Costco’s Incredible Return Policy
I know a lot of folks love Costco, I’m one of them. Did you know that their return policy permits you to return ANYTHING (except computers) with or without the receipt whenever you want as long as you still have the same membership. If you bought a pair of pants, as I did, and found that you didn’t really like them but tossed the receipt already… no fear, just go back and they have it all on record. Yes, I bought these pants two months ago and had been meaning to return them for two months. You can also use this as a (semi-free) extended warranty - buy a TV or DVD player and if/when it stops working after four or five years, just return it! The only exception to this rule is a computer purchase and that return period expires after six months.
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213 Comments - Share Your Thoughts
“You can also use this as a (semi-free) extended warranty - buy a TV or DVD player and if/when it stops working after four or five years, just return it! ”
I like your website for the various useful stuff you link to and write about.
But the above statement is an irresponsible one.
havent you got your money’s worth if you use a product for 4-5 years ?
A DVD player costs 100 bucks , if it fails 2-3 years after the warranty , the customer has to bear the loss.
A TV may cost a bit more , but the same argument holds .
If people dont take responsibility for their decisions , its unfair of them to expect costco to eat the loss?
The very reason that they have a return policy doesnt mean that we should misuse it.
I consider returning a TV after 5 years as a misuse of the policy.
I know of people who write in forums about how they returned stuff that failed after 5 years.
CHEAP !! thats one word that comes to my mind.
There are lot of honest and ethical ways to achieve “Financial security and independence”. THIS IS NOT ONE OF THEM.
Costco is great about that. All of your purchases are stored under your membership # and they can look up your purchases and return the item on under the original receipt in their system. Don’t know if I would return a TV, unless it was 6 months or under….
I like open policies, but they do leave themselve open for abuse. I do know that other companies keep track of who returns what - and after a certain amount of returns, you are then considered a bad customer ( reference http://www.mailtribune.com/archive/2005/0822/biz/stories/02biz.htm) and then you are removed you from mailing lists and returning things becomes potentially more difficult.
I like that Costco is so open, but I really don’t think that will last.
Regarding the post by “DontruninthePolicy”, I think that without having a policy in place to defend themselves our bargaineering blogger is just doing what he thinks is right (and a loft of other folks will do that too so he is not alone). Maybe he does not have ethics? People stretch things all the time - interpretations differ, so I feel that Costco ought to get a policy implemented right away to prevent the bargaineering blogger from doing that or better yet — giving him rules to abide by. The bargaineering blogger may not agree with those terms, but that is not up for bargaining.
Chuck
DontRuinthe Policy is entirely and wholeheartedly correct. I was naive because I didn’t take into account those out there who would take advantage of Costco’s policies and for that I apologize. Personally however, I believe a DVD player or a TV should last longer than 4-5 years HOWEVER, if you purchased a DVD player or TV and intended to return it… you should get what you deserve. Costco is a a great company for allowing something like this but if you abuse it, you deserve exactly what you get.
I do not believe in buying something and returning it to save a few bucks, in my example, I wanted to return a pair of pants because it did not fit… I didn’t want to return it because I wanted to wear the pants once and return it to save a few bucks. I believe fair is fair and you should pay for the utility you get out of something you buy and I hope those of you out there understand that. If I didn’t make that point clear, I apologize, but hopefully it is clear now. Yes?
Yes, it’s clear. Basically you said in both posts that it is okay to return a TV if it breaks after 4 years. That’s not how the others felt. They felt it would be unethically to do that.
If you paid $4000 for a new flatscreen DLP television, how many years do you believe it should run? I think it should run at least four years and chances are it would run for more than four years. If a television crapped out after only ONE year (past the manufacturer’s warranty), in Financial Fruition’s case, I would return it. I am not advocating returning a TV after four years just because you want a new one, I feel that is unethical, but if someone can explain why expecting a television to last more than four years is so unreasonable, perhaps can I understand the position.
Your points are becoming more unclear as you write more posts. One example is where you say a person should pay for the utility of the product purchased. But on the last post you still feel it is proper to return a product after 4 years of use. You are returning a product for its full retail price. What did you pay for the use? There’s definite ethical issues here. If you fail to see it, you failed in ethical considerations. Ethics is not the mere breaking of laws, but rather striving to be a righteous person, i.e, moral person. Not to take advantage of others. Get it? There are other problems with your posts, but I’ll let others bring them out to keep it simple.
I agree that for most products a four year lifespan is more than adequate, but I’ve never purchased a TV that has cost over $200 before. I think I’d be unhappy with a $4000 TV if it broke after 4 years but if truly put to a decision I wouldn’t return it to Costco, I’d seek recourse of some kind from the manufacturer.
However, you are paying Costco every year for a membership and part of the benefits is the return policy, which is like a warranty in this particular case. Costco has had this policy in place for as long as I can remember and so if they’re losing money on it, they’d change it (as they have with computers).
I guess some would like a clarificaiton of why I would return a TV if only under 6 months. The main reason is because I personally think that is the ethical thing to do. I’m not talking about a $4000 TV, because I would never buy one. I’m talking $200-$600. If after 6 months it broke, I am going to the manufacturer and getting it fixed. If they won’t do it after a lengthy debate (I wouldn’t give up that easily), I would ask a TV repairman to come and estimate how much it would cost to fix.
My parents owned a 30″ Toshiba TV for 15 years, until I helped my Dad purchase a new one last year. In that time at about year 8 or 9, it broke and we had a tv repairman fix it for about $130.
Cosco is a great company that offeres great value.. There policy is to charge only 10% over cost for all merchandise in there stores. Of course they charge a membership fee for the privilege of buying in that store. They make a lot of money on those memberships and they pay their employees very well with benefits.
When people use this return policy because they dont want something after years of service, that is being cheap and dishonest to a reputable company that is just trying to do the right thing.
4 years?
Any new TV better last at least 10 years.
These items are now sold at enourmous prices….
If I pay $3000 to $4000 for a TV, it better last. 4 years is not long enough.
If it broke, or the image faded….you bet your a– I would take costco up on their return policy.
Also, there is really nothing in writing regarding the extent of this policy and that has to be on purpose. They can recind and any time and you won’t have a leg to stand on if they say….no
At the very least buy on an AMEX card and get your manufacturers warranty doubled.
I believe it is okay to return a tv within 3 or 5 years because Costco does not offer the chance to purchase a 3-5 year warranty like Sams Club or any other retail store. Therefore, i would say it is reasonable to return the TV within 3 or 5 years. If they dont except the returns, then costco would not be the smartest choice to purchase any electronic items.
I had bought a 46″ Sony TV from Circuit City for $1500. I purchased the 2 year extended warranty for an extra $200. 2 Years and 3 months later the TV stops working. I call circuit city and am told I am out of luck. I called sony with the same result. I called the repair man who estimated $700 to fix the tv with a 30 day warranty on parts/labor. I am not going to pay almost half the value of the TV for a repair with no gaurantee something else will not break in the near future. I am now looking at $2000 TV from costco, and if it breaks in two years and 3 months I would have no problem returning it to costco. I spend over a thousand dollars at costco most months for food, household items and such and have no problem taking back an item that did not live up to my expectations. I think that the dues I pay for my executive membership entitle me to certain priviliges. I do agree that it would be pretty slimey for me to buy a $2000 tv with the intention of returning it next year to purchase whatever new model they have available at close to the same cost.
Recently, I purchased a 50″ television from costco and was told about the incredible return policy after the fact. Though I’m astonished about such policy, I believe that it’s that way for a reason and I’m sure costco is aware of the “abuse” that some claims the policy is susceptible to. However, after some thinking, I recollected that costco’s doesn’t lose from the generous policy like a lot of people think it does. They actually make money off the float (interest rates) for the big purchases you make. Hypothetically speaking, if you were to buy a $5,000 tv set at costco and return it a 3-4 years later, for that 3-4 years, costco has been collecting interest off your $5,000. Now take this amount and apply it to a larger scale; try in the billions of dollars of sale each year. This in tandem with their amazingly negotiated payback terms with their vendors amounts to an investment giant. Furthermore, ever considered why it is that costco only tenders cash/debit or highly liquidable receivables like Amex? Once you add this all up, you’ll realize that costco is more in the business to make money off the money they generate rather than the margin of their sales so the next time you accuse people of being classless about their returns, do consider the above.
My wishes goes out to the family and friends overseas. Thank You.
I return computers every 6 months - i use the comp and then get an updated version - also we get the best choice of irons. Clothes - food sometimes - goes off date and so i feel the need to return. Recently i just got a sony PSP (GIGA pack) for £250 and in 6 months time im goin bk to return it!!! Many more things as well
I want to return my son’s bike that is about 2 yrs old, would they talk it back even if it has a couple of scratches?
I’m buying a 42 inch plasma Philips today for about $1800. The reason I’m buying it from Costco is because of the nice return policy. If they didn’t have such a policy, I wouldn’t buy it from Costco! I’m sure there are people in the same boat as me. Do you really think Costco is loosing money? Think again. Costco is making billions and if 1% of everything sold gets returned, that is just pocket change for them. The fact that Costco has millions of shoppers has to do with thier excellent policies!
Beware. Costco has point system on all the purchases you make. Say you purchase a plasme for 2 grand, you will get 2K points. However, if you return the plasma couple months later, they will subtract points from your account. Eventually, if you return enough, your account will either be negative or zero, therefore, no return, or at least, they will make if hard for you to return your electronic product.
How could you return more points ($$) than you purchased in the first place?
And can Costco decide to not accept a return? Wouldn’t they have to disclose it in their return policy? (i.e. We reserve the right to deny a return…)
You would think that Costco would disclose their entire policy. Guess not. Costco does have the right not to accept a return, simply because it’s not against the law. Go into Costco next time and read their return policy, nowhere on the return policy it states that you can return a item anything.
Membership has its privileges. The only way it would be “dishonest” to return something 3,4,99 yrs later, which is their policy, would be to return something you purchased elsewhere. Using a gold or platinum card will usually extend your mfg warranty which most people never seem to use… so why is this any different. It’s a bonus for payin the fees. Hmm wonder if I can return these 12 empty Dos Equis bottles sittin here…… Ill post the results…..
I have actually benefited from the above policy. I purchased the above 42″ Plasma that Moe above mentioned on Dec 15, 2005. It stopped working on Jan 2 or so. I did not want to return it. It was too big. I called Philips and tried to have it fixed but with the extremely pathetic customer service, they refused to do anything.
So 3 weeks later, I’m tired and am returning it becoz I got it from Costco. Any other store, I would have been at the mercy of the store after 30 days.
Obviously the people who consider themselves too “moral” to return a $4000 tv (even as much as 6-10 years later) have more money than they know what to do with. I’ll make no appology nor will I ever feel awkward for spending $4000 on a television & then taking it back 10 years later for a full refund (so long as I am within the guidelines of said policy).
My friend works for Costco IN the RETURNS department & little do you know, Costco DOES NOT eat the cost for one single item that is returned. It is returned to the manufacturer for a FULL CREDIT to Costco. How is this possible you may wonder? When a manufacturer (such as Sony) signs on board to sell their (whatever product, PSP, Plasma TV, stereos, etc.) they must agree to accept ANY return for ANY reason from Costco on behalf of the customer & issue a FULL CREDIT to Costco. The ONLY time Costco eats the cost of the return is if the manufacturer has gone out of business.
The returned products are packaged together in no specific order on a pallete & taken back to a wharehouse where they are sorted & tagged for return to the manufacturer. Often times they will simply throw the items away as the manufacturer would rather not spend money to ship a broken item back to them. Where do you think these items wind up? There are different degrees of broken - & I can tell you that “broken” items wind up in Costco employees’ homes. (At what cost if any, I am unsure.)
Costco, Sony, Dell, Western Digital (Yes you can even return hard drives - they DO NOT fall under the computer 6 month return limitation), panasonic, samsung, LG, whirpool, etc. all make BOATLOADS of cash on a DAILY basis. I will NEVER feel sorry for stickin’ my $4000 plasma to the man - even 10-20 years later.
I don’t know about these “moral” people on their high horses who are holier than thou, but I prefer my money in MY POCKET. I’m not willing to steal from someone to keep more of MY money in my pocket, but if there’s a return policy that allows for me to live worry free & more comfortably I’m damn well going to use it - even if I didn’t, there will always be someone else more than happy to do so.
You can cry all you want and ask people to stop so-called “abusing” the return policy, but the fact is it will do no good. Path of least resistence is NATURE. People are intelligent & will always do what is best to survive, in ANY scenario. If that means returning a $4000 plasma tv instead of forking out another $4000 of their hard earned cash for a new one, you can bet it’ll ALWAYS happen.
I will even go so far as to call anyone who doesn’t take advantage of such a policy a complete and utter MORAN who has way more money than they know what to do with. Surviving in corporate America has ALWAYS been & ALWAYS will be about using your $$$$ as wisely as possible so you can stay ahead.
& just to make those “moral” morans wiggle, squirm, & gape their mouths open… I returned a Playstation (original) that I bought in 1996 for $199 just a year ago & I GOT A FULL REFUND! I bought a XBOX. Then just a few weeks ago I bought a XBOX 360 AFTER returning my original xbox! Guess what? My bank account didn’t have to take a huge hit for it either & such a wonderful thing will allocate enough money to stay in my pocket so I can actually afford to buy a house in this piece of crap state (California). So with houses with absolutely NO YARD coming in around $600,000 & capping at what people around here consider “reasonable” (yeah right!) $1.7-$2.3 MILLION - with that in mind - I in NO WAY feel ANY regret, sorrow, shame, etc. for returning my $4000 plasma just because I damn well feel like it!
Oh Boo Hoo Hoo, I agree 100% with Rick. If Costco was really getting hurt by people returning things after a couple of years, they would change their policy quicker than you could say…..I’d like to return this please.
I was wondering something about Costco’s return / exchange policy on tv’s. Let’s say I go with my decision to purchase an LCD tv from them. I will be extremely happy with that decision if it indeed means that if the tv EVER stops working, I can return it and receive back the total amount I paid for it and get any other new tv from them with that money. WOW !
My biggest question is this… what if I purchase the tv (while this incredible return policy is in effect still) and then Costco changes this policy after my purchase? Do I still have access to the original return / exchange policy? I would think that legally they would have to grant this to people who made their puchases prior the old policy.
Hmmmm….
Hans - I would think everyone would be grandfathered into the old policy but who knows…
I just found this article online…
(click on link or type it in)
link
note the part where it says, “On the subject of returns, Insight Media spoke with one of the store managers, who referred to the store-wide policy for returning any items. As any Costco member knows, an item can be returned at any time for any reason…within a few limits. The manager said that they would accept the return of large screen TVs up to the limit of the warranty, typically 1 to 2 years, far more generous than most TV retailers.”
Huh????
What size makes a tv a “large screen” according to Costco??
Does this manager know what he is talking about???
Is there a clause in their return policy for tv’s like there is for their computers???????
DOES ANYONE KNOW ?????
[Edit: Made it a live link]
People have reported returning televisions long after the 1-2 year window so it might depend on the mood of the manager at your particular store.
Would a manager have to “approve” it? Is it not store policy? I mean, even if 5 years went by and the tv went out from normal use, why couldn’t I take it back for a new one under the policy? Can a manager make a decision on their own to deny a return because in their opinion “it has been too long”? This seems contridictory to me… from what I’ve heard, the letter of Costco law says that as long as I have my receipt I can bring the item back (with no time limits). Is it in writing that each individual store manager has the ability to decide not to take something back even if it shows no abuse?
(confused)
See, the funny thing about the return policy is that it doesn’t EXPLICITLY state, “CAN RETURN FOREVER FOR WHATEVER REASON.” I’m sure they reserve the right to refuse to accept any return.
I have straight up asked the people at the return desks what is up with the return policy? 1st time I asked, I asked in reference to my 42″ plasma. The employee at the return desk said, “Dude you could throw a hammer through that screen, piss all over it & STILL bring it in 10 years later & receive a full refund.” “I wouldn’t do that, but even if there’s damage?” I asked. “Yes, even if it’s obviously damaged & non-operational we will still accept the return.”
Cut forward to another week - I was returning a couple of xbox 360’s I bought intending to sell at a mark up online. Me asking the return desk employee at a different Costco in my area, “So, I don’t return things very often but is there a negative side or mark that goes on my account for returning items?” They answer, “No, not really - it’s just that if we see a pattern of A REALLY LARGE AMOUNT of returns of really expensive items we might ask more questions, but you can still return things.”
It wasn’t really a straight forward answer & I suspect that they don’t want to give out all the “clues” as to how exactly their return policy works & when & if there’s actually a limit or downside. As I said before, I have a friend who actually worked at Costco - so that’s how I knew about this - he returned an original Playstation I bought in 1996 for me in the year 2004 & got me a full $300 + tax back for it just to prove to me it could be done. However he worked at Costco over 5 years ago. (The return was done long *after* he quit working there.)
So who knows the real mystery behind Costcos return policy.
Don’t be fooled by COstco ’s Incredible return policy. Since I spent over $15000 in Costco for TVs, computers, electronics and lots of other items, Cotco immediately cancel my membership. My computer still within 6-month retrun period, but they refuse to let me return even I can prove the computer has problem. THeir policy seems generous, but once you spent big, they can suddenly do things that you never expect. And they refuse to let me return do against the law, because in California, consumer can return the product to any store if not satisfied, THerefore, I decide to sue the Costco for breach the contract of 100% satisfaction guarantee on all merchandise.
Couple of comments and a question:
1 - Rick, if you are going to call people Morons, you should learn how to spell it.
2 - Good news about the return policy. Seems like the store manager will be ultimate arbiter of what is allowed. However, if you live in a large metro area, you could always just try the next store down the road.
Q: Is there a level of account that allows for exceptional return policy…I thought someone mentioned an “Executive” account or something. I’m pretty sure mine is just normal Costco account. Would it still have return priveleges?
I think the return policy is universal for all accounts, though I bet “executive” accounts get more leeway (but are probably less likely to take advantage of it).
Morons - not morans… oops.
Occasionally I forget how to spell apparently.
Costco has excellent return policy becoz they have customer focus. They make use that they fullfil the customer’s perceived value. This boost the loyalty and ensure a long term growth.
Long time ago before exchange and return was common, there were many companies grew large because they have excellent exchange and return policy. One big supermarket says, Return anything any time. So, Costco is showing how they care about the customers.
Rick, first off I’d like to tell you that you and your friend that works at Costco are both 100% wrong. I am a manager at Costco and have worked in returns and RTV which is the department in charge of TRYING to get credit on returned items. I say trying because costco does not get credit for every item we sell. A more realistic number is 65% of the products currently in stock and 30% on deleted items. We do not receive credit on most appliances and half of all electronics we carry. All items that we do not get credit on we salvage to companies for 25 cents on the dollar which means when we take back a $2000 plasma we get $500 for it. Seeing as how our profit margin runs at 10% it will take you spending $15,000 to make up for what we lose. Don’t be surprised when our new tv return policy starts towards the end of the year. As far as it being policy for employees to take home product i’m sure you will reconsider. If it is policy I am sure you will have no problem giving me names of employees who do this and they will be promptly fired. As for your claim that you can refund as much as you want with no consequences, how would you like to give me your membership number and we will see how much you return and how much longer you are allowed to.
In response to more reasonable people on here, there is no account level that enables you to return more. Costco guarantees all of our products to be high quality and feel free to return items that you try and dont like, are the wrong size, and spoiled, defective etc. We are here to make sure you are satisfied with the items you purchase but that does not mean you can be unsatisfied with an item that lasts you 5+ years. Here are some general guidelines depending on usage:
Appliances 3-5 years
Most consumer electronics including tvs, video games, stereos 2 years
Computers 6 months
Clothing 1 year unworn
Media 6 months unopened, 1 month opened for damaged product (we are not blockbuster)
Hope I helped some of you out.
FINALLY!!! Someone with a first-hand knowledge…Thanks Hank! Usually costco product are ok, comparable to other sellers. About the only thing you cant return is the gas….And FYI, there’s a word for “return-policy abuse” : shopgrifting.
Ya know, if the company, or its employees, have a problem with people returning items under their policy, then they should redefine it. I purchase extended warranties on most of my electronics so I can just bring it back to the place of purchase and walk out with a new one, no fuss no muss.
If Costco chooses to have an open ended return policy that people feel is a free extended warranty offered by the company for their membership, then I don’t see a problem with it. And if you see a problem with it, you should bring it up to your superiors and start a discussion on changing it. Until then, stop whining about it and live with it. It is not the consumer’s fault that your company chooses to have such a policy in place in order to draw in more members!!
Go fuck yourself - my membership number is just that; mine. As long as your policy allows me to return my tv at will, I’ll march right in without a damn bit of guilt & return it. When & if you decide to terminate my membership for “over returning” (doubt it), well that’s what good fake ID’s are good for - new memberships.
does anyone think it cheesy to return a sofa to costco (paid $1200, so it wasn’t cheap) after 4 years because the cushions have always slid off. i bought a matching chair at another department store, and the problem doesn’t happen with the chair.
Regarding the sofa, if the cushions have always slid off why wait 4 years to complain? In my opinion your ship has sailed on this one.
i waited 4 years because the problem was not, and is not, unbearable, just annoying, then when i bought the matching chair, the cushions never had the same problem. a friend suggested i take it back, i thought it would be tacky, i just needed a second opinion, thank you ck.
I bought the Vizio 37″ LCD over xmas of 05 and am very happy with the price and the TV. But now (3 mos later) the TV has dropped in price by $100. I asked the clerk at Costco if they had some kind of price protection policy. He said to return it and buy it again at the $100 savings, kind of a hassle in my opinion. It would be easier if they just gave me my $100, a friend purchased a piece of exercise equip online at Costco.com and soon after the purchase he rec’d a credit to his credit card…when he phoned costco.com they said there was a price drop and the money credited was the difference in the new price…I guess they only price protect online and maybe only for a certain amount oif time.
When I had asked my question to the clerk about the TV, there was some Asian kid there telling me he was going to buy an XBOX 360 play it for a while and return it…to me, that way of thinking is completely messed up…and is ABUSE. Who is raising these kids?…THERE IS NO SUCH THING AS A FREE LUNCH…just because there are loopholes doesn’t mean we should slide through them everytime (that’s what makes sleazy lawyers… sleazy). Look at carpool lanes, they were intended for commuter carpools (to encourage carpooling), now any joker with his 5 year old or even pregnant women consider themselves 2 people (ABUSE). As a result the carpool lane is now slower than normal traffic lanes, if people would use things as intended (a carpool van full of employees going to the same workplace) and in moderation the world would work more fluidly and be a better place for all.
I’m not saying that you can’t return things, just have a legitimate reason, and don’t use it to your advantage or profit. Do it in moderation, or it will surely be ruined for all. A prime example is the Costco computer return policy that had to be implemented to combat ABUSE by complete losers. That’s what EBAY is for people…if you don’t like it…sell it to someone else who will. Just because we have frredom of speech in this country doesn’t mean I can or should say anything I want at anytime, laws had to be put on the books to clarify freedom of speech’s limitations. People with no self control and loophole sliders are the reason for the huge amount of rules (clarifying and limiting simple concepts for idiots and abusers) and more rules make for a unhappy existence for all. We need rules, just simple ones that all will follow and understand instead of trying to find a way around them (so childish) requiring more rules to clarify and limit the rules in place. There will always be loopholes, it is the responsiple adult who chooses to abide by the intention of the policy within reason.
Don’t know how old this thread is -just Googled “costco tv policy” and found this forum…
It is hard not to stop at the entrance of Costco and look at all of the beautiful big screen TVs and for the first time yesterday a clerk approached ME and the first thing he said was the above mentioned return-it-forever if it breaks Costco policy…
So, when comparing saving a few bucks by buying something on-line from a far away store you’ve never heard of like plasmasRus, not paying sales tax and the service unknowns vs. being able to bring something back (within reason) to the local Costco store, the piece of mind is worth it.
After reading many of the posts above and the possibility of their generous policy changing, I will probably ask for some clarification but still buy from them, pay sales tax, not abuse them and be able to sleep at night.
I have no ethical issues with purchasing and sometimes returning electronic equipment from Costco, because it’s Costco’s policy that I do just that.
I was unaware of the return policy at Costco until one of their employees explained it to me as such:
“If you buy this stereo and 30 YEARS LATER, you drop it while walking down the stairs, you can return it to Costco for full purchase price”
Costco is a smart company - they understand the value of making their suppliers accountable. I purchase from Costco specifically because I can return anything I buy there should anything at all go wrong with it. This policy forces Costco to stock quality products - if they didn’t they’d go out of business, and Costco gets a lot of money from me because I’m comfortable buying whatever they’ve got. This isn’t an ethical issue. It’s Costco’s policy and as a consumer it makes sense to take advantage of it.
I bought a television at Costco, and I returned it a week later, for the same one. It had some dead pixels.
I could have saved $140 by buying somewhere else, but I think the return ability will be good. However, I hope they don’t change the policy anytime soon. The reason being is that I don’t see costco selling an extended warranty on televisions, so that makes you really stuck, if it breaks after 13 months, and you never had a chance to buy extended warranty. That is why I’d like the ability to return within 3 years or so, IF it breaks.
If they implement a TV policy that is less than 3 years, I would like them to begin selling an extended warranty next to the TVs, and I’ll buy that too!
I agree that the salespeople definitely play up the return policy, its a big sales tool, so I’m fairly confident that net net Costco is doing just fine. Because of the peace of mind, that’s where we buy all our electronics, and good thing because quality is so low these days that alotof times things don’t work right, straight out of the box.
Plus, I make purchases that I wouldn’t ordinarily, simply because I know I can try a product out without worrying about if I want to keep it….of course, 8 times out of 10, sure enough I keep it and the other 2 times, Costco earns my loyalty by accepting an easy return.
I am sure Costco benefits, now I buy everything from Costco (is Costco sells) because it makes me feel comfortable. I buy things from Costco even if I get a better deal elsewhere. Its the comfort factor that if something goes wrong, it will be easy.
I have a Sam’s next door but drive 8 miles to Costco for this purpose.
I bought a 42 inch TV from PHilips which stopped working in 2 weeks. Since it was large to return, I wanted Philips to fix it. Because of Philips’ very poor customer service, I had no choice but to return after 2 months.
Costco took it back without any issus. The peace of mind was worth it.
Costco now gets all my business which it would not have gotten otherwise because of this good policy.
I will be moving away from home this summer (just for ths summer), and don’t have room in my car to bring furniture. How would it be to go to Costco, buy a TV, and use it for the summer, then return it when the summer is over before I go back home? I’m not going to use Costco as a Rent-A-Center, and furnish my place, but I would at least like a TV, that I don’t plan on bringing back with me. Would the Costco Return Policy benefit me in this case?
I didn’t read this whole thread, so if this topic was brought up previously I’m sorry to repeat it.
A friend told me that the reason Costco has this incredible return policy is because they are NOT an official authorized retailer of most of the products they sell. This helps somewhat to explain why the selection is constantly changing and unpredictable, and each warehouse and the website always have different items.
The problem here is that technically, most manufacturer warranties do not have to be honored if a product was not purchased at an authorized retailer. So Costco has no choice but to have this return policy if their customers are to have peace of mind.
For me, that explanation removed all of my ethical considerations. I’m assuming Costco saves a good amount of money by acquiring products the way they do. So even though people take advantage of their return policy, that is money that has to just be considered an expected loss for Costco because of the way they do business.
Hopefully, someone in the know can clear this up for me, because I’m not sure how right my friend was.
I don’t see how returning a TV after 5 years if it breaks on its own is misusing the return policy. As a collector of vintage electronics, I am appauled by the lack of quality in newer electronics products. My parents went through 4 VCRs in 10 years, while my own RCA Selectavision is from 1979 and it still works like new. I feel that manufacturers should build better products (like they used to) and they wouldn’t have to face the situation of people returning them years later.
Eric,
Purchasing something and using it without the intent of keeping it is HIGHLY unethical, and would be a case of abusing Costco’s return policy. So, to answer your question, yes, it would benefit you. BUT, it would be at the expense of Costco, Costco’s shareholders, and, since the “cost of doing business” increases each time someone does this, these costs would ultimately be passed on to Costco’s customers.
Okay, I have one for you all. My mom bought a lawn mower on May 12, 2004. I use this mower. I maintain the mower. I was mowing my lawn with it last week - May 13, 2006. It stopped midway through my front yard. It is one day out of warranty. I believe that my mom should be able to return this item for at least a partial refund as it should have had a lifespan of more than 2 years. Good grief, I live in MI. Lawn mowing season is only about 6 months out of a year. Yes, Stabil was put in the gas tank. I maintain it, like I said. Checked everything that I know to check - spark plug was good, oil changed, air filter fine. So should my mom take it back to get a refund?
Esther, absolutely take it back, and exchange it for a new one. Costco will accept it back without issue (so long as you have remained a member the whole time), and you can get a new one to replace the one that broke. Perfect example of how Costco really is the best place to buy almost anything.
[...] Esther recently commented about how a lawnmower her mom purchased two years ago stopped working, a day out of warranty. On James’ urging, she took the lawnmower back and Costco gave her a full refund. That, however, is not the interesting part of the story because Costco’s liberal return policy is a well known and often debated fact, the interesting part is that her mom’s membership had lapsed/expired and they still accepted the return, no questions asked! That’s amazing! [...]
It is amazing how we can be so impressed by Costco and their open policy with regard to returns without really knowing how it is that they are able to offer such a customer focused policy. Well, I will tell you. It is not Costco at all that really bears the burden of all the returns that they take back, it is the Costco suppliers. In order to supply to this “big box” outlet, suppliers must bear the burden of Costco’s returns, even if it bankrupts them. That is the price a supplier must take on to open themselves to their retail outlet. If you ask me it is the big box pressures that are truely driving/tricking the US economy. They push the suppliers to either bankruptcy or to other countries to manufacture. Sure this is suppose to protect the US consumers, with less expensive goods. Is that what we get, or is it “cheaper goods” with fewer jobs that we get at the expense of US manufacturing companies. So do not praise Costco, praise the suppliers that put up with their crap!!
I spoke with Costco employees, wanting to buy a display 42″ plasma that was the last model for a discount ($100 would have been fine for me, it was selling for $1500). They explicitly told me they’d rather return it to the vendor and get a full refund and so they wouldnt sell it for more than a $50 discount. I’d have to agree, if they dont offer an extended warranty, they SHOULD and DO take things back. Talking to some of their employees, however, they said that it is up to a manager’s discretion.
for example, the life span of a plasma TV is around 5 years, after which picture quality is not as good even if it still works fine, they may not accept the return. I think its kind of messed up to return an xbox from 5 years ago if it works fine just because you want a new one. We end up paying for it anyways. My girlfriend’s mini ipod i bought in august 2005 i returned last week and got her the nano (she claimed the screen didnt work but i didnt see a problem).
Bottom line, some people will always take advantage, but i spend so much money there that i think if i bought a $2000 plus TV and it broke down after 1-2 years and had no option of extended warranties and they refused my return, I’d go elsewhere and they’d lose ALOT of business (i have a business account and buy everything for my business from them)
By the way, other stores return things after long amounts of time too..It just depends on the manager’s mood that day.
Folks are sure counting on Costco accepting everything back. Try this on for size. We bought a 50 inch plasma there. Cost about 4600. After 14 months it started to smoke and burn. Response from Costco. “We dont want to eat the $4600. Here is a 1-800 number and no we dont have any warranty ‘ No warranty papers ever provided, no local support for repairs , no assistance at all. As one writer said, the policy is selective and is totally at their discretion. Buyer Beware!!!!!
I purchase all my big $ items from Costco (even if they are slightly more money than other places) because of the liberal return policy operating as a de facto extended warranty. BUT I truly hope never to have to use it.
So, here’s my dilemma and how should I AND Costco handle it? I bought a Philips LCD TV at Costco 89 days ago. Last night, it died. Philips will repair under warranty — BUT estimated service time is 6 weeks. Obviously, that is totally unacceptable. I was hoping to return it to Costco and buy a new one (same model – I’ll give it another try) but the price is now $300 MORE than what I paid in March.
Do I have to eat the price difference to get a quick fix? (Quick, although, packing up the old TV, borrowing a car from a friend that can actually fit the screen and redoing the entire set-up is pretty unappealing! BUT I NEED my World Cup and Baseball in HD!)
Also, what happens if it the product is no longer in stock by the weekend or already gone and there is no price comparable substitute. In this case an exchange policy would be nice, right?
Actually, my question above about price difference is pretty stupid. I guess if they have the same model, I just return the broken TV using the more expensive receipt. Case Closed?
As far as substitution – assuming that Costco no longer has my model in-stock - I just found out that if I wait a few days - I can return the broken 37-inch TV (or any temporary replacement) for a 42-inch version for the same price. Which sounds like a close-class of the abuse people are referring to. But I just may do it.
I think the 42″ TV is Plasma and 37″ inch is LCD. I have seen some pretty poor reviews. I had the same problem with the 42″ in 2 weeks and then bought the 37″ inch LCD, which is still working. And yes, Philips’ support is pathetic.
Gerry, your response that they refuse to take it back worries me. 14 months is not long for such a high-priced item and they do not even offer extended warranty.
Hi all,
I just wanted to share my experience last weekend making two big returns at Costco. One item was a DVD/VHS player that I had bought in 2003, and the DVD tray recently stopped opening. At the same time, I also returned a TV that I had purchased for about $300 in 2002. There was a big orange spot in the top corner of the screen that started geting larger and larger.
The woman at the return desk were not particularly friendly. She asked what was wrong with the items and I told her, and she gave me a sceptical look and said that since the items were a few years old, she would have to get her manager to approve the returns. But this turned out to be just a formality, and the manager came over, glanced at the items, and said, “no problem, issue the refund.” I did have receipts with me, and even though you can return without them, it is much quicker if you have them (so they don’t have to search for the product numbers, as the guy in front of me in line returning a mattress found out). I had purchased the TV on my debit card, so they gave me cash back for it. Since I bought the DVD player on my AmEx card, they could only give me a refund back to my AmEx account.
So refund in hand, I went back to the shelves and purchased a new TV and DVD/VCR. Anyhow, despite the minor attitude from the woman at the return counter (and I’ll give her the benefit of the doubt since it was the end of the day) this experience just makes me even more likely to buy all of my big-ticket purchases from Costco in the future. Kudos to Costco for being one of the few companies out there that truly stands behind what they sell!
Dave
[...] Blueprint for Financial ProsperityDon’t Get Electronic Credit Card Statements (161 words) Not receiving statements in traditional print form through the mail may cause problems.Favorite: CostCo’s Incredible Return Policy [...]
Not to belittle anyone but for those of you who have had repeated posts- how do you have so much time on your hands?
A year and 1/2 ago I bought a 42″ plasma. Very nice… or so I thought. I tried to hook up my xbox 360 to it and noticed that anytime I used either the component connections or the HDMI I lost the ability to control the brightness - I found this out because the screen in the games were EXTREMELY dark, darker than on other TV’s. I went back and took a look at some movies I have - yep, same thing between devices. Shitty brightness on my Plasma and no brightness control, but fine on my friends plasma & no problem adjusting.
I mentioned this to a Customer Service employee at the return counter in Costco. The guy said, “Bring it on in!” Wow. That easy. Just as I had suspected. The next week I took it in and returned it. In place of it I bought a newer 50″ model they had AND got $500+ refunded to my credit card! So - I went up 8″ and got money back for super-sizing.
I love Costco. I buy EVERYTHING there, for my household AND the real estate company I work for on the side of my normal day job.
Well, with the price of TV’s they should work a lot longer than 6 months. But yes there is nothing in writting about this life time warrenty. My LCD warrenty says I have to send it back for repairs and eat all shipping costs! And if it is damaged oh well I get to eat that also. That is why I went to Costco as I have a better chance than anywhere else. The salesman told me that someone brought a TV back after 10 years that was not even on the computer anymore and they refunded him the whole amount. If they gave me a problem I would be less than subserviant. I even wrote down the exact words of the salesman the day I got it.
My power supply is acting up its turning off every so often 2 or 3 times in a row. So we shall see what happens. The manufacture says it can replace parts with rebuilt parts that sucks. So I am not even going through them.
Good forum BTW
Hi, so Costco accepts takes back pretty much anything besides perishable foods and computers after six months. Does anyone know about this situation. A friend gave me a Minolta camera as a gift for Christmas in Dec of 2004. I don’t use it that often but now the flash is acting up. Can I return this camera even though I didn’t buy it? I am a member.
Thank you for any help.
I think the policy that the manufacturer’s must ultimately accept the return as the price of using COSTCO as an outlet for their goods is key. There have been concerns raised about the overall effect Superstores have on employees and small business in North America. The effect of COSTCO members who maximize every advantage afforded to them via the returns options may have a somewhat equalizing effect on the overall power of COSTCO to monopolize.
It would be interesting to see some clairification on what precisely does ultimately happen to all those returned goods. (In our own case we supply a large and influential retail chain with a lotion product. They make us give them a credit for every bottle that is returned, which is about 2%. A typical scenario is, someone will return a bottle that is 90% depeleted and complain they decided they did not like it because it smells like a cheap perfume. This in spite of the fact that every store has sampler bottles to test, etc. As they have so much power to create a sales velocity for this product the returns are a very small price to pay for being able to sell through their outlets. I suspect most manufacturers view COSTCO in the same manner).
hey rick, your lower than dirt. congratulations, people tell me about people like you that return a snicker’s bar half eaten. your a good story to laugh at and make fun of. hope you enjoy life, you can tell your grandkids (if you ever have any) how you finally were able to afford your house, not by working a real job (wtf real estate? gg), but by returning everything u own over and over and over. haha
Costco doesnt take a hit on any items, like rick said (though I might not agree with his return policy intentions). Costco returns everything to the manufacturer.
However, even though the gamut of electronic good manufacturers make a sizeable amount of money across the globe, the North American market (Canada included) is the highest gross consumption markets for such items - and Costco is one of the highest volume buyers. If everyone in this country read this blog and decided to return a specific item (not because of defect, but rather because of convenience), then you can bet that the manufacturer will take a hit, profits suffer, R&D will get budget cuts, people get laid off, and the very nifty PSP, Plasma, Ipod, etc, you bought now has to be significantly higher in price, the company will not innovate or bring a better version of the product to market, or worse, might not be available at all because you will eventually drive the company out of business.
And come on, we enjoy these products (if any) to enhance our lives (or to escape from our lives). We owe it to the hard working manufacturers, the foresight and teamwork of employed people to bring us the products we crave. And if you feel manufacturers still make too much money - next time, try to make everything you buy at the marketplace - AT HOME. See if you can create lightbulbs out of scratch, detergent to wash your clothes, and the clothes themseleves. Try to assemble that Plasma TV by yourself, and goodluck sourcing those components. We might as well reduce ourselves to living back in the caveman era.
As for the liberal return policy, most people (thankfully) that buy big ticket items from Costco, dont return them. Costco wants us to have peace of mind when buying a product, with the hopes that we will like it, be satisfied, and keep it. And most of the time the latter prevails. Most people (I think) find it inconvenient to return a big ticket item for leisure, (unless something was geniunely wrong with it) especially on a 42″ plasma that has been mounted to specific brackets on the wall, and dimensionally & proportionally spaced to fit your interior. -Vik
Funny how this blog went from I don’t like the pants after I got to know them, to should you or not return a Tv (or other major purchase) after an extended use period.
Someone called it grifting which is the same as conning, scamming or to rip-off making the person a conman (person). This is illegal and immoral and unethical anyway you want to look at it.
The pants either were decided undesirable or didn’t fit (the poster wrote both in different posts) either way it seems like it should be reasonable to do that. That is the policy and it is honest.
The returning of a Tv after 4 years? Well depends on the reason. To upgrade? Because it broke? Because you want to buy a car for your son/daughter and need the $4k?
In my opinion you are all over spending if you are going into a retail electronics dealer and buying a Tv for $4k when you can get the same Tv from someone slightly used for $2500 online.
I personally have a newer jvc big screen 50″ and 4 newer 35″ TVs (Panasonic(s), Sony, ProScan) and 3 smaller TVs 2 with integrated video players and haven’t spend $1000 total on all of them combined. They look great and give us plenty of viewing pleasure. Can’t understand the reason to waste $4k on a plasma Tv unless there are business reasons. And even then I can’t think of any reasons when you come down to it.
I have all those TVs because I bought a large house for my retirement fund and converted it into a pensione (may or may not be spelled correctly).
Anyway my opinion is if you use it pay for it. But if you have a reasonable reason and the policy allows it, take advantage of it.
Individually we all know if we would want someone to treat us the way we are treating them, or not!
I wasn’t sure it was a lifetime return policy on everything else besides computers. My dad owns an electronics company and sells products to Costco. He says the way Costco has such a return policy on its products is because they send the bill to the vendor. Meaning, if someone decided to take back their television 10 years later, Costco would give a refund that the VENDOR (the television company) would ultimately pay for; it’s in their contract when they sell through Costco.
As far as I know I don’t think Costco pricematches and often overcharges for their electronics. I think companies that sell with them ultimately profit more than they lose even with the whacky return policy. Their selection of computers is total crap. As a college student, I’ve known people who abuse even the 6 month turnaround period. I think the reason the vendors they have work with them is because if anything, it’s the price for advertising. People might return their computers but they’re still buying those specific computers.
Anyway, I’m kinda in agreement with those posted above. If it’s their policy, I’m going to use it. And really, think about why the computer policy is 6 months. Is it really because computers are upgraded so quickly that people would give theirs back for a new one? Or is it because computers can die much faster than any other hardware or device and if it were any longer than 6 months, anyone would return them? I’m for the latter.
Well, I’ve read this thread with interest and have a couple of thoughts (not new ones, but I thought I might throw my two cents in).
I’m 40 years old and have gone through a few TVs in my day and let me tell you if I pay >$1000 CAD for that thing it better last more than 5 years. I agree with others who’ve said that people who have ‘moral issues’ returning a DEFECTIVE (ie not working) TV after 4-5 years have more money than brains. What the hell people? I spent the first 20 years of my life watching the same 20inch GE tv with no issues……why should I not expect the same from consumer products in this day and age? Too much to ask??
I again agree that returning a product because 5 years later because of some non-reliability issue is/would be, in general, abuse. I do not agree that I’ve gotten my money’s worth from a TV (especially) that cost me upwards of 2-3K after 5 years…that’s just nuts!
Manufacturers generally quote lifetime’s of 60-70000 hours on LCD sets….that’s 7.5years ALWAYS ON people, 24hrs a day.
well i just returned my gps system that i had buaght at costco a couple of months ago and its simply amazing it simply stopped working, i never buy so i can return it.. and here’s why costco is so smart i read once that all of the returns they have boils down to maybe less than 1 percent! of all purchases but people like to be comfortable buying knowing that just in case they can return it the bottom line is for the most part people are good and they’re not out abuse the system i think otherwise they wouldent really be able to stay in business and i will allways patronize costco they’re simply the best!
i wand to return my notebook computer bue they refused me because i have return computer 4 times. costco policy never say that….i think it is depond on manager who work in costco. anyone know about that???? how can i return it//…??
We returned a 50″ monster TV to COSTCO. Its HD tuner failed after 2 years.
When I bought it the deal was bring it back if it breaks. Period. So that’s what I did.
If they will allow me to bring it back anytime- 2 years or 10- why shouldn’t I do that?
That’s the deal. That’s WHY we bought it there in the first place!
We took the refund, walked to the other side of the store, picked out another TV, threw in another $150.00 and went home with a gem. If something goes wrong with it it goes back! Sweet.
I shop there a lot along with millions of other people. Do I feel guilty about their policy - no way. Of all the TVs they sell there can’t be but a fraction that are returned. The deals they make with suppliers must have a return arrangement none of them would ever quibble about because COSTCO is selling scumptyeight zillion of their products.
In lieu of an extended warranty, the return policy works just fine. It’s much cleaner for them to just declare the item dead and move on. Repairs, tracking, billing and all the other stuff that goes with repairs are a nightmare compared to the simple “if it breaks return it” policy. It’s brilliant.
i bought an xbox 360 five months ago, can i still return it? it broke and i dont wana pay microsofts repair fee.
the ethics debate has me laughing pretty good right now…
If you buy an expensive TV, Xbox etc. etc. and through no fault of your own, it FAILS within a reasonable amount of time and you purchased the item through a company willing and able to accept the return for your furture business, WHAT ON EARTH IS THE PROBLEM HERE?
OF COURSE there are people who will take advantage of it, but if its within reason and I feel a few years with a TV IS, than why do others feel the need to make personal jugement calls on someone who did NOT get their moneys worth?
I have purchase a set of dishes 4 years ago, but never used them. Still in the box. Can I returned them? Also, I purchased an external dvd writer last year but only used it once. Didn’t really work.. so I was going to return it but couldn’t find my receipt and kept putting it off. Can I still return that and what do I say the reason for returning is?
Those who think they know how Costco receives credit from manufacturers need to read the post above from a manager. I am a supervisor, and I see many legitimate returns. There are, however, some people that the employees know by name that have “comments” on their membership longer than this web page, due to their high volume of returns. In its last newsletter, Costco noted that returns were eating into profits. I have never seen this before in a newsletter. As someone stated above TEHRE IS NO SUCH THING AS A FREE LUNCH. Costco receives credit on about two thirds of new items, but after several months (the time some have mentioned as “abusive” Costco receives no credit and must salvage things. As more people “take advantage” of this, it is likely that the policy will change, and you’ll be able to thank all of those above who say they’ll return anything no matter what.
Managers have, by the way, refused returns for items that have been physically damaged. Typically, members get away with a few bogus returns, but comments go onto their account. After that, it becomes harder and herder to return things. Some people argue that the policy says Costco has a 100% satisfaction guarantee. This is true, but after a while, managers will tell the member that its obvious that nothing the member buys has satisfied them, so they are advised not to purchase items that they feel they’d need to return. After this a note it put onto the membership, and returns are unlikely to be approved in the future.
Bottom line is, Costco cannot eat the cost of returning everything, and neither can manufacturers. Costco can eat the cost from legitimate problems due to defective and malfunctioning merchandise. When returning ask yourself: “would I allow this to be returned if I manufactured this product?” If you can h