Policy on Refunds Research Paper Example | Topics and Well Written Essays - 1000 words

Policy on Refunds - query Paper ExampleThis should be balanced however with commerce pragmatism so that the number of refunds allow not take its toll on the business bottom communication channel. Before refunding the customer, the business should attempt to knock back or repair the unit of measurement to keep the sale. If this is unavoidable, the following criteria should be met as a policy1.The unit broke gloomy within the producers warranty period. It should be established that the malfunction was imputable to normal use. A brief inquiry as to the circumstance why the unit broke down should be conducted by the frontliners. 2.In cases where customers merely had a change of heart with regard to the purchase, there allow no refund. If the products are reproachive, we go away meet our obligations under the Consumer Guarantees Act to provide a remedy. To save the sale, a replacement with an extended warranty can be offered to the customer. 3.The business should not bear the cost for the faulty unit as we are mere dealers. All cost with units that has been refunded collect to makers defect and within warranty should be passed on to the provider for refund. B. If the business is in the service sector, prepare a policy on how you will charge your clients. Ensure that the policy complies with all relevant legislation and provides for a clear explanation of the service being offered. Include the terms and conditions that will apply to estimates and quotes and make provide for some system of arbitration in case of a dispute. To keep customers goodwill and establish a service leader image among our customers, units which are faulty that are within the makers warranty should be replaced without cost and inconvenience to the customers. The business however should be careful that the manufacturers criteria for replacement are strictly met so that we can pass the cost to them. For units that malfunctioned beyond the manufacturers warranty period, could be re paired by our service business unit at a force out to encourage customer retention and cultivate customer goodwill. This will also increase our bottom line as the company can still make business for an after sales support that is not covered by the manufacturer. As much as possible, we will avoid absorbing the costs due to refunds as this will burden our expenditures and undermine our competitiveness. It has to be understood that at this point in time, the business is still in its introductory phase and it will be unwise to jack up prices to federal agent in costs associated with refunds. The business is still in the process of penetrating the market and it has direct competitors with the equivalent product and as such, pricing should be kept to be competitive to remain viable in the industry. C. A breakdown of all the costs that you will incur in acquiring or manufacturing your products or developing your services up to the point of sale (you may, if you wish, focus on one produ ct or service). The costs should be inclusive, including all materials, labour, administration, insurances, rental, electricity, promotion and other expenses. The nature of the business is retail so the manufacturing overheads will not reflect in our financial statements. Freight and delivery should be shouldered by the supplier also. Our overhead will mainly focus on the operation of the product distribution and upkeep of the sacking