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Buying Luxury
How The Top Stores Do It

bracelet in 18k gold with hematite
Stephen Webster bandolier bracelet in 18k gold with hematite bullets.
cultured pearl earrings
Mizuki Tahitian cultured pearl earrings.
cuff in sterling silver and 18k gold
John Hardy cuff in sterling silver and 18k gold.
bead necklace with jeweled clasp
David Yurman bead necklace with jeweled clasp.
cable bracelets with gemstones
David Yurman cable bracelets with gemstones.
Rolex and Cartier watches
Rolex and Cartier watches.
cuff in 18k rose gold with apricot moonstone and diamonds
Irene Neuwirth cuff in 18k rose gold with apricot moonstone and diamonds.
with brown and white diamonds
Roberto Coin “Roi Soleil” pendant with brown and white diamonds.
disco ball-inspired pendants in 24k gold and oxidized silver with diamonds
Yossi Harari disco ball-inspired pendants in 24k gold and oxidized silver with diamonds.
bracelets
Roberto Coin “Barocco” collection bracelets.
platinum and gemstone cocktail rings
Gurhan platinum and gemstone cocktail rings.

Although most retailers prefer a one for one return policy (who wouldn’t?) they say that two for one is also pretty standard today. “On returns, a one to one is best of course. But more are doing two for one return rates, which is still tolerable. Anything more than that isn’t tolerable,” one bluntly says.

What gets retailers really mad is the dreaded “restocking fee.” “I wouldn’t expect to be charged a restocking fee on a collection we have supported and bought from and have a relationship with. Some of our vendors have started only taking back a certain amount, like two to one, and others have instituted a 10 percent restocking fee.” When faced with that choice, retailers say they prefer more limited returns.

Another retailer says she told one of her biggest lines she would have to reevaluate their business when they tried to institute the fee. They backed down. “I told them that I would be glad to take in some other merchandise they hadn’t sold,” she says. “They would be foolish not to take me up on it when they are sitting on inventory that isn’t moving.”

The issue isn’t black and white. Many retailers assess a brand’s performance by turn and merchandise that won’t move can’t help the company’s overall performance.

And many vendors want returns so they can switch out merchandise that isn’t selling for merchandise that will, increasing sales overall. “Most of my vendors have expressed to me that they would be happy to switch out merchandise that is not selling,” a retailer says.


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