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Restocking Fee - Where to Book? Experience with this?

Our company has a 30 day return policy. We are planning to roll out a a policy of 10% charge on returned equipment such that folks hopefully think twice. Where should this income be booked? Also, what has others experience been in regards to this topic? Thank you.

Answers

Topic Expert
Wayne Spivak
Title: President & CFO
Company: SBAConsulting.com
LinkedIn Profile
(President & CFO, SBAConsulting.com) |

I would book the restocking fee under sales so you can create a metric.

If you roll out this policy, make the restocking fee so obvious that no one can state they missed it. Also, do a pre-announcement (in other words 1 QTR before roll-out start informing your customers).

Then listen to them. You will lose some customers. If your competition does not charge a restock fee, you lose some potential new customers. So as you inform you customers of the new fee, make your case for why your company is the best!

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