Why We Charge A Restocking Fee
First I need to define what kind of business Safety Technology is. Safety Technology, for over 20 years, has been a wholesaler. In 2000 we started drop shipping for our distributors. This was a service we provided but our business model is still a wholesaler.
Because we drop ship, some distributors are a little spoiled. They don’t touch the product, don’t have to worry about stocking the product or shipping the product. That is all done for them.
The problem comes when a customer of a distributor decides they don’t want the product and want to send it back. There are two choices at this point. The customer can send it back to the distributor, who they bought it from, or they can send it back to us. However, if they send it back to us, we will take it, but we charge a restocking fee.
We don’t require our distributors to place minimum orders but our return policy is the same whether they buy in bulk from us or have us drop ship. As a wholesaler, we do not do consignment. Consignment is when a product is given to sell without payment and you get your money when the product is sold. If we gave full refunds for non-defective products that are returned to, it would be the same as selling on consignment.
In any business transaction there is assumption of risk. On both sides. Our side is bringing in and paying upfront for all the products we want to sell, not knowing if they will sell or not. Trust me, if I bring in a product and it does not sell, I can’t return it for a refund. Your risk is the same one, just a smaller one. We’ve even removed most of the risk for you. You don’t have to buy anything from us until a customer buys from you. So, the risk you have is whether the product will be returned.
If it is, we’ve even removed much of that risk. You can return the product to us but there will be a restocking fee. Remember, you don’t have to return it to us. You can keep it and sell it to another customer. But, if you don’t want to do that, if you don’t want to assume that risk, we will take it back and charge a restocking fee.
Its hard to understand a business unless you’ve done it. I wouldn’t wish being a wholesaler on anyone. Small profits, importing issues, all kinds of troubles with manufacturers, having to pay for most things upfront then wait 3-4 months before you receive the product so you can sell and hopefully recoup your investment. If I had to do it all over again, not sure I would. But here I am and here I will stay, trying to run the business the best I can, making as many concessions I can for my distributors, but sometimes having to make decisions not popular.
I hope you have a better understanding of why we charge a restocking fee.
James Shaw
Absolutely understand and agree Michael!
Greg Hester
Happy Anniversary to you and Nancy
Greg and Nancy Hester
Josue Trevino
I think the restocking fee is fair. But I would like to know how much it will be.
Thank you!
admin
The restocking fee is 20% for the self defense products and 25% for the camera products.
Steve and Jennifer Thibeault
Happy Anniversary Mike and Nancy! We wish you many more great ones. Thanks for everything you do!
Chuck Zivkovic
Happy Anniversary Mike and Nancy! Thanks for the great discount. You always give back – I like that. Many happy returns!
David English
It sounds fair as well as just plain business sense to me. 10% – 12.5% to cover the labor involved in packing and shipping the product out. The other half to cover recieving, unpacking, inspecting and putting the item back in stock. When you think in those terms it sounds like a pretty good deal.
Robert Harvey
1st Let me start by saying HAPPY ANIVERSARY to you, Mike and Nancy!!!! I think that the restocking fee is beyond fair, you have done a great deal with exposing your distributors to a great way to help others protect themselves as well as thier family’s, and also make a living by providing family’s with the latest safety technology to make a profit. ……What More could we ask for…..
Rick Ramirez
Thanks for the explanation Mike. It helps us the better understand. I think you provide a lot of help to your distributors and I appreciate it.
Happy Anniversary to you and Nancy.
Rick
Matthew Kish
Mike – You are a shoot from the hip kind of guy and very honest as well. I am looking forward to a long relationship with you. I love your e-mails. I know you want us all to be as successful as we can. If we make money, you make money. Hopefully I will get to meet you soon.
Bill Souza
Mike,
I want to wish you and Nancy a very Happy Anniversary.
All I can say is you have to do what you think best. I know you have to recoup some of the money you put out on a product with a small amount of profit. You cannot keep taking the hit.
You do what you can to help us out here trying to build a business. Your products are great. But you and your staff are even greater. You answer all the questions we have. You are there for us every step of the way.
Thanks
Bill Souza
Erica Ruth
Mike,
Congrats to you and Nancy on the anniversary. Thanks for the very clear and concise explanation of the restocking fee. I can’t ask for anything else. It’s a fair fee – and I got a business class to boot. Keep it coming, Mike!
Best Regards,
Erica
Dozier McKendree
No explanation should be needed. It’s just one of those necessary downsides to being a business that accepts returns, but thanks for letting those who don’t understand see things a little clearer.
Mike and Nancy go way out of their way to make things as easy and painless for us as they can. You have no idea what goes on behind the scenes unless you’ve been there.(running a large business is what I mean). They bend over backwards for their distributors where others in the same business don’t. They work far above the bar in my opinion.
Happy Anniversary to you Mike and Nancy. We wish you many more happy years together.
Michael Brandt
The restocking fee is not a problem for us. We offer a satisfaction guarantee but I put it in writing on my web store that there will be a 25% restocking fee for any returned item from our customers.
I have never had a problem with a customer being upset about the restocking fee because they know it up front.
I also want to add you won’t find a better wholesaler to deal with than Safety Technology. Trust me I have dealt with a bunch of others that didn’t treat me right. Safety Tech has always been fair, honest and have taken good care of me as a distributor. I really appreciate their drop ship program!
Thanks Michael!
SafetyMode Systems - Pepper spray, stun guns, tasers, surveillance cameras, hidden cameras, and more.
Thanks for explaining this Mike…makes sense.