Costco's Return Policy In Action
This weekend Costco really justified its annual membership fee to me with its amazing return policy. Eight weeks ago my wife bought two four-packs of printer cartridges that cost $146. She didn't realize they weren't the type of cartridges for our printer before she'd not only opened the plastic clamshell prison in which they were encased, but a cartridge from each package.
So that was $146 lost, right? Or at best, the hassle of trying to recoup the lost cash by selling the cartridges on eBay.
Not so, thanks to Costco. They accepted the return with no questions asked, returning $146 in cash.
While it was probably a jerk move by me to even try such a return, given that there was no fault with the product and we had rendered some of the merchandise impossible to repackage, I think Costco will see a return on that particular investment. That's the sort of customer service that earns lifetime loyalty, makes me want to shop at Costco over competitors and keeps me re-upping for $50 annual memberships.
(Photo: greenwenvy08)
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The return policy is one of the main reasons I pay the $100 annual fee for the executive membership. That and the fact that I make that $100 back a few times over with the cash back and good prices on merchandise.
I bought a Dyson sweeper from Costco and after a few months had issues. Went round & round with Dyson asking them to just send me the parts to no avail. Took the used sweeper back to Costco, explained the situation, and got my money back with a sincere apology for things not working out.
I joined this year. One my first visit, I found my razor cartridges that usually cost $18 for 10 at Target were $10 for 25 cartridges at CostCo. My mother bought a $260 camera for $210, with a bonus memory card. The membership paid for itself the first day.
The $100 Executive Membership has a cash back program, with a minimum of $50 back. There is no reason not to have the Executive membership.
I just pray they never stop carrying RiceWorks brown rice chips.
Here - Here!
Costco is one of the good guys!
(pay attention Comcast!)
@katstermonster: Other than the bulk items, are the discounts on regular items worth the $50 fee?
The service is great, I bet, but it is a rare case where I have to return something.
If there are others out there like me that have never shopped at Costco, we would think they are paying you guys to post these stories. From the amount of positive stories (and the lack of negative ones), I WISH I could shop at Costco. Unfortunately, there isn't one within 100 miles of me.
If it's Praise Costco Day here at Consumerist, I am all over it.
I came across an article not too long ago about how Costco's CEO evaluates stores. It was a pretty short article but it did have one little tidbit about Costco going out of its way to please a customer.
As to Costco's commitment to fulfilling promises, Sinegal related the story of a woman who purchased a mattresses and box spring at a club in San Jose, Calif., drove it several hours down to her daughter in Santa Barbara and found the two pieces were different sizes, full and queen. A club manager there refused to take the mattress set back. When the family finally got in touch with the company's executive, Costco provided a new, correctly matched mattress set for free, along with flowers and a cake the bakery made in way of apology. When confronted with customer complaint, Sinegal said, Costco does its best to come up with "elegant" solutions even to an "atrocious" situation.
Flowers and cake.
My Aunt once returned a container of spices that was more than a year old to Costco. She hadn't opened them in that year, but as soon as she did, it was obvious that there was more wrong with them than just that they were a year old. Year old food product, no receipt, completely hassle free return. Try that at your local grocery store.
@semanticantics:
They rotate the flavors of those chips at my Costco. Not in any of the ones I like right now, they haven't had those for a while :-/
Returned an almost 2 year old Roomba that stopped working with no questions asked the other day. Been an exec member for 2 years now, well worth it.
Costco will get a manufacturers credit for the cartridges and the kind of good press that you can't buy. It will reap dividends.
Praise Costco! I'm still an executive member, although I now live a 2-hour drive away from our closest one. We just took our 2006 (old return policy) plasma tv back because it died. Bummer that the return policy had to change because of abuse. While we were there we stocked up on diapers, beer, pumpkin pie, baby cookies (all the essentials) and of course a new TV.
I also returned a package of CK boxer briefs because they weren't the CK kind I wear. No questions asked.
Also, whenever I buy something that has a coupon associated with it, but don't know/have the coupon, I have still gotten credit for it. Bought a 100 pc spindle of Sony "music" CD-R's, $21, there was a coupon for a whopping $7 off the cashier gave me.
Bought coffee there once, it tasted more like dirt with burnt coffee mixed in. Took it back after brewing two pots (just to make sure it really did taste like the earth) and they took it back.
Also, they can LOOK UP YOUR RECEIPT! You know, this means you can LOSE IT and they will use their FANCY COMPUTERS TO LOOK IT UP!
Target cannot do this. Best Buy cannot. No one else can. Costco can. :-)
I often wonder why more companies don't have a hassle free, no questions asked return policy. Seems that too many organizations focus on the few patrons that are trying to rip them off instead of the large portion that keep them in business.
I speak as someone who has managed retail operations in several different industries. Where do you earn most of your profit?
I'm a single chick with a Costco membership. Seems like the only time I get to use it is when I visit my brother's family (he has two kids and a pack of his wife's brothers). I am the official family Costco tour guide, it seems.
What are some strategies for getting the most out of a Costco membership when you live in an apartment by yourself?
Just bought a set of garage doors through Costco. Price was very good, service was excellent. We re-up every year. Also, their hot dogs are very good.
One fly in the ointment. If you renew after your membership expires, they relate back to the original expiration date unless the renewal is more than two months after expiration. For example, if your membership expires September first, and you renew October 1, you only get 11 months for your $50. But if you wait until after November 1, your 12 months starts on the date of renewal. I believe that's now a published policy.
@sqlrob: Mine only has Sea Salt, which is what I got hooked on to begin with. Salsa Fresca and Sweet Chili are at my Target, and in a word, blow. I'd love to try Wasabi.
I use the rice chips as a shovel for the peach mango salsa they sell. If you cut my arm, I wouldn't bleed, I'd salsa.
They're just going to push the merch on someone else...still...unless you get a business expense deduction for the ink (meaning you only use it for your business or pro-rate it) there's really no reason to buy NEW cartridges when you can get refurbed cartridges on ebay for 1/4th the cost (if that).
@MostlyHarmless: New hardback books can sometimes be cheaper at Costco than other places if you don't have a Borders or B&N membership. The drawback is that there isn't as much selection.
I've taken advantage of Costco's generous return policy many times. Too much probably. They have a 90-day return policy on iPods, so every 80 days I would go back, return my iPod and get a new one. This worked especially well when a new iPod came out every few months. It's a dick move, but ... whatever!
Anyway, I miss my Costco membership mostly because the Costco near my house has MexiCokes.
Frozen food tends to portion well. I eat meat now and again, so the bag o chicken strips is pretty awesome.
Costco's meat comes in harganumungous portions, too, but if you make something meat-intensive (chili, dirty rice, lasagna) you can make it last a few days, AND their meat freezes nicely, too. Given Costco's higher standards for ground beef, as highlighted in the NYTimes recently, i don't mind paying less for better quality.
Clif bars and fruit leather, well, um, i need snacks!
Toilet paper and paper towels. Seriously, two Costco packs of TP a year and the savings justify the membership fee.
If you drive, the savings on gas are also fairly impressive. In the Metro Seattle area, Costco gas is about .10 a gallon cheaper.
I bought an office chair there in November of 2008. In August 2009, it started giving trouble with the lift mechanism. I returned it without issue.
Love Costco!
@speedwell, avatar of snark:I am also a single person in an apartment.
Do you ever need a new computer, monitor, TV, coffee maker, food processor, etc.? I think one of the best ways to save is on electronics / small appliances, where many stores have a short window for return if you're not satisfied.
You need to be getting the coupon book and emails. It's hit or miss, but it tends to touch on major categories. There is usually a snack deal, a soda deal, various electronics, and then a lot of crap I don't use. Do you ever need soap, shampoo, or headache relief? A lot of the biggest savings are in toiletries and such.
@donnie5: Target has looked up receipts for my family several times. Best Buy -- well, Best Buy staffers couldn't find a receipt if they were holding it in both hands two inches in front of their faces.
@speedwell, avatar of snark: Nonperishables or things you're going to go through quickly enough. Toilet paper, paper towels, printer cartridges, canned goods, snack foods. If you plan out your meals for two weeks you can use all of pretty much anything in the food sections.
@speedwell, avatar of snark: I'm a single guy with a Costco membership. Let's move in together and then we'll only need 1!
Seriously though....
I tend to buy a lot of non perishables there:
paper towels
toilet paper
laundry detergent
Brita filters
Shampoo
Advil
And some longer lasting perishables:
water
pop/juice
frozen foods
The big thing for me is the 'one off' items that they get in the store. Clothing, appliances, computer stuff, hangars, Brita jugs, televisions and DVDs. You may only need these items once, but the rotation never stops and there's always a good deal. The last big thing I bought was a TV stand for $230 (cdn) that would have cost me $400 elsewhere.
I've got a baby in the house, and I'm always hearing that Costco has the best prices on diapers and formula. Still, I've been reluctant to shell out that $50 membership fee up-front.
But sheesh, after reading Consumerist today, it's starting to look like I'm being an idiot.
@donnie5: Best Buy can. They reprinted a receipt for our 360 for an insurance claim over 6 months after it was purchased.
@h3llc4t has a slow work day: @DadsterNC:
That is interesting. We have been told by Target "we can't do that" as well as Best Buy. Those lying thieves!
@DadsterNC: Yep - I had Target find a receipt for me last month. They can only do it if you use a credit or debit card for the purchase, but that makes sense. I also had Home Depot do it over the summer for a purchase over a year old, and it was completely painless.
@donnie5: Like the others said, Best Buy and Target can both do this. In fact, a regular Best Buy store once looked up one of my receipts from a Best Buy Mobile store, so it doesn't even have to be something purchased from the same store.
i bought 120.00 of ice-cream for a work event and they took back what we hadn't opened or otherwise used (it was kept in the deep freezer)
at the behest of the bosses who pay for such things, i was shocked when they allowed for me to return 6 gallons of ice-cream.
i was kinda hoping that they wouldn't...you know...so they (the bosses) would be taught a lesson.
@Blueskylaw: Any major retailer would get the same manufacturers credit and yet some stores still like to run customers through the return gauntlet. Not only does Costco offer good prices and offer great service, they also treat their employees well--much better than other big box stores. They do all this while still making a hefty profit--amazing! lol
It's nice seeing a fluff piece on the good guys now and again. :D
@thepill: The Costco AmEx normally has an annual fee, but if you get one, they waive the annual fee and only charge the $50 membership. My parents love their membership, and they get all the benefits of the AmEx card (points, cash back, etc.) as well as all the benefits of being a Costco member (coupons, warranties, etc.)
I'm done with BJ's Wholesale. I'm sticking with Costco, and perhaps Sam's Club if they are in fact taking over the land where the Edison Ford manufacturing plant was. Sad, all those jobs lost just for more retail space.
@MostlyHarmless: I go for the bulk discounts on things like shampoo, lotion, toilet paper, paper towels, crap like that...I think I made back my entire $35 fee at BJ's in one visit about a year and a half ago, and I haven't run out of any of those things since. It's all about planning ahead and not just buying things in bulk because they come in bulk. My mom and I go for the produce sometimes, and split it. As much as I love carrots, I have a hard time going through 10 lbs before they go bad. And as Pecan Pi said, books are wicked cheap. I've bought quite a few.
@speedwell, avatar of snark: we tend to use costco for milk, butter, eggs, and olive oil.
my aunt has 2 fridges and 3 kids....when i lived with her, she'd buy GALLONS of milk a week.
Just looked up my Mint and in the last 2 years I've spent -$12,384.80 there. Costco, if loving you is wrong, I do not want to be right!
@Blueskylaw: Yeah, and someone at Costco probably did their homework, and they probably have pics of Phil in the backroom, so they know to go out of their way to give him ze best service.
@speedwell, avatar of snark: I'm a single chick with a BJ's membership, and I made back my membership fee in one year (mind you, I had to save a bit for that trip). I haven't bought paper towels, toilet paper, lotion, shampoo, or Brita filters in a year and a half. I made sure to compare the prices of those items to what they are in the grocery store, and I waited for the monthly coupon book to come around. At the time, it seems like you're shelling out a lot of money, but when you think about how much you usually spend on those items throughout the year, it's totally worth it. I still have rolls of toilet paper hanging out under my bed.
@thepill: Totally worth it. We used Pampers Swaddlers for the N-2 stages, even though Costco doesn't carry them. After than, we switched to the Costco diapers and now buy the pull ups. When we got formula, we would buy Kirkland - I can't remember how much we saved, but I think it was in the neighborhood of 20-25%.
@pecan 3.14159265: Seconded. That is just pushing the limits. I would be completely cool with exchanging it if you were not aware that a new one was coming out soon. But doing it just for the heck of it? Uncool.
@sponica (on furlough): I grew up as one of four kids, and we went through a gallon a day. I think my family still does about 5 gallons a week, with only 2 kids living at home and my mom not drinking milk. So, yeah...several gallons a week is not that spectacular. :)
@bitslammer: My executive membership pays for itself before I buy anything: I get $10 per month off hosting for my business Web site, so we're up $20 a year.
Then, my Costco AMEX gives us 5% back on gasoline purchases. I drive a Crown Victoria for business, so that really adds up.
Not to mention that the Costco is five minutes from my wife's job, and she takes her friend there to shop at lunchtime two or three times a month, so we get 2% of someone else's purchases back...
@BeyondtheTech: Is that the rumor for that property? Ugh, I guess we will see a CVS, Walgreens and Rite-Aid there too...
Gahhhh Costco, build a location slightly closer to me, will you??? Although from these types of stories, maybe it would actually be worth the 35 minute drive...