The Point of No Returns
Choose Well
Published: 9/28/2022
By: Andrew Neyer
What if we actually had to pay for our mistakes? This idea sounds silly, but think of everything you returned (or wanted to return) last year. Everything you overbought with "free shipping" now needs to travel back to the vendor (and not get damaged in transit). Then, since you decided you didn't want it and would prefer the money, you half-pack it up and send it back.
Now, think of the true costs of "returning" all those products. Whenever you return a product, it will always be more expensive than it was to stock it the first time. In addition, there is a high risk of defects; in some cases, the product is entirely unsaleable even though there was a complete reimbursement. Welcome to the wasteful land of retail.
"In the US, an estimated 8–10% of in-store sales is returned, whereas online sales may result in 25–40% returns. In Asia and Europe, less than 5 percent of purchases are returned. US shoppers returned $396 billion worth of purchases in 2018" – Wikipedia
Most retailers have created overly gracious return policies to encourage the low stakes in buying extra j𝘶n𝘬 you don't need. If they play their cards right they hope they can increase sales without bleeding it out in returns. Unfortunately, what happens due to these lax policies is that it often attracts the wrong customers to the wrong products. It turns out we tend to be more wasteful when we don't have to pay for our mistakes.
Bill Burnett, the Executive Director of the Design Program at Stanford, says,
"If you make decisions reversible, your chance of being happy goes down 60 or 70 percent."
His solution is to "prototype everything in your life before you jump in and try it."
This approach shows up in our daily lives as planning meals in smaller grocery runs to test if we're getting a high yield from the produce we buy, or doing the laundry before we go shopping for more clothes. Spend more time on research and maintenance vs. trends and discount-hunting. Retailers can help relieve the problem by having better product guides, proper photography, and accurate dimensions. Fewer, better-made products would also go a long way (less revenue doesn't always mean less profit. Little to no returns is a sure route to more profit.)
We should invest proportionally to our strategy. An expensive mistake can be avoided by thorough research and good counsel. Trust your friends to share their product reviews and experiences over randos. If you receive an ad to buy something, there's a good chance the vendor needs to sell it to you more than you need to buy it.
The things in life we can't exchange, we tend to value more. When we accept what we have, we better grasp reality.
Challenge yourself to a week of NO RETURNS. This decision means you must finish eating everything you put on your plate. You can't take back the cranky tone of your voice just because you're "tired" (we all are...get over it, mate!). You gotta eat all those leftovers you put in the fridge. Don't change lanes on the highway until you need to exit. Try to jump over a puddle that might be too big, and don't change your wet socks if you fall short. Put on a random LP and play both sides. Whatever you choose, follow it through and take on the expense yourself.
Context
Bill Burnett’s TEDx talk
Thoughts
– What do you wish you could return?
– Who pays for your mistakes?
– Why are you crying?
