NFIB

Creating Your Return Policy
11/ 15/ 2002

by Vicki Gerson

"I don't want a store credit." "Your company never said I couldn't return this item a year later."

How many times have you and your employees had customers argue with you over returns? One of the best ways to avoid such situations is by creating an explicit return policy and putting it down in writing.

If you don't have a firm return policy now, or it tends to vary customer by customer, here are some points to remember so you can institute a new or revised customer service policy for 2003. Make sure to announce these changes at least 30 to 60 days in advance.

Set a maximum return time.

Your service policy may state that a customer can return a product within 30, 60 or 90 days of the purchase date. It is important to print this policy on the receipt or the invoice. In addition, put it on your Web site as well as in your catalog.

Keep an eye out for fraudulent returns.

Be sure your employees are told to inspect each return for possible damage. It is not unusual for customers to use items and then try to return them. In addition, inspect all returns for possible fraud before exchanging merchandise or giving a customer cash. Make sure it came from your place of business.

Give a credit instead of cash.

Today, many businesses are not giving cash to customers. Instead, they are giving a store credit that is good for a year. If you adopt this policy but are willing to make exceptions, make sure all of your employees know under what conditions they may give cash.

The most important factor in making your policy work is sticking to it. Go over the policy with employees and give them a handout they can post by their desks or carry with them on sales calls. You may also want to send each of your customers a copy of this policy as well.

Small Business Sound Off
Does this story hit home?  Share your story with us