Selling Buy Customers Their Items Back

Occasionally it happens that a buy customer regrets selling an item to us for whatever reason, and wants to buy it back. In reality, there is no undoing the deal once it’s done. There is no “cooling off” period where the customer has the right to cancel the deal. We are also not required to let the customer buy back their property at the end of the 30-day holding period.

In fact, we are not allowed to promise any seller of personal property that the seller may repurchase property sold to us (Cal. Financial Code 216365.5). The most we can do is to offer to contact them when the items are out of hold.

Even if they have not cashed the check we gave them, we have to hold their items for 30 days. We will no longer give things back in the same day if they bring the check back. If the customer calls the same day or days later and says they want their items back, below is the procedure to follow:

Buyers

• Take the customer’s name and phone number, and note the date that the item was purchased. Tell the customer that our management will call them back, and nothing more. Do not discuss any details of buying back or the 30-day hold. It is very important not to discuss details as customers often misconstrue your words as a promise that they will get their way, which is not always possible.
• On the same day the customer makes this request, you must send an email to the Estate Buying Manager and to the COO with all of the above information, so the buy can be noted in the safe so that it doesn’t accidentally get sold. Include any cost or pricing your gave the customer at the time of purchase.
• If you still have access to the buy, using a bold pen, put a large paper note in the bag that says “BUY BACK.” If the buy back is only part of the original buy, separate it out and give it its own stock ID and cost.
• Mark the appropriate stock ID with “BUY BACK” in the BusinessMind description.

Managers

• The Wholesale Buying Manager will immediately contact the customer regarding the buy back. If the WBM is not available, responsibility goes next to the Wholesale Selling Manager, then to the COO to contact the customer.
• Assess the inquiry and explain to the customer that, by law, we must hold the item(s) in our safe until the 30-day hold period is over. We will contact the customer once the item is out of hold – no deals can be made until then.
• Explain to the customer that if they buy the merchandise back again there may be a restocking fee charged – it’s usually 15% – but we can only work out the details once the item is out of hold. They will also have to pay sales tax on the repurchase of their items.
• Create a log in BusinessMind under the customer’s name, so there is a clear record of the request and future communication.
• Make sure the stock ID description includes the note “BUY BACK.”
• Notify the COO and WSM of the buy back with an Outlook appointment request, containing the buy #, customer’s information, out-of-hold date, any pricing details discussed, and brief explanation of situation. The date of the appointment should be set 7 days in advance of the item coming out of hold.
• Once the item is out of hold and the 30 days are up, the customer will be contacted from Old Town by the Estate Buying Manager to discuss the buyback amount. The customer must be willing to drive to Old Town to complete this transaction, and must bring cash for the total amount. Not check or credit card. The customer will be given a 2-week period to pick up their items. If the customer does not pick up their items after the 2-week period has passed then their items will be sold. The Estate Buying Manager must follow up with a phone call to the customer approximately 3 days before the 2 weeks are over to remind them of the last day they can pick up their items.

Ringing up a Buy Back

Sales tax is charged on all buy backs, excluding only situations of stolen items being returned to the rightful owners, with proper documentation. Acceptable documentation is a police report or certified appraisal paperwork in the name of the owner and matching photo ID.

• Ring up the sale as normal taxable sales, with tax amount and restocking fees included.
• In excepted cases where no sales tax is charged, ring up the sale as “Taxable NO” and state the reason in the sale notes.

Forms of Payment for Buy Backs

Although we will always tell the customer that we only accept cash as payment for buy-backs, in extreme situations we may be able to accept the following forms of payment for buy-backs:

• Cash (the preferred method of payment)
• Wire transfer (second most preferred method)
• Cashier’s Check (must be verified with bank)
• Personal check (with approval from management) (with a 3% service charge)
• Credit cards (in Old Town only, with approval from management) (with a 3% service charge)

Payment using personal checks must be made in advance of item pickup in order to ensure that the check clears before the item is delivered. Remote offices must mail the check to the Old Town Accounting Department immediately so that they can deposit to give it time to clear.

Payment using a credit card should be made in Old Town, and the customer should be present to use a credit card.

Following up with these buy customers is very important. If we do everything we can to get them their items back and they do not pick up in the time given then they will have no reason to be upset with us.