Is this fair?

[Jana Lewis]

I am just curious as to what your thought is on the "restocking" fee that Lux as imposed for Armani frames in the event that you send them back.

I am at odds as to what to do, I have close to 100 armani pieces and I do not carry any other Lux lines....I haven't seen the prada or versace lines yet. If I like the new styles I will be more than happy to exchange, but what if they are not what we are looking for....is Lux really going to make me pay a 10% restocking fee? I just don't think it's right! We have been loyal Armani customers for many, many years....is this how we get treated in the end?

I would appreciate your comments!

[hip chic]

Jana~

It certainly doesn't seem fair to charge a 10% restocking fee to a loyal customer. Especially with the $$ figure your looking at (i.e. 10% of 100 frames).

However, I certainly wouldn't NOT send them back because of this. It seems that if you hold on to the product (because of your outrage...understandable outrage...at the restocking fee) you may end up being the loser in the end...you will most likely be holding on to product that will be discontinued shortly...no warranty...etc. etc...we all know this nightmare. I, personally, do not feel comfortable selling product that is discontinued. As a last resort, I will discount discontinued product letting my customer know that parts may not be available if their frame breaks. If you address your Armani product the same way...by discounting, what are you gaining?

Personally, I think I'd return the product...pay the 10% restocking fee....and start clean with a new collection....that is if other collections from the same vendor (i.e. an even exchange for your Armani product) is not a possibility.

Good Luck (let us know what you decide)

hip chic

[Homer]

What does a 300# Gorilla have for lunch ?......

anything he wants !!!

We are not talking about fair here we are talking about money. Be glad they only charge you 10%.


And .... it ain't fair !!

[John R]

If you dont think its fair then you have 2 choices...
Either you sell them at a lower profit to shift them quick or bite the bullet and send them back...
Remember that you dont have to buy from them, take your trade elsewhere is you are not happy with the way you are treated.

[Jana Lewis]

Homer,

I am sorry but I am really going to have to strongly disagree with you. This is a company whom we have done business with for many, many years. It is not my fault that they either a: lost the contract for production of Armani or b: decided to drop it from production. Whatever the case may be I fail to see how I am "lucky" to only be charged a 10% restocking fee. In my personal opinion I don't think I should be charged ANYTHING! I have faithfully stocked these items and maintained them, all while paying my bill on time.

Let's do some math here....100 Armani frames average wholesale price ( I will not list that here) I am looking at close to a grand to restock...Please Homer, tell me how you think that's fair? The life isn't fair jingle is nice, but not what I am looking for, I was looking for advice, and or what the rest of you plan to do with your frame cache'.

John R- Yes your right, I could just have a sale and move them out the door, but I am upscale...I hate to have sales....This is a good idea however. And yes...your correct, I doubt I will do anymore business with Lux. in the future.

[John R]

Jana Lewis said:

I hate to have sales....This is a good idea however. And yes...your correct, I doubt I will do anymore business with Lux. in the future.

Mmm, how about a product restructuring event.

[Johns]

I don't know why they charge a restocking fee...today I received a "brand new" frame that had no demo lenses, but they were nice enough to leave a price tag on it for me.

[sarahr]

I agree totally with you Jana this is not fair. If you have a local optical association could you initiate some sort of agreement between all practices whereby everyone contacts the supplier and states that further custom will be jeopardized if this fee is imposed? Vote with your pursestrings en mass?

Perhaps if the worst comes to the worst and a 'cut price sale' is neccessary, drawing individuals attention to this stock on a customer by customer basis without having the big red banners might help maintain your image/values.

All the best to you

Sarah

[Homer]

Let me repeat my final statement from the previous post:
It ain't fair!

Jana, you certainly have the right to "strongly disagree" with me and the Jolly Giant however neither one is likely to be very effective or a good use of your energies. Luxottica doesn't give a rats nest about your buying or payment history !

A few years ago a number of us tried to boycott Luxottica because of their purchase of LensCrafters. The reslut was that the giant had one low calorie lunch and then went back to feeding it insatiable appatite and eating everybody elses lunch for desert.

I suggest you focus your energy on an expanded or refined marketing plan or do a fire sale or take the 10% hit but don't let this giant eat your lunch by making you forget the reason you go to work each day. Make lemonade out of the lemons and eat your own lunch.

[Rick-Strong]

It seems that Lux has weird ways to do business. We stocked
many of their lines at one time, but no longer.
I had the rep look into some credits we were expecting once,
it turned out that I misplaced the credits but the rep was very
quick to call and lecture me on how inconvient it was for them
to re-send the credit invoices.

I would pay the 10% and be done with them, you stand to
lose too much other wise.

My 2 cents

[Chris Ryser]

Homer said:
What does a 300# Gorilla have for lunch ?......

anything he wants !!!

We are not talking about fair here we are talking about money. Be glad they only charge you 10%.


And .... it ain't fair !!

A few years back a frame sold to an optical store was a sold deal. The rep earned his commission because he made a sale. Today he making sales that are subject to come backs.

Returns used to be 7 to 10 % and most of the were returned without original pachaging, scartched and dirty.

These days returns are much higher in comparison to sales.

Any frame you return and are charged 10% for the privilege of having it on display fo a certain period of time is peanuts to the money you are making selling them at your usual markup.

This actually translate to you having purchased a stock of frames that cost's you only 10 % of its real value.

What a deal you people get !!!!!!!!!!!!

[Homer]

I remember those day! The weren't fair either but it was how the game was played.

The benifits of being in business still outweigh the alternatives.

Let's make some lemonade!

[Jana Lewis]

Homer-

Yes, I suppose your right, I guess I will just box up my frames and eat the 10%. From this point on I will no longer do business with Lux. Now...excuse me while I go make some lemonade!
:D

Chris Ryser- *** What a deal you people get !!!!!!!!!!!!
I fail to see how I got a deal...Unless I could sell all 100 frames in one day at my "unbelieveale" mark up. Instead, these frames will sit for quite a while before I can unload all of them......I'll just bite my toungue, send back, and make a statement by not doing business with Lux ever again. If this is how Lux wants to treat good customers who spend money and carry their product, I want NOTHING to do with them!

Now...back to the lemonade!!!

[hip chic]

Jana~

I, for one, think you are making the right decision.

I went through a similar experience a few years back...ended up returning the product...paying the restocking fee. I have never regretted my decision to just wash my hands of the product.

hip chic

[CME4SPECS]

I'm willing to bet that when the new Armani rep comes in your office and sees that you have 100 Armanis, the rep will start drooling and take all of them back and let you start all over! Terry Agin

[Johns]

Chris:

You are being sarcastic...are you not ?

A DEAL???

You have got to be joking.

Please don't tell me that you'd be happy if you had just placed a $2700 order of frames, paid $18 for shipping, had the company turn around and say they're not going to be making the line anymore, then pay $15 + $2 insurance on shipping and have them take $270 away from you for the privlege of having them in my store.

YOU HAVE GOT TO BE KIDDING ?!?!?!

This sounds like a good deal to you ? You're in wholesale aren't you ? Would your customers to react favorably if you recalled one of your products, and then charged them for the privlege""?


------------------------------ News Flash--------------------------------

The privlege should be the vendor, not the customer. This is the exact reason why you can walk into many main street retailers and not recognize a name among all the products-because there are many small companies who strive to get and keep (retain, appreciate, accomodate) their customers.

[Chris Ryser]

Johns said:
Chris:

You are being sarcastic...are you not ?

A DEAL???

You have got to be joking.


YOU HAVE GOT TO BE KIDDING ?!?!?!

This sounds like a good deal to you ? You're in wholesale aren't you ? Would your customers to react favorably if you recalled one of your products, and then charged them for the privlege""?


------------------------------ News Flash--------------------------------

The privlege should be the vendor, not the customer. This is the exact reason why you can walk into many main street retailers and not recognize a name among all the products-because there are many small companies who strive to get and keep (retain, appreciate, accomodate) their customers.

Seems that I just tramples on some nerves.

No, I quit the wholesale business out of that reason a while ago. A frame sold by the wolesaler is not sold. It may still come back for a long time. This mean turnover figures for wholesalers are never right. These days they might get get back up to 7 frames out of ten sold, if the model does not catch on fast. Some of the real important accounts among retailers never have to pay for their samples. This is called consignment. Just return them when not used anymore and pay a restocking fee,

A I still dreaming, or is it a fact?

[Johns]

I think that any problems such as you described are brought on by the greed of the wholesaler. If a consignment deal was a losing proposition, why would a company agree to it in the first place ? Reason: Because they want to tie up the market, any way they can, but not face the consequences. If the product can stand on its own, it shouldn't need to be slid under the door with consignments. I had a wholesale frame company at one time, and I had great prices with a "No return policy". I told the retailers, "If you can't sell it, don't buy it." If the frame broke (very few did), I had priced them reasonably enough for the account to buy another w/out losing their shirts. Because I knew the sale was final, I didn't have to play a mark up/mark down/discontinue/return game. I ended up selling the company to go full-time retail. The company that bought me out put a return policy into effect just like the big guys, and lasted about 2 years before going bust. If Lux and the other big guys could stand to cut their prices by 25%, their return problem would end tommorrow, but until then, they shouldn't place the burden of their greed on our shoulders.