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Friday Retailer Flex – Episode 12

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Managing Backorders and Deposits.

Support the show

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The Friday Retailer Flex – Episode 12

Fri, 5/21 9:46AM • 4:18

SUMMARY KEYWORDS

retailers, deposit, customer, bicycle, refund, dealers association, backorder, lists, social media feeds, pre order, item, fee, function, obligates, podcast, handling, talk, employee, check, ensure

SPEAKERS

Heather Mason, NBDA

NBDA   00:10

You are listening to bicycle retail radio brought to you by the National bicycle Dealers Association.

Heather Mason  00:16

Welcome to the Friday retailer flexo weekly pointed digests of inspirational and actionable insights you can implement today. This is NBDA President Heather Mason. If you’re a first time listener, be sure to check out the previous episodes, do us a favor and leave a review. This week’s flex is about back orders and deposits. Many bicycle retailers have growing backorder lists, depending on which retailer I’m chatting with. And it’s become very clear that everyone has a unique way of handling these unique times. Some retailers are using paper backward lists, others are using Excel files and some are taking to the Google file. No matter who I’m talking to all backorder lists are watched closely and some are even handled by a specific employee. It’s important to understand that not one way maybe better than another, but it’s best to find what works for your shop and keep strict watch over and have regular contact with customer and vendor. When it comes to taking deposits. We have the same mixed bag of what bicycle retailers are doing. Some are taking them others not. And then there’s other somewhere in between. But it’s important here to have a policy, make sure your policy is clearly stated to your customer, and then all your employees are trained on it. Taking a deposit can be a benefit or a headache. Depending on how you look at it. It’s important to understand that taking a deposit obligates you and the customer to the sale, you want to stay in contact with the customer and at the same time with your vendor to ensure a smooth transaction happens. The podcast this month has been brought to us by bikeexchange. And in thinking about some of the functions that bikeexchange has on their platform, they recently enabled a deposit function. Very cool. This function allows independent retailers to take pre orders for incoming items. It offers flexible buying options for the customer and it keeps your revenue stream going. So thanks bikeexchange for sponsoring the podcast and for enabling this new deposit function. Taking a deposit is not just a great consideration for a backorder pre order, but a deposit function on your website can also be used for a regular purchase. So for customers considering a purchase, having a deposit ensures them that the item will be available for them once they arrive at your store. In turn, there’s a certain confidence that comes with putting money down on an item. So contemplation time questions to think about, do you take deposits in your store? How are you managing your backorder list? Do you have a deposit function on your website? Are you set up on how to manage deposits in the case of refund or return? Listen, I’m hearing lots of retailers are seeing an increase in returns. So think about your policy. Some retailers charge a fee if an order is cancelled, and this fee helps cover the retailer credit card transaction fees. other retailers skip the fee altogether. But when it comes time to providing a refund. If a customer had given a deposit with a credit card, the retailer is issuing the refund in form of a check. However you are handling your current backorder lists and deposits. today’s podcast is a great reminder to take a look as both retail and consumer and look for areas for improvement. We constantly talk about communication and customer satisfaction. And I think both of these have time to shine in this moment. If you’d like to support the show Don’t forget to subscribe. Share your favorite episodes with friends on your social media feeds tell people we appreciate your support and thank you for listening now go be great.

NBDA   03:54

This has been bicycle retail radio by the National bicycle Dealers Association. For more information on membership and member benefits, join us at nbda.com

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The NBDA has been here since 1946, representing and empowering specialty bicycle dealers in the United States through education, communications, research, advocacy, member discount programs, and promotional opportunities. As shops are facing never-before-seen circumstances, these resources offer a lifeline. Together, we will weather this. We at the NBDA will not waver in our commitment to serving our members even during this challenging time—but we need your support.

Now is the time to become a member as we join together to make one another stronger. Whether you’re a retailer or an industry partner, your membership in the NBDA is one of the best investments you’ll make this year. 

Learn more about the benefits of being a member and join now.

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