On the phenomenon of 'do not return item to the store'
April 13, 2007 10:48 AM Subscribe
Why do manufacturers beg in their packaging to not return an item to the store, and to call their 1-800 number instead?
The possibilities I can think of are:
1. They get flagged at big box stores as having too many returns, so the big box eventually drops them as a vendor.
2. The store returns damaged items to the manufacturer (and if so, is it a complete loss for the manufacturer?)
3. The manufacturer honestly wants to deal with the consumer to make things right. I'm skeptical though that International Particleboard TV Tray Corporation cares that much about me, though.
I've never seen notices like this 5 or 10 years ago, so I wonder if big boxes have developed enough clout where they're screwing manufacturers on returns. Then again, there were plenty of big boxes doing business in the 1990s, so what is it that changed?
The possibilities I can think of are:
1. They get flagged at big box stores as having too many returns, so the big box eventually drops them as a vendor.
2. The store returns damaged items to the manufacturer (and if so, is it a complete loss for the manufacturer?)
3. The manufacturer honestly wants to deal with the consumer to make things right. I'm skeptical though that International Particleboard TV Tray Corporation cares that much about me, though.
I've never seen notices like this 5 or 10 years ago, so I wonder if big boxes have developed enough clout where they're screwing manufacturers on returns. Then again, there were plenty of big boxes doing business in the 1990s, so what is it that changed?
Because the "big box" just destorys the returned item and then gets a credit from the manufacturer.
posted by bkeene12 at 11:07 AM on April 13, 2007
posted by bkeene12 at 11:07 AM on April 13, 2007
And this is why...
https://suppliercenter.homedepot.com/wps/portal/SBA_Payment
posted by bkeene12 at 11:11 AM on April 13, 2007
https://suppliercenter.homedepot.com/wps/portal/SBA_Payment
posted by bkeene12 at 11:11 AM on April 13, 2007
I'm assuming you mean the notice about when a product breaks - I've never seen a policy about simply returning a product, like for your money back, and not going to where you paid for it.
I think it's simply because the manufacturers have taken it into their own hands to fix the problems, and it's quicker to bypass the big box store. To the best of my knowledge, prior to this when you had a defect product you'd return it to the purchase location, where they might try to diagnose the problem and fix it, or simply send it onto the manufacturer. But nowadays people are feeling more empowered, so why not let customers start the resolution process.
There's probably a satisfaction angle too - including customers in the process (as opposed to them waiting for big box to call them back when their thing's repaired). Plus the manufacturer has direct contact with customer, so they can be updated if something happens. Further, Big Box's employees are no longer stuck with this task, so more man hours. It's a win-win situation.
posted by Meagan at 11:12 AM on April 13, 2007
I think it's simply because the manufacturers have taken it into their own hands to fix the problems, and it's quicker to bypass the big box store. To the best of my knowledge, prior to this when you had a defect product you'd return it to the purchase location, where they might try to diagnose the problem and fix it, or simply send it onto the manufacturer. But nowadays people are feeling more empowered, so why not let customers start the resolution process.
There's probably a satisfaction angle too - including customers in the process (as opposed to them waiting for big box to call them back when their thing's repaired). Plus the manufacturer has direct contact with customer, so they can be updated if something happens. Further, Big Box's employees are no longer stuck with this task, so more man hours. It's a win-win situation.
posted by Meagan at 11:12 AM on April 13, 2007
What muddgirl said. It is a great idea to can the manufacturer if the item isn't technology-related.
If the item falls into the electronics category, encouraging the consumer to call the manufacturer gives the manufacturer the opportunity to replace the bad/broken item with a same or similar refurbished model. This saves the manufacturer a lot of money.
In my experience, it is usually just swapping one problem for another. As with everything else, YMMV.
Now, I would be very surprised if the "big box" destroys the item instead of returning it to the manufacturer (at the manufacturer's cost). When I worked in retail and damaged items were returned to the manufacturer. Granted, I worked at a department store and not a "big box" and the items were mostly clothing and accessories; also, it was the early 90s and I'm sure much has changed.
posted by necessitas at 11:21 AM on April 13, 2007
If the item falls into the electronics category, encouraging the consumer to call the manufacturer gives the manufacturer the opportunity to replace the bad/broken item with a same or similar refurbished model. This saves the manufacturer a lot of money.
In my experience, it is usually just swapping one problem for another. As with everything else, YMMV.
Now, I would be very surprised if the "big box" destroys the item instead of returning it to the manufacturer (at the manufacturer's cost). When I worked in retail and damaged items were returned to the manufacturer. Granted, I worked at a department store and not a "big box" and the items were mostly clothing and accessories; also, it was the early 90s and I'm sure much has changed.
posted by necessitas at 11:21 AM on April 13, 2007
When I worked for Staples, anything that got returned as defective got 'RTVed.' That is to say, Returned To Vendor.
Staples (and other such stores) has an arrangement with the manufacturers to take stuff back if it doesn't work, but the problem is often that a consumer who simply doesn't know how to use the product believes that it is broken. For example, people who buy Bluetooth cards for their computers, cannot use them to connect to WiFi networks, and then return them as 'broken.' The Staples staff rarely has time to check, so it just gets sent back.
I would expect that manufacturers that try to get you to call their 1-800 number are trying to avoid that.
posted by sindark at 11:33 AM on April 13, 2007 [1 favorite]
Staples (and other such stores) has an arrangement with the manufacturers to take stuff back if it doesn't work, but the problem is often that a consumer who simply doesn't know how to use the product believes that it is broken. For example, people who buy Bluetooth cards for their computers, cannot use them to connect to WiFi networks, and then return them as 'broken.' The Staples staff rarely has time to check, so it just gets sent back.
I would expect that manufacturers that try to get you to call their 1-800 number are trying to avoid that.
posted by sindark at 11:33 AM on April 13, 2007 [1 favorite]
It simplifies the supply chain. A lot of thought and effort goes into getting merchandise from the location of manufacture to the retail shelves. Controlling inventory efficiently can be a huge competitive advantage (see Dell, Wal-Mart, etc.). Not surprisingly, it all works much better when the traffic is primarily one-way. Especially with larger items.
The volume of returned items is likely to be inconsistent and more difficult to project. When muddgirl's furniture set was shipped to the retailer it was one of many loaded up nice and tidy on pallets. If only a few are returned over a period of weeks or months, the advantages of scale would be lost. So instead of having to deal with random one-offs from a bunch of different retailers, the manufacturer just dedicates a couple people to handle the incoming calls and then ship replacements/receive defectives directly. It's still inefficient, but much less so than if they forced that traffic backwards through the normal retail supply chain.
posted by mullacc at 12:36 PM on April 13, 2007
The volume of returned items is likely to be inconsistent and more difficult to project. When muddgirl's furniture set was shipped to the retailer it was one of many loaded up nice and tidy on pallets. If only a few are returned over a period of weeks or months, the advantages of scale would be lost. So instead of having to deal with random one-offs from a bunch of different retailers, the manufacturer just dedicates a couple people to handle the incoming calls and then ship replacements/receive defectives directly. It's still inefficient, but much less so than if they forced that traffic backwards through the normal retail supply chain.
posted by mullacc at 12:36 PM on April 13, 2007
"RTV" brings back memories. When I worked for [large national pet-supply retail chain] I wrote an RTV program for their main distribution center. The stores would ship returns back to the DC, the DC clerk would decide what to do with it, and it all would get recorded in my program.
Most of the stuff got shipped back to the vendor/manufacturer. Interestingly enough, returned bags of dry dog food and cat food were "rebagged" unless they were spoiled, then shipped back out to the stores.
posted by Robert Angelo at 12:37 PM on April 13, 2007
Most of the stuff got shipped back to the vendor/manufacturer. Interestingly enough, returned bags of dry dog food and cat food were "rebagged" unless they were spoiled, then shipped back out to the stores.
posted by Robert Angelo at 12:37 PM on April 13, 2007
It simplifies the supply chain.
Bingo.
Manufacturers are good at one thing: manufacturing. Some of them dabble into managing their own supply chains but the best companies know how to focus on their core competencies. Its better for them to make the best product at the lowest cost and pay someone else a small fee to move it to the retailer. They then take another (somewhat unseen) hit on the real value of the product in that the retailer is taking their cut before they sell it on to the end consumer - that is, if the manufacturer could sell product direct to the consumer, they might have to pay shipment (or charge the customer for it), but the retailer would never enter into the equation. The manufacturer could either a) charge the same price the retailer up-charges the item to, or b) sell the item direct to consumer at the lower price they would have given to the retailer, thus increasing sales / gaining market share. (This is all "perfect world" assumption based).
Now take all of that and reverse it. Robert Angelo alluded to the RTV (Return To Vendor) process - same thing works in reverse. The retailer isn't paying to ship that item back to the vendor, they could care less about giving another item out of their stock b/c at the end of the day, smart retailers have arranged a MOS (Mark Out of Stock) clause into their original purchase orders (these can work a number of ways, one common one is that the vendor agrees to take back any defective product and mark down the retailer's next order by the % of goods returned in a prior period).
Most supply chains are inefficient enough as it is just going towards the consumer. Working them in reverse is usually at least twice as inefficient.
*This is the thrilling kind of stuff you get to deal with when you work in the wonderful world of SC management consulting.
posted by allkindsoftime at 4:13 PM on April 13, 2007
Bingo.
Manufacturers are good at one thing: manufacturing. Some of them dabble into managing their own supply chains but the best companies know how to focus on their core competencies. Its better for them to make the best product at the lowest cost and pay someone else a small fee to move it to the retailer. They then take another (somewhat unseen) hit on the real value of the product in that the retailer is taking their cut before they sell it on to the end consumer - that is, if the manufacturer could sell product direct to the consumer, they might have to pay shipment (or charge the customer for it), but the retailer would never enter into the equation. The manufacturer could either a) charge the same price the retailer up-charges the item to, or b) sell the item direct to consumer at the lower price they would have given to the retailer, thus increasing sales / gaining market share. (This is all "perfect world" assumption based).
Now take all of that and reverse it. Robert Angelo alluded to the RTV (Return To Vendor) process - same thing works in reverse. The retailer isn't paying to ship that item back to the vendor, they could care less about giving another item out of their stock b/c at the end of the day, smart retailers have arranged a MOS (Mark Out of Stock) clause into their original purchase orders (these can work a number of ways, one common one is that the vendor agrees to take back any defective product and mark down the retailer's next order by the % of goods returned in a prior period).
Most supply chains are inefficient enough as it is just going towards the consumer. Working them in reverse is usually at least twice as inefficient.
*This is the thrilling kind of stuff you get to deal with when you work in the wonderful world of SC management consulting.
posted by allkindsoftime at 4:13 PM on April 13, 2007
When I worked in returns at Target, defective returns were given different color codes. Red meant destroy, and if I remember correctly, yellow meant chargeback/return to vendor, and green meant return to the Target distribution center. I might have yellow and green reversed, but that's the basic idea.
Everything else in this thread answers the OP's question; I just thought I'd throw this in.
posted by phaded at 9:02 PM on April 13, 2007
Everything else in this thread answers the OP's question; I just thought I'd throw this in.
posted by phaded at 9:02 PM on April 13, 2007
If you're curious about what happens after it's RTV'd - Liquidation.com tends to carry boxes of material either marked damaged by retailers or returned to manufacturers. Target stuff frequently shows up there, but stuff like a pallet load of Senseo machines is available from time to time as well.
posted by Orb2069 at 2:04 PM on April 14, 2007
posted by Orb2069 at 2:04 PM on April 14, 2007
This thread is closed to new comments.
Instead, I called the manufacturer. They sent me a new chair back, and I didn't have to return the broken one. Cost to them: One chair back. They have great customer service and I'll probably buy stuff from them through a distributer in the future.
The manufacturer, in most cases, is going to be a lot more flexible with replacing/returning/repairing merchandise than the "big box store" is. The BBS can only really replace the merchandise.
posted by muddgirl at 11:02 AM on April 13, 2007