- Dec 29, 2013
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Another thing you have to keep in mind is that even when the shoe sells out, quality issues lead to customers complaints.
They have to give vouchers out, take returns on product that is defective, pay UPS for return shipping, review the return etc. Customer Service Reps time cost money and they might be able to offset the cost of the raw materials by reducing the amount of calls/complaints/returns that come in and the number of people needed to service those calls/returns at corporate.
I'm sure that the price difference we see will be part of the formula, but there are a lot of factors we aren't thinking about.
They have to give vouchers out, take returns on product that is defective, pay UPS for return shipping, review the return etc. Customer Service Reps time cost money and they might be able to offset the cost of the raw materials by reducing the amount of calls/complaints/returns that come in and the number of people needed to service those calls/returns at corporate.
I'm sure that the price difference we see will be part of the formula, but there are a lot of factors we aren't thinking about.
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