New "sales method" from REI

[Vincent Vilcinskas]

https://gearjunkie.com/rei-discount-used-gear-online

[David Thomas]

This article was written in 2017?!?  REI has been doing that for over 30 years.  Since then, Al Gore invented the internet and this “eCommerce” thing happened, but REI has been selling returned used gear for a very long time.

[Bruce Tolley]

You would often see returned MSR Simmerlites in the REI used and dented gear bin with the label attached: “Reason for return: Does not simmer.”

The stove only had three settings hot, really hot and off.

 

[JCH]

“Simmerlite” :)

Reminds me of one of my favorite Dilbert strips wherein Dilbert is assigned to work in the Marketing department.  His new supervisor brings Dilbert up to speed with this wisdom:

“Remember, what we do might seem like criminal fraud…but its not! It’s Marketing.”

[Matt Dirksen]

The article indicates that REI will be selling their used gear ONLINE. That is new.

Up to this point, one could only purchase used gear at an attic (or B-.98) sale.

What this could mean is stores might now have to send their returned/used gear back to HQ for it to be sold on-line. If so, gone are the days of lines of folks camping out the night before to get a chance at a “good deal”.

Who knows, we’ll find out soon.

[JCH]

Every time I ever visited an REI with a “Garage Sale” area, which hasn’t been many times, I was always so terribly disappointed at how little there was of value.  Things people had trashed, or bought because it was cheap and returned…because it was cheap crap :)  Maybe I’ve just been unlucky or in the wrong cities.

If I’m going to purchase used I’d much rather buy from Gear Swap…most likely the merchandise is in good shape (or at the very lease it is as described), the people are honest, and very few try to sell cheap junk here.

That said, I agree that it should be interesting to see how this new tack turns out.

[Bruce Tolley]

@JCH: The good stuff at an REI dent and dinged sale went fast. Usually you had to find the gear people had returned for small cosmetic blemishes or they just did not like.  Apart from a few stoves, I never found much that I really needed/wanted/

[TAG in AZ]

Recently, I’ve noticed that REI is shipping Outlet items from individual stores rather than from the central warehouse. Perhaps, they will use the same method for selling used / garage sale items online. I think it is a good idea. Backcountry uses eBay to do the same thing – but, of course, they don’t have the brick & mortar infrastructure of the co-op.

[Dale Wambaugh]

No deals to speak of there. More like sale prices for new gear.

[Penny Vann]

At there store based garage sales, I got my backpack, sunglasses, carbon hiking poles, hammock for a total of 65 dollars. I did not think I did too bad. The online one costs way more.

 

[David Wiese]

A few haters in this thread. I think it’s a fine thing for REI to do to get more people buying used gear more easily.

[Jim B]

I think it’s an awesome idea.  I see some pretty good down jackets I should probably have.

[Ammon Bruce]

As I understand it: you buy a used item As Is for an average of 35%-25% off MSRP. You pay shipping, making it more like 25%-15% off MSRP. Then you have your item and your Item has no warranty!  All this shipping adds to the carbon footprint of the item.  At that price it is better to buy on sale and have the ability to return the item and have the Manufacture’s warranty.

Now if you want to return this item. You pay for shipping again, because you cannot return it to the store. Now you are out the item and $20+ in shipping cost.

These items are without a manufacturers warranty( which itself is worth gold)! You already know that this only really benefits REI and the manufacture of the item.

The shipping kills any savings and adds a bigger carbon footprint. The garage/dent sales don’t have a return policy, but you can try it out before you buy it.  Why put a used item online, when there are lines of people waiting out the door to buy used gear.

So it is better to buy a used down jacket, pay for shipping and have no warranty?  For $30 off after shipping? Or get it at a used gear sale and get $40+ off MSRP.

 

[Matt Dirksen]

“These items are without a manufacturers warranty( which itself is worth gold)! You already know that this only really benefits REI and the manufacture of the item.”

Thats not entirely true, and is entirely up to each manufacturer. It’s no different than buying any used piece of gear from eBay, gear swap, or from anywhere else. I’m  certain that reputable companies will still honor their warranty, depending on the piece of gear, and its condition.

The only thing you don’t “get” is REI’s 100% customer satisfaction policy.

[Ammon Bruce]

Greeting Matt,

Thank you for pointing out that some  manufactures  MAY still honor the warranty. They eBay and gear swap, That is not entirely true.  eBay you have Pay Pay, if the item is not described correctly, you get your shipping and purchase money back.  Gear swap you have (you hope) honest person that knows everything about the item they are selling.  ( worth more than a glance)

They person putting the item up on the website my not be a  expert on the item or even have used it. How much time do you really think REI will spend on each item checking the item, a minute or less. Money is time, if they have to start putting up 100+ items a day, less time will be spent.  They use stock photos and  their descriptions at like “excellent” or “good condition, light wear”.

Cheers

 

[Ammon Bruce]

This is what REI has to say about it.   You decide .

##- Please type your reply above this line -##
Mesha Norman (REI Used)
Oct 27, 10:03 AM PDT

Hey Ammon,

Thank you for contacting REI Used.

We appreciate your thoughtful email, I would love to clarify a few things for you.

We don’t actually have a buy back program. All of our inventory comes from customer returns, which in essence could’ve potentially gone to a landfill. This program serves two purposes, one being to make items available to customers at more affordable prices, and two extending the life of items, preserving the environment.

I totally get where you’re coming from in regards to shipping fees. However, being that our program is so new and still in the beta stage, we have to charge shipping at this time. This is certainly something we would like to revisit in the future.

In addition, depending upon the item it may very well still be within the warranty. That is very brand and item specific, but I get your point. In regards to pricing, item prices can vary according to condition, so some items will be greater discounted than others. In some scenarios, it may make more sense for a customer to buy an item new, however we love that we’re able to provide our customers with numerous options for whatever suits them best.

Again, we appreciate you reaching out to us and sharing your feedback. It is extremely valuable to us, and we love to take in to account how are loyal customers are feeling about this new journey we’re embarking on. Should you need to voice anymore suggestions or concerns, don’t hesitate to contact us again.

Have a wonderful day,

 

Mesha
REI Used Customer Service

[Matt Dirksen]

Hi Ammon,

Yeah, It’s hard to say how much $$ REI will make on the strategy. I guess it would depend on the quality of the item, how easy it is for them to inspect it, and if they describe it accurately.

Back when I worked there, I remember that MSRP was usually AT LEAST 100 percent higher than wholesale, so they were still making money even with steep discounts. I also suspected that REI was negotiating better prices well under wholesale, given their volume. Therefore, I imagine the labor they spend on inspecting the used items and preparing for an on-line sale will pay off for them. And the on-line audience is much bigger than the locals who line up for the bi-annual attic sale.

I was just trying to point out that there’s really two different things: REI’s “Satisfaction Policy“, which is technically not a warranty, and the manufacturer’s “warranty” which will typically follow the product wherever it goes, depending on the terms of the warranty. While REI won’t accept the return of a used piece of gear I purchase, the manufacturer’s warranty is usually still in force (again, depending on the terms).

I’ve come to understand over the years that Outdoor Research will take back just about everything of theirs, regardless of wear and tear.

For example, I bought a Dead Bird rain jacket on eBay for about $200, and then actively used it for 8-10 years. I then noticed the welded seams started to fail, so I sent a note to ArcTeryx to inquire how to fix it. They recommended I mail it in for inspection. A week or two later, I get a call telling me that they can’t repair it but they’ll give me a $450 credit for a new jacket.

So I guess what I’m saying is: look at the used gear by companies that are known to have a good warranty policy. You might end up with much better deal than you could imagine, regardless of whether or not you can return it.

Cheers!

 

[Scott Nelson]

I think this online selling of used stuff is pretty good.  I worked at REI back in the day and the process for returned items was something like this:

Customer comes in and complains that they got blisters from their new boots so we took the boots back and hopefully got them into something else.  The used product then when to HQ. The Returns dept might decide that they could not return the item to the Manufacturer and the store ends up eating the loss on the inventory.

The Returns dept would then slap on a low price and sends it back to the store in big boxes for the store to sell at Garage sales.  The store can recover whatever they sell the item for.  This partially offsets the original loss on the return but only partially.

(I also recall that we employees would inpect these Sale boxes before they ever hit the Sales floor for the truly great deals.  It was a perk of working there. I remember getting an altimeter that I’m sure the original customer didn’t understand how to operate it.)

Rei is not making any money on this stuff, they are off setting the loss they took on the return.  The Returns department back then sometimes seemed overly conservative in not sending used stuff back to the manufacturers.

The REI returns policy has been a core value of the company over the years.  As an employee, it made you feel that you were not forcing junk on customers.  I recall a manager in the Berkeley store being given a gold painted used tennis shoe (of a brand we didn’t carry) as a joke award for doing what the company wanted-taking care of a customer.

[Monty Montana]

I just got a like-new Ursack All White for 25% off…they never go on sale.  Also an old-style but new Osprey Talon 33 for nearly 50% off.  Score!

 

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