Effect of Returns on Retailers

Crox G

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Nov 27, 2012
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If we return a Festool product within 30 days for a refund, does the brick-and-mortar retailer lose his profit?

I wanted a T18+3 and went to the local Woodcraft.  They had one, and I noticed that the batteries were 3 Ah. I told the dealer that I thought they were supposed to be 4.2 Ah, but she looked in a catalog and said that the T18 drills all come with 3 Ah batteries. I figured I was mistaken, and I bought it anyway.  When I later looked on the FOG, I found that I must have bought old stock and missed out on a larger Systainer with bins and a thinner charger, as well as the 4.2 Ah batteries.  I'm hoping to get a cordless Carvex soon, and I'd like to have all batteries be 4.2.

I'm trying to decide whether to return the drill and apply the refund to the newer set. I have a good relationship with the dealer and would hate to see him lose his profit. They've always let me play with their demos and given me good advice. If they won't lose on the exchange, my decision will be a lot easier.

Thanks,
Crox
 
i would not worry about this at all, but thats just me. Festool obviously flaunts the 30 day return period so theres no problem there. at this point, call your dealer and voice your concern, perhaps they will be honest about what a return means on their end.

then buy the new version from your dealer... !
 
Based on the original post, the dealer gave you bum dope so they should willingly accept the return and look forward to the extra sales.
 
Won't they "lose" the profit on the returned item and then gain it back when you buy the new drill?  If the new drill is more expensive, won't they make a little more?
 
Based on the info available, I agree with Otis04.  You should return it and feel no guilt whatsoever.
 
If the dealer had been more in tune with current Festool offerings they wouldn't have put themselves in the position in the first place. "Know your product" or lose out!
 
I realize this question was probably directed to other dealers, but let me weigh in very quickly.

First, I think that most business owners realize that returns/exchanges are part of doing business. Festool has an agreement with dealers regarding 30-day returns regarding the product itself. The dealer stands to potentially lose the cost of the transaction if it's a credit card transaction as there are costs involved. Usually a fixed fee plus a percent of the purchase, which varies depending on the merchant's agreement with their bank. This is true with any purchase, not just Festool. If you want to help your dealer, ask them to get the product you want instead and do an exchange. Then, that only charge you any difference in price rather than issuing a refund and then doing another credit card transaction for the full amount.

Participating dealers are actually able to offer customers a 10% discount on the drills with 3.0Ah batteries in the US/Canada. That may or may not have been offered and may or may not be enough incentive for you to go with the 3.0Ah version.

Most dealers carry many product lines and I'm sure it's difficult to keep their entire staff up to speed on every product introduction or change that comes down the pipe. You guys are just very well informed from being here on the forum. And, we only update catalogs once per year generally.

Other dealers are welcome to weigh in.

Shane
 
The way I read your original post, I think you are more concerned about the dealer than they are concerned about you. It seems dishonest to keep an "old" catalog around to prove something in stock was up to date.

I second what promark747 said:
You should return it and feel no guilt whatsoever.

I would also kick it up a notch and buy the new drill from another dealer. At the cost of these and other similar quality tools I expect an authorized dealer to be of equal or greater quality (service, integrity, advice, ect...). Just my $.02
 
I would take Shane's advise and go back to Woodcraft with a proposal to exchange for a new 4.2Ah battery drill.

Jack
 
briankb said:
The way I read your original post, I think you are more concerned about the dealer than they are concerned about you. It seems dishonest to keep an "old" catalog around to prove something in stock was up to date.

I second what promark747 said:
You should return it and feel no guilt whatsoever.

I would also kick it up a notch and buy the new drill from another dealer. At the cost of these and other similar quality tools I expect an authorized dealer to be of equal or greater quality (service, integrity, advice, ect...). Just my $.02

Is there a "new" catalog out with the updated info on the drills?  I don't think there is but I could be wrong.
 
No, there's no updated catalog which was the point of my mentioning it. I don't think it was dishonesty but lack of knowledge of an update.
 
I suspect Shane nailed it and there was no deceit or dishonesty, just misinformation or lack thereof...

When the new drills came out, I discounted my old stock by 10% and they sold pretty quickly. If your WC is anything like the one here, most of the people there are not up on Festool or several other things they have to sell.

Tom
 
Crox!  

Happy new years to you buddy!

Bare minimum they owe you 10% back as part of Festool's Closeout Sale (3.0's being replaced by the 4.2's), which is VERY minor paperwork to be done on the dealer backend (no more than 5 minutes, though could be longer if I used Internet Explorer ::)).  And as all previous posts have indicated, I too believe this as a fleeting moment of an associate being uninformed of current Festool promotions available.    

Unless that 10% cashback is massively important to you, I'm all for you returning and getting an updated 4.2 T18 Set.  I love the updated Systainer and insert with storage bins, the 4.2 batteries (TWO of them!) are a no-brainer, and accompanying slim charger is just a sexier sleeker unit.

Your happiness and satisfaction is all that matters.  We dealers are here to take care of you.  Point, set, match.  No if ands or buts.  

Don't make me fly out to Virginia with a 4.2 T18 now ;)
 
Tom Bellemare said:
I suspect Shane nailed it and there was no deceit or dishonesty, just misinformation or lack thereof...

When the new drills came out, I discounted my old stock by 10% and they sold pretty quickly. If your WC is anything like the one here, most of the people there are not up on Festool or several other things they have to sell.

Tom

I agree Tom and now that you mention it, that new drill sounds like what I need right now.  Do you still have an installers kit to go along with it?

Jacl
 
What everyone else said, Plus its the cost of doing business. The retailer should understand that.
 
Thanks guys for your helpful replies, especially Shane. I just called the WC store, and one of the Festool specialists cheerfully welcomed the exchange of the 3.0 for the 4.2 set, at my convenience. He also offered to order a Carvex 420 set, basic, to share the T18's batteries and charger, just for me to try out with no obligation to buy.

All as it should be, and consistent with Festool's commitment to quality tools and customer service.

Looking forward to an afternoon in the shop, and hoping for an excuse to return to San Fran to visit K-119 Phil! Hey Phil--do you still offer limousine service from the train station?

Cheers,
Crox
 
Crox G said:
Hey Phil--do you still offer limousine service from the train station?

Cheers,
Crox

Anytime my good sir ;)

To whet your appetite, we've grown quite significantly since your visit.  Quite a bit  [cool]
 
jobsworth said:
What everyone else said, Plus its the cost of doing business. The retailer should understand that.

So the retailer *does* eat the cost of the return, beyond the transaction costs ? Those costs of doing business, while the cost of doing business with Festool as agreed by the particular contract, are different than the costs of doing business with some other manufacturer where they are not obligated to provide a 30-day, no questions asked return policy.

When the retailer gets a return, he (likely) can't resell the tool as new.  So I assume it goes to Festool as a refurb.  Does the dealer lose the difference between his cost and the refurb sale price, less perhaps a refurbishing fee ? (assuming, of course, his cost is less than the refurb sale price?)
 
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