Replacing Point-Of-Sale Units For Customers

[lww]

I'm looking for some feedback either from people who run shops or anyone who produces retail goods for sale into shops:

We provide a free POS unit for new customers (shops) who buy a certain initial order of our retail products - the units are made of cardboard but are fairly substantial and cost us £40 each. We have a customer now who has had their POS unit for 5 months but says it is getting worn and not looking that great and they've asked for a new one... in our price lists we state that replacement POS units are charged at a loss-making £20, but the customer clearly expects to get this for free judging by their email.

Would you normally expect to replace the POS unit for free? Obviously we want them to have a nice display which helps display and sell our products well, but having already given them one free £40 unit we think it's a bad move to provide replacements for free as (a) it loses us 25-50% of the average re-order profit, and (b) it doesn't encourage the customer to look after our unit.

Any thoughts??

 

[vvaannmmaann]

Do they shift a lot of your stuff?
If they do,look at the bigger picture.What's £40 against future sales? If your brand/image is important to you it may be in your interest to supply the new stand as it will present well to their customers.

 

[TotallySport]

All our suppliers have prices for POS units, but normally have offers on to by x amount of product we get a free POS unit, but if we wanted another or replacement, they would generally charge us.

And they arn't cheap

 

[lww]

I guess the problem we have is balancing the 2 sides you've both presented - on the one hand the client sells our stuff well, so we want to keep them happy. On the other hand, our stuff sells well for them and they make good profit on it, so why shouldn't they pay for the replacement POS unit to increase their own sales?

I think ultimately we're talking £20 against the goodwill and future sales, in which case it would be daft not to provide another one - perhaps we'll offer it with their next "full" order to encourage them to re-stock sooner. Thanks for the comments!

 

[Billmccallum]

Best advice is to give them a free unit again, but make it clear that any future supplies would be charged at the full cost.

 

[i234i]

If you give one man his for free, the next man will want his for free.

 

[JamieM]

If you give one man his for free, the next man will want his for free.

The next man won't know anything about it.

I am leaning towards replacing it for free but it sounds like you are assuming they are demanding a free one. Why not politely point out that they are available for a subsidised £20, if that is your ongoing policy on this. Maybe they are just pleading ignorance/chancing their arm.

If they object then you can 'negotiate' and say on this occassion you are happy to supply it for free but in future you have to invoice for them.

 

[laguna]

If for example the POS has an average life span of 6 months then I would factor in this £40 cost against what they buy from you.

"Additional" POS charged at cost!

 

[Deleted member 59730]

I supply a lot of expensive POS stands. I call it a permanent loan to the shop so that in theory I can take them back. I have never charged. I just add the cost into the markup. Some customers turnover thousands on a stand they keep nice and clean and use for years, others wreck stands in a few months. All of my stands are steel.