As The Rotisserie Turns: We’re Talking High Tech Today

Stay with me on this one: my thoughts will take an even more circuitous route than usual today.

In the high tech consumer goods industry, returns and restocks have been a major sore point for manufacturers and retailers alike, having a tremendous negative impact on margins. Consumers would purchase a product and not realize exactly what the product does, or not realize that in order to use this product they need to already have other hardware or software. What happens in these scenarios is that the consumer brings the product home and becomes frustrated because the product does not perform to their expectations. The consequence is pretty significant: the consumer returns the product to the retailer (where both retailer and manufacturer encounter significant costs), AND the consumer's perception of BOTH the manufacturer and the retailer is negatively affected, raising loyalty issues and likelihood to repurchase. This, campers, qualifies as bad news if you operate in this space.

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