As an alternative to giving a customer a cash refund, why not offer a store credit equal to 110% of the purchase price? This way, the store doesn't have to give up the cash (and profit) associated with the prior sale. The assumption is that the store or company makes more than a 10% profit on the item(s), and thus will still be making money. The customer benefits by getting "compensated" for not being 100% satisfied with her purchase.
In practice, you'd have to limit the credit, I imagine, to dissuade expoitation of the policy (i.e, buying and subsequently returning a $5,000 plasma TV from Best Buy to get a $500 credit). However, for most purposes, the incremental credit is probably not enough to warrant exploitation of the policy.
I agree
No opinion
I disagree
Add your comment
This would seem WAY too vulnerable to exploitation by scammers. Most 100% money-back guarantees rely on inconvenience (additional trip to store; delay; queueing; getting, keeping, and finding receipts and packaging) and incidental costs (postage, shipping) to limit the cost of honoring the guarantees.
Sounds good, but if I was a store I'd limit it to no more than a $100 purchase. After that it's 100%, not 110%