Another Case of Customer Service Stupidity

Rule Number One of my approach to marketing is to treat the customer right. As I say in my books, it’s far cheaper to bring back an existing customer than to have to go out and recruit a new one. And even in the following case, where there is no likelihood of a repeat purchase, it still would have made more sense to honor the request. A business owner never knows when a customer will tell a very large circle of people about either a good or a bad experience. And in this particular case, I’m prepared to escalate and the merchant may find itself with neither the money nor the merchandise, just for being stupid about customer service.

For right now, I won’t name the company; we’ll see what kind of response I get. But here’s a letter I wrote that I should never have had to write:

On January 12, 2010, we purchased two bags at your Lincoln Mall store in Miami Beach, a few minutes before closing time. We came into the store because my wife needed a replacement for her everyday purse. She found one that was a little larger and considerably heavier than her current purse, and I found a fanny pack, which I’d been looking for. It wasn’t ideal but she thought she could make it work. However, walking the few blocks back to where we were staying, it became obvious that the weight would be a problem. We actually took turns carrying it, and she decided we’d bring it back the next day.

The purse never left the [name of store] plastic bag. It was exactly as it had been when we took it out of the store. But when we returned the next evening, the store refused to refund her purchase (we’re keeping the fanny pack). They pointed to the sales receipt, which stated that all returns would be for exchanges, not refunds.

However, this information is not posted anywhere in the store. There is no way to know about the policy until after you’ve made the purchase and the store considers you bound by it.

As it happens, I’ve written several books on marketing, and while not a lawyer, I have at least a basic understanding of consumer law. One of the requirements of a valid contract is that it’s entered into voluntarily by all parties. In this case, the terms of the contract were essentially changed by one party after purchase. The standard for American retail is to take back unused, salable merchandise within a reasonable time after purchase, and where the conditions are different, they need to be visibly posted so the customer is aware. Handing someone a sales receipt with different conditions is not something likely to hold up to scrutiny.

However, the store did not accept this argument and refused to issue a refund; we spoke to four different people. We did look around to see if here was anything else we needed, but we had come to the store specifically to buy the purse, and couldn’t find anything else even remotely suitable.

I am writing to you because I’d rather we work this out as reasonable people. We were only visiting Miami Beach and have left the area, so we can no longer bring the item back in person. However, we would be glad to return the bag if you refund our purchase price ($29.95 plus $2.10 sales tax, total $32.05) and issue a prepaid call tag from UPS or any other carrier. We will not pay to ship it back, since it was not our fault that the store refused to take it back when we went in person.

I’m sure we’d both rather avoid a credit card chargeback, and therefore, a refund is the better path.

Thank you,
Shel Horowitz

I’ll let you know what happens.

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A lifelong activist, profitability and marketing specialist Shel Horowitz’s mission is to fix crises like hunger, poverty, racism, war, and catastrophic climate change—by showing the business world how fixing them can make a profit. An author, international speaker, and TEDx Talker, his award-winning 10th book, Guerrilla Marketing to Heal the World, lays out a blueprint for creating and MARKETING those profitable change-making products and services. He is happy to help you craft your messaging and develop profit strategies. Learn more (and download excerpts from the book) at http://goingbeyondsustainability.com