restocking fees


More high end manufacturers are selling direct and offering home auditions, and many are charging restocking fees of up to 20%. I absolutely respect the right of any manufacturer to charge whatever he sees fit. It's expensive to have product in the field, and companies want to discourage tire kickers, but I see no reason to risk paying a restocking fee when the market offers me so many other choices. Do restocking fees discourage you from trying a product, or is the risk worth taking.
84audio
Boa2, My point is that those companies I mentioned in my last post create a climate that will make it difficult for high end manufacturers to demand restocking fees. I doubt that consumers willtake the risk when they have so many other options including products from other high end manufacturers that don't ask for a fee. In any case, the horse is long dead, and I'm going to stop beating it now. Thanks
My point is that those companies I mentioned in my last post create a climate that will make it difficult for high end manufacturers to demand restocking fees.

As is aparent from the responses to this post, many here seem to expect service for free. I personally like Mitch2 idea the best: Having a travelling demo piece of equipment with no pressure to purchase would be ideal and I think viable in North America.

Of course, the market will decide, but if restocking fees will help small amnufacturers survive so be it. Maybe we should call these fees rather equipment trial charges as there is a service provided; retocking does not seem the correct term as the items will not (or at least should not) be sold as new again, as it would be if an item in a store is "restocked".

Rene
Jea48:

The two remaining dealers in my area will check out a
piece of demo equipment for a home audition. Screw that waiting for
something that is being shipped. I'll take the local dealer first over mail
order.

I know we have a different "buying philosophy" here. But to be
even more controversial: Yes, I would buy from the small manufacturer rather
than supporting the local dealer, even with a reasonable "equipment
trial charge". At least in that case, I know that 100% of my investment
goes to a person with skills and creativity, who puts all their effort in making
a good product. The point here is not really to save a few bucks. Being in a
"business" where creativity is most important, I would rather
support the source directly, than people just selling the ideas. In addition, as
mentioned above, checking out equipment for only two days or a weekend is
insufficient IMO.

As for local dealers, I would steer the business model in a completely
different direction: Rather than mainly providing sales service, I would prefer
their position rather as an advisor and service provider. A good example
would be to provide detailed room acoustics improvement and system setup
experiences much beyond what current dealers do, but more in the style of
acoustics companies (e.g. Rives Audio).

Just a slightly different view…

Rene

P.S. Pass’ First Watt effort is almost a direct distribution model where one
dedicated person/dealer distributes everything directly and equipment is
shipped directly from the factory. And it is interesting to see what additional
creativity it allows for the manufacturer (Pass).
If internet vendors expect consumers to demonstrate a leap of faith to purchase items without any benefit of their senses, they should demonstrate a leap in faith that consumers who purchase items do so in good faith. Sheesh, we give total strangers in unknown places our credit card numbers, names and address'. These internet vendors often don't have the cost burden of actually having to learn about and demonstrate the products they peddle. Often times in business I'd have to spend valuable time pitching a bid that never came to fruition for what ever reasons. I'm not happy about it, but I accept the fact that its part of the cost of doing business.
Restock

I know we have a different "buying philosophy" here. But to be
even more controversial: Yes, I would buy from the small manufacturer rather
than supporting the local dealer, even with a reasonable "equipment
trial charge". At least in that case, I know that 100% of my investment
goes to a person with skills and creativity, who puts all their effort in making
a good product. The point here is not really to save a few bucks. Being in a
"business" where creativity is most important, I would rather
support the source directly, than people just selling the ideas. In addition, as
mentioned above, checking out equipment for only two days or a weekend is
insufficient IMO

Jmho I don't think you know how it works. The manufacture needs the dealers. In case you didn't know it, dealers do not sell the manufactures product on consignmemt. They pay upfront for the product plus shipping. If you were to call a Hi-End manufacture like krell, or ARC, bet you would find they like it just the way it is. They are basically a wholesaler and sell directly to the dealer. No one calling them asking them questions, no tire kickers, just buyers. The dealers carry the inventory in many cases setting in their back rooms bought and paid for. Sometimes on borrowed money. And if the dealer doesn't buy enough product from the manufacture a year and another dealer in the area wants to add it to his store, the manufacture will yank the franchise from the dealer and give it to the other. I have seen it happen.

P.S. Pass’ First Watt effort is almost a direct distribution model where one
dedicated person/dealer distributes everything directly and equipment is
shipped directly from the factory. And it is interesting to see what additional
creativity it allows for the manufacturer (Pass).

What do you want to bet that the dealer has already bought and paid the manufacture for his product and the manufacture is holding the items for the dealer to ship to the dealer's customer, drop shipping. It saves the dealer money. Just call "Pass" and see if he will sell to you direct.