While shopping at Guitar Center (Cleveland, Ohio), three different potential customers tried to buy new items (Motiff rack, Korg hard disk recorder and Korg Triton). The problem was that each of the items the store had in stock was returned by a previous customer under GC's return policy. Some were missing manuals and some looked used. The sales clerks told the customers that the items were returned but they were only allowed to sell them at the "new" price with no discount. All of these customers left without purchasing the item.

After the customers left, the sales clerks and store manager were complaing the return policy is killing their sales and their ability to make money. They said they are only allowed to stock a certain number of each item. They are not allowed to order more units until some of the existing stock is sold. Because they are not allowed to discount the returned items, they are not selling them. Because they do not sell them, they are not allowed to order more new units that they can sell. Accordingly, the salesmen are not making any money.

Sales people at the Sam Ash store in Cleveland have told me they have the same problem. Many of their expenseive keyboards have been returned by customers and they are difficult to sell.

The return policy is great for the customer. If it is hurting the retailer as much as the Cleveland stores claim, how long before the policies are changed. (Restocking fees, or store credit)?