Costco Million$ Lost Spurred Return Policy Rip

Like momma always said, if you don’t stop using that thing, you’re gonna break it… and Costco Chief Financial Officer Richard Galanti says the same of the cash-and-carry retailer’s decision to limit its generous return policy for electronics.

The change was implemented because the company was losing “tens of millions of dollars” in returns, Galanti said….

Galanti said one of the reasons for the policy change was Costco members would buy big-screen TVs and then return them months later, when newer and less expensive models went on sale.

He said the practice had become so prevalent one member recently wrote the company saying she was disappointed because she had heard Costco was going to stop its “free TV upgrade policy.”

…The new two-year warranty is not in addition to any manufacturer’s warranty. For example, if a computer company provides a warranty for six months, then Costco will cover the warranty for the next 18 months, Galanti said.

“Warranty does not mean we will replace it if it’s run over by your car,” Galanti said.

— BEN POPKEN

Costco to limit money-back returns on electronics [Seattle-PI] (Thanks to Annie!)
(Photo: tellumo)