Originally Posted by
CliffordK
My guess is that the REI return policy costs them almost NOTHING. The reason is that only a small portion of the items are returned in damaged condition. Maybe 1%? So they still make their sales margin on 99% of their merchandise. Of those 1% returns, most of them are resold at cost, so the company still isn't losing big bucks.
I would only argue, though, that it works because most don't take advantage of it. If every customer started demanding new shoes when theirs wore out, or replaced tents or sleeping bags after normal wear and tear took them out, or just swapped out shirts based on the season, those policies would have to go away in a hurry.
FWIW, I don't truly view REI as a co-op, more a place where I pay $20 for a lifetime of rewards and benefits.