Deposits – what do they mean to you?

[Neil McCauley]

Hello again.

Forum members – once again I am most interested in your views on a specific topic. Why? Because primarily I might learn something new. It happens. And I rather like the occasional revelation.

I am referring here to the question of deposits placed by customers with retailers for new audio equipment. I stress new, rather than used, for reasons that will become apparent shortly.

What I'm hoping for please, is not a de facto regurgitation of the legal realities and ambiguities. Rather, I'm trying to determine end-userperceptions.

Q1. When you place a deposit, do you expect that it will guarantee that the price you eventually buy it at is precisely the price you were quoted at the time? I mention this because while nowadays I no longer represent American electronics nor speakers (or Japanese either), in the Subjective Audio days, some importers had a tendency to increase prices to the retailer and expect that the proportional increase either be (a) passed on to the hapless customer or (b) come out of the retailer’s profit.

Q2. Do you believe that the deposit should specify a delivery date, or are you ‘content’ to join the waiting list and will await notification of the arrival – at some as yet unspecified date?

Thank you

HP
enquiries@Stereonow.co.uk

[SteveW]

mmm..to me, if I paid a deposit I'd assume I have entered into a contract, agreement or understanding that I am going to get something within an agreed time and at an agreed price. Unless of course, it was pointed out at that time that all I'm securing is a future delivery at a variable price or delivery.
but then...why pay a deposit at all?

[Mike]

mmm..to me, if I paid a deposit I'd assume I have entered into a contract, agreement or understanding that I am going to get something within an agreed time and at an agreed price.

I'll second that.

[Neil McCauley]

Okay, so far - so good.

Let me tell you from a retailer's perspective, albeit I'm trying (and succeeding I think) at looking at this from the end-user's perspective - ASSUME NOTHING!

Ask what precisely your deposit means.

Does it guarantee no price rise?

Does it state WHEN you'll get your item? But .......

Please don't be unreasonable about that last point. Some makers might lie to to their importers and some importers might lie to their retailers.

[SteveW]

Comes back to the question the end user should ask..
'Why am I paying a deposit?'

Securing an item against big demand?

OK..I guess you could reasonably expect to be at the front of the queue...whenever the goods might arrive. However, I reckon the deposit is securing the price, even if the bugger takes 2 or 3 months to arrive. In those circumstances both retailer and customer have an understanding about the realities of supply..
However, as a retailer, especially in todays climate...it should be spelt out that the end price COULD be variable. I must say though, then you would wonder what exactly your deposit is securing.

[Mike]

If said item takes months to become available and/or subsequently suffers a significant price rise, does the retailer not have the option to say; "I'm sorry, I am no longer able to supply at that price, here is your deposit back". And then sell to someone willing to pay the increased price?

I'm not sure I see how the retailer is at a disadvantage.

[Iain Sinclair]

For me, paying a deposit means I have secured item A at price B. I would not be happy if the price increased pre delivery of the goods (ie I would expect the seller to absorb this cost)

Why pay a deposit? To give the seller some assurance that I'm serious about buying the item, especially if he needs to order in it as it's not part of his normal stock. Plus, I'm a really nice bloke.

[tfarney]

The retailer is at a disadvantage because he has a choice between disappointing a valued customer or losing money. But I sure understand the position the retailer is in, which is between a rock and a hard place.

ON EDIT: Sorry. American colloquialism. For you Brits that would probably be between a stone and a mass of great density....

Tim

[Filterlab]

ON EDIT: Sorry. American colloquialism. For you Brits that would probably be between a stone and a mass of great density....

Tim

Hehehehe, we have the same phrase here Tim, although I have to admit that "between a stone and a mass of great density" is far more fitting for the British.

[alb]

For me, paying a deposit means I have secured item A at price B. I would not be happy if the price increased pre delivery of the goods (ie I would expect the seller to absorb this cost)

Why pay a deposit? To give the seller some assurance that I'm serious about buying the item, especially if he needs to order in it as it's not part of his normal stock. Plus, I'm a really nice bloke.

This is exactly what "deposit" means to me as well.
Though i'm probably not qualified to comment here, as i tend to build rather than buy off the shelf.