No Charge Repairs

THIS POLICY WAS REVISED AS PREVIOUS VERSIONS ALLOWED THE MISUSE OF “NO CHARGE INVOICES” AND ENDED UP COSTING THE COMPANY MONEY IMPROPERLY.

On rare occasions we do repairs at no charge to the customer. They still need to be invoiced; to log out the repair, make a record of when the customer came in and to track where those costs go. The invoice is written and signed when the customer picks up the repair, not set aside to do later.

There are five reasons a repair would be done for no charge.

1. It didn’t cost us anything.
2. It’s a redo of something we didn’t fix right the first time. The cost of the redo comes off of the Repair Dept stats. If it cost us $10 to fix, then $10 comes off the gross profit for the Repair Dept.
3. It’s under warranty, or should have been fixed before we sold it and wasn’t. The cost of the repair would have to be added to the cost of the item.
4. It’s a ring sizing from a sale made. The GI and GP that would have been made for Repair if it had been a paid service is deducted from the sale GI and GP, and added to the repair stats. The sales commission is not affected.
5. It’s being done for the customer as a service, at the salesperson’s request. This service, in the past, was misused and from now on the job should be invoiced at cost to the salesperson giving the service. This would come out of their commission, not their GI & GP stat.

It must say on the invoice somewhere which kind of no charge repair it is.

Regarding number 5 above, if the customer service benefit is worth the salesperson paying out of their own pocket then it will pay itself back by keeping the customer buying more in the future.