What Does Your Return Policy Say About Your Business?
You might think a return policy doesn’t reflect on your establishment at all, that it’s just another part of doing business. But consider this: From the consumer perspective, your return policy may tell them many things. It may say to them that your business is honest and competent. In the negative though, it can say you’re cheap, dishonest, a pushover, or an easy mark. What if you have a “no returns” policy? That might tell the buyers that you’re selling shoddy merchandise and do not honor their dollars.
In today’s tough economic climate, a wise public relations move might be to revamp your return policy to entice more customers. If you don’t have one in place, consider making one that will invite returns on ANY merchandise that’s accompanied by a receipt. Stores that honor such returns build in the customer the feeling that you care about their business, and will go to great lengths to make them happy and keep them coming back. It tells the customer that they’re valued, and that you trust them to make an honest return. It says that you stand behind your merchandise and will honor any request for a trade or cash back on a defective item, or even an item in good condition that the customer didn’t really want. For any reason.
On the other hand, a policy that allows for returns with NO receipt encourages theft by employees and shoplifting by criminals. OR, someone stealing another store’s merchandise and bringing it to you for cash. You may as well hand thieves a blank company check and put out a sign that says, “Free Cash.”
Think about whether you’ll give cash back, store credit or exchanges. Consider how you’ll keep track of these transactions for your own inventory counts.
Limitations on the days and quality of merchandise returned can safeguard you as the owner against potential dishonesty by your customers. You’ll want to have a limitation on the number of days or months a customer has during which they may make returns. You don’t want a customer showing up with goods from three years ago and demanding cash. Or someone claiming the item is new when clearly it’s been used, worn or damaged through use. Or a customer showing up with an opened item that’s obviously been tampered with.
Be sure to offer gift receipts when items are purchased. That way the recipient can exchange the merchandise or get a store credit if they either didn’t like the gift or it doesn’t fit.
Whatever your rules are, try to keep the tone stern yet amiable. Make the posted policies clear and legible at every cash register or in small print on every web site page. This way, customers know ahead of time what their options are when shopping at your company.
