bT Returns are PROFIT KILLERS

Ft ETURNS of hardware and tools

I I are epidemic in many parts of the industry, spread by the merchandising philosophy that any purchase can be returned with "no questions asked."

It is not uncommon in some stores to see carts of returned merchandise wheeled from the service desk at the end of the day. Little thought apparently is given to the costly and wasted effort of putting returned goods back into stock.

Consumers want a flexible returned goods policy, advises Dr. Walter Salmon, professor of retailing, Harvard Business School, but a retailer can be penalized by excessive returns. "Although there will always be customers who change their minds about a purchase, the seller should do everything possible to be sure that the purchase is correct," is his recommendation.

The flow of returns can often be checked with better training of sales

Story at a Glance

Ways to cut excess returns .. some positive selling techniques...establishing return policies and eliminating abuses.

people. If they are aware of the cost of returned merchandise and their role in preventing it, the sales staff will be more conscientious about avoiding misrepreSenting goods or overselling. In the enthusiasm to make a sale, they can sometimes high pressure a customer into buying an item he reallydoesn't want or need.

"Lack of communication is usually the reason for a return," explains Erv Goodroe, executive for the Building Material Merchants Association of Georgia and Alabama, who regularly conducts employee training classes. "Salespeople just aren't asking the proper questions."

"The salesperson and the custo- mer must be on the same wave length," he continues. Asking how, when and where the Product will be used as well as why it is required will often help to identifY the exact merchandise needed. Next the salesperson must make sure the customer knows how to use or install his purchase. If the saw fails or the lock doesn't fit, it is often because the d-iyer doesn't know what to do. Goodroe emphasizes that lack of information, both received and given, spawns the majoritY of returns.

The sales person also is resPonsible for checking the condition of the merchandise, making sure Parts and instructions are intact. Damaged or incomplete merchandise should be removed from the sales floor promptly.

Maintaining competitive prices by frequently checking price tags at the competition and making sure the merchandise is delivered or ready for pick up at the promised time are additional deterrents to returns.

Abuses of liberal return Policies can be prevented by making clear at the time of purchase by a sign or verbal warning the conditions under which money will be refunded. "Your receipt is in the bag and must accompany any returns of the merchandise. You have two weeks in which to do this" should be automatic as the cashier hands the customer a package, some experts recommend.

Credits to charge cards also should be made onlY when a receiPt accompanies a return. A return without a sales receipt should be limited to a credit slip or exchange.

Tactfully determining exactly why the merchandise is being returned can be helpful in preventing future returns. If the tool or hardware was not right for the project, it becomes obvious that there was a lack of communication. If the customer changed his mind or reallY didn't want the purchase, overselling, misrepresentation or a high pressure presentation is probably the cause. A return because the customer discovered a lower price at another store can be prevented by maintaining competitive prices and excellent service.

Tracing returns back to the source of dissatisfaction enables management to take steps to better train the staff, eliminate shoddy merchandise and hone marketing skills.

"Hazardous Products" On A Shelf

Under the OSHA Hazard Communication Standard, manufacturers and importers are responsible for determining any hazard associated with their products.

Potentially hazardous product categories include adhesives, asbestos-containing products, asphalt cements' asphalt/fiberglass roofing, bonding/curing agents, caulking compounds,cleaning agents/solvents, concrete (lime, pre-mix), diesel/gasoline fuels, fertilizers/ pesticides, fiberglass insulation, glazing compounds' glues, lubricating/mineral oils, paints/lacquers' paint/ iu.qre, thinners, preserving agents (formaldehyde), waxes and wood dust.

If dealers have any questions regarding the potential hazard of any product, they should contact the manufacturer or the suPPlier.

Trodewest Hqrdwood Co.

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Wholesale lumber Products

Fred Holmes 347O Iowa City Rd., Marysville, Ca.959Ol (.916) 743-3269

P.O. Box 800, Fort Bragg, Ca. 95+J7 (7o7') 964-6i77 '6' va' 7 )a J ' ttl0RE IHAI{ $1500 was collected by Los Angeles Hoo-Hoo Club No. 2 for Children's Hospital of 0range County at a July meeting in Costa Mesa, Ca. Winner of the second annual Ken Coleman Hoo-Hoo of the Year Award was David Bufe', Mesa Forest Products, outgoing club president. Club goal lor the charity fund raiser was S1000. lll Rod Kautz, Jim Frodsham, Dave Bufe'. l2l Mike Jameson, Steve Shudoma, Bob Eonniksen. l3l Ed Gavotto, Dennis Richardson,Frank 0uattrocchi, Wendell Lawson. l4l John Hollstein, Mike Garrity, Gale McBride, Pete Rogers. (51 Jay 0rendorff, Doug Hanson, Doug Willis. 16l Bill Conroy, Frank Rhoades. l7l Dick Bailey, Jim Moss, Ken Raney.

Home Repair Spending Rises

Spending on home improvement and maintenance rose to an estimated $94.1-billion in 1987, up $2.8billion from the $91.3-billion spent in 1986, reports the U.S. Census Bureau.

ICE MAl{ Paul Gaboury, 73-year-old owner of the Golden Gate Lumber Co., Alamo, Ca., joined four other teammates over 70 in a recent 48-team, 7-day hockey tournament. They played three games, against Victoria, 0ttawa and Toronto, Canada, in a top divisr0n.

lllegal Workers Sought

Enforcement of the Immigration Reform and Control Act, which prohibits the employment of unauthorized U.S. workers, is being heightened.

The Immigration and Naturalization

Service is doubling the number of its investigators and employing a computerassisted random audit program.

Non-complying employers receiving previous visits or formal written citations from the INS are subject to immediate fines, although first time offenders will usually receive a warning, according to the Western Building Material Assn. Employers may be fined $250 to $2000 for each unauthorized worker, with later fines as high as $10,000 per employee. Businesses failing to verify and record workers' employment eligibility on I-9 forms may be fined $100 to $ I 000.