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Restocking Fees, 30-Day Free Trials

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You are really curious about that $25k amp. The online dealer will send it to you on a trial basis with a 15% 'restocking' fee if you decide not to keep it. $3750 gone...if you decide to send it back.

Do you think there should be a cap on restocking fees? Say for up to $25k in equipment, the maximum restocking fee is $1,000? Or, say a flat %5 fee across the board with the buyer paying shipping both ways?

It seems it would be more profitable just to send equipment out on a trial basis and hope it comes back.

What do you think is a fair way or fair fee to let audiophiles try out internet purchases?
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128x128mitch4t
hevac1
811 posts
 
Forgot 15% restocking charge is not a FREE 30 day in home trial by any means.
roscoeiii's avatar
roscoeiii
1,155 posts
 
True. It isn't a free trial. But are these being advertised as "free home trials" or just as having "a 30 day return period" etc.? But also not a biggie how they decide to phrase it, unless the buyer is not clear that there is a restocking fee.
singleendedsingle
664 posts
 
If we think as a seller, restocking fees its a way to protect them. @Wilsynet point makes sense.
mitch4t's avatar
mitch4t OP
1,486 posts
 
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Another option for dealers is to specify one or two units that they use specifically for trials only. Charge a 10% fee if the guy does not buy a new unit. If the unit goes out on trial ten times in a year...he's just sold a new unit and he still has his trial unit. Even with a trial unit, he should be able to sell it for 50% off list after he's collected several trial fees off of the unit....and still make a profit.

The bottom line here is, buyers do want to hear the unit before they buy it. Sellers have to figure out a way to get the unit into the hands of serious buyers.

Right now there is a large contingent of audiophiles that wait a couple of years until the flagship drops to 60% or 70% off of the new asking price...if they like the unit, they keep it. If they don't like it they can easily put it back on the market with little or no loss.

There has to be a middle ground that's equitable where the buyer and seller are protected.

Paying $25k for a new amp to find out that it's not your cuppa tea scares the hell out of me.
sebrof's avatar
sebrof
735 posts
 
Another option for dealers is to specify one or two units that they use specifically for trials only. Charge a 10% fee if the guy does not buy a new unit. If the unit goes out on trial ten times in a year...he's just sold a new unit and he still has his trial unit. Even with a trial unit, he should be able to sell it for 50% off list after he's collected several trial fees off of the unit....and still make a profit.
I'm not sure the math adds up. For a dealer to make a living he'd need to move a certain amount of product. So he would either need more than 1 or 2 demo units, or he would need a larger percentage of sales to be sight unseen.
And if a unit made 20 trips vis UPS or whatever carrier (10 there, 10 back), I suspect there's a good chance it will be pretty beat up.
But I do agree buyers will want to hear the unit first, no doubt.
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