‘I want my money back’

December 14, 2010 - 8:07 PM by · Leave a Comment
Filed under: A New Reality, Business, General, Israeliness, Life, News 

It may be difficult for readers from Western countries to fathom, but until today, you couldn’t return a purchase you made at a retail store and receive a cash refund. Businesses here have always been infamous for offering either another product in exchange, or a ‘zikui,’ a credit note good for exchange of something of equal value at another time. But nobody’s ever offered cash if you decide you don’t like something.

But finally, six years after the Knesset passed it, a law has gone into effect that enables Israeli consumers to return almost all goods back to a store within a specified time period for a cash refund.

Of course, this being Israel, there are some catches, according to the report on the new law in The Jerusalem Post. The main one is that there’s a five percent cancellation fee, meaning that if you paid NIS 100 for something, you’ll only get NIS 95 back.

In addition, the item must be returned with 14 days of purchase, the item must be valued at over NIS 50, and the return will be granted in the same way the purchase was made (cash, check or credit card).

Other stipulations include more stringent regulations on returning apparel and footwear, allowing money-back returns only within two business days, and only if the items bear the original tags and were not worn.

The return of electronic devices carries a 10% or NIS 100 cancellation fee (whichever is lower) if the packaging was opened.

The law does not apply to underwear or bathing suits, nor food, medicine or foreign-vacation package cancellations. The law will apply to hotel reservations, mobile phone plans and gym memberships, with the retailer required to return the value of the unused portion of the service plan, minus a cancellation fee.

Some businesses here, like FOX and Super-Pharm have already voluntarily been allowing cash refunds on their products, but most stores are undergoing a crash course in learning the new regulations of the law, which Knesset’s Economic Affairs Committee chairman Ophir Akunis has called a ‘consumer revolution.’

It sounds great for us disgruntled consumers, but I can just imagine the fights and arguments that are going to take place at some establishments which aren’t so eager to part with their old ways. Plan to leave some extra time on your next shopping excursion.

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Cash back (with a few catches) finally coming to Israel

October 10, 2010 - 1:16 PM by · 2 Comments
Filed under: Business, Immigrant Moments, Israeliness 

Cash back at the register?

I recently bought a pair of jeans at the Israeli outlet of The Gap. The jeans are nice – nothing special, standard Gap issue – but that wasn’t the reason I chose to patronize the store. It was The Gap’s 30-day money back guarantee.

Now that might seem like no big deal for readers living outside Israel, but here in the Holy Land, it’s a near revolution.

Except at a very few progressive retailers, every sale is final and the best you can expect is “store credit.” It was for that reason that I recently ordered a pair of hiking boots online rather than at the trekking and camping store at the mall in Jerusalem. At the U.S.-based Zappos.com, you can return the shoes for up to a year, and they even pay for the postage. U.S. clothing retailer Lands End one ups that and will let you return items anytime, even if it’s three years (or ten) down the line.

All that is set to change on December 14 when Israel implements new consumer protection regulations that will make getting your money back a reality…with a few strings attached, of course.

To qualify for a cash-back return, the item must be over 50 shekels. You’ll get your money back in the same way you paid (credit card, cash, check). You’ll have only two weeks for most items and only a paltry three days for shoes and clothing (will The Gap change its 30-day policy once the new law goes into effect?) Underwear isn’t covered (thank God). And, oh yes, canceled deals will cost the buyer 5% (10% or NIS 100, whichever is lower, for electronic items if you open the packaging).

You’d hope that Israeli retailers would welcome providing better customer service. But then you’d be wrong. The Jerusalem Post reported when the law was proposed over the summer that Uriel Lynn, president of the Federation of Israeli Chambers of Commerce, declared that the regulations would cause the public to behave irresponsibly instead of “educating” them toward smart consumerism.

In other words – being a “smart” consumer means making a decision and sticking with it. Good advice if it’s coming from your therapist but not from your local appliance outlet.

The Post also quoted a gift shop owner who whined, “It’s a hassle. People will begin fighting over every product. I don’t rent out products, I sell them.”

I really want to buy blue and white. But it seems we still have a ways to go before we truly catch up with the “old country.”

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You Day

October 28, 2008 - 1:26 PM by · Leave a Comment
Filed under: General 

The anticipation and excitement began already last week, even while we were celebrating Sukkot – an exciting enough event on its own, if you ask me. But when that letter came, we just started counting down the days – and then the hours – to Sunday.

Why all the excitement? You Day!                  youday.jpg

So what’s You Day, you ask? Only the best day of the year to go shopping! You Day is the reward for us loyal customers who frequent a local “big box” supermarket all year, buying groceries with their You Card branded Diner’s Club debit card. The previous two times the store ran You Day, there were great bargains to be had – so much so that by the time me and my Significant Other arrived, they were out of half the sale items!

Well, this time we weren’t going to lose out – so bright and early on Sunday morning, we shlepped down to the store to take advantage of the bargains. And what bargains they were! Would you believe half-price – on a whole bunch of stuff we actually use! And unlike the usual requirement to get deals at this store, there was no minimum purchase of non-sale items required. Just free and easy shopping for a whole bunch of half price items! The only limitation – you could purchase just two of each item. Fair enough – and for us, not a problem, since my SO had her own You Card. So we were able to get four of each item!

Now, I’m no fool; I know how sales work (in Israel, the U.S., or anywhere). Loyalty program or not, nobody is giving away anything for half price. So you expect a little pre-sale price inflation, where the store raises the price on items and puts them back “on sale” – so you end up saving less than you expect. And You Day prices were no different, although I have to say some of them were genuine bargains (except for the instant coffee, where they basically doubled the price, so you would end up paying the “normal” price in the deal).

And so we shopped. And shopped some more. And when it was all over, we took our purchases up to the cash register, and watched with great satisfaction as the printout listed an item, a price – and a 50% discount!

There’s a theory about grocery shopping that says how sales and bargains, no matter how good they are, are basically a consumerist ripoff. Just walking into the big supermarket with the bargains means you’re going to end up spending more than you planned; far better to do your shopping at the not so cheap and much more limited neighborhood makolet (grocery store). The bigger the bargains, the more you end up spending, buying stuff you don’t really need.

But does that theory really apply when almost all the items in your shopping cart are half price? Did we buy items we didn’t need? I’ll admit it; we bought four of almost all the sale items, including things we didn’t buy on a usual basis (because they’re usually too expensive!). So, in one sense, it was a good day for bargains – but on the other hand, the makolet would have helped keep spending down. I guess the strategy works – even with all the bargains, we still spent nearly 1,000 shekels between the two of us, the second highest amount we have ever spent in any “walk down the aisle” at a supermarket!

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