lisa8500 has chosen to keep her LifePath private.

Message 3757 of 9032

Another view on business costs

I was just reading an article about stores charging "restocking fees" for returned items. This practice, which is becoming more and more common on items such as consumer electronics, deducts part of the purchase price, often up to 15% if the item's box has been opened before being returned. For high-ticket items such as computers, this can be a significant sum.

A spokesman for the Retailers Association of Massachusetts defended the practice. It's actually "proconsumer", he explained. Merchants cannot resell the items at full value, so if stores did not charge these fees, they would have to recover the costs by charging higher prices to everybody.

This is the same argument that we hear whenever there's a high-visibility issue that has potential impact on the profit margin of businesses. Impose taxes on businesses and they're just going to have to pass them on to consumers in the form of higher prices. Benefits for workers? It'll just mean higher prices for consumers. You want regulations to protect the environment? Be prepared for price tags to go up.

Now, I'm not one of those who thinks that "Big Business" is the enemy and we can bleed and regulate companies incessantly without ill effect. As a worker I've suffered enough from layoffs and business closings to know that business do have to retrench and sometimes fail.

But I get weary of the business-centric view. I don't think it's any less fair to respond to absurd restocking fees by saying that they are anti-business, because by having these fees in place retailers may drive away marginal purchasers, reducing demand.

Reduce workers' benefits? That's anti-business, because workers will just demand higher wages to compensate.

For every "this will drive up costs for consumers" platitude, there's an equal and opposite "drive up consumer cost and it will cut your volume of sales".

The law of supply and demand cuts both ways. To imply anything else is just manipulative rhetoric.
MrBassMan's profile
"drive up consumer cost and it will cut your volume of sales".
that is the craziness
N.H. has no sales rax, Many people from Maine & mass shop there for that reson Mass decides to have a weekend no sales tax. Shopping went through the roof.
15% can be a chunk of change. I know there is additional handling they probably will need to mark it down which lowers their profits but the returns offer them product to sell as a "come on" or during sales months of january - february.
I do not know why you mentioned the government regulation or the environment in the post?
yichel's profile

over 2 years ago
I do not shop at stores that charge a restocking fee. I bought a laptop once, got it home only to find that it did not meet my needs, there is only so much information one can garner from the package or the salesperson (who is liable to tell you what you want to hear). The store I bought it from wanted to charge me 15% even though I was exchanging it for a more expensive model. I pitched a FIT! I won.
TwoSpirits's profile

over 2 years ago
Good for you, Two. The salesperson at BestBuy (aka WorstBuy) told me a bunch of ... well, you know. Anyway when I started having warranty problems, I pitched a fit - made calls, letters to the upper uppers and lost. Seems the president of the company didn't give a rat's ass so no one else did either. I had bought a BUNCH of stuff from that store - not any more - nope.
The buyer better beware.
AwiUwasv's profile

over 2 years ago
Good to know that they've changed their policy. I won't buy at BestBuy anymore, either. Of course, I wasn't hyper thrilled with them from the get-go.

over 2 years ago
I purchase all my electronics on-line from companies like TigerDirect. If I have to return it, they pay for the shipping and handling, and it only takes two business days to re credit my account. Best buy use to take two weeks even when I physically walked in the store.
Charles1950's profile

over 2 years ago
The man who created my computer bought all my components from TigerDirect. Excellent place. My computer was built in 2000 and except for a few tweaks over the past 9 years, it keeps on ticking.

I do my best (pun intended) to warn everyone about BestBuy.
AwiUwasv's profile

over 2 years ago
"I do not know why you mentioned the government regulation or the environment in the post?"

I mentioned them as additional examples of common "pro-business" attempts to influence public opinion using a one-sided perspective of the relationship between business and consumer. It was that manipulative rhetoric that I was my main object of comment rather than the specific issue of restocking fees.

In the forum of public opinion, business seems prone to reminding workers and consumers how dependent they are on business. My main point is that it is equally true what without workers to produce goods and provide services or without consumers to buy them, business dies. Commerce is a cooperative venture, but many seem to have forgotten that.
MrBassMan's profile

over 2 years ago

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