The Opened Box and the Six-Year Customer
A customer who has bought from your small appliance store in Varanasi every Diwali for six years wants to return a steam iron bought nine days ago. The printed bill says 'goods once sold will be exchanged within 7 days only if unused and in original packing'. The iron's box has been opened, the water tank has clearly been filled, and a small scratch is visible on the soleplate. The customer says the iron 'spits water' and stained a kurta; she wants a full refund of ₹1,850 or a new piece. The same model is in stock, priced at ₹1,950 after a recent increase. Your salesperson has a monthly target and is reluctant to accept the return; he suggests offering a ₹200 discount on a new iron and 'adjusting' the old one as a demo unit. The customer is polite but says she will post a review and call the consumer helpline. The owner is away and has told you to use judgement but not to accept obviously used goods as new.
1. Classify the issues in this case - policy, product condition, consumer law and relationship - and decide your first response and what you will not do.
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Issues
- Policy: the printed exchange window is 7 days and requires unused goods in original packing. The iron is nine days old and has been used, so a straight refund is not automatic.
- Product condition: the tank was filled and the soleplate is scratched. The 'spits water' complaint could be a manufacturing defect, or it could be overfilling, wrong heat setting or hard water. It needs testing, not a counter argument.
- Consumer law: offline purchases do not automatically carry a 7-day no-reason return right, but a genuine manufacturing defect is covered by the brand warranty. The customer may also escalate to the consumer helpline; that is her right.
- Relationship: she is a six-year regular. The response affects repeat business and local reputation.
First response: thank her, inspect the iron in front of her, and separate the policy question from the defect question. Test with clean water, check the steam vents and descaling instructions, and offer to send it to the brand service centre if needed. Give a clear timeline.
What I will not do: accuse her of damaging it; put the used iron back on the shelf as new; 'adjust' it as a demo without owner approval and disclosure; promise a refund before the defect is confirmed.
2. The salesperson proposes a ₹200 discount on a new iron and using the returned one as a demo. Evaluate this proposal ethically and commercially, with numbers.
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The numbers: original price ₹1,850; new list price ₹1,950. In a normal exchange the customer would pay the ₹100 difference and receive a new iron. With a ₹200 discount, the new iron is priced at ₹1,750. Since she already paid ₹1,850, the store would owe her ₹100 back if the old iron is surrendered. The concession is therefore ₹200 relative to the normal exchange, not just a lower price tag.
Commercial view: the returned iron cannot be sold as new. If it is used as a demo, it must be labelled and priced separately, and its realisable value is below cost. Using the store's cost price, the hit is the ₹200 concession plus (cost price − demo realisable value). If the iron cost ₹1,450 and could be sold as a disclosed demo for ₹900, that is another ₹550 loss - about ₹750 before any repair. If the 'spitting' is a warranty defect, the brand may repair or replace it at low cost, which is far cheaper.
Ethical view: 'adjusting' a used, possibly faulty iron as a demo without disclosure is misleading, especially if it spits water and could be unsafe. The proposal also rewards a target-driven salesperson for hiding a customer complaint.
Better route: test the iron; if defective, use the warranty. If it is not defective, explain correct use and offer a small goodwill service. If a discount is given, cap it and disclose the condition of any demo unit.
3. Write the conversation outline you would use with the customer, including what you will say about the review and the consumer helpline.
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Conversation outline
- Acknowledge: 'You have been buying from us for years, and I am sorry the iron stained your kurta. Let me inspect it properly.'
- Explain the two tracks: the store's 7-day unused-goods exchange policy, and the brand warranty for a genuine defect. Do not hide behind the policy; explain it plainly.
- Inspect and test: check the water level, steam setting, soleplate and vents. Record what you find. If it needs a service-centre check, give a date and a receipt.
- Offer options: if defective, repair or replacement through the brand, with a loaner if available. If not defective, show the correct setting and offer a free descaling/cleaning check. As goodwill, offer a small concession within your authority, but do not promise a full refund outside policy.
- Review and helpline: 'You are free to post a review and to call the consumer helpline; I will not argue with that. I would request that we first complete the inspection so the facts are clear.' If a review appears, reply publicly with facts, without personal data or accusations.
- Record: note the complaint, inspection result, offer and customer's decision. Follow up on the promised date.