r+d

Posts on innovation, user experience, research and design 
« Back to blog

Common Sense Fail

I have been needing to buy some new work (as in outdoor work) socks for a while now so I went to a big-box retail store near my home. I'll keep the retailer nameless just to be nice. In any case, perhaps because inventories are ridiculously low in most stores, when I found the sock display there were only two packages of black work socks left. Each package was supposed to have 3 pairs of socks in them. 

Picking the second package up, I realized that there were only two pairs in them. Rechecking the packaging it very clearly stated "3 pairs" so I figured it was either a return or a botched run at the packaging plant. Either way, the socks looked brand new and the packaging even looked pristine. I thought - "No big deal, I'll just ask for a discount on the defective merchandise at checkout." 

So I get a few more things and then head to checkout. At the checkout I pointed out the defective item to the cashier and said "Hey, so this is supposed to have 3 socks in it, but it only has 2, so can you knock 30% of the price off?" I said it almost in passing because it seemed like such an obvious request. The product is fine, it's just physically missing 1/3 of itself, but the other 2/3 are perfectly fine. This is as easy a price reduction in retail as there could ever be. No scratch and dent haggling, no pointing a dings in boxes or packaging tape. This is just math.

Without even batting an eye he blurted out his response "I can give you 10% off."

I sort of smiled and said, "I know that's the standard policy, but this isn't broken, it's just missing about 30% of the socks that are supposed to be in there." I figured that if I just explained the logic it would make sense.

He was looking at the pair of socks and didn't even bother to look at me with his response:"10% is our policy." I laughed and said - "Really? Ok fine, I don't want them." At which point he threw them in some bin gave me my receipt and literally walked off to talk to another cashier. Nice. Good use of common sense and customer service, sir.

So here's the result:
  • I didn't buy the socks (lost revenue)
  • The socks will have to get restocked (labor cost)
  • If no one buys them, they will go into some black hole of cost accounting as a write-off to the supplier (costing someone for a perfectly good albeit mispackaged product)
  • If someone does buy them inadvertently thinking there are 3 pairs in the package, that customer will be angry and either return them for a refund (starting the cycle over again) or at the very least feel like this retailer got the best of them (reputation/brand cost)
All of this could have been avoided if this company empowered its cashiers with the ability to make common sense, point of sale, decisions. I'm sure I could have pressed to speak to a manager, but come on. This is simple math.

I'm sure these policies are in place for a good reason but this was so clear cut. The box wasn't damaged. I wasn't asking for 60% off. I was asking for exactly the amount that the product was "defective" which could be numerically calculated instantly. 

Fail.

Comments (2)

Feb 04, 2010
Ken Jackowitz said...
Associate empowerment is a double-edged sword for most retailers given that exception transaction processing is very difficutl to train and drives an amazing amount of service variability. This is where the big-box players have a much more difficult time than the smaller "mom and pop" businesses.
Feb 04, 2010
Parker Smith said...
I totally agree and that's why I felt bad mentioning the name of the brand. Retail is really difficult space. The problem exists in providing too much policy and not the right amount of empowerment to make common sense decisions like this. I wouldn't, for example, suggest every cashier be empowered to make judgment calls on scratch and dent. There's just too much variation. 

But there are certainly some situations, like this one, that are much more clear cut. Definitely the exception to the rule, but still something that would seem to need to be addressed in the policy somewhere it would seem. At the very least, there should be some clear cut protocol for the employee proactively offering to check with the store manager instead of making the customer raise that request themselves.

Common sense must prevail somewhere.

Leave a comment...