What's your policy on returns and refunds?

Customers have gotten used to large stores taking back anything, no questions asked. That's made it hard for smaller retailers, who can't afford those losses. One-third of our inventory is books, so we allow five days to return them in perfect, resellable condition. For gifts, the policy is 30 days. Certain items are excluded: stones, personal care items, essential oils, software, and anything used or worn. Videos, CDs, and cassettes can be returned if defective. Refunds are always given in purchase tender, store credit, or exchange. Returns without receipt are for store credit or exchange only. Of course, there are exceptions to every rule. Extenuating circumstances or the occasional irate customer is handled on a case-by-case basis. We always try to maintain a peaceful, professional atmosphere.

Fortunately, we don't get a lot of returns. We've been lucky that way. We do have a sign on the desk that states our policy, which is items returned for refund will be credited in the way they were purchased. If a customer doesn't have a receipt, we issue a store credit. The item must be returned in the box within three weeks from the purchase date. But I'm also flexible. A return policy that is too strict creates unhappy customers, who might well tell their friends. If someone is a local, I absolutely take things back. I don't want the locals to get upset. In order to be a good store in a small town, you've got to bend. You've got to be customer-friendly. A lot of stores in our town won't take back anything, and that gives everybody a bad name.

The Loft accepts returns without a restock fee. We encourage our customers to return their items in a timely manner, but for good customers we'll take them whenever they bring them back. We're very accommodating. We try to avoid all those rules that the box stores have. Because we offer home accessories, there are a number of items people aren't sure about until they take them home. A customer doesn't know whether a lamp is going to be right until they see it on their table. So we have an approval system, where people take things home and if they don't bring it back within 48 hours, it's charged. We give in-store credit, not a cash refund. Generally, when people return they end up taking something else. And if they have a store credit, it doesn't stay on their account very long.

If it's absolutely damaged, would ruin our reputation, and it's a good customer making the return — then yes. But it says on our receipt, "exchanges only on rugs and linens, all sales final," and we have the same policy stated on our Web site. The exception for rugs and linens is because they have to match the home. We sell luxury goods, china and crystal, the kind of stuff that could be taken home and used for the weekend, then returned. It's just too hard for a small retailer to take back gifts that have been used. And we've had no problems whatsoever with our policy. We just emphasize that customers need to make the right selection because all sales are final. Of course, there are always exceptions to the rule, because we want to have good customer service and a good reputation with our clients.