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Home Brew Forums > Home Brewing Beer > Electric Brewing > Beware of Auber Instruments
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Old 02-28-2013, 02:08 AM   #11
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They already have their profit, don't they? In your example, the customer paid $100, and if you subtract the cost of the goods, that leaves Auber grossing $60 (before their other expenses come out of that). Now FedEx reimburses them the $40 for the equipment, so now they have $100 again, just like after the customer paid them but before they shipped anything, which means they're still making the same amount of money (less the cost of labor and materials for packing).

I'd be steamed, too. They're not just trying to make a profit; they're double-dipping.
Actually, no, they are not. In a real business if I sell a item for $100 that I paid $40 for wholesale, my profit is not $60. It's more like $5 - $10 after all of my other business expenses come out. This is why I do not ship with FedEx.

But you are correct about Auber - they should just ship the replacement and be done with it. Their loss in this transaction would just be another cost of doing business. So, instead of taking a small loss by shipping out the replacement parts they will take a $50 - $55 loss by refunding the customer's money. Not smart.
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Old 02-28-2013, 02:16 AM   #12
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Actually, no, they are not. In a real business if I sell a item for $100 that I paid $40 for wholesale, my profit is not $60. It's more like $5 - $10 after all of my other business expenses come out. This is why I do not ship with FedEx.

But you are correct about Auber - they should just ship the replacement and be done with it. Their loss in this transaction would just be another cost of doing business. So, instead of taking a small loss by shipping out the replacement parts they will take a $50 - $55 loss by refunding the customer's money. Not smart.
That is a smart business man right there!

I look at it this way- How often does this happen to them? I'd venture to say infrequently at the most (though I will admit that is a variable here, but I digress...) Assuming this is a rare situation, then a good business would eat the $50-55 loss as a customer service expense.

Instead someone gets mad and vocal (see: Talk, Homebrew) and they get lots of bad pub, that has already resulted in 2 people, by my count, saying they will not be using auber because of said situation.

I think the biggest point here is to treat every customer as if he/she had a platform to showcase shortcomings in customer support.

Hope this all works out for you!
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Old 02-28-2013, 03:28 AM   #13
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Actually, no, they are not. In a real business if I sell a item for $100 that I paid $40 for wholesale, my profit is not $60. It's more like $5 - $10 after all of my other business expenses come out. This is why I do not ship with FedEx.
Sorry, I tried to be clear that I wasn't referring to the $60 as their profit, just as the difference between retail and Cost of Goods Sold ("that leaves Auber grossing $60 (before their other expenses come out of that)"). I didn't mean to get into fixed expenses and the like, just that if FedEx reimburses them for the COGS, they have to pay again for materials and labor for packing, but their fixed expenses haven't changed. My apologies if I wasn't clear enough.
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Old 02-28-2013, 03:32 AM   #14
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No offense taken, I was just explaining what FedEx does and does not pay. Also, most people not in business do not understand the real cost of business.

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Old 02-28-2013, 03:33 AM   #15
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Situation noted, thanks for the heads up!

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Old 02-28-2013, 03:50 AM   #16
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Good luck with USAA they are pretty awesome and I have never had any issues getting them to refund money when a business won't. I'm also surprised at auber's ridiculousness, but some people dot think about the consequences of their actions before they do them. As was mentioned, people here may be less likely to shop and I take it since you have USAA that you are in the military, and screwing over someone in the service is never a good idea because they have a huge group that they can influence

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Old 02-28-2013, 04:07 AM   #17
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Did you pay with a credit card or Paypal? Contact them and they will reverse the charges.

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Old 02-28-2013, 04:19 AM   #18
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And I thought buying my components off of eBay was risky.

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Old 02-28-2013, 01:00 PM   #19
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Did you pay with a credit card or Paypal? Contact them and they will reverse the charges.
A big +1 to this. I try to use my amex whenever making an online purchase because of their incredible customer support.
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Old 02-28-2013, 03:41 PM   #20
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subbed. Will refer back to see how this turned out, before starting to piece together an electric setup.
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