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Posted to misc.consumers,alt.home.repair
Sawney Beane
 
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Default UPS Fraud in Furnace Parts

wrote:

The problem with Sawney's theory that this "mom and pop" internet
vendor is running a scam is this. UPS is not stupid. How many claims
for shipping damage do you think UPS will pay for one shipper before
they either refuse further shipments or call the cops for fraud?
Sure, a vendor could get away with it once in awhile, but it's kind of
hard to believe they could do it enough to make it worthwhile.


Suppose he normally buys them for $24 and sells them for $30.
Suppose he sells five a week, among 150 packages of various items,
each with a $6 markup. That's $900 a week for pay and overhead.
It's $30 from this item and $870 from the 145 other packages.

Suppose somebody at the Norton factory will sell him 50 QC rejects
with hairline cracks for $2 apiece. Suppose he has a sale at $26.
Online shoppers choose him and sales rise to 10 a day. Now the
markup is 10 x 24 x 5 or $1200 per week for that one item. $1170
of it is an increase in his profit.

If the customer thinks it's not the vendor's fault because it was
inspected and well packed, each customer immediately orders a
replacement. This time a good one is sent. That's 50 a week at $6
markup adding another $300. In one week the dealer's profit
increases $1470 from selling 50 rejects.

He shipped 245 packages, of which 50 contained rejects. So well
packaged, perhaps 49 arrive in one piece. Nothing on his website
said they were fragile, and the warning note was tucked out of
sight. The only thing that alerted me was the unexpected FRAGILE
stickers on the package. If it breaks during installation or in
use, the customer will probably blame himself. After all, the
warning said the absence of visible breaks was supposed to prove
there was nothing wrong.

Out of the 50, suppose 3 call UPS. That's about 1% of the volume
the vender shipped that week. The vender increased his profit by
$1470, but will UPS investigate?


What to do is obvious. It's up to the shipper to pursue the claim with
UPS. Send them an email telling them that. And notify the credit card
company that you are disputing the unauthorized charge for the second
item, as well as a refund for the first legitimate transaction because
the item was returned.


The day I received the defective item, I told the vendor I could
buy one locally and I notified UPS. The vendor later asked if I'd
filed a claim. I said yes, but he didn't offer a refund.

So far he has not charged my card for the replacement I had asked
him repeatedly not to send. I suppose UPS has paid him for my
claim, and he finds it more profitable to send me something I don't
want than to refund my payment.