Warranty, Policies & Terms of Sale

Who you are doing business with? The following questions are in the back of your mind when you begin the purchasing process whether you realize it or not. Who are the people who run the company you are purchasing from? How do they make decisions? Are they honest? Will they be in business next year? How are problems resolved? What if I’m not happy with my purchase? These are all legitimate concerns.

A second set of questions should revolve around the manufacturer of the item being purchased. What is the warranty? How are claims handled? What has been the reliability of this product? What happens if it falls apart after the warranty expires? Again, all legitimate questions to have. But how do you figure these things out?

Warranty

Let’s start with the product warranty. This is something you always want to know because there is direct correlation between the strength of the warranty and product quality. Why do some cars offer 7 year/70,000 mile full coverage warranties while others offer 3 year/30,000 mile? First it is a great selling feature but companies don’t expect to lose money on it. They are confident their vehicles will perform trouble free for these extended periods. They have done the work to engineer the problems out of them. The high reliability vehicles (Honda, Nissan, Toyota, etc.) have superior warranty programs.

So the first question is “What is the warranty on this item?” and you get an answer. If you are purchasing an upholstered or leather piece of furniture the salesperson might say “It comes with a lifetime warranty.” Wow, that sounds good but you may want to dig a little deeper. Warranties for these type of products are typically layered meaning there may be one warranty period for the frame, another for springs and suspension, another for the foam or cushions and another for fabric or leather. So get specifics. Even fairly cheap sofas and chairs might have lifetime frame warranties but just one year on everything else. That’s because the frame (even cheaper frames) are the least likely component to fail. Warranties are insurance and based on probabilities of certain events happening. In the case of the lifetime frame warranty on a cheap sofa there’s little risk to the manufacturer because the rest of thing will fall apart first. So the company is just betting the cheap frame will outlast the cheap springs & foam (which it will).

To the untrained eye the exterior of a cheap sofa and a quality sofa look fairly similar. They both might even sit comfortably (initially). But the cheap springs and foam are what really break down fast on low end sofas and chairs. You know that feeling when you sit down and it feels like your heading straight to the floor. That’s a cheap sofa only two or so years from its first use. So a good warranty for good a quality chair or sofa might read something like the following:

Frame: Lifetime
Springs: Lifetime
Seat Foam: Lifetime (this one is the most rarely seen)
Fabric: 1 Year
Exposed Wood: 1 Year
Workmanship: 1 Year

Now case goods (tables, dressers, wood chairs, armoires, etc.) are a little different story. Occasionally you’ll find lifetime warranties but most companies (even high quality manufacturers) have a one year warranty. This is because the life of these types of furniture tends to be a little less predictable than upholstered products. For example a perfectly good table may experience problems after repeated liquid spills that were left in a pool for hours at a time. The entertainment center with 10,000 watts of stereo gear inside or backed up to a floor heater may experience problems from these conditions. So what do you do if you’re paying $2000 for a solid wood table expected to become a heirloom piece in the family and it carries a one year warranty? I’d have two questions. The first might be “Can you give me a name of someone who has purchased from this company and had it for over a year?” The second question might be “What are you (the company I am purchasing from) going to do about any problems that occur beyond the warranty period?” So this brings us to the importance of understanding who you are transacting business with.

Terms of Sale and Company Policies

We would all like to conduct business on a hand shake but it seems that this simple gesture of honesty and integrity is no longer in vogue. The legalese and got ya’s and what if’s and catch all phrases are what make up company “Policies and Terms of Sale”. Why do companies believe they need these written rules (other than lawyers advising them)? I think it really depends on the company of which I believe there are two distinct types or cultures you will run into.

The first is the type with a short term focus looking to make the sale today! You know these places when you’re in them. You never seem to relax. A customer is viewed as an immediate source of revenue and not much more. When you sign by the X in this business its Thank You (if you’re lucky) and Next! These companies tend to interpret their policies literally. “No you can’t return it. We have a seven day return policy and today is day eight.” “I’m sorry the warranty expired 14 seconds ago, I can’t help you.” Perhaps a bit of an exaggeration but we’ve all had similar experiences.

The other company type has a long term approach to business. They are looking to convert customers into lifetime buyers. They want their customers to be totally satisfied so they keep coming back and refer their friends to come in. Walt Disney figured it out. The Disney strategy is “Do what you do so well and uniquely that customers have to tell their friends and neighbors about you.” So this business tends to focus on educating, informing, relationship building and working at the pace of the customer. If a customer has a concern about purchasing a custom piece that they only saw in the catalog and maybe the color won’t be right or what if it’s not comfortable, this business puts its reputation on the line. This business might say “If you don’t like it for any reason, I’ll put in on my floor to sell it and you can pick something else.” Now do you think this is written in their company Return Policy? No it is not. This is a handshake with the owner who has put his/her reputation on the line and that reputation is the most valuable asset of the company. I guess you either believe them or you don’t. You know when your dog growls at a stranger at your door. He’s got the sense that there is something wrong with this guy and you should take heed. We all have these senses to some degree. You look somebody in the eye and decide what they’re all about.

So why does this great company have Terms and Policies written in legalese if they’re going to ignore them and do the right thing? Because some people are just jerks. There are always a few (luckily for all of us it is a small percentage of the population) people you run into who are just miserable. They are why policies exist. It’s just that simple.

Ask their Customers

A good practice is to find out what past customers are saying. You don’t hire someone without digging into their past a bit. Do the same thing here. If you were referred by a friend, you’re probably safe (providing your friend has common sense). Otherwise seek out references and testimonials from past customers. This is not like the stock market. Past performance is a good indicator of future results. So ask a few questions.