Forums: Discussions for entrepreneurs and small business.

Hi Bert
I`ve never had a charge back, not to say it couldn`t happen of course. Among relationships with smaller suppliers and buyers, chargebacks aren`t the issue they are with larger concerns. Not in apparel, I don`t know about other businesses. It`s like anything tho, if you mess up the customer`s order, you make good on it. You depend on the repeat customer who carries your line every season, not a one shot deal. Usually if there`s a problem either way, it`s at the inception of the relationship which is why buyers will typically only buy really small orders at the outset. That way their exposure is limited if the vendor were to go belly up or be a total jerk about it.

Our forum is private, not open to the public. Legally, private speech is protected in the same way a convo with your spouse or family is. That`s why people join private membership groups :). That has a long history in the apparel industry. Retailers and sales reps have their own trade organizations to share the dirt on vendors. There`s actually sites on the web where things are posted anonymously. That makes me uncomfortable, being anonymous without repercussion, anyone can say anything with no penalty. We don`t have that problem; there`s no hearsay because while our forum is private, it is not anonymous internally. People have a tendency to be more responsible than you`d think if their name is attached to it.

Edited to add: In the beginning, when I insisted on having people`s names and contact info as well as insisting their username be their real name (or variation of it), I got a LOT of grief. Over three years tho, members appreciate it. Some legacy members have faked up usernames, they don`t have credibility with other members to the extent that many of them have changed their names because people won`t respond to questions from them anymore.


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~Nurture people, not products~
http://www.fashion-incubator.com

Kathleen,

Thank you for you response.  That is what I like about SuN.  It is great place to learn about the inter-working of other industries!

As for this posting, I feel that Jennifer sending food to customers may be a little different and charge backs could be a real issue, that is, if not carefully planned for.  I know many companies in similar industries that must deal with this on an ongoing basis though good return polices.  Companies like Jennifer’s must also make sure their product is something that the consumer will want to buy over and over again.  This will insure desire makes her issues go away.  I guess this is not unlike how you say your industry must “make good on it”.  In the food industries case, they do not have many second chances.

Don`t you agree?

Bert

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Bert at Harvey Software, Inc.
Multi-Carrier Shipping Software and Supply Chain Solutions for Internet Retailers

Also a provider of free shipping information and resources at Harvey Software`s Parcel Shipping Blog along with free tracking solutions at TrackingPage.com...

Of course this is problem in any industry. Generally, standard practices mandate vendor compliance. I`ve got many articles on that on my website relating to apparel. If you`re selling to big box stores, some are known to have multi-hundred page manuals governing everything related to the product, its labeling, the container it comes in, the labeling of the box, pallet, as well as which carriers you can use, what times of day they can deliver and to which numbered dock. Not something I want to get into, that`s for sure.


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~Nurture people, not products~
http://www.fashion-incubator.com

Hi Kathleen and Bert, thanks for responding.

Kathleen, I do collect $$ prior to shipment. The payment is made by credit card before we ship.

You may have misunderstood my scenario. My question was pertaining to items that are not defective, wrong, or any problem of my company. I can quickly take care of problems like broken jars, mispicks, etc,  If I do something wrong, I`ll send out new product immediately. What I am concerned about are impulse buys. The shopper that buys a lot of items, and then decides "Oh no, what was I thinking buying a hundred dollars worth of pasta sauce?". This is why we changed our policy from same day shipping to next day shipping, so we could reduce that risk if the customer changes their mind. But I hate to do it that way - I`d love to get it out to them asap. The nature of my business is leaning towards the luxury side, and in todays economy what we want and what we need are reviewed much more carefully. Our first sale was over $150 worth of sauce. I`m sure she wanted it when she bought it, but what if she (or her husband) decides differently when it arrives a few days later?  (I`m just referring to consumers, not vendors.)

We can`t/shouldn`t take food back from somebody`s home and resell it to somebody else, so I was concerned that the charge back request from the credit card company and refusal of shipment could seemingly be somebody`s only hope in getting their money back, since they would not technically be receiving the shipment. If they want to return a non food item, that will be no problem for me. Hopefully this will never  happen because we have a clearly outlined return policy that was reviewed by our credit card merchant prior to opening.  I didn`t know if this was a common occurrence since I am new to retail food sales.







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http://www.ifancyfood.com

If I implied you were shipping defective goods, meritous of being returned, that wasn`t my intention. I was responding in that case, to Bert. Also, I was referring specifically to wholesale sales.

Regarding retail, you`re under no obligation to accept (unjustified) returns from consumers who make impulse buys. How you handle it is another story considering the sense of entitlement that seems to be pervasive these days. Some people charge a restocking fee, some don`t. In the case of perishables (*all* product inventory ages), I understand what you`re saying but in the larger sense, this is an inherent risk of handling these kinds of products and margins need to be built into your retail model. As I qualified before, I don`t work in food manufacturing and retail. I know just enough about it to know it`s not a risk I`m willing to assume.



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~Nurture people, not products~
http://www.fashion-incubator.com

Jennifer,

The way Janie handles her return policy is how I thought you should do it too.  I am glad she posted her two cents.  There are a couple of things to add regardless of the policy you come up with:

1) Once you have set your policy, you should make sure it is enforceable.  You should also make sure the credit card merchant company is OK with it too.  Once you have completed these steps, make sure your policy is clearly spelled out somewhere at your web site that can be accessed at the time of checkout.  If the buyer knows you have a strict return policy in place, it will detour many of those that will try to take advantage of you services before they happen.  Checking with the credit card merchant ahead of time will also help you enforce your policy, if things go wrong.

2) One final note, if your products are actually damage in shipment, make sure you have policies in place for collecting on damaged goods that coincides with the carriers policies.  This will make sure you can collect.  These too should be spelled out at your web site.

It amazes me how many people are afraid to do this because they think it will scare off customers.  I have found that the opposite is the case.

I hope this all helps and good luck…

Bert

 

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Bert at Harvey Software, Inc.
Multi-Carrier Shipping Software and Supply Chain Solutions for Internet Retailers

Also a provider of free shipping information and resources at Harvey Software`s Parcel Shipping Blog along with free tracking solutions at TrackingPage.com...