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Retail Uninterrupted
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THU
Make Mine Custom, Please.
 

Here’s a question for you…especially those of you out there in retail land that offer special orders to your customers – what are your policies regarding deposits and returns on a special order? 

 

I require fifty percent down on the order and a signature to proceed.  Our receipts clearly state that “sales of non-stock, non-standard or custom items are final”.  Luckily, knock on wood, we’ve had little issue with folks changing their minds but some retailer friends of mine have not been so lucky.  They’ve increased their deposit to 80% but still suffer through customers leaving their special orders at the store for long periods of time prior to final pick up or worse yet not picking them up at all.

 

My husband (remember him from “Turf Wars”?) has a tendency to be very opinionated when it comes to certain business practices.  This one - suffice it to say - ranks tops on his list.  He wants me to have customers pre-pay for their custom orders, period…end of story.

 

I’m not sure why I’m so reluctant to take the plunge.  We certainly prepay for that hamburger that they “make to our order”!  We certainly paid for the entire washing machine and dryer when we ordered it.  We’ve prepaid for much of the inventory that we buy and even for certain services that have been provided to us.  But somehow I can’t seem to do it.  I guess for now, I’ll stay with my program and continue to roll my eyes when my husband lectures me on the deposit.

 

I’m a thinker.  I need to hear some other opinions and mull it around.  And, while I like my messages to you to be a bit lighter, once in awhile, we need to tackle serious issues.  We need to be very strategic in the policies that we make in our stores.  We need to stand out from the big boxes, and heck, even our colleagues but we certainly don’t want to stand out because we are too difficult to buy from or not customer service champions.

 

So, this message comes with a request for the sake of my retailer friends and me…tell me how you process special orders in your store.  How much of a deposit do you require?  Once the order arrives, how long do you keep it before you get nervous that you’ll be stuck with it?  Do you charge a storage fee?  (I actually had a client purchase two antique chairs, pay for them in full and pick them up two, yes two, years later but that’s another story.)

All you have to do is hit the lil button that says “post a reply” and share your ideas.  I appreciate it…and so do my buddies down the street.

4 comments

Submitted by
loboyle
Nov 20,2008 8:02 p.m.

Like you I require a 50% non-refundable deposit on special orders. I haven't had any issues with people not picking up their merchandise, but you might want to consider adding something like "orders must be picked up X number of days after completion/delivery date or they become the property of The Burlap Horse" on the order sheet that they sign. If you make it part of the policy and have it in writing on the order form you won't have to be the "bad guy", it will all be there in black & white.

Submitted by
sycamoreboutique
Nov 21,2008 3:52 a.m.

All or NothingI learned my lesson - orders not paid for 100% are rarely picked up. Those occasional ones where I didn't charge them anything upfront ... still here. They were never picked up.

I just write down the total on the sales slip and wait for them to pay - occasionally someone asks what the deposit amount is and I just say that all custom orders are prepaid (sometimes I allow brides to pay 1/2 only because I KNOW they will be in to pick it up - they can't find this degree of custom anywhere else).

Most of my custom orders are truly "custom" ie: I make the stuff - usually jewelry - so it is also my time being tied up if the order is left to sit so long until it might eventually be put into general merchandise.

I could have been using my time and materials to make something that probably would have sold much quicker.

You need to ask yourself, Why do you have such a problem with it ?

Angela
The Sycamore Boutique & Scent Shop

Submitted by
sheshestone
Nov 22,2008 9:46 p.m.

Special Orders PolicyI generally require a 50% deposit on special orders. Sometimes if the product I am ordering is higher in price I may ask for the full amount before ordering. So far so good, no issues with this.

Submitted by
burlaphorse
Nov 24,2008 11:29 a.m.

So glad you are sharing!I can't believe that there are only three responses to this post! I really thought we'd get more chatter! Thanks to the comments so far...I'll pass them on to my retailer buddy down the way. Angela's comments are great - custom orders take time away from other customer needs and that's an important consideration. I like Loboyle's suggestion to provide a time limit. Even if you require 100% like Angela, storage can be a real issue, especially during our busy seasons.

Keep the comments coming. For all of us who have little issue, there's a few who are anxious to see what others are doing - even as retail veterans, we get sloppy....no issues in a while mean we get laxed. It's busy right now with the holidays, but when you get ready to plan your 2009 business year, these comments will be handy.



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