The Old Joel on Software Forum: Part 3 (of 5) - Do you have a refund policy?

Do you have a refund policy?

Do you sell downloadable/shrink wrap software? Could you comment on your refund policy? Do you have one?

Less is more...
Thursday, October 16, 2003

We don't have an official refund policy.

However, any user who asks for a refund and provides a reason (any reason regardless if we think it's right or wrong) gets the refund.

Some people say that putting something like "30 days, 100% money back guarantee" on their site has increased their sales, and generated almost no extra requests for refunds.

This may or it may not be true.

Jericho
Thursday, October 16, 2003

For my downloadable (trialware) product I don't state a refund policy on the web page, but if someone asks for one I usually just give it. It's only 1 in about 200 so it's not a problem.

Skippy
Thursday, October 16, 2003

We have a company policy of "we're not happy until your not happy."

Also one of our favorite internal sayings is "you could better better -our product-, but you couldn't pay more.

Milton
Thursday, October 16, 2003

should have been

Also one of our favorite internal sayings is "you could buy better -our product-, but you couldn't pay more.

Milton
Thursday, October 16, 2003

> Do you sell downloadable/shrink wrap software?

Yes.

> Could you comment on your refund policy?

Yes, I could.

> Do you have one?

Yes.

Daniel Sygevy
Thursday, October 16, 2003

(hee hee)

Anyway, people have 60 days to ask for their money back, no questions asked. They have to sign and mail in an affadavit that they have not kept or distributed any copies.

Fewer than 1% use it.

Daniel Sygevy
Thursday, October 16, 2003

I once tried out a trial version of an ocx componenent that was crippled such that there were some doubts as to whether it would work in our situation.
The vendor said there would be no refund if it didnt work which seemed unreasonable to me.
More from their attitude than the potential loss I decided not to buy their component and use another solution.

Dilettante
Thursday, October 16, 2003

30 days, "no questions asked".

Less than one request per year., which makes it _well_ under 1% of sales.

We do get a few fraud refunds via our DigiBuy order processor, but never a bad one for the orders we receive via fax or phone that we process via our own merchant account.

Mitch & Murray (from downtown)
Thursday, October 16, 2003

Do you mean by "fraud refund" the fact that the customer bought your product knowing that he/she was going to return it?

Bonobobo
Thursday, October 16, 2003

Just open source your software then you don't have to worry about refunds.

RMS
Friday, October 17, 2003

"fraud refund" = chargeback.

The original transaction was made with compromised credit card data, and after the month or two it takes for a charge to show up and the cardholder to raise hell with the card company, it comes back (to DigiBuy in this case) as a chargeback/refund.

Maybe it was a real fraud case, maybe the purchaser just wanted to screw us and say "Never bought that!", when in fact they did. To the card company there is really no difference when it comes to electronic transactions, and _particularly_ when it comes to goods (software) delivered electronically. Customer complains? Refund!

By the way, more than 2% or 3% chargebacks as a total of your gross credit card revenue in a given period and your merchant account walks the plank.

It is a very tricky business.

Mitch & Murray (from downtown)
Friday, October 17, 2003

> Just open source your software then
> you don't have to worry about refunds.

Yes ... just go and code open-source in your parents' basement, and you won't have to worry about making a living.

John K.
Friday, October 17, 2003

I've only had one refund in 18 months and that seemed to be a genuine administrative problem. Also I will not buy any software that does not have a refund guarantee.

Tony Edgecombe
Friday, October 17, 2003

My software (a web-based game) hasn't been released yet, but my policy is to provide a warranty, and a full refund if the system breaks in a way that's covered by the warranty. But since this is a game with a free trial period and a subscription model (with no up-front price), refunds don't really make sense. Each player should have had plenty of time to evaluate the software before buying it, and if they don't like it, all they lose is the monthly fee.

The Pedant, Brent P. Newhall
Friday, October 17, 2003

Does anyone try to fix the user's problem instead when they ask for a refund?

Just curious.

Jim Rankin
Friday, October 17, 2003

"Does anyone try to fix the user's problem instead when they ask for a refund?"

Absolutely! That's the quickest way to make a customer for life. "Oh, you want a refund because it doesn't export to Excel? Did you know you can export to CSV, which Excel can read?"

Or, "Oh, you want a refund because it crashes when you click the "Foo" button? Oh my gosh! We'll have a fix for that immediately - I'll email you the instant it's ready!" (And then fix the bug within 24 hours, of course.)

Every customer contact is a selling opportunity. Or, if the word "selling" offends your delicate sensibilites: Every customer contact is a chance to demonstrate fantastic customer service.

Grumpy Old-Timer
Friday, October 17, 2003

Well put Grumpy...

Entrepreneur
Sunday, October 19, 2003