Originally posted by: LMR
...this fiasco is no one but Tankguys' fault...
Interesting way to start

Can people assign blame to us? Sure. But to imply it's COMPLETELY our fault isn't quite fair. I can't control the supply chain, wholesale prices, or any of that... I'm just doing the best I can within the constraints that I have to work.
[LMR
1. Like others mentioned, people place pre-order to get products early, without going through the hassle of price-gouging. (Think XBOX360)
Agreed, which is why we were not cancelling earlier orders. We had been filling them, just slowly. This option was to help speed the process, it was not to exclude those not willing to do so. Furthermore, a lot of people have already gotten processors from us, so it is not like we hadn't shipped anything and were holding everyone hostage - we were filling orders as quickly as we can.
[LMR
2. For all intents and purposes, 5% cancelation charge on unfulfilled orders cannot be justified. When you sign up with whatever agent that does credit card transaction, I'm sure you're told the policy. There are prices to pay using credit card transaction service and it's most likely already reflected in the listed prices. If you do not want to pay fees, then you shouldn't take credit card payment. You can still get paid by money orders or checks, etc. which doesn't involving "fees" you have to pay. But you still choose to use credit card companies because you know otherwise you can't do this online business. On top of that I don't think any credit card company would let you take 5% fee for a unfullfiled (for almost month and a half?) order. It's like you asking customers to pay for your sales tax. And you hold the money during that time. Don't forget that customers also pay fees (interest) to the credit card companies. Depending on one's billing cycle, that could be 2 billing cycles and depending on the APR, the interest one should pay might even be bigger than the fees you have to pay.
All of which are legitimate points, but the cancellation fee was made very explicit, and I had explained the purpose of it from day one. Furthermore, we gave every single customer the option of NOT paying right away. I did not, in any way, force anyone to pay right away. They were told, correctly, that if they wanted to pay early, it would speed things up a bit since I wouldn't have to track them down later, but with that deal came the downside of a cancellation fee and a long wait. None of this was hidden from our customers... and yes, the CC companies would, in fact, stand by it for me in this case, as it was made clear, and we did not "force" people to accept it.
[LMR
3. And I don't know how you come up with 5% figure, either. I also get paid by credit cards often times and the fees are more or less 2~3%.
2.5% on average, for each transaction. Billing, AND refund. 2 x 2.5%. That's where the 5% came from, and again, this was made clear for everyone.
[LMR
4. Now, your suppliers asked for more. I do trust you but the fact is that we only have your words here. I wouldn't go as far as asking you to scan the invoices from your suppliers and post them as proof. The point is that we have no way of verifying current situation other than following your words. This could be hard to swallow for some.
Indeed, some people may not believe it, I don't blame them. I just hoped that based on our reputation and my being as forthcoming with information as I was, that people would trust me. Heck, I would have happily posted invoices to prove it, I'm not out to "scam" anyone here
[LMR
5. Assuming what you said is truth, it's more of a problem between you and the suppliers, not one between you and customers. Before you go out to talk to your customers, you should confront the suppliers first. (Can't comment further on this because I do not know what kind of contracts you and your suppliers had)
I did... at great lengths. I screamed and yelled until I could yell no more. I mean honestly, do you guys think I would just roll over and say "okay!" and then try and charge people more? Of course not. It was either make people keep waiting with absolutely no idea when they'd come in, or give the option to pay more from suppliers who actually had them in stock.
[LMR
But I can't help wondering what you did with the money customers paid up front over a month ago.
A question which has come up before, and I'll answer it again: Nothing. It sat in our checking account. I wasn't about to go doing anything with it, lest it be unavailable for people should they need to cancel.
[LMR
6. Therefore the main excuse (speeding up things for everybody) became suspicious/upsetting to some. (I sincerely hope you don't make this kind of mistake any more.) They do not care about the deal you had with your suppliers. They do care about the deal between them and you. Of course many here, including myself, are more understanding thanks to your previous forum participation but for other folks, they have a very good reason to get upset.
They do, and I think 90% of the problem was that I did not word the e-mail very well, and people just misunderstood. Many people assumed that I was saying, "Pay me more, or I'll just make you wait forever, and when you finally give up, I'm going to charge you a cancellation fee" which could not be further from the truth. What I meant to say was that I would still fill orders at the same rate, but that for those willing to pay more and let me buy from other suppliers, they could have chips in hand sooner, to no detriment of those unwilling to do so.
[LMR
7. "ETA" (No-ETA, more precisely): This is certainly a valid point you can bring up to defend yourself and indeed is a very strong one. But also there is something called "common sense" attached to "pre-order" and while people might not argue against you for this specific matter but they will remember the way it will have been treated. Like someone exampled above, if things had gone well and you were able to secure the supplies at much lower cost than what you sold them for via pre-order. Will the extra profit be returned to the customers?
There was no way I'd get them for a lower cost then what I had based our prices on. However, in my e-mail, I did specifically say that when I was able to secure processors at the original price, I would *not* charge ANYONE the extra fee, meaning that no, I was in no way trying to take profit from this.
[LMR
I'm sure you regret the whole thing at this point but at the beginning it was a decent opportunity to widen your clientele, for sure. Intel screwed things up and little guys like you get hurt. I couldn't help but sympatetic thinking if I were in your shoes. Since you stood up and suggested a more reasonable solution, let's hope this settles quickly and be forgetten by all of us. People should give more credit for TankGuys for what they have done for us. And they certainly deserve a benifit of doubt on this one, IMHO. For TankGuys, what I've said above is for help, believe it or not. I haven't bought anything from you but I wanted to show that people can be very difficult, especially when it comes to money. (I'm sure you already know this through all the screams and moans in your mailbox)
Let's just blame Intel.
I ABSOLUTELY regret even offering it, but oh well, such is life. I can't make everyone happy, so at some point, some people were going to get mad, not much I can do there. I just hoped this would be better understood, and I think my wording of all of this was a big issue as well.
Oh well, lesson learned.