Thoughts on restocking fee...

RetroRod

New member
Post might not belong here but I have a 5th Gen :)

I wanted to get some collective thoughts around what your thoughts were about restocking fees on products that have not shipped or possibly been fabricated.

I know what I am getting into and understand why some organizations have restocking fees. But in the case of a fabrication and something that has not shipped I find it hard to pay a 20% restocking fee on a $1000 product that has not been shipped.

Is it just me or do you guys think this is bad business??? If the product had already shipped and then I shipped it back and they needed to handle the product then by all means charge me! I don't mind paying the piper!!! Cost of doing business!

Sorry for the rant just trying to get feedback on thoughts from the community...

RetroRod
 
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I get it if it is a small/medium fabricator and they have built it to your order.
Maybe even if they haven't built it yet. You have to take into consideration their planning/logistics/part allocation etc.

Every now and then I'll do a private commission for a furniture piece. I charge 50% non-refundable deposit. It covers most material and design work.
 
Post might not belong here but I have a 5th Gen :)

I wanted to get some collective thoughts around what your thoughts were about restocking fees on products that have not shipped or possibly been fabricated.

I know what I am getting into and understand why some organizations have restocking fees. But in the case of a fabrication and something that has not shipped I find it hard to pay a 20% restocking fee on a $1000 product that has not been shipped.

Is it just me or do you guys think this is bad business??? If the product had already shipped and then I shipped it back and they needed to handle the product then by all means charge me! I don't mind paying the piper!!! Cost of doing business!

Sorry for the rant just trying to get feedback on thoughts from the community...

RetroRod

Many places have nothing in their store or site. Everything is dropped shipped. Now when you return it or cancel an order, they might not be able to back out on their end with the vendor. The buck gets passed to you. That’s why most brick and mortar stores with things in stock have no such fees if it is unopened
 
I get it if it is a small/medium fabricator and they have built it to your order.
Maybe even if they haven't built it yet. You have to take into consideration their planning/logistics/part allocation etc.

Every now and then I'll do a private commission for a furniture piece. I charge 50% non-refundable deposit. It covers most material and design work.

Yeah I get it, makes sense. I am not trying to screw anyone just thought...hey if it has not been sold and you are a solid seller with a waiting list of customers, hey why not make all your customers happy. But then again I don't know the full situation.
 
At the end of the day you agreed to the terms and you seem ok with that so I'll bite.

If you made contact within a short amount of time with the vendor after the order was placed (can't define this but lets say if its a 6wk lead time, 3 or less days). I would like to think they would act in good faith if indeed no significant costs had been incurred by them - such as ordering materials, starting fabrication etc etc. but of course are under no obligation to do so.

In my book that flexibility and willingness to work with a customer is worth a lot. On the other side of the automotive scene I have done a fair bit of business with ECS Tuning, one of the reasons is they have been excellent to work with when issues arise but nothing exactly like what you are asking.

Like you, I have no expectation for a vendor to eat the cost of my mistake or to go back on terms agreed to but it never hurts to ask. Its unclear from your post if you inquired if they would remove the costs.
 
I understand restocking fees when you return something. You know, in any case they have to accept it, then open the box, test or inspect what's inside, then re-package it into the new box without shipping labels and signs of opening... You know, you have to pay to the person who does it and for the new packaging. But when it's something that hasn't shipped yet... Well, you order something, they should at least warn you that there is no way back, or there is, but you'll have to pay for that. In this case, a customer will think twice before ordering. At least that's how it works for me, when they explain the restocking fees and stuff to me, I either accept this, or order something else elsewhere...
 
If it's stated up front and I agree to the terms before hitting the "checkout" button, then I am okay with a restocking fee. Again, only because I agreed to the terms in advance. Regardless if the parts were built, back ordered, etc.. It's a small price to pay for backing out. I usually take extra care in planning and making sure that I want the items when there is a restocking fee. Now if it's Amazon, then I impulse my life away! :whip:
 
Yeah its on me and I didn't fully understand the terms. So pay the piper! I am not here complaining about it just wanted to get thoughts on it.

I will look at the terms next time I pull the trigger on a something big and not from Amazon :)

Thanks for the input!

Rod
 
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I think the policy is fair depending on the product and how custom it is. If it is a roof rack.. and pretty generic and there is plenty of demand.. Then a re-stocking before a product is shipped.. is just poor customer relations and a good reason not to do business again with said company.

Now, if it is a one off product that will actually cost the company not to ship... then the re-stocking fee is very fair and I would still do business with said company again. Bottom line. it very much depends on what it is and what the circumstances are.

High demand pretty generic products simply don't make sense without shipping. Now if it has to sit on the shelve for months consuming material cost and space... different story...
 
Have you called and spoken with them?

In my experience with sourcing materials and equipment companies will generally waive restocking fees if they haven't started production, or if your product will just go to the next customer (i.e. they have a line of customers waiting for your exact product, so they aren't out anything and it just means the next customer gets their item quicker)
 
how long in between placing the order, and you trying to cancel?

restocking makes sense in the build to order business.
 
There's a difference between custom and build-to-order. Which is it?

If it's just BTO, forget that noise and just call your CC order and tell them the product never shipped and is not being shipped in a timely manner. Done and done.
 
There's a difference between custom and build-to-order. Which is it?

If it's just BTO, forget that noise and just call your CC order and tell them the product never shipped and is not being shipped in a timely manner. Done and done.

thats how these small BTO companies go out of business.
 
There's a difference between custom and build-to-order. Which is it?

If it's just BTO, forget that noise and just call your CC order and tell them the product never shipped and is not being shipped in a timely manner. Done and done.

Not sure it was build to order, this company has a back log of demand and should not be an issue. There are a couple of things I have learned from this! And the reason I have not mentioned the vendor is because its really irrelevant! A few lessons learned and hopefully this helps others to not get into the same situation I was in!

1. If you order a product be sure you understand the terms, I didn't and it almost cost me a $200 restocking fee.

2. If you order something custom then expect to pay the piper if you back out, period point blank!

Thank you vendor for being a stand up organization understanding my situation and doing the right thing per the customer.

In the end its all about customer service! I appreciate everyone's comments but it's all about repeat customers and you will not get repeat customers unless you do the right thing for the customer. Yes it might cost you a few bucks but you need to decide for yourself, I am going to profit from this decision? Everyone has their perspective, but that is mine, good business is good for everyone!

Enough said! Happy 4 wheeling all!

Rod
 

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