Latest update from SEB contract

Posted On 23rd Jan 2012

Staffords are pleased to report that 12 months into the contract, the range of products has increased and SEB will be a major client of Staffords in 2012. The volume of work being carried out partcularly on coffee and laundry products has increased as the SEB brands make strong in roads into the UK market. Stuart Mckay, CSS Manager at SEB said "I have know Staffords for a number of years and I am delighted with the level of support and service they are providing both SEB and our customers" Stuart added " In this business, as with most businesses, it is all about relationships and we have an excellent business relationship at all levels with Staffords"  

Staffords can reduce your Warranty costs

Posted On 2nd Nov 2011

STAFFORDS CAN REDUCE YOUR WARRANTY COSTS

Staffords are a long established third party service support company. We are currently involved in projects for several major consumer products manufacturers focused on and achieving a reduction in their warranty support costs.

Hopefully, you will find the following account of interest in potentially reducing your warranty support costs and meeting your environmental obligations to reduce waste.

Future Developments of European Law on WEEE

The proposed changes to the legislation on the handling of electronic waste will place an increasing onus on manufacturers and retailers to reuse and recycle complete products.

Measured targets are being proposed to ensure that manufacturers and retailers respond to the new changes in legislation.

Recent experience

A recent visit to a waste recycling plant highlighted the increasing need for manufacturers and retailers to re-look at the handling of in warranty electronic consumer returns. Pallets of vacuum cleaners returned from a major supermarket chain were being processed into “plastic crumb” and miscellaneous metals.

The recyclers were doing a very effective job in reducing the products to their basic elements but why were the vacuum cleaners there in the first place! The vast majority of the vacuum cleaners we inspected were in good condition and clearly capable of re-use

From Staffords experience in dealing with many ranges of electronic consumer returns from consumers and manufacturers the majority of returns are either free from any fault or the fault is easily repairable. The value of repaired product is many times greater than the value of the raw elements realized at the end of a waste recycling process.

The Current position generally adopted by retailers

Warranty returns - during the initial cooling -off period

There is a legal obligation for retailers to provide a cash refund or replace product within the initial 7, 14 or 28 day cooling off period. The reasons for returning product during the early stages after purchase vary but commonly include:

• Setting up issues
• Compatibility problems with an existing device
• Wrong purchase
• Customers perception of quality not met
• Size or weight issue
• More competitive pricing from an alternative supplier
• Removal of consumable or accessory

Product returned during the cooling off period is usually cosmetically sound and in the majority of cases fault free. The only cost adverse issue is the inevitable damage to the gift box, internal packaging and operator manuals when the item is unpacked.

If sold to a broker, the returned product is generally sold unseen usually after a lengthy period of time whilst sufficient volumes have accumulated to make the purchase a viable exercise.

The price paid by a broker for returns is generally only a fraction of the cost price of the product. Furthermore, there is a very real threat of returned product entering local markets damaging the brand and potentially increasing warranty costs.

Warranty returns - arising after the cooling-off period

Currently, at any point during the warranty period, retailers predominantly exchange the item for a new replacement or give a cash refund.

Some of the reasons why consumers return items during the post cooling off period other than a manufacturing fault are:

• User damage
• Short/ medium term purchase for a specific task
• Consumable related problem (ie use of compatible consumables)
• New technology (opportunistic consumers seeking to upgrade)
• High consumable/accessory price

The older the product the more likely it is to have sustained cosmetic damage. The product is likely to incur further damage when returned as invariably the gift box and internal packaging will not have been retained. The most common packaging used to return product is in our experience is a plastic bag offering no protection and exacerbating any existing physical or cosmetic damage. Consumers are generally ambivalent as to the care and protection of the item being returned as the consumer will have been promised a new item or a cash refund.

The sale to a broker of this class of return is likely to produce a very poor return and if mixed in with the “newer” product returned during the cooling off period will dilute the overall price paid.

The negative costs associated with handling in warranty consumer returns 

Manufacturers (or Retailers selling own branded products or products purchased BOG)

• Financial – Retailer requests a credit
• Loss against cost price when sold to a broker
• Time spent dealing with the administration of the return
• Warehousing costs- space, handling, sorting / grading etc
• Management time

Retailers

• Financial – immediate cash refund to the customer or arranging replacement.
• Handling call, email etc or shop assistant involvement
• Dealing with the returned product
• Sorting the items
• Transporting to warehouse
• Administration
• Management time

Summary

The financial losses and time expended both to the retailer and manufacturer are considerable. The higher the budget set aside to cover warranty costs the less competitive the price of the product.

HOW STAFFORDS CAN REDUCE YOUR  WARRANTY SUPPORT COSTS

STEP ONE

Direct customers initially to call a technical help desk.  A proficient technical help desk can resolve set up and functionality issues which represent a major proportion of all early warranty calls. Staffords technical help desk, covering a wide range of communication products, currently resolves 98% of inbound consumer calls the majority of which are set-up/functionality related.

STEP TWO

Utilize the product returned during the initial in warranty cooling off period as a buffer stock to cover the subsequent customer warranty issues for the remainder of the warranty period. This can be extended to cover out of warranty enquiries. Any excess of good returns can be sold on line or through other channels. Controls in place ensure that the products are pat tested function tested and cleaned to ensure that no there is no adverse impact on the brand.

STAFFORDS OFFER TWO SOLUTIONS EXCHANGE / REPAIR SOLUTIONS

1. ADVANCED PRODUCT EXCHANGE

Advance exchange. -  A fully refurbished and tested buffer stock unit is dispatched the same day as the call is received to the customer and at the time of delivery the following day the customers unit is collected and returned to Staffords. The unexpired period of the warranty is transferred to the exchange unit.

Advantages of an advance exchange

Quick, less courier costs and easier to manage operation. The consumer retains any consumable, cables so no cost associated with consumable or accessories accrues. The warranty period is restricted to the original purchase as the consumer is entitled only to the balance of the warranty period on the exchange unit.

Disadvantages

No opportunity to inspect customers’ product before the exchange is sent out and not commercially viable to attempt to recover charges in the event customer miss use is identified.

2. REPAIR OF CUSTOMERS PRODUCT

Repair of the customer’s product – if required, send out packaging to the customer, arrange collection, repair and return of the customer’s product.

            Advantages of a repair solution

An overall reduction in the number of warranty claims. In the event that the damage arises from miss-use a proportion of consumers will refrain from pursuing a warranty claim with the knowledge that the claim will be rejected.

If a fault is identified as resulting from customer miss- use no requirement to provide a repair under warranty but can offer chargeable solution.

Less expensive - only parts fitted, the unit is not exchanged.

Disadvantages

A slower service -more reliance on the actions of the customer.

Additional courier and packaging costs are incurred if the customer requires packaging. (If the customer is required to send in the product at their own expense the courier costs are however halved)

Setting up the alternative approach

Set up – requires a label, internet instructions or shop- staff briefing on the procedure to follow. Technical helpline training

The returned product in the cooling off period is directed to Staffords.

Staffords log and deal with the exchanges and or repairs and provide monthly technical reports on the faults and remedial measures.

Overall Benefits of  Staffords Repair Strategy

Significant financial benefits

Reduction in administration and management time

Reductions in product going to land fill thereby meeting European WEEE objectives.

Staffords are an authorized recycler and treatment centre. The minimal waste product produced following cannibalizing be sent to be a registered waste recycling plant and all certificates made available.

The resistance of a minority of customers to a repair can be readily countered by the environmental and commercial benefits. Those consumers who do object are usually those seeking to profit from their “faulty” product or have miss-used the item.

Certain leading brands already insist upon a repair approach for their products.

Staffords have considerable experience in dealing with business to business and business to consumer returns and the robust processes we have developed over time ensure that the customer enjoys a favorable experience. 

If you interested in our approach to reducing warranty support costs please contact me at pete.stafford@staffords.ltd.uk

Peter Stafford

Managing Director

Staffords sign new Service Agreement with Solarvista

Posted On 20th Sep 2011

Staffords have completed a deal to have the latest Solarvista 7 business manager software pack installed at their Liverpool Headquarters. The project will be completed by January 2012.

Dave Latham, Commercial Director said "We took a long hard look at the market to see what was available. Solarvista impressed us not only with the flexibility and ease of use of their software but how it met the needs of our business in terms of reports, information and controls. This in turn will enable us to move to the next level as our business grows and we increase the range of services offered to our customers."

Staffords will be installing Solarvista 7 including the following modules, Service, Inventory, Contact Centre, Financial, Planning, Event Management, Customer Web Self Service, Mobile Worker and Agreements Module over the coming months.

For more information on Staffords please visit the Services section on our website.

To find out more about the Solavista Management Software, please visit, www.solavista.com

New contract secured with SEB

Posted On 17th May 2011

Staffords have secured a contract with the UK arm of Groupe SEB. Groupe SEB are a 3 billion euro company and number 1 in the world for small domestic appliances with leading brands such as Krups, Moulinex, Rowenta and Tefal to name but a few.

In the first instance SEB will be utilising Staffords Electronic and Electro Mechanical Workshops in Knowsley Liverpool to repair the range of Krups coffee machines that are sold under the Nestle Dolce Gusto brands. In addition Staffords are carrying out a "technical report" service for SEB on their range of cooking products.

Staffords were chosen for their experience in repairing products, flexibility in approach and their adaptability to tailor a service for the customer.

for more information please contact dave.latham@staffords.ltd.uk

Welcome To Our New Site!

Posted On 30th Nov 2010

Welcome to our brand new website! We are so excited with the fresh new look that The Loft Design & Print Ltd gave us.