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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
839453	2009-12-14 02:31:00	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.	Chilling_Silence (9)
839454	2009-12-14 02:38:00	We don't call ours just a "restocking fee", it is an administration/restocking charge therefore can be 20% of the whole invoice. We also get a deposit for any big jobs. If you have spent the time installing and training etc then they can't really expect not to pay for that. Legally you could probably credit them back for the total of all hardware, as long as you get it back, less any restocking fee and invoice them for the labour. If they don't pay send it to Bay Corp.	CYaBro (73)
839455	2009-12-14 02:40:00	I would have thought the fair fee to charge would be the difference of the goods when new and the price you expect to sell them for (at some unknown future date) plus a 25% (re-)handling fee (25% of the returned goods' difference). So if the goods were originally supplied at $60, and you could fairly be expected to resell at $40, then charge them $20 plus 25% of the $20: $25.00 (plus GST, of course). The time and effort cost (labour, time, installation and training) you will have to write off to experience - especially if you want to have nothing more to do with the customer. Or you could be a hardass and list the debt with Baycorp (after threatening them with that action of course - often the threat is enough, as many compnies don't want to jeopardise their credit-worthiness)... (SNAP)	johcar (6283)
839456	2009-12-14 02:47:00	Cannot pay or will not pay? I think there's probably quite a difference, as they entered into a contract with you, and can't just change their mind I would think. If they were insolvent, then it might be a different matter, but unless there's a specific 'cooling off' clause in your Terms Of Trade, I don't think they have a leg to stand on. Binding agreements aside, it's probably a judgment call; I'd be inclined to bill them 100% (or damn close to it) for the intangible things like setup/training that are simple labour charges, and then go with the 20% restocking fee for the gear. If you want/need to work with them again, helping them out might stand you in good stead in the future.	nofam (9009)
839457	2009-12-14 02:49:00	Binding agreements aside, it's probably a judgment call; I'd be inclined to bill them 100% (or damn close to it) . +1	pctek (84)
839458	2009-12-14 03:01:00	I would be wanting the hardware back ASAP before possible other creditors come out of the woodwork. Argue about what you are going to invoice later.	Sweep (90)
839459	2009-12-14 03:09:00	Im not sure about all work but for us the standard payment is a month from the bill date, with bigger jobs the client keeps 12.5% for a year as a "warranty" I would assume there is a contract involved or at least a quote, and if there is then they have to pay as long as the work is acceptable. Which makes it your decision really, you can go through the hassle of court and probaly win, or count your losses and be rid of the client. But if the client "cant" pay then going to court probaly wouldnt mean you'd get any money, youd just be spending more takin them there	hueybot3000 (3646)
839460	2009-12-14 03:13:00	I hope you have a Registered Security over the goods supplied. (This replaced the old Romalpa Clause, which was pretty useless anyway.) Otherwise someone else may take the goods as payment of a debt, and you would find it hard to reclaim possession if the other party was a secured creditor, such as a bank.	Richard (739)
839461	2009-12-14 04:00:00	Is this not where the debt collection companys come in? and they charge an extra cost to the customer who needs to pay as far aas i know, not the company who has lost out on the money...... but i could be wrong... and isnt there a thing called a tax right off on non payment of bills? im sure thats something your accountant could tell you about? its a pain when people owe you money and have no intention of paying it.......:badpc: beetle	beetle (243)
839462	2009-12-14 04:28:00	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? I would give them 100% refund on the hardware, on 0% refund on labour/training (things they can't return) if they get un-happy then just offer them bay-corp for total invoice.	robsonde (120)
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