Just a note - because fuelcutoff wants a refund, it's paypal that requires him to send back the exhaust, not overkill.
That doesn't explain the 30% restocking fee, which makes me scratch my head because I am a small ebay business and every single time paypal has taken the side of the buyer when something goes south (usually because of the shipping company) paypal gives a full refund upon my own reciept of the defective product.
To me, even one red flag on my record shows SO poorly on my ebay profile, no longer that shiney 100% you know? I believe OEM needs to realise that if they are spending all that money on 5 engineers and a million dollars in cnc machines, that reputation is a huge part of how they are going to pay back the loans and pay those salaries right? I mean, let's face it, squeezing a few pennies (in this case $500) isn't going to make or break your business guys; If anything this 'time you spend eating and going to the bathroom
' costs you just as much in a day (if you do in fact have 5
true engineers working for you) than it would have been to take the restocking fee and shipping.
I will say this however, the adequate response to this coming from a guy who has managed a number of retail stores is this.
1) Agree with the customer on item X, it shouldn't have fitted/worked/didnt work the way it did
2) Using nice cheap words you say this: I understand your frustration, I have person XXX looking after that product X right now as we speak
3) Your new product X will be done by the end of the day, sent with extra fast shipping so we get you on the road as quickly as possible, you will receive the tracking number first thing in the morning.
4) All we ask that you purchase it on your credit card while the item is in transit until we recieve the defective unit, since every computer company does it this way, xbox does it this way, etc. This is not too much to ask. If the customer makes a scene, THATS when you stick to your guns on your replacement policy.
Restocking fees should NEVER exceed 15% on something, especially on something you the company screwed up, not the end user. If you have to, say that you're already totally committed to the customers satisfaction, ask for their patience as you iron out the kinks in mfg BECAUSE you're a small business, and calm them down by offering them a free powdercoat, or 15% off their next purchase, whatever it is that would make them happy, other than a refund because you'd rather see this fixed for future customers rather than returning it and risk having someone else with the same problem. That way you're quasi-partnering with them and making them feel important.
This will ensure your customer satisfaction, and let's face it guys, you can easily with your rediculously delicious creative brains of yours - find something you can make out of the old exhaust f up.
The thing is, a company has to be totally proactive on this stuff. If you have a policy in place, like on a disclaimer page on your website, you can alleviate a lot of these types of issues. Have like 4 seperate drafts made up so you don't have to spend the time doing this with EVERY single customer right? One for returns, one for defective products, one for warranty, and one for polite 'sorry we dont do that because you're being unreasonable', only to be pulled out when all else fails, and keep a record of it all so that you can be blameless when things like this DO come to the top.