Consumer Rights - Exercise Your Power!

Women make many of the major decisions with respect to household purchases. In the world today, it is very difficult to wield much influence; however, as consumers, we actually have a fair amount of power and influence. Have you ever written a letter to a corporation, complaining about a defective product? Generally, the response is swift and positive - most companies understand that if one consumer writes a letter, there are probably hundreds, if not thousands of other consumers out there who have the same complaint. And all those consumers have one thing in common - they talk to other consumers about their shopping habits. A small issue can quickly mushroom into a bad reputation for a company. Most companies want to nip these issues in the bud as quickly as possible, which is why they are happy to hear from consumers. Otherwise, word hits the street and their reputation can be damaged before they have the opportunity to make things right. Word of mouth is probably the most common form of advertising for most retailers.

I recently had a very unfortunate incident with a local retail store. I purchased a piece of audio equipment for my 80 year-old father, which did not work well. Upon returning it, I was treated like a pariah. My only recourse was to write the retailer after the fact and ask him to make things right. He did not. Below is the letter I sent him. This is an example of a small retailer who does not understand the power of the consumer. I have now posted my complaint on several audio web sites and linked them to this blog. I hope the owner will think twice the next time he receives a similar complaint.

As consumers, we do have some power. Speak up! Write a letter! Post a bad review on a Web site. Don't let the retailer get away with poor service! Exercise your considerable consumer rights!

March 31, 2009

 

Gunnar Van Vliet
Planet of Sound
1194 Bank Street
Ottawa, ON

Dear Mr. Van Vliet:

I am following up on a transaction that occurred at your store on March 28. As a consumer and customer of your store, I think it is important that you understand my concerns with that transaction.

On February 28, I purchased a Squeezebox Boom, with my father. I set it up for my father, who is 80 and has trouble with technical gadgets. I had no problems with the setup and it worked fine for a few days. However, my father relocated the unit to his bedroom, and from that moment forward, he had problems with it. Most of the stations buffered almost constantly.

I attempted to troubleshoot the problem, but I could find nothing wrong with the unit’s set-up. As a person familiar with technology, I put it down to a poor underlying technology: Internet radio (which, even at the best of times, is not entirely reliable) and the wireless modem’s signal. Since Saturday, I have done some investigation, and it appears that my assumption is probably correct. A number of reviews and sites on the Internet point to the problem. Here is one example: http://the-gadgeteer.com/2009/01/30/logitech-squeezebox-boom-review/.

My father, however, continued to try and get the unit to work properly. He read the entire technical manual, which he downloaded (and which was very poorly written), he called the Logitech help line, and he spoke to you once, at length, about the issues he was having. I think it is fair to say that my father tried everything he could to get the product to work. Notwithstanding his lack of technical prowess, the unit clearly was not functioning optimally and despite his best efforts (and yours, mine, and Logitech’s) to get to the bottom of the issue, he was unable to.

After weeks of frustration, my father asked me to return the unit for him (it was purchased on my credit card).

I returned the unit on my father’s behalf. Here’s a summary of what then occurred:

• I returned the product, in its original packaging, and was told that the product was fine, and therefore, it was the consumer who was the problem.
• You charged a 25% restocking fee, for a unit that had originally been a display unit (and no discount was ever provided for that), and that was returned in its original packaging, and in working condition.
• You would not provide a refund on the remaining 75%, but instead provided a store credit.

 So, here’s the bottom line:

 We purchased a product that, despite our best efforts, did not live up to our expectations.

• My father is very frustrated by the product he purchased, he is out $100, and we are forced to return to your store to spend $300.
• You have received the unit back with full packaging, and you can therefore sell the unit again for its full price. You have also secured the $400 of the original purchase, including a $100 “repackaging” charge.

 From my perspective, you, the retailer, have come out of this transaction very nicely, and my father has come out of it frustrated and $100 poorer. However, it could have been different, under the following scenarios:

•  We returned the product. You accepted that it did not live up to our expectations and did not imply that we were somehow at fault. (This would be in keeping with the claim on your Web site: “We want to sell products that will make you happy and perform for a lifetime.”)
  
• You explained the 25% repackaging fee, and then credited back the other 75% to my credit card, OR
• You explained the 25% repackaging fee, but indicated that if we were willing to take a store credit, you could credit us back 100%.

 The outcome would have been a win-win: my father would have been mollified about an unsatisfactory product and I would have been reasonably refunded. You would still have the $400 product to resell, a $100 restock fee OR a completed $400 transaction.

 You, however, chose to make this a win for you and a loss for me and my father.

 My mother owned a small bookshop for many years, and I am a big supporter of the independent retailer. I admire those who find a small niche and go up against “the big boys” in the retail industry. You are competing for that most fickle of all souls – the retail consumer. What better way to secure their future custom than to treat them well and make their retail experience the best it can be? You cannot compete with the big stores on price, but you can compete with them on service, and that is the secret to most small retailers’ success. Were I to have returned the Squeezebox to Future Shop or Best Buy, they would have taken it back, no questions asked, with a full refund. Your return policy, however, puts you in a competitive deficit with respect to this aspect of customer service.

 Word of mouth is probably your biggest advertising medium. I would therefore like to give you the opportunity to change my mind about your store. If you are willing to either (a) give us the full ~$400 credit at your store, or (b) refund the ~$300 to my credit card, then I think you will win back our business and a positive view of your store. I hope you will consider this option in the name of good customer service and public relations.

 Sincerely,

Catherine