The age-old saying that "the customer is always right" may soon be put out to pasture

[|Zach|]

I like this move...some of the actions of people at retail stores is disgusting.

http://www.sixwise.com/newsletters/0..._consumers.htm

The age-old saying that "the customer is always right" may soon be put out to pasture. Why? Increasing numbers of stores are cracking down on what they call "devil" shoppers -- customers whose buying and returning practices, some legit, may actually cause the store to lose money -- and the stores believe they're better off without them.

Best Buy stores have gotten so fed up with their "devil" shoppers -- a group they say makes up 20 percent of their customer base -- that they're actively trying to eliminate them from their stores. These shoppers (see below for a description of some of their tactics) account for as many as one-fifth of Best Buy's 500 million customer visits each year, and according to Best Buy CEO Brad Anderson, "They can wreak enormous economic havoc."

So now Best Buy is fighting back. They've started training their employees to identify "angel" shoppers -- the ones who buy highly priced items like HDTVs or just-released DVDs without waiting for a markdown -- and cater to them while "blacklisting" the devil shoppers. The staff uses a quick interview of sorts to identify the different types, which they internally call:

* Barrys: High-income men who like action movies and cameras
*Jills: Suburban moms who want to help their families
*Buzzes: Male technology fans who want the latest high-tech gadgets

Other practices Best Buy has put into play include adding a 15 percent restocking fee and selling restocked items over the Internet as opposed to in stores.

But Best Buy is not alone. Some stores will go so far as to remove "bad" customers from their promotions mailing list or put them on long holds if they call stores with too many questions and no intent to buy. And stores like Express, KB Toys, the Sports Authority, Staples and Guess have all adopted a new technology called the Return Exchange to monitor customers' buying habits.

When a purchase is made, the device records the consumer's name, address, age and transaction details and sends it to The Return Exchange's database. The company says the device is meant to stop shoplifters and other fraud-doers, but it doesn't stop there. Each store inputs certain criteria, such as a high number of returns or a dollar amount on returns, after which a customer's return can be denied.

Said retail consultant King Rogers, retail stores lose some $16 billion a year because of fraud. "Consumers are going to find more stores with tighter, more restrictive return policies than they found last year. When you look at the economics of it, $16 billion a year in losses, they have to tighten up," he said.

But others are worried that consumers will get the short end of the deal.

"I'm concerned about the 99 percent of consumers who are not abusing the system," said Edgar Dworsky, founder of ConsumerWorld.org, an Internet public service site. "It's the wrong size, the wrong color, the mother bought clothing for kids who didn't want it."

Already the Federal Trade Commission has been asked to investigate the legality of stores monitoring and denying customers' returns, and Sen. Charles Schumer (D-N.Y.) proposed legislation to require stores that do limit returns to warn shoppers of the practice.

-Shopper Tactics That Might Send You to the "Blacklist"

The following practices are among the most common and most offensive in the eyes of retailers. If you commonly engage in any of these practices, you may soon find that your next return is denied or your name has been added to a store's "blacklist" of bad customers.

*Buying a product, taking advantage of the product rebate, then returning the product for a refund.
*Buying clothing or another item, wearing it (or using it) once, then returning it (the classic example is the evening gown that's worn with tags on for a night, then returned).
*Buying an item and returning it with the intent of buying it at the reduced "open-box" price
*Buying clothing or another item with the intent of returning it later and re-buying it at a markdown price.
*Buying a product at a discount, such as from the store's selection of "loss leaders," (low-priced products stores lose money on that are designed to attract customers) then reselling it on eBay for a premium price.
*Finding rock-bottom prices on Web sites, then challenging stores to pay up on their lowest price guarantees.
*Taking up an employee's time to ask questions about a significant purchase with the intent to buy it elsewhere.

Most consumers do have good intentions at heart and make returns for legitimate reasons. Retailers are aware of this and wary of portraying a too-tough image to customers. Said Anderson, it's a fine balance to ward of bad customers without turning away the good ones.

"The most dangerous image I can think of is a retailer that wants to fire customers," he says.

[Calcountry]

Originally Posted by 'Hummus' Jenkins

Wow, this shit is infuriating. If you don't want customers to take advantage of price-matching, then don't offer it you dumb motherfuckers....

Basically, they only want stupid customers who overpay for everything to be their shopper base so that they can pull in a higher profit.

I agree with this.

I had a customer say she could get "wild bird" seed cheaper at Target, I immediately began backing out her sale.

From my point of view, there is no way to determine accurate size and brand exactness with something like Bird Seed, so she can get in the car and pay the gas and time, and fight the 14 stoplights that are between me and Target.

I offer convenience and service to my customers, if they cannot perceive or are not in a budgetary situation that can allow appreciation of that, then I just politely let them go. But never, ever do I consider that particular person a "bad" customer, just not my customer on this particular item of interest today. They are potential future buyers of wares that I do have a comparative advantage on, and I never want to forget that. Add to the fact, that a really pissed off customer, is 5 times more deleterious to your business, than a single very pleased and satisfied customer.

It also annoys the chit out of me when a customer buys a dog house when it is raining, then wants to return it, scratched, and muddied after the storm has went by and say, "My dog won't go in it". They won't even bother to clean the mud out. 20% restocking fee is an absolute mandate for that situation.

At the very minimum, make no enemies. At the maximum, make a friend.



I also encountered a clever little deal once with an automatic water return. A customer brought in an Automatic water fount that had obviously been in use for months if not years due to the vast amount of hard water deposits that had collected on it. He claims that he bought it less than a month ago and it is a lousy product and wanted a refund. A receipt was produced that backs up his claim on the date of purchase and item purchased. It was obvious what happened. This customer bought the same item about a year or so ago, then when it wore out, got the bright idea on how to replace it for free. Just go buy a new one, save the receipt for about a month, then return the old one with the new receipt to get paid. Momma didn't raise no dummy, so he didn't get paid. Sorry folks, but this is the same as stealing in my book.

[Calcountry]

Originally Posted by Rain Man

As a business owner, I have to fill out a freaking tax form for my office snacks. They don't tax food here, but if I, as a kind and benevolent business owner (just ask DaFace) decide to provide snacks for my staff, I have to pay taxes on it. Why does the City care if a business owner buys food for their employees as opposed to the employees buying it themselves? I bet that 99 percent of companies aren't paying it, but my company was selected for an audit. When I asked why we were audited, they said that the City just went down a local awards list of the fastest-growing firms and audited them. Way to discourage economic growth, Denver.

So tell me again, why is it that you are providing jobs that are the income to Denver Broncos season ticket holders anyway?

[Rain Man]

Originally Posted by bunnytrdr

So tell me again, why is it that you are providing jobs that are the income to Denver Broncos season ticket holders anyway?

I check all of my job applicants for cooking spray, and if they're covered in it, they don't get hired.

Though I guess I can see one possible type of policy exception for a cooking-spray covered applicant...

[Skip Towne]

Originally Posted by Phobia

They would have fewer dogs, which according to Big_Daddy is part of their master plan anyway.

That's no shit. I spent 13 months in Krea an never saw a dog other than the K-9's on the base.

[Groves]

I had the "privilege" of standing behind a guy at the return counter at Cabela's (a sporting goods store). They have a very generous return policy, and this guy was taking full advantage.

He was "returing" a pair of boots that looked like they'd been worn to mix concrete in every dang day of their long life.

The associate even pointed out in the catalogs how these boots must be at least 6 years old because of how many digits the product number was.

They paid him $40, I believe. I always see these old dogs of boots in the bargain section, wondering who in their right mind would have the balls to return them.

Now I know.

I wasn't quick enough to think of a way to publicly humiliate him for indirectly driving MY prices up. I'll be ready next time.

Originally Posted by Skip Towne

That's no shit. I spent 13 months in Krea an never saw a dog other than the K-9's on the base.

I'll bet you saw plenty of dog, just in unexpected places....

[Skip Towne]

This is just another reason Wal-Mart is kicking everybody's ass. Theyhave the most liberal return policy I've ever seen and I don't see them having these problems.

[Saulbadguy]

Originally Posted by Skip Towne

This is just another reason Wal-Mart is kicking everybody's ass. Theyhave the most liberal return policy I've ever seen and I don't see them having these problems.

It's because Best Buy is a bunch of self righteous pricks.

They'd rather you not buy high ticket items there unless you also buy the high profit margin items like cables, extended warranties, and other bullshit.

[Skip Towne]

I asked my banker why Wal-Mart kicked everybody's ass. He said "better management". I would certainly agree with that in this case.

[memyselfI]

Originally Posted by Phobia

Who looks like a bigger idiot - the store manager who dismissed you with a swipe of the hand or the customer who spent 19.6 hours recovering the $15?

I argued with him for 5, talked to a CSR for 5, and spent approx. 2 minute typing a complaint letter. I made $15.00 in twelve minutes...or didn't lose it depending on your perspective.

I don't make $60.00 an hour so to me $15.00 for less than 15 minutes of my time is time well spent. Especially since I spend more time than that reading stupid posts like yours for FREE.

[memyselfI]

Originally Posted by Skip Towne

This is just another reason Wal-Mart is kicking everybody's ass. Theyhave the most liberal return policy I've ever seen and I don't see them having these problems.

Actually Walmart is losing money relative to the way they have been making it. They have also tightened their return policy and you could argue perhaps the two are not a coincidence.

Costco, OTOH, has an insanely liberal return policy and they seem to be making money and growing at a nice rate...at least last time I checked.

There's no reason to be rude about it even though soldiers fought for your right to do so.

[Skip Towne]

I have owned small businesses all my adult life and I have what I call my 2% rule. There are 2% of your customers that you do not want. They cause 25% of your customer problems. Let your competitor spend his time trying to please them. Just make sure you identify the 2% correctly.

[doomy3]

Well, I work as a district manager for a retail clothing store, and the things people do are pretty ridiculous sometimes. We have a very loose return policy that people really seem to try to take advantage of. I constantly have people bring in jeans that they say they've never worn that have mud on the bottom of them or stains on them. They think I can just throw them away or something. THey don't realize that it doesn't work that way, I would need to sell those to another customer-now who could feel good about that?

We also have many customers who have returned more than they buy, or very close to it. Like a lady comes to mind that last year bought $1200 worth of clothes, but returned $1280 worth. Once you figure in payroll in helping her out, and the clothing that she bought then returned later that will sit on the shelves because it's older, then there are less margins and we will lose money having her as a customer.

We also have a 60 day return policy. But the thing is, when the product first comes in, we have decent margins, and it is going to sell because it is new. At 60 days, if that same thing is returned, lots of times it is a last size that we have left, or a sale item. We could have sold it ten times 60 days ago, but instead, it just ends up sitting there and a lot of items, we LOSE money on by the time we sell it.

If every customer shopped like this, no one would be in business.

[BucEyedPea]

I'm not a big price buyer. If I like it enough, want it and can afford it I can't see travelling all over to save a few bucks. Exceptions are big ticket items up to a point.

But what I do, is scoop up something I like so it's not gone...then continue shopping. If I see something I like more....I reserve the right to return it. But I don't ever wear it if it's clothes.On home stuff, sometimes I wanna see how something looks or if it will fit. Often things don't work out. I'm very fussy about design and color. It has to look right.

Don't ever buy from Burlington coat factory though. I did that for some home stuff and went to return just a few things outta of a big sale and they wouldn't let me return the few items that didn't work out for me. NEVER even shopped there before.

Good lord, though if this becomes common. My kid hates shopping. So I do hers and buy in several colors and sizes. Then she tries them on at home. I return the rest.