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Thread ID: 105779	2009-12-14 02:31:00	How much of a restocking fee?	Chilling_Silence (9)	PC World Chat

Post ID	Timestamp	Content	User
839463	2009-12-14 10:14:00	Firstly, unless it was written into the contract, they are not entitled to back out of the deal in any way and they are simply relying on your goodwill to reduce their losses. There is no right or entitlement to transfer those losses to your company, and you have no obligation to accept any of them. The equation could be as complex as you want to make it, but it is a situation where simplicity and certainty of terms is essential. As I see it the issue has two parts, the labour content, which in simple terms is any you can't take back and resell, and the hardware, which you can resell for a lower price. I'd nail them for the "labour" content in full (i.e. no refund), including GST as there is no reason why your company should lose on that, and cut a deal on the hardware which at least recovers your capital outlay if possible (after on-selling). Allowing that accountants can do clever things with write offs and taxation, the company could come out even or maybe take a small loss. The accountants will factor in your GST recovery on the deal as well, which might also help improve the outcome. Cheers Billy 8-{)	Billy T (70)
839464	2009-12-14 10:19:00	Very tough situation, and without details it is pretty hard to mae a judgement. This is really what contracts are for. Basically you don't want to be out of pocket, so charge them enough so you won't be any worse off than you should be.	robbyp (2751)
839465	2009-12-14 17:02:00	Thanks for the advice guys, much appreciated. Lets just say that it's been a hard lesson learned for our company and we've already gone and upped the ante with respect to our documentation that must be signed prior to a job starting. Guess we'll see what happens today :)	Chilling_Silence (9)
839466	2009-12-14 21:13:00	Long story short our work has done some work for a company, consultation, deploying hardware, installation, configuration, setup, training. The company has since decided two months later that they cannot pay the bill and now want to return the goods. Needless to say we're not happy. Anyways, we're looking to charge them a restocking fee, as we can naturally no on-sell this hardware as "New", but rather "Used / damaged seconds". We could try and argue the sale, but we've had more than enough of this customer and want to wash our hands and walk away from them. Lets say the final invoice was $100 (It's not but anyways), $40 was labour, time, installation and training and $60 was the retail of hardware. We're looking at a 20% restocking fee, but is it standard practice to only charge the 20% on the $60 the hardware cost, or 20% on the bill as a whole? Basically we're just looking to claim back some money, rather than nothing at all... ..and yes, the sum is much, much more than just $100, but for illustration sake it's a nice round figure ;) Any thoughts on the matter would be much appreciated Cheers Chill. 100% of your time and 20% of hardware!!....dont let them off chill....	SolMiester (139)
839467	2009-12-14 21:23:00	Charge them for the whole lot. If you go down to a shop and purchase something and come back two months later and say "I don't want it anymore" I don't think you would be getting a refund. Are they unable to pay or just don't want to pay?	xyz823 (13649)
839468	2009-12-14 21:39:00	Are they unable to pay or just don't want to pay? That is the Crunch and everything else revolves around the answer. ;)	B.M. (505)
839469	2009-12-14 23:40:00	Since they have said they want to return the Hardware - as its been mentioned get it back ASAP - that way at least you wont lose on that as well. Its imperative you have contracts when dealing with Esp larger jobs stating all the non payments, refund, restocking etc -- small print that hardly anyone reads - but it's all legit . I had a similar case a few years back - lot smaller than yours about 4K, but the contract was there - the company refused to pay for the goods - labor I lost on, in the end it went to baycorp,(after 5 months) and then small claims court -- I won simply because they signed the contract, I recovered all the hardware + they had to pay fees to baycorp, and I got 20% of the hardware price awarded (which is in the contract) - Their excuse was they signed the terms and conditions but didn't read them -- the adjudicator just laughed -She said "no excuse, you signed it, you agreed to the terms and conditions".	wainuitech (129)
839470	2009-12-15 00:11:00	Yeah lets just say it's been a rough lesson learned and we've crossed our t's and dotted our i's now in the hope of avoiding it further in-future... I'll post back with how we go :)	Chilling_Silence (9)
839471	2009-12-15 02:42:00	Most of the parts places I use say parts must be returned within 7 days and a 10% restocking fee. However they never actually charge it, because if they did we would buy from someone else and they know it. A lot of the time they send out the wrong stuff like REPCO which stands for Return Every Part Couriered Out. Although its not always their fault because of the myriad of jap versions of each model of car and truck. REPCO used to stand for Rip Every Poor C Off	prefect (6291)
839472	2009-12-15 02:45:00	Most of the parts places I use say parts must be returned within 7 days and a 10% restocking fee. However they never actually charge it, because if they did we would buy from someone else and they know it. A lot of the time they send out the wrong stuff like REPCO which stands for Return Every Part Couriered Out. Although its not always their fault because of the myriad of jap versions of each model of car and truck. REPCO used to stand for Rip Every Poor C Off Slight difference between car parts, which we all know can be murder sometimes, and working computer equipment that was ordered, installed, working, then not being paid for.	wainuitech (129)
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