Quote:
Originally Posted by GTO
Not sure how we all pay for it when the store owner usually takes the product and sends it back to the vendor for credit, but I'd like to take this opportunity to thanking everyone here for helping me pay for all the merchandise I have ever returned to retailers throughout the years, Including the PS3 that I had for 2 years and returned for a new one recently.
|
Retailers buy a product from manufacturer or distributor for a specified price. The product is then marked up for sale to the consumer. The difference in price is called Gross Margin, or Gross Profit Margin. This markup takes into consideration many factors, including the costs of shipping the product, retailing it (operating costs of the store and wages for employees, benefits, etc), expected Shrink (term used to describe theft), etc.. Returns after a return policy period has ended, or, even worse, after the manufacturers warranty has ended are looked at as either 1.) a cost of doing business
or 2.) Shrink.
When a retailer takes back a product (a return) and sends it back to the manufacturer, it is reimbursed at the cost of the unit, pays the shipping back, has labor in processing the return, and may even have to pay a penalty up to 25% as a restocking fee or obsolence fee.
Sorry GTO, we are all paying for those who abuse a return policy. And yes, the retailer doesn't have to do the return after let's say two years, but then we would probably read about how unreasonable they are after only two years for not taking it back.