- Oct 30, 1999
- 11,815
- 104
- 106
The other day, a gentleman bought a video card for $112.
Two days after the video card was charged to his credit card and the card had shipped, the price dropped to $99.
The customer called wanting to know what his option were.
We explained to him that since stock rotates every two days on such product, partially BECAUSE prices are so volatile in this industry, and that retail price is of low margin and based on an actual wholesale price, that the actual wholesale price of his particular video card would yield no profit if sold at the new price (we are not ashamed of being frank on these matters. You give stuff away... look what happened to Value America!).
He asked what would happen if he returned the card. We told him that he would only be credited back at current market value ($99) because we could no longer sell the card for $112 and refuse to take the loss.
The customer then decided to refuse the package and included a note stating that he's contacted his credit card company to dispute the charges.
Now, we went ahead and gave him full credit minus freight (we DID have to pay to ship the thing, of course) because to fight this would really be childish and it's certainly not worth stooping to this guy's level. Of course we know that you can't VERBALLY dispute a charge with your credit card company and that there's forms to fill out, but it's really not worth getting this hot head any madder than he is.
The reason why I'm "ranting" about the guy is two things: First, he states in his letter that he doesn't need our card for $113 because he bought it somewhere else for $99. Well, DUH! That's what WE sell it for NOW! He didn't buy it NOW he bought it BEFORE the price dropped and it SHIPPED BEFORE the price drop! The second thing is that he quotes our customer service statement as if it addressed his particular issue.
Umm... Sir. We DO want to make sure you're happy and too bad it didn't result in your savig $13 and keeping the card, but we ARE giving you "a" refund. But no where in our customer satisfaction statement does it say that "if you live in Bum Fsck Egypt and it takes twenty days to get a package to you from our location and the price drops $13 while the package sits in Iceland waiting for the next plane to Luxemberg, you will be reimbursed the difference." I fail to see that anywhere. Really.
Is the guy worth $13 to keep as a customer? Well, yes and no. $13 isn't much. But that $13 credit is not fair to the guy that bought the card full price that got it two days ahead of time or to the guy who bought it two days earlier or the guy that picked the video card up at the will call counter and paid the full price... AND if we did such credits for EVERYONE that wanted price protection, those $13 would add up VERY QUICKLY.
Think about it: Typical mark up on small parts in PC industry is 15%. This would mean that AFTER price protection on an item, who's price drop is BEYOND OUR CONTROL, we would make $2 off of that customer and that hardly pays for the time it takes to pay for the guy who answered the phone on OUR TOLL FREE LINE to tell the customer, "yes sir, we're going to refund you that $13."
You want price protection? Buy a VCR or a bicycle. Don't even thinkn about price protection on an OEM packaged $113 video card. Please.
Am I narrow minded here or am I right? I want to know what you guys think.
Two days after the video card was charged to his credit card and the card had shipped, the price dropped to $99.
The customer called wanting to know what his option were.
We explained to him that since stock rotates every two days on such product, partially BECAUSE prices are so volatile in this industry, and that retail price is of low margin and based on an actual wholesale price, that the actual wholesale price of his particular video card would yield no profit if sold at the new price (we are not ashamed of being frank on these matters. You give stuff away... look what happened to Value America!).
He asked what would happen if he returned the card. We told him that he would only be credited back at current market value ($99) because we could no longer sell the card for $112 and refuse to take the loss.
The customer then decided to refuse the package and included a note stating that he's contacted his credit card company to dispute the charges.
Now, we went ahead and gave him full credit minus freight (we DID have to pay to ship the thing, of course) because to fight this would really be childish and it's certainly not worth stooping to this guy's level. Of course we know that you can't VERBALLY dispute a charge with your credit card company and that there's forms to fill out, but it's really not worth getting this hot head any madder than he is.
The reason why I'm "ranting" about the guy is two things: First, he states in his letter that he doesn't need our card for $113 because he bought it somewhere else for $99. Well, DUH! That's what WE sell it for NOW! He didn't buy it NOW he bought it BEFORE the price dropped and it SHIPPED BEFORE the price drop! The second thing is that he quotes our customer service statement as if it addressed his particular issue.
Umm... Sir. We DO want to make sure you're happy and too bad it didn't result in your savig $13 and keeping the card, but we ARE giving you "a" refund. But no where in our customer satisfaction statement does it say that "if you live in Bum Fsck Egypt and it takes twenty days to get a package to you from our location and the price drops $13 while the package sits in Iceland waiting for the next plane to Luxemberg, you will be reimbursed the difference." I fail to see that anywhere. Really.
Is the guy worth $13 to keep as a customer? Well, yes and no. $13 isn't much. But that $13 credit is not fair to the guy that bought the card full price that got it two days ahead of time or to the guy who bought it two days earlier or the guy that picked the video card up at the will call counter and paid the full price... AND if we did such credits for EVERYONE that wanted price protection, those $13 would add up VERY QUICKLY.
Think about it: Typical mark up on small parts in PC industry is 15%. This would mean that AFTER price protection on an item, who's price drop is BEYOND OUR CONTROL, we would make $2 off of that customer and that hardly pays for the time it takes to pay for the guy who answered the phone on OUR TOLL FREE LINE to tell the customer, "yes sir, we're going to refund you that $13."
You want price protection? Buy a VCR or a bicycle. Don't even thinkn about price protection on an OEM packaged $113 video card. Please.
Am I narrow minded here or am I right? I want to know what you guys think.
