CHEESE?"
(Cricket first launched in memphis market they made all employees read this book.)
ITS ALL ABOUT THE EBDA...
now lets all read
"WHO MOVED MY CHEESE?"
(Cricket first launched in memphis market they made all employees read this book.)
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Crickets BS lot of downsides to them. Only customers they're going to snatch are prepaid anyway - everyone else will hate them and go back to normal plans. All in all, a small cut, me thinks.
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Menno said:
Lets say that we actually make 1200 dollars on that contract (this is very high, but I'll humor you)
That is not high at all that is typical for a two liner with pda plans attached. You have no idea what you're talking and I'm not going to entertain anything else you have to say on the subject. I suggest checking with your store manager about the financial side of the business you are employed in and how much store revenue is generated, or how it is generated. Nobody is talking about tmobiles upgrade fees here. We went way beyond that.
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I was replying to restocking fees, and the fact that a returned phone is a dead phone for most stores.
you were the one who brought up store revenue, and the money made on activations. That 1200 was also for a single line in my example.
Maybe you should read a thread before replying to it.
you were the one who brought up store revenue, and the money made on activations. That 1200 was also for a single line in my example.
Maybe you should read a thread before replying to it.
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Yesterday, our Sprint corporate store had the pleasure of laying down the war hammer on 10 customers who exchanged their handsets for reasons other than manufacturer defects/non working devices. Sprint just made a gross profit of $350!
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Unless the phones those customers returned could legally be resold as new devices, sprint did not make a GP of 350
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my company does a 25$ restocking fee, for phones brought back in to exchange or refund, and if they have cut the UPC out, for the rebates... thats another 25$
****ty! 😲
****ty! 😲
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That is ****ty! If the UPC is cut out, they should get charged the full price of the Mail in Rebate, if you accept the phone back at all since you'll have a tough time reselling it again.
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Here is my companies Return Exchange policy.
30 days to return/exchange the phone
After 14 days OR 2 hours on the timer we charge a $20 USAGE FEE.
Phone must be in "like new" condition. No scratches, dings, aftermarket bling etc...
Contents of box have to be there. $20 charge for each item not there. Charger,Instructions, Software, Data Cables, Ear buds..etc...
Box must be in original condition... if cut for rebate then $50 charge since next customer can't get the rebate.
Now of course we make exceptions and if there is a defect of some kind we will take the phone so long as it is not damaged in anyway without a fee.
This ussually disuades people from abusing the return exchange policy.
30 days to return/exchange the phone
After 14 days OR 2 hours on the timer we charge a $20 USAGE FEE.
Phone must be in "like new" condition. No scratches, dings, aftermarket bling etc...
Contents of box have to be there. $20 charge for each item not there. Charger,Instructions, Software, Data Cables, Ear buds..etc...
Box must be in original condition... if cut for rebate then $50 charge since next customer can't get the rebate.
Now of course we make exceptions and if there is a defect of some kind we will take the phone so long as it is not damaged in anyway without a fee.
This ussually disuades people from abusing the return exchange policy.
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