What would you do?

Posted by: JamieWednesday on 16 August 2005

Bought a bit of kit ex-dem from local dealer recently. Been giving them business for a few years now. Agreed a price including trade in before I demoed it. After demoing at home for a few days I confirmed that price and agreed purchase. Went into dealership and paid that price and trade in.

Couple of days later, dealer gives me a call and leaves a message saying he's made a mistake and undercharged me £200, can I call him to arrange to pay the extra!! Now I don't want to damage a relationship as I'd probably use them again otherwise but I don't think I'm being unreasonable if I say On Yer Bike..! Or am I?

What would you do?

(Clearly all trading laws and so on are on my side, this isn't about what's legally correct but how to approach the situation).
Posted on: 16 August 2005 by Julian H
Hi

Have you checked your credit card receipt, maybe he mistyped the amount?

If you have paid what was agreed, and your trade in was not mis-described, I'd say forget it.

Julian
Posted on: 16 August 2005 by Unnaimed
First of all: Call them, and find out if it isn't a cock-up.
If it isn't, I guess the best route of action depends on your relationship to your dealer:

Imagine it was the other way around. You call them up, and say you miscalculated, and paid £200 more than you planned.

Would the dealer a) pay you back £200, b) refuse to pay, or c) try to work out an arrangement that will make you both happy.

If the answer to this is a) or c), I would probably renegotiate the deal.
If the answer is b), they have allready damaged what little relationship there was.
Posted on: 16 August 2005 by JamieWednesday
The amount was correct and as agreed, he charged me the correct amount. He believes he should have charged more for this particular model because he forgot which version it was and it carries a £250 premium (which he says he'll knock back to £200). That's all.
Posted on: 16 August 2005 by BigH47
His error his problem. If you over payed on an agreed and verified price he is liable to repay you.
If you bought a car at the advertised price and the dealer then called you later an said "oh it's got a/c" that will be an extra £££s what would you say?

Howard
Posted on: 16 August 2005 by JonR
Hmm...I'm no lawyer so what I'm about to suggest must be taken in that light, but I'd say that whether the amount you had agreed or thought you had agreed to pay was agreed verbally or written down, I reckon you and your dealer have together formed a legally binding contract between you, the terms of which you have abided by in paying the agreed amount for the goods.

Under those circumstances, like Howard says, it's more a problem for the dealer than for you.

If you're clear that you don't want to damage the relationship with your dealer (and if it were me then neither would I), then if you're convinced you paid the right sum of money get some legal advice and if it's on your side you can go back to your dealer and gently say words to the effect of sorry mate, but them's the breaks, innit! Smile

Cheers,

Jon
Posted on: 16 August 2005 by DIL
A £200 'loss' on a £400 deal is a lot for your dealer, on £4000 not worth spoiling a long term relationship for.

You could always offer to split the difference; assuming, of course, that you still feel that you are getting a fair deal, and that your relationship with your dealer would be better for it.

Alternatively, return the kit and ask for a re-fund of the amount paid.

Best thing to do is sleep on the matter and then go in and have a chat. Like you say, the law is probably on your side, so it is goodwill on your part.

/dl
Posted on: 16 August 2005 by Steve Toy
I overpaid by £200 on a Densen B300 power amp back in 1995. I paid the price demanded only to discover when Russel Kauffman, the then UK Densen distributor, showed up at the Chester Show in October that year and stated that the typical selling price was £800 and not the £1000 I'd paid three months earlier.

I left the room fuming. Within minutes my dealer bumped into me in the corridor and before I had a chance to open my mouth, he said "I've made a mistake," and ushered me into a room where he offered to knock the equivalent of £300 off the price of a B200 pre (TSP £1000.)

Of course I accepted.

With the reverse situation I'd come to some arrangement. Just because something may be legal doesn't make it right.
Posted on: 16 August 2005 by Matthew T
Given that you are talking about ex-dem equipment it is a little strange that your dealer feels he can ask for more money. If it was a new model and had a list price then maybeis fair enough. I would do the following
1. You really want to keep that particular kit and really value your dealer relationship and would have been prepared to pay the £200 extra up front if you had know then pay the £200.
2. You would have been happy with the other model for the price paid and value your dealer then suggest he get you a good exdemo version and you do a swap.
3. You wouldn't have done the part-ex at the higher price and you value your dealer you offer to switch back, he returns your equipment as given to him and full refund.
4. You don't value your dealer enough to do any of the above simply tell him that you wouldn't have agreed the transaction at the higher price and as it was completely his fault you aren't prepared to pay an extra.

If I was a dealer I wouldn't have asked for money, I would of tried to find a solution, supply other model or something. If you pay the £200 are you likely to go back, it would leave a pretty bitter taste in my mouth if somebody did that, that's pushing the bounds of customer loyalty!

Hope you find a reasonable solution.

Matthew
Posted on: 16 August 2005 by garyi
Fuck um.

Why is it that HIFI Dealers are revered and every other dealer is scum (Cars, Vacuum's etc?)

The dealer fucked up, in any ones book the purchaser should just feel well chuffed he got a deal.

The dealer should wind his neck in and was frankly out of order phoning you up.

BTW dealers do not care about you, they care about making money. Its time to smell the coffee folks. If your dealer feels his nose has been put out on this particular deal, I rather fancy he will welcome you with open arms on your next purchase.
Posted on: 16 August 2005 by J.N.
Jamie;

I think your response depends upon whether you wish to continue to do future substantial business with this dealer. If not - tell him, he's screwed up and must stand the financial loss as a result.

If you do wish to continue business with the dealer; you need to arrive at a mutually acceptable solution.

If you still consider the full price (including the £200 extra) to be about right; offer to split the difference, and pay him £100 more.

Or; return the item for a full refund.

Good luck.

John.
Posted on: 16 August 2005 by Steve Toy
Garyi,

It's about not burning your bridges and reaching a mutually satisfactory conclusion.

Folks in my job ring up our office for a quote for a taxi from town x to town y. The silly daytime bint gives them a quote that's well short, and to honour it I'd be better off not doing the job at all and staying in Town. What do I do?

Firstly I establish with the customer if they've had a quote upon pick-up. If they answer to the effect that yes they've had a quote, and it's a bit short I tell them so. I also state that we don't give quotes, only estimates... (The number of times I've sat in the office while the call has been taken, and the operator has said "in the region of 10 to 13 quid mate, depending where you end up in town x, and later they tell me during the journey they've been quoted a tenner...) If they've kept me waiting beyond, say, five minutes, this weakens their bargaining position somewhat. I usually offer to split the difference between the quoted price and what I'd normally charge. If the difference is really significant - say only half expected fare, I say that a mistake has been made and it will cost considerably more, and at that point we renegotiate.

What is important is that this process takes place at the start of the journey in accordance with the Local Government Act (miscellaneous Provisions) 1976. It's no use demanding a fare greater than that quoted or otherwise displayed on the taximeter from point of hire at the end of the journey.

Whilst it would be rediculous to demand a greater fare at the end of the journey, let alone either phone a passenger or knock on their door a couple of days later for more money, I can see how errors can be made wrt transactions on hi-fi equipment. Unlike with the taxi comparison, the error can be reversed, and just with all business transactions it's a 50/50 verbal (if not written) undertaking between the two parties concerned...

Upon receiving the call from the hi-fi dealer demanding an extra 200 quid I'd make him an offer of, say, half that in order not to burn my bridges with him whilst reminding him that legally I owe him the square root of fuck all. Alternatively a full refund is in order and he comes round to collect.
Posted on: 16 August 2005 by Lomo
Goodwill is the undelying factor in any relationship.
I believe that a negotiated settlement is the better option . If you spit the difference it will be a win win situation.
For the record a few years ago I went down an upgrade path with my local dealer but finalised nothing. When in Brisbane I was offered an excellant deal by the naim dealer there on an alternative path. I bought a new amp/ preamp from him. I might be a mug but to preserve trust with my local dealer I reimbursed him for his previous advice and time and also his future expertise.
Posted on: 16 August 2005 by NaimDropper
I don't know how it all goes in the UK, but you shouldn't have to pay it and it is QUITE rude of the dealer to ask since it is their mistake.
Put the shoe on the other foot: If you got the kit home and it was not what he said it was (serial number, age, features, COUNTERFIT (!!!) or the like) you should be entitled to a full and apologetic refund.
Or, if there was some mistake in the amount you paid and it didn’t match your agreement then you should, by all means, go and straighten it out.
If you’ve agreed to an amount, paid that amount and took delivery then that part of the sales cycle is over. Tough taters.
In any case you're done with this guy. If you:
a) Pay the extra £200 you'll feel screwed even if it is still a bargain at the extra £200.
b) Don't pay the £200 and tell him to screw off (or even be polite about it), you'll never get a good price there again.
c) Keep the money and agree to buy big from him in the future and he'll still want his £200 out of you ultimately.
d) Take it back for a full refund, you'll both feel bad about it in the end.
The dealer may be a very nice person but they are not operating a charity. Look again at the price tag of all this stuff, it is hundreds of times more costly than some cheap thing that will spin a CD and make noises. This is total luxury, a supreme indulgence, not a necessity. The dealers are not out there to spread the love of music, but to make a buck (quid) and it is their right to do so.
If they're any good at this kind of selling they'll be working on grooming customers and not trying to squeeze you for every last penny. That way they make a long term customer that is convinced he needs the latest color of wire insulation in order to even be able to recognize what music is coming from his speakers.
Just don't confuse the salesmanship with charity.
I say let him learn his £200 lesson and then go somewhere else. This place is now a dry well for you.
David
Posted on: 16 August 2005 by Steve Toy
Ultimately we are all out to make living. If you're not a wage slave that means reaching common ground with customers - both present and future. And we can all make mistakes...
Posted on: 17 August 2005 by Jay
Tricky.

Depends so much on your relationship with the dealer. If the mix-up was with my dealer I would pay the difference if it was worth the extra. If it wasn't I'd say, well, not worth that much to me, what would you like to do? That's when I'd negotiate in good faith. My dealer would the first to say, something is only worth what one will pay for it.

Be mindful though that it is the dealers mistake and they are making it an issue by talking to you about it. Two paths of thought;

1. the dealer things you're a good dude and will understand the mistake they have made and act intelligently.
2. the dealer doesn't really care if they piss you off they just want their 200 quid!

If I was the dealer I wouldn't ask you for the money, but then that's probably why I'm not a dealer!

If it wasn't my usual dealer, I'd probably say tough dude, your mistake.

You're under no legal obligation to pay them any more money.

Jay
Posted on: 17 August 2005 by JamieWednesday
Yes. Tough one isn't it...!

I have to say I'm more p*ssed off about being put in this situation than anything else.

If it were someone I never expected to trade with again, or a large corporation I would simply say no way. But next time I want to upgrade.., there's limited options around here. That said, how valuable does he consider my business to ask me for another £200 after the sale has completed?

I was surprised to get the call, if I make a mistake on billing in my biz then that's my fault, not that of my clients and you write it off (especially if they are a past and future customer). If they've underpaid me that's different.

In this case £200 is about 8% of the cost. I think he's still made a reasonable sale, he's certainly not cut into margins. I think he's being cheeky and I'll tell him so. Whether I give him nil, £100 or £200 (and I'll certainly not give him £200) it will still leave a sour taste and I'm unlikely to go back again unless he can make it up another way. By that rationale he's probably lost a customer anyway.
Posted on: 17 August 2005 by Steve G
A price was agreed to your mutual satisfaction and that is the price that was paid. Personally I'd offer the dealer two choices:

1) Live with the deal as agreed.
2) Refund me the full price paid plus £200 for wasting my time.
Posted on: 17 August 2005 by Nime
quote:
Originally posted by Steve G:
A price was agreed to your mutual satisfaction and that is the price that was paid. Personally I'd offer the dealer two choices:

1) Live with the deal as agreed.
2) Refund me the full price paid plus £200 for wasting my time.


Agreed! Is the price of ex-dem stock measured so accurately? He hasn't show much loyalty or respect to you in behaving this way. Walk away and find another dealer who actually knows what he's doing and how to behave in a dignified, business-like manner.
Posted on: 17 August 2005 by garyi
Steven taking the moral high ground in this instance is wrong.

Put another way, if the poster got home with what he thought was a mid range player and in the box was the flagship model, the moral quandry takes on a whole new aspect. For me I would probably have to phone the dealer up.

But this is totally different. All that has occured is that the dealer has made a fundemental sales error. He has put someone in a difficult position with this phone call. If I was the poster I would actually be rather pissed off and would be having a word with the dealer. If this leads to no more business with them, then so be it.

The dealer has made a mistake, not a particuarly expensive one, he should have sucked it up.
Posted on: 17 August 2005 by Mr Mitch
With you on that one, Nime. If its not about Right or Wrong and it's about Good Relationship then the retailer shouldn't be asking for £200. Instead, next time you go in he should say "Here, I accidentally undercharged you by £200 last time!" with good humour.

I suspect he'd been offered £200 more for it by someone else and is regretting the error of his ways......

Garyi does have a point that hifi retailers are revered yet garages are considered the scum. Your local friendly neighbourhood hifi retailer ain't gonna be like that for long if he isn't making any money out of you. Everyone needs food on their plate.
Posted on: 17 August 2005 by Nime
Yeah. Dealers are just whores. Reaching for your wallet just when you're enjoying yourself! And they fake the same orgasm every time! Winker
Posted on: 17 August 2005 by Martin Payne
I think that's pretty short-sighted of him.

Whatever you decide/agree in this case, you'll think long and hard before you buy from him again.

If you do have other options for buying kit, maybe you could offer to return the item for a full refund of the price you paid. He can then openly sell it at the higher price to someone else.

Whatever you decide, I'm sure the law is on your side, and it's probably lucky for him that you haven't mentioned his name, else someone from Naim would be all over him by now. This might not be the sort of guy they want to be dealing with (edit: assuming he's a Naim dealer).

cheers, Martin
Posted on: 17 August 2005 by andy c
I have a good relationship with my dealer (Cymbiosis). I also know that I get on his (peter's) nerves as I always clarify pricing before I buy. i have been caught out re this before (not with Cymbiosis), and don't intend to get so caught out again.

andy c!
Posted on: 17 August 2005 by Top Cat
Gotta say, if the boot was on the other foot they'd probably laugh at you if you went in and said "hey, I paid too much for that amp I bought two days ago - can you give me £200". Bear this in mind.

The dealer has shown his true colours here - after all they can get. And why not, that's business for you. Don't forget that they're in this game to make a few quid; that they possibly made a mistake here is one of the risks one takes in business.

Not your problem, mate!

John
Posted on: 17 August 2005 by Cymbiosis
quote:
Originally posted by andy c:
I have a good relationship with my dealer (Cymbiosis). I also know that I get on his (peter's) nerves as I always clarify pricing before I buy. i have been caught out re this before (not with Cymbiosis), and don't intend to get so caught out again.

Thankyou Andy and you most certainly don't get on my nerves. Surely the job of a dealer is always to be there to help and advise!

Regarding the £200 being talked about here, there is no way I'd have bothered a customer if I was at fault with something like this..... How to piss one's customers off! Roll Eyes

TTFN,

Peter Smile

andy c!