restocking fees


More high end manufacturers are selling direct and offering home auditions, and many are charging restocking fees of up to 20%. I absolutely respect the right of any manufacturer to charge whatever he sees fit. It's expensive to have product in the field, and companies want to discourage tire kickers, but I see no reason to risk paying a restocking fee when the market offers me so many other choices. Do restocking fees discourage you from trying a product, or is the risk worth taking.
84audio

Showing 4 responses by jea48

I don't have a problem with a restocking fee. Just curious though what does the manufacture do with a returned item? Sale it as a demo, or re-box it and sale it as new? If I buy new, I expect new, not something that may have been passed around who knows how many times.
Jmho if I wanted to audition a mail order piece of equipment I would rather deal with a manufacture that sent a demo unit for audition for a reasonable fee and if I decided to buy, would deduct the fee from the purchase price of a new factory fresh unused unit.
Frankly, over the past year I have bought many items directly from the Manufacturer (Fi, Wright, Cain, Pass).

Pass sells direct to the customer? Do you mean drop ship to a customer through a Dealer? If Pass is selling directly to a customer, and I was a dealer, I would drop his product from my store.

The current dealer system is the most useless thing to me: An 2 hour in-store audition under unknown environment just does not help much; a 2 day at home trial is better but not enough either. A longer at 30-60 day at home trial with reduced prices from the start (as there is no dealer needed then) sound much better to me.


Maybe in your area, not mine. The two remaining dealers in my area will check out a piece of demo equipment for a home audition. Screw that waiting for something that is being shipped. I'll take the local dealer first over mail order.
I posted;
The two remaining dealers in my area will check out a piece of demo equipment for a home audition. Screw that waiting for something that is being shipped. I'll take the local dealer first over mail order.
Aren't you then limited only to the brands that your local dealer sells? Numerous manufacturers sell direct: Wright, Welborne, Tyler, Zu, Moscode.... So I hear that you would rather not wait for their products to ship, but I'm confused as to what that has to do with paying re-stocking fees to hear a product that you cannot get locally?
Boa2
No disagreement here. My comments were in response Restock's post. Unless I misunderstood him, he could care less if there were any Dealers. Just buy direct from the manufacture. Bad way to go imo.
As for mail order restocking fees I addressed that in my first post. I see nothing wrong with it.
Restock

I know we have a different "buying philosophy" here. But to be
even more controversial: Yes, I would buy from the small manufacturer rather
than supporting the local dealer, even with a reasonable "equipment
trial charge". At least in that case, I know that 100% of my investment
goes to a person with skills and creativity, who puts all their effort in making
a good product. The point here is not really to save a few bucks. Being in a
"business" where creativity is most important, I would rather
support the source directly, than people just selling the ideas. In addition, as
mentioned above, checking out equipment for only two days or a weekend is
insufficient IMO

Jmho I don't think you know how it works. The manufacture needs the dealers. In case you didn't know it, dealers do not sell the manufactures product on consignmemt. They pay upfront for the product plus shipping. If you were to call a Hi-End manufacture like krell, or ARC, bet you would find they like it just the way it is. They are basically a wholesaler and sell directly to the dealer. No one calling them asking them questions, no tire kickers, just buyers. The dealers carry the inventory in many cases setting in their back rooms bought and paid for. Sometimes on borrowed money. And if the dealer doesn't buy enough product from the manufacture a year and another dealer in the area wants to add it to his store, the manufacture will yank the franchise from the dealer and give it to the other. I have seen it happen.

P.S. PassÂ’ First Watt effort is almost a direct distribution model where one
dedicated person/dealer distributes everything directly and equipment is
shipped directly from the factory. And it is interesting to see what additional
creativity it allows for the manufacturer (Pass).

What do you want to bet that the dealer has already bought and paid the manufacture for his product and the manufacture is holding the items for the dealer to ship to the dealer's customer, drop shipping. It saves the dealer money. Just call "Pass" and see if he will sell to you direct.