Effect of Returns on Retailers

[Administrator_JSVN]

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?)

Without going into great detail about our dealer agreement, I said just the opposite. That transaction fees are what the dealer "eats". Festool eats the return.

 

[NuggyBuggy]

Without going into great detail about our dealer agreement, I said just the opposite. That transaction fees are what the dealer "eats". Festool eats the return.

Thanks for clarifying, Shane.  That wasn't completely clear to me, at least, from your original post: you mentioned transaction costs, and how they might break down, but I didn't see anything specifically addressing the now devalued product.  Again, thanks for clarifying.

 

[Administrator_JSVN]

Sorry if it wasn't clear. I generally avoid discussing dealer agreements since they are confidential in nature. I think we are very fair to dealers and I say that having been a dealer employee for 3 years.

 

[Crox G]

I can close this thread on a happy note.  Woodcraft happily exchanged the T18 set with 3.0 Ah batteries for one with 4.2 Ah batteries, and sold me the barrel-grip cordless Carvex basic set.  No mention of lost profits and no hassle whatsoever.  Attaboys to Woodcraft and Festool.

The two tools are sharing the batteries for now.  I had a good weekend in the shop imagining myself being Paul-Mercel and Peter Parfitt demonstrating the features, precision, and power of these beautiful machines.  [big grin]

Cheers,
Crox