Spendthrift is a confusing word — it sounds like it should refer to thrifty spending, but it actually applies to a person who spends money in an extravagant, irresponsible way.  And while we might think that shoppers with buyer’s remorse are spendthrifts, there are many other causes.

Buyer’s remorse sets in when a customer gets home with a purchase that they wish that they hadn’t made. This could be because of financial reasons, or the disapproval of a spouse or family member. Or perhaps the item was purchased to alleviate a bad mood, or even as a display of extravagance in front of friends. More than 50% of respondents in a  recent CreditDonkey.com survey said they often or sometimes feel guilty about purchases.

The liberal return policies of almost all retail stores today makes buyer’s remorse fairly painless for the consumer, but repeated returns can cause havoc with inventory levels.  One idea for cutting down on this problem is to encourage customers who are really indecisive to allow you to put an item on hold for a day or two until they’re sure they want it. 

If certain individuals regularly abuse your return policy, try using a form that asks for their name and address each time they make a return. The fact that you are compiling a list of repeated returns may discourage this behavior.

As wholesale buyers we are hardly exempt from the feeling that we have overspent, or ordered more of an item than we can sell.  I frequently hear from vendors that when they call for a credit card to pay for an order, they are given the runaround. I have to think that this is sometimes due to the fact that the buyer has realized that they don’t really have the budget or need for the merchandise ordered.

Buyers sometimes even deliberately place orders with the intention of canceling them if sales don’t warrant more inventory. Think about the impact this has on the supplier, and ask permission before using this tactic.  If you’re really not sure about an order, it doesn’t hurt to “place it on hold” for a day or two before confirming it with your sales rep or vendor to make sure it’s a purchase you won’t regret.

Happy Retailing,

Carol “Orange” Schroeder