Not Sure How I Feel About New Business Model...

[ltbag]

I am confused. If one does not like the current return policy via the outlet or FP, why still purchase? My lovely daughter LOVES MK and she does not mind purchasing from outlet - for me - I DONT buy MK for that reason - I am NOT spending good money on a item that I know can only be exchanged - but that is ME. I dont see Coach going in this direction - NO refund final sale .

30 day Return 60 day exchange is not a bad idea but sales will go way down even at FP.

I agree that sales will go down with 30-60 day return policy. But are sales that are still not final YEARS later really true sales anyway? Coach has to know that at some point the money for a bag is revenue that is not going to be subtracted years later in a return.

Very very few brands allow lifetime returns for cash. I am sure everyone on this forum buys many brands that have 30-60 day return policies.

 

[crazyforcoach09]

I agree that sales will go down with 30-60 day return policy. But are sales that are still not final YEARS later really true sales anyway? Coach has to know that at some point the money for a bag is revenue that is not going to be subtracted years later in a return.

Very very few brands allow lifetime returns for cash. I am sure everyone on this forum buys many brands that have 30-60 day return policies.

I love Coach but at the end of the day they are crazy, in all ways lolololol

 

[ltbag]

I love Coach but at the end of the day they are crazy, in all ways lolololol

Yep same here lol.

 

[ArmCandyLuvr]

I do think something needs to be done about the return situation. Too many stories of people getting obviously used bags here. I see a lot of that with QVC customers as well, since QVC is rather liberal with returns. People report getting obviously used Dooney bags. I remember in the book, Retail Hell, the author worked in the handbag department of Nordstrom and dealt with people returned very used items all the time. He would find used tissues, pens, gum, tampons, etc. in the returned bags.

 

[MedtechCarol]

If Coach keeps the very generous return policy why not have a small final sale section with those old bags. That way people who want the long return have it & people wanting a bargain on an older bag or even a used one get it. Not a perfect solution, I know.

 

[lisa.nickel]

I really don't see a problem with the returns.
Since FP bags get sent to the outlets after being out about 3 months, any FP bag that is returned after that, gets sent right to the outlets anyway, so no harm done IMHO.

Outlet bags are returned to the outlets anyway, so again no harm done. In fact it's wonderful to go to the outlet and find a bag that's 1 - 2+ years old, and they get snapped up quickly. Would love to pick up a Lindsay, Sophia, Sabrina etc.

That's what I was thinking.

 

[lisa.nickel]

I do think something needs to be done about the return situation. Too many stories of people getting obviously used bags here. I see a lot of that with QVC customers as well, since QVC is rather liberal with returns. People report getting obviously used Dooney bags. I remember in the book, Retail Hell, the author worked in the handbag department of Nordstrom and dealt with people returned very used items all the time. He would find used tissues, pens, gum, tampons, etc. in the returned bags.

Gross

 

[Zuggy]

I do agree that an indefinite return policy is extreme and in this regard, Coach is the exception rather than the norm. I also believe that 30-60 days is more than sufficient for a buyer to decide if they want the bag or if they're going to return it.

But we need not worry too much for poor Coach about their lost revenue on a sold-ages-ago return. Primarily, it's good customer service. When a buyer knows that there's a true no hassle return policy, they are more inclined to spend their hard earned dollars. Also, don't think for 1 second that Coach is taking a loss on the $1000 FP bag that gets sold on clearance in the outlet for $250 and then returned a year later. That's simply NOT the case. Their profit margins aren't measured per piece, it's measured in runs of productions. If Coach manufactures 25000 bags that will retail at $1000 their number crunchers calculate how many units need to sell in order to get the desired return on investment/profit margin. NONE of their bags go to the outlets BEFORE the goal is achieved. The items that get discounted are STILL profitable to Coach. While not at the same high margin, it still falls into the plus column. Returning a bag long after the sale is not effecting any bottom lines.

The moral of this long story is Coach will change their return policy the minute the current one no longer benefits Coach. So go ahead and return that 4 year old bag, Coach doesn't mind, why should we?

 

[whateve]

If Coach keeps the very generous return policy why not have a small final sale section with those old bags. That way people who want the long return have it & people wanting a bargain on an older bag or even a used one get it. Not a perfect solution, I know.

They already do this to a certain extent. I remember buying a wallet that was damaged and getting an extra 10% off. I'm pretty sure it was final sale if I took the extra 10%.

 

[Ryan]

If bags truly sold out that would be true, but in the past bags never sell out and wind up going to the outlets no matter how popular. Example Dragonfly Duffles and Floral Sofia, very popular but still seen at outlets and available months later.

It's not that Coach necessarily WOULD sell the bag at full price, but they have lost the chance to. Another example, there's no way to measure the people who might have purchased a bag at full price but didn't because it wasn't in stock at their store.

At any rate, I'm sure this analysis has already been done by Coach and they have determined any potential loss is mitigated by the benefits they receive such as more satisfied customers or customers who impulsively purchase with the thought they "can always return later" and never do.

 

[dazlinpearl]

The "Canadian Prices" is now costing me only 10% more at the Coach store lol is what a store told me. I planned to buy a purse at 278.00 and in Canada they hand wrote over the tag 305.00!
I shared I was going to buy it but not at 305.00

I also was told this was because Coach changed to charge the currency exchange and the website is American prices.

I didn't like this change. It made me buy on ebay and other brands. Or wait for the department store The Bay to put items on sale.

I also won't buy Coach without PCE. I was anticipating this fall collection - and it makes no sense if I see a 800.00 coach bag go on sale for 199.00 at a department store.

People don't want to pay this if they know it will eventually get marked down.

I buy an item when I really love the item. I loved buying from the Coach store but with all these restrictions and changes - Coach will lose a lot of fans.

 

[CCfor C]

I am confused. If one does not like the current return policy via the outlet or FP, why still purchase? My lovely daughter LOVES MK and she does not mind purchasing from outlet - for me - I DONT buy MK for that reason - I am NOT spending good money on a item that I know can only be exchanged - but that is ME. I dont see Coach going in this direction - NO refund final sale .

30 day Return 60 day exchange is not a bad idea but sales will go way down even at FP.

Yea, I'm not down w/ final sales...I avoid them like the plague unless it's something I know I will love forever...

 

[CCfor C]

I do agree that an indefinite return policy is extreme and in this regard, Coach is the exception rather than the norm. I also believe that 30-60 days is more than sufficient for a buyer to decide if they want the bag or if they're going to return it.

But we need not worry too much for poor Coach about their lost revenue on a sold-ages-ago return. Primarily, it's good customer service. When a buyer knows that there's a true no hassle return policy, they are more inclined to spend their hard earned dollars. Also, don't think for 1 second that Coach is taking a loss on the $1000 FP bag that gets sold on clearance in the outlet for $250 and then returned a year later. That's simply NOT the case. Their profit margins aren't measured per piece, it's measured in runs of productions. If Coach manufactures 25000 bags that will retail at $1000 their number crunchers calculate how many units need to sell in order to get the desired return on investment/profit margin. NONE of their bags go to the outlets BEFORE the goal is achieved. The items that get discounted are STILL profitable to Coach. While not at the same high margin, it still falls into the plus column. Returning a bag long after the sale is not effecting any bottom lines.

The moral of this long story is Coach will change their return policy the minute the current one no longer benefits Coach. So go ahead and return that 4 year old bag, Coach doesn't mind, why should we?

 

[purslv]

I do agree that an indefinite return policy is extreme and in this regard, Coach is the exception rather than the norm. I also believe that 30-60 days is more than sufficient for a buyer to decide if they want the bag or if they're going to return it.

But we need not worry too much for poor Coach about their lost revenue on a sold-ages-ago return. Primarily, it's good customer service. When a buyer knows that there's a true no hassle return policy, they are more inclined to spend their hard earned dollars. Also, don't think for 1 second that Coach is taking a loss on the $1000 FP bag that gets sold on clearance in the outlet for $250 and then returned a year later. That's simply NOT the case. Their profit margins aren't measured per piece, it's measured in runs of productions. If Coach manufactures 25000 bags that will retail at $1000 their number crunchers calculate how many units need to sell in order to get the desired return on investment/profit margin. NONE of their bags go to the outlets BEFORE the goal is achieved. The items that get discounted are STILL profitable to Coach. While not at the same high margin, it still falls into the plus column. Returning a bag long after the sale is not effecting any bottom lines.

The moral of this long story is Coach will change their return policy the minute the current one no longer benefits Coach. So go ahead and return that 4 year old bag, Coach doesn't mind, why should we?

This about sums it all up! GREAT POST!