Costco LIFETIME warranty?

[bentwookie]

Originally posted by: masterxfob

Originally posted by: bentwookie

Originally posted by: nikko
I returned a 4 year old 19" monitor that died on me. I didn't have the receipt, but I did have the box. They told me they don't typically return things that old (especially since it was discontinued), but that they would do it for me that time, and they gave me a store credit for the amount I originally paid. For what it's worth, it's the first and only time I've done that. If someone started to abuse the policy, I'm sure they'd note it on their membership profile.

I returned a scanner that was 5 years old. I found the receipt when cleaning out my file cabinet... tried to return it in the store but was rejected by the assistant manager.
I called back a couple days later to speak to the manager and actually got the visiting regional manager.
She approved the return without hesitation...the look on the assistant managers face was classic when he handed me back $370 for a friggin scanner...

this is the definition of abusing the warranty. thanks to people like you, everyone else pays a little more :disgust:

you're welcome!

 

[Candyman7]

I am a costco member. They do not provide lifetime membership. They will take any purchased product back within period of SIX MONTHS EVEN WITHOUT A RECEIPT.

 

[ams30gts]

i work at costco and you do not need to have a receipt of box.

everything has a lifetime warranty except computers that have a 6 month.

if you have a receipt you will receive 100% of what you paid. If you dont have a receipt, you will get back what the lowest price was when it was still being sold there.

but trust me, it is true about the warranty.

for example, i bought a AIWA stereo like 5 years ago. cd player broke so i took it back with the original receipt and got full credit for it

 

[brucekatz]

4 years old monitor,
5 years old scanner,
5 years old stereo.

No one returns 2 years old tires yet? I think I finally see everything.
Let me post this thread to chunky purse, let see how long Costco will keep their good warranty?

 

[weepul]

this has been a known fact on FW for quite some time. but as always, lets keep this a fact and not turn it into a myth.

//krunk (^_^x)

 

[platinumike]

Costco isnt so near, but there is a BJ's(mind the name...) and a Sams club, are they generally the same? also does either of the 3 sell video cards/pc hardware?

 

[imafreak2002]

I work at Costco actually, been there just over 3 months. I like it quite a bit, and I must say, the Costco return policy is AMAZING. You bought something you didn't like? I don't mean didn't use, I just mean didn't like? Was it more than a year ago? Do you have the receipt? All that stuff doesn't matter. They can pull up your purchase receipt on the computer for you. We take tons of returns every day, but the point is that money is not made on the items.

Costco makes its PROFIT (around 80% of it at least) off MEMBERSHIP fees. That is why they are even ABLE to offer such great service. Recruiting members gains way more profit than selling pants Also, when Costco sets their prices, they have a "max" range that they will mark up the product. I can't remember specifically, but many times (for pants) it is around $2 more than they buy them. So as you can see, they don't make much profit here, lol. I didn't know all this before my new-employee orientation, but it makes sense

 

[ubercaffeinated]

Originally posted by: zaku
you'll need a receipt, and box. but they don't have a time limit on returns. the customer rep told me they 'like' you to return electronic within 2 years, but you can return it later. only thing is the computer packages they sell, i think those are 6 month return period.

untrue. you need a receipt. period. original packaging is a plus, but not required, and this is atleast true in so cal. i've actually asked the workers there what their policy on this is and they answered that as long as they have a receipt for the item, they will take it back. an example they cited to me was a person who used a washing machine for almost a year, returned it no problems, without a box. all they had was their receipt, and the working washing machine.

 

[VirtualLarry]

Originally posted by: Deucer
Costco is awesome. They can offer this guarauntee because they could be making much more money, but they limit thier profit margin to 10% over cost (this is mandated corporate policy, and any manager whose store goes over 10% is in violation).

What?? That's... amazing! I didn't know that. Maybe BestBuy stores should shop for goods there.

If only corporate CEOs operated that way.. and passed on the remainder of the profits to the rest of the workers. (AFAIK, most companies in Japan do work that way.)

Originally posted by: Deucer
The rest of their bulk discount savings is passed on to the customer, so the only thing that will result from abusing this policy is higher prices to the consumer at Costco, with the company making pretty much the same amount (maybe a little less due to slightly decreased sales volume).
In short, try not to abuse the policy, this is a great company, with great products at reasonable prices.

That's all rather interesting. Where did you learn of this info? Do Costco publically advertise this somewhere?

 

[Havoc13]

Originally posted by: PoPPeR
the reason (from what i've been told) that Costco can offer these generous policies is because of the deals they have with their suppliers. Costco has incredible moving power, and in return the companies allow them to return whatever, whenever, and Costco passes it on to you. They don't care what you're returning for the most part because they don't have to deal with it. It goes straight to the supplier.

Not true.

If they cannot put the item back out for sale, they only receive a percentage of the original cost back. The percentage is roughly between 25% and 33% depending on the item.

They do employ fraud/loss prevention personel to monitor customers that abuse/manipulate the return policy. If they can prove abuse, they attempt to recliam the lost money straight from the customer, with legal action a recourse they will employ if needed.

EVERY purchase you make is tied to your card, so unless you want to roll the dice on being caught becareful about how you use their great return policy.

 

[junthin]

Originally posted by: ams30gts
i work at costco and you do not need to have a receipt of box.

everything has a lifetime warranty except computers that have a 6 month.

if you have a receipt you will receive 100% of what you paid. If you dont have a receipt, you will get back what the lowest price was when it was still being sold there.

but trust me, it is true about the warranty.

for example, i bought a AIWA stereo like 5 years ago. cd player broke so i took it back with the original receipt and got full credit for it

True on all counts. However, as stated above by Havoc13, if you start abusing the liberal return policy your account will be noted and you will be dealt with accordingly. However, for people who do it once in a while (once a year?) for returns for items greater than 2 years old, it's not that big of a deal. And as stated before, all your purchases are tied to your acocunt, so they can monitor your return/spending habits.

 

[JackRipper]

But what constitutes a fradulent return when/if their policy is customer satisfaction... like the costco employee above posted that they get quite a bit of money from memberships... they set the policy w/ very little limits (6 months on computers... everything else open) ...

so what would really constitute a fraudulent return?


-JR

 

[huesmann]

Originally posted by: davedeal

Originally posted by: Classicmac
The local Costco was happy to reprint the receipt for me for an item I purchased a year ago. I was then able to exchange it for a working item. I also went in to have my tires rotated (which came with my new car). I was ready to pay a reasonable price for the tire rotation but they told me that it was free whether I bought it there or not. They tried to get me to pay to have them balanced but I decided against it.

Costco used to rotate or repair every member's tires for free regardless of where they were purchased, however as of Nov. 1st they will only rotate/repair tires that were purchased from them.

And a couple of months ago they stopped mounting and balancing customer tires (tires you bought somewhere else, like Tire Rack).

 

[jagec]

Originally posted by: masterxfob

Originally posted by: bentwookie
I returned a scanner that was 5 years old. I found the receipt when cleaning out my file cabinet... tried to return it in the store but was rejected by the assistant manager.
I called back a couple days later to speak to the manager and actually got the visiting regional manager.
She approved the return without hesitation...the look on the assistant managers face was classic when he handed me back $370 for a friggin scanner...

this is the definition of abusing the warranty. thanks to people like you, everyone else pays a little more :disgust:

drop in ocean, wookie.

 

[jrichrds]

Havoc13 and junthin - What are your qualifications for your claims? My guess is neither of you work for Costco and are not directly familiar with how Costco handles returns. But I'd be happy to be proved wrong.

 

[ondarkness]

Originally posted by: masterxfob

Originally posted by: bentwookie

Originally posted by: nikko
I returned a 4 year old 19" monitor that died on me. I didn't have the receipt, but I did have the box. They told me they don't typically return things that old (especially since it was discontinued), but that they would do it for me that time, and they gave me a store credit for the amount I originally paid. For what it's worth, it's the first and only time I've done that. If someone started to abuse the policy, I'm sure they'd note it on their membership profile.

I returned a scanner that was 5 years old. I found the receipt when cleaning out my file cabinet... tried to return it in the store but was rejected by the assistant manager.
I called back a couple days later to speak to the manager and actually got the visiting regional manager.
She approved the return without hesitation...the look on the assistant managers face was classic when he handed me back $370 for a friggin scanner...

this is the definition of abusing the warranty. thanks to people like you, everyone else pays a little more :disgust:

:evil:
get over yourself mister fob. Go save a whale or something.

 

[Gothgar]

Costco is badass... my favorite place to shop, for just about anything, I have gotten all my pants there for a while, where else can you get a nice pair of wool slacks for 20 bucks?

 

[MickDD]

Well there has been a lot of truth, and misinformation posted here. I have been a Costco employee for the past four years and am proud to work for a company that strives to take care of its customers(members).

First, as far as the tires are concerned there was a policy change regarding services offered, it is true that the balancing, rotating, and in some locations air to nitrogen exchange wil be performed only if your tires were purchased at Costco. It is simply to hard for the stores to take care of members who purchased their tires at Costco when we are also taking care of everyone elses tires too. There are usually two really good tire sales a year.

Secondly, THERE IS NO LIFETIME WARRANTY. Rather as stated it is a satisfaction guarantee. Quite simply, if you do not feel you received a good value from the goods purchased you can return them. Six months is the limit on computers due to abuse of the policy in the past. COSTCO IS NOT A FREE LIFETIME UPGRADE FACILITY. I have seen soaker hoses returned because they leaked, a handful of peanuts from a two pound container because they were stale, and some of the choicest prime rib because it was purchased by mistake. All of that aside, we do not get 100% credit from our suppliers. Some products that are in pristine condition are shipped to discount stores for resale. Sadly some merchandise has to be destroyed. The warehouse takes a hit for these costs and it is taken out of its gross profitability at the end of the fiscal year.

We are not held to a 10% profit margin by warehouse. Most warehouses would like to maintain a 15% margin on goods sold. Some departments enjoy a larger markup than others. This is determined by the costs associated with being able to offer the product. Just like any other business! If Costco receives a better price on a product, regardless of demand, it passes the savings on to our members. We take a hit on Wall Street for this practice but without members none of us has a reason to go to work! Most of the profit and buying power is generated by membership sales. The money paid for membership allows you to shop at the warehouses and take advantage of our buying power. Our job then is to ensure we have quality products that will provide a good value to our members.

Executive members earn 2% on purchase with the exclusion of gas, tobacco, and phamacy purchases. They also enjoy access to a lot of other services including travel, car purchasing, insurance, etc. These services do vary according to the state the warehouse is located in. I order my checks from Costco.com because they are much cheaper than my bank.

We do not offer a lot of computer components. Right now, WD 250GB Hard drives run about $129.99 . No video cards, which is kind of a bummer.

All in all Costco is a great company to work for and buy from!

Take care ATers and I hope to see you in the store somday!

 

[edavid]

Here in San Francisco, HMR USA was buying Costco returns and selling them in their store. I'm not sure if they still do since the stock is depleted. I guess I'll see if there's a pile of DVD players there after Christmas.

 

[Easygoing]

My wife works for Costco and she is totally amazed at what they will take back. People buy patio furniture for the summer and then return it. One of the most amazing things is that they destroy the returns. If they can't return it to the manufacture for credit, the just crush it. They don't let the employees buy it at a discount or give it to charity or a reseller. She has seen like new bicycles and other items just crushed. Anyway seems like such a waste. At the very least they should have a special sale for employees and offer the stuff at a discount. As employees you do not get an employee discount or anything. Kind of sad if you ask me.

 

[Entity]

Originally posted by: MickDD
Well there has been a lot of truth, and misinformation posted here. I have been a Costco employee for the past four years and am proud to work for a company that strives to take care of its customers(members).

First, as far as the tires are concerned there was a policy change regarding services offered, it is true that the balancing, rotating, and in some locations air to nitrogen exchange wil be performed only if your tires were purchased at Costco. It is simply to hard for the stores to take care of members who purchased their tires at Costco when we are also taking care of everyone elses tires too. There are usually two really good tire sales a year.

Secondly, THERE IS NO LIFETIME WARRANTY. Rather as stated it is a satisfaction guarantee. Quite simply, if you do not feel you received a good value from the goods purchased you can return them. Six months is the limit on computers due to abuse of the policy in the past. COSTCO IS NOT A FREE LIFETIME UPGRADE FACILITY. I have seen soaker hoses returned because they leaked, a handful of peanuts from a two pound container because they were stale, and some of the choicest prime rib because it was purchased by mistake. All of that aside, we do not get 100% credit from our suppliers. Some products that are in pristine condition are shipped to discount stores for resale. Sadly some merchandise has to be destroyed. The warehouse takes a hit for these costs and it is taken out of its gross profitability at the end of the fiscal year.

We are not held to a 10% profit margin by warehouse. Most warehouses would like to maintain a 15% margin on goods sold. Some departments enjoy a larger markup than others. This is determined by the costs associated with being able to offer the product. Just like any other business! If Costco receives a better price on a product, regardless of demand, it passes the savings on to our members. We take a hit on Wall Street for this practice but without members none of us has a reason to go to work! Most of the profit and buying power is generated by membership sales. The money paid for membership allows you to shop at the warehouses and take advantage of our buying power. Our job then is to ensure we have quality products that will provide a good value to our members.

Executive members earn 2% on purchase with the exclusion of gas, tobacco, and phamacy purchases. They also enjoy access to a lot of other services including travel, car purchasing, insurance, etc. These services do vary according to the state the warehouse is located in. I order my checks from Costco.com because they are much cheaper than my bank.

We do not offer a lot of computer components. Right now, WD 250GB Hard drives run about $129.99 . No video cards, which is kind of a bummer.

All in all Costco is a great company to work for and buy from!

Take care ATers and I hope to see you in the store somday!

Great information; great post. I'm looking at buying a new HDTV, and I'm going to be buying it from Costco. The same goes for a new freezer I'm looking into.

Rob

 

[Doggiedog]

Originally posted by: Deucer
Costco is awesome. They can offer this guarauntee because they could be making much more money, but they limit thier profit margin to 10% over cost (this is mandated corporate policy, and any manager whose store goes over 10% is in violation). The rest of their bulk discount savings is passed on to the customer, so the only thing that will result from abusing this policy is higher prices to the consumer at Costco, with the company making pretty much the same amount (maybe a little less due to slightly decreased sales volume).

In short, try not to abuse the policy, this is a great company, with great products at reasonable prices.

Interesting. I did some research and you are right. They average between 10-11% gross margins.

 

[Kelemvor]

So you can buy a TV at a certain price and then a couple yaers later, return it and get a far better TV for the same price? And just keep doing that forever? That's interesting.

 

[Deucer]

This is the article I read about the 10% margin.

"Our margin goal is 10%, and there'd better be a very good reason you
did better than that," Lyons explains. "Otherwise Jim will say,
'Well, why didn't you lower prices?'"

Great company, don't abuse them if you can help it.

 

[bleuiko]

Originally posted by: FrankyJunior
So you can buy a TV at a certain price and then a couple yaers later, return it and get a far better TV for the same price? And just keep doing that forever? That's interesting.

Please don't do that. I really enjoy shopping at costco knowing that they will take my returns without making me look like the enemy. I only do this if the product really not what I wanted and no more than 20 days bought, or if the item is broken within a reasonable amount of time.

If you do what you said above, Costco is going to change their policy, and we all get screwed.
I hope you were kidding.