Refund Solution

[Kraken_Systems]

Hi,

I am setting up a custom pc business but need help in the way of a refund solution, This is how my business structure works.

Firstly the customer has selects a computer

Then I wait for the payment to clear

Once the payment is clear I then buy the components needed for the computer via a computer whole sealer

Once the parts arrive I then assemble the computer and test the system

Then once all off these steps are complete I send the computer to the customer

I want to offer a 30 day refund policy but the problem lies within step three, once I have assembled the computer the ability to claim a refund via the whole seller is void which in turn leaves me paying for the refund and now way of claiming the money back. The reason for this is because I cant send the parts to the whole sealer once opened. This leaves me with a massive problem because I have spent the customers money on buying the components, and in turn I am only left with the fee I charge for build cost.

I hope this is clear enough for you to understand my situation and would be extremely great full if you can come up with a solution for me, as this is the only problem holding my business back.

 

[StevensOnln1]

Why do you want to offer refunds on something being built to order? Even if you did have to refund someone there's nothing to stop you reusing those components when building other PCs or even just wiping/reinstalling the PC and reselling it as it is.

 

[mit74]

don't offer refunds unless defective. It's a custom built system and your profits are going to be tiny in this line of business as it is. Unless you make minimum 10% per sale it's a waste of time.

 

[Kraken_Systems]

Hi,

Thanks for the help but the reason I want to offer refunds is that all my systems are pre selected components, so the only thing the customer will choose is the spec of the system i.e. high or low spec. And I forgot to say they will be built for gaming.

 

[Ian J]

Does any other computer builder offer refunds for any reason other than defective machinery?

 

[businessfunding]

I assume this is B2C, so DSR (Or whatever they are now called) means you will be obliged to offer 7 days - which is plenty!

With regards to returns - sell them at cost!

 

[Kraken_Systems]

Thanks for the help the only t

Does any other computer builder offer refunds for any reason other than defective machinery?

Sorry I forgot to explain the refund policy, there is no change of mind policy and yes its only if the computer is faulty.

 

[Kraken_Systems]

Thank you for all the help very much appreciated

 

[Kraken_Systems]

Other companies offer 30 days but with the same policy

 

[The Byre]

There are so many micro-companies trying to sell gaming PCs that it makes your head spin.

Why not also look at more professional and semi-pro applications, such as dedicated AutoCAD systems, 4K editing suites and integrated multitrack audio recording systems?

 

[Silky]

Thanks for the help the only t

Sorry I forgot to explain the refund policy, there is no change of mind policy and yes its only if the computer is faulty.

Isn't that standard consumer law anyway (refund, or free repair / replacement after a certain time up to 12 months?)

 

[NickGrogan]

Thanks for the help the only t

Sorry I forgot to explain the refund policy, there is no change of mind policy and yes its only if the computer is faulty.

You are selling to consumers so they have the right to change their mind and return. Minimum is 7 days, but many of your competitors are offering 14/28 days on custom PC spec.

You are only offering 2 designs, so it's not a custom PC, so I would expect to be offered longer.

 

[Kraken_Systems]

Hi,

Thanks for all the comments they are a massive help, but the main problem is that if a customer where to ask for a refund I do not have the money to refund them as I have spent it getting the parts for the computer.

 

[StevensOnln1]

So basically your problem is that you don't have enough working capital?

 

[NickGrogan]

Hi,

Thanks for all the comments they are a massive help, but the main problem is that if a customer where to ask for a refund I do not have the money to refund them as I have spent it getting the parts for the computer.

If you want to make money selling to me, the consumer, you have to take the rough with the smooth. It's not my problem how you do it, I have rights.

As well as refunds, you're also going to manage all the customer "issues" of it's not working, my game doesn't load and so on. These take time and cut into the profits.

 

[14Steve14]

You are selling to consumers so they have the right to change their mind and return. Minimum is 7 days, but many of your competitors are offering 14/28 days on custom PC spec.

You need to check the new Consumer Contract Regulations as its now 14 days for this type of thing and not 7 as stated.

If you do not have the money to refund, how are you going to cope if a fault arises in one of the systems within the warranty period. You will have to repair it at your expense until you can find the faulty item or part and then claim from your supplier.

 

[WillLoxley]

There are so many micro-companies trying to sell gaming PCs that it makes your head spin.

Why not also look at more professional and semi-pro applications, such as dedicated AutoCAD systems, 4K editing suites and integrated multitrack audio recording systems?

Just checked pc specialist, they seem to offer video editing etc machines too? Surely the jump for builders offering gaming pcs to offering the others you mentioned isn't massive?

 

[The Byre]

Think dedicated 4K - that's five times the information, compared to HD. That takes a specialist machine, no regular PC, even one with a 4K video card can do that at the moment.

An opportunity for someone!

 

[WillLoxley]

Think dedicated 4K - that's five times the information, compared to HD. That takes a specialist machine, no regular PC, even one with a 4K video card can do that at the moment.

An opportunity for someone!

Fair point actually. Most of the built to spec people seem to push the gaming side mostly anyway, though perhaps that's because a fair few media pros and all that end up with a mac now. Speaking of which the 5k iMac is begrudgingly the best option at the price and that resolution.

I'm not saying it's a bad idea, I just find argument is fruitful

 

[The Byre]

Think dedicated PC (Windows 7-pro with loads of RAM, SSD, multiple drives) loaded with Sony Vegas - not available on an iMac and anyway, you really need a new Power Mac for 4K. Final Cut Pro is not everybody's cup of tea!

And there is just one of the best slo-mo plugs for Vegas for just £200 and Vegas itself is as cheap as chips, £450 or there abouts, inc. the complete Soundforge etc., etc.

Chuck in Reaper for killer ADR and other post prod apps and you're cooking!

 

[Hedgie]

So basically your problem is that you don't have enough working capital?

... and here lies the key problem. As I found out years ago when trying to start a business, if you don't have some working capital behind you then you are going to come unstuck.

 

[Kraken_Systems]

Thank you for all of your tips,advice and information, looking through all the posts that have been posted the answer to my question is I need a few thousand to sit on for working my capital before I starting the business.

 

[businessfunding]

Welcome to business

 

[WillLoxley]

Are loans etc out of the question?

 

[WillLoxley]

Think dedicated PC (Windows 7-pro with loads of RAM, SSD, multiple drives) loaded with Sony Vegas - not available on an iMac and anyway, you really need a new Power Mac for 4K. Final Cut Pro is not everybody's cup of tea!

And there is just one of the best slo-mo plugs for Vegas for just £200 and Vegas itself is as cheap as chips, £450 or there abouts, inc. the complete Soundforge etc., etc.

Chuck in Reaper for killer ADR and other post prod apps and you're cooking!

I guess you've a point there. I could go to pc specialist and spec up a pc that's capable, but you could set up a 'single issue' business. All about marketing I suppose, though you run the risk of them just swooping in anyway.

 

[strikingedge]

Offer a 90 day refund policy - you will get more sales and can sell at a higher price because you are standing behind your product.

I would never buy a PC that had a 7day returns policy - I'd assume they're selling shite and expect it to go wrong around day 8

Sell the computers you get back - even if you sell them at fairs for close to cost, you're getting your capital back. Or reuse the components for new machines.

Don't have enough working capital to do returns? Well, work very hard not to get a return in the first place. And have enough working capital. Get a loan from friends / family.

If you doubt being able to pay off the loan, then the business is not a goer.