Price Adjustments

Included in this article:

1. Overview
2. Parameters
3. Creating a Price Adjustment

Price Adjustments

A price adjustment is a partial reduction on the original purchase price. Price adjustments can be processed to keep the product in AS IS condition, to resolve home damage claims, or to refund delivery fees due to services not being rendered. Price adjustments are processed via the original method of payment. We must have the documentation to validate the guest's concern in order for a price adjustment to be processed. 

If a guest is receiving a price adjustment to keep an item AS IS, or to refund a delivery fee, and their original method of payment was Fairstone, The price adjustment comes off the principal on the guest's Fairstone account. The price adjustment does not change the guest's payment dates or payment amounts. Inform guest that they will see no changes on their Fairstone account until after the PA has been processed and that they will need to check their Fairstone statement to ensure that process is complete 

If the guest is accepting a price adjustment to resolve a home damage claim, they have the option of the refund to occur via their original payment method or via company cheque.  

Parameters:

      § Up to 10% of item price to a maximum of $125.00 

             o This is the second option in the manufacture resolution stream 

             o Team Lead / Manager approval is needed for all anything higher then 10% of the product, or $125.00. 

      § Up to a maximum of 30% of item price for eligible leather extended warranty claims 

             o This is the second option in the extended warranty resolution stream 

      § Initial Offer is 50% of maximum adjustment  

Creating a Price Adjustment

A Customer Service Order is required for all Price Adjustments to be processed and documented within Storis. 

Use this procedure when initiating a Price Adjustment: 

1. Determine if a price adjustment is the appropriate action by referring to the TDG Resolution Stream. Gather Team Lead or Manager approval if required by calling into the coaching queue. 

2. Do one of the following: 

      § If the guest has an open CSO pertaining to this product, continue to step 15 after completing the following: 

            o Updating Coordinator Code to SPA 

            o Updating Service Status to PCL 

       § If there is no open CSO, continue to step 3. 

3. Open a new Storis screen Enter a Service Order 

4. Click on the Add icon to generate a Service Order number 

5. Enter their Customer Code in the Customer Number field 

6. Enter the Sales Order Number into the Original Order field (do not include asterisk & numbers) 

7. Enter ‘SPA’ into the Coordinator Code field 

8. Change status of CSO to Pending

9. Click on the Merchandise tab and select the box of the item we are providing a Price Adjustment for 

10. Enter the problem code in the Problem field  

      MFG = Manufacture  

      PPP = Tutoris (Extended warranty) 

      TDG = TDG Damage 

11. Provide a detailed description of why we are providing the guest a Price Adjustment in the Add Text field 

       § If this is to keep an item AS IS, note the following: 

            - What is the damage?  

            - Where is the damage on the product? 

            - How many? How big? 

            - Your Storis ID 

      § If this is due to a poor delivery experience, note the following: 

             - Reason for Price Adjustment 

             - Who approved 

             - Your Storis ID 

      § If this is due to Home Damage, note the following: 

             - What is the damage? 

             - Where is the damage located on the property/in the home? 

             - How many? How big? 

             - Your Storis ID 

12. Click green checkmark 

Note: If we need to add additional items to the CSO that pertain to the same Sales Order number, this is where we would repeat steps 8 to 11. If no further items need to be added to the CSO, simply click Save. 

13. Enter PCL in the Service Status field 

14. Enter NONE into the Technician field 

15. Press Save 

16. Go to your Customer Tab 

17. Right click and select Historical Purchases 

18. Find the original Sales Order for the item that the guest is having product concerns on, determine its cost and what amount we can offer the guest  

Note: To determine original method of payment, double click the Sales Order > Select Payment Tab. Review the deposits and Financing boxes. If Cash, Credit or Debit was used you will see this in the Deposits box. If the guest financed their order, you will see that in the Financing box.

19. Determine the starting offer to the guest by dividing the maximum potential by 2. 

20. Call the guest and open negotiations by asking the guest what amount they feel is fair to resolve the concern at hand. The amount they suggest is the "guest proposal." 

      § If the guest proposal is less than the starting offer, accept the guest proposal. 

      § If the guest proposal is greater than the starting offer, but less than the maximum potential then offer the starting offer. 

21. Negotiate with guest until agreement on amount of price adjustment up to the maximum potential. 

      § If negotiation leads to an amount less than the maximum potential, accept it. 

      § If negotiation leads to an amount above the maximum potential, clearly establish the amount the guest is looking for and advise guest that you will seek approval and contact the coaching queue. 

22. Upon approval of price adjustment amount, inform the guest of price adjustment process. 

Note: Price adjustments are refunded via the original payment method. Cash = Cheque in 21 business days, credit card = credit card in 7-10 business days, Fairstone = Fairstone in 7-

10 business days. 

23. Select Actions > Audit Comment Log > Update Comments. Enter in your Price Adjustment request based on the following scenarios: 

      a) If the guest is keeping one item AS IS:

            STG – OFFERED 110 PA TO KEEP SOFA AS IS. GUEST AWARE THIS WILL TAKE 7-10 BUSINESS DAYS TO BE ON THEIR ACCOUNT. 

            REASON: TO KEEP SOFA AS IS WITH SEAM SEPARATION ON THE RHF ISB. ABOUT 1 INCH LONG. 

            AMOUNT & TYPE: $110.00 PA 

            ORIGINAL PAYMENT METHOD: (insert original method of payment)

            CONFIRMED MAILING ADDRESS 

            CONFIRMED PHONE NUMBERS 

      b) If the guest is keeping multiple items AS IS:

            STG – OFFERED 180 PA TO KEEP SOFA AND NIGHTSTAND AS IS. GUEST AWARE THIS WILL TAKE 7-10 BUSINESS DAYS TO BE ON THEIR ACCOUNT. 

            REASON: TO KEEP SOFA AS IS WITH SEAM SEPARATION ON THE RHF ISB. ABOUT 1 INCH LONG. TO KEEP NIGHTSTAND AS IS WITH TOP DRAWER HAVING A 15CM CRACK. 

            AMOUNT & TYPE: $180.00 PA 

            ORIGINAL PAYMENT METHOD: (Insert original method of payment)

            CONFIRMED MAILING ADDRESS 

            CONFIRMED PHONE NUMBERS 

            APPROVED BY: NORM 

      c) If we are providing the price adjustment to refund a poor delivery experience:

            STG – OFFERED 10.00 PA DUE TO POOR DELIVERY EXPERIENCE. DRIVERS WERE 1 HOUR LATE, AND ITEMS ARRIVED WET DUE TO RAIN. 

            REASON: DUE TO POOR DELIVERY EXPERIENCE. DRIVERS WERE 1 HOUR LATE, AND ITEMS ARRIVED WET DUE TO RAIN. 

            AMOUNT & TYPE: $100.00 PA 

            ORIGINAL PAYMENT METHOD: (insert original method of payment)

            CONFIRMED MAILING ADDRESS 

            CONFIRMED PHONE NUMBERS 

            APPROVED BY: NORM 

      d) If a guest is receiving a price adjustment due to Home Damage:

            STG – OFFERED 125.00 PA DUE TO TWO GOUGES IN THE DRYWALL, IN THE FRONT ENTRY ON THE LHF SIDE, CAUSED BY THE DRIVE TEAM DURING DELIVERY. THE DAMAGE WAS ABOUT THE SIZE OF A BASEBALL. 

            REASON: DUE TO TWO GOUGES IN THE DRYWALL, IN THE FRONT ENTRY ON THE LHF SIDE, CAUSED BY THE DRIVE TEAM DURING DELIVERY. THE DAMAGE WAS ABOUT THE SIZE OF A BASEBALL. 

            AMOUNT & TYPE: $125.00 PA 

            ORIGINAL PAYMENT METHOD: (insert what method pf payment guest wants, original payment, or cheque)

            CONFIRMED MAILING ADDRESS 

            CONFIRMED PHONE NUMBERS 

            APPROVED BY: N/A CSA LIMITS, REPORTED BY DRIVE TEAM. 

24. Press Save 

25. Press Exit 

26. Press Save twice