Internet Retailer "Cyberguys" Honors $28,000 Pricing Error
Rancho Cordova, CA, Oct 08, 2013 (PRWeb.com via COMTEX) --
Recognizing greater convenience, selection, options and competitive pricing, research indicates over 27 percent of the world's population now shops online. This number increases substantially during the holidays, where over 55 percent of U.S. households buy through online retailers.
To remain competitive, many "bricks-and-mortar" businesses are now offering their products and services online, in addition to their traditional retail establishments - creating a wonderful opportunity to increase their market share, expand customer bases, and exponentially increase sales. That is, when the digital marketplace is functioning correctly - and anyone who has ever owned a computer or cell phone knows, glitches happen!
Unlike the "bricks-and-mortar" retailers' ability to catch pricing errors or other sales problems quickly, thousands of online retail orders can be processed in a matter of minutes, before the retailer/company is able to detect problems or mistakes. Such innocuous errors or glitches within thousands or millions of pricing databases, may initially draw absolutely no attention from the retailer - until the small data problem results in spectacular sales losses, such as United Airlines accidental $5 airline fares in September, 2013 (reported by the Associated Press, among others: http://www.huffingtonpost.com/2013/09/12/united-website-down_n_3915931.html), and Techspot.com reported that Dell Computer's computer error ultimately allowed the sale of 19-inch LCD monitors for only $15 each (http://www.techspot.com/news/35297-dell-accidentally-sells-19-inch-monitors-for-15-in-taiwan.html).
Sacramento-area based catalog and web retailer Cyberguys (whose parent company E-Filliate, Inc. provides "Tech & Go!" mobile technology accessories to Walgreens), was recently the victim of such an error when an incorrect price list data file was submitted to its Amazon.com storefront.
In the course of just 70 minutes, nearly $28,000 in sales was recorded. Computer hard drive units that were normally priced at $300, had been purchased for only $3. Computer routers worth $1,300 had been purchased for only $13.00.
Cyberguys' leadership was then faced with a very difficult, and very costly, decision - honor the orders and absorb the substantial loss to their bottom line or cancel the orders and potentially offend the customers who thought they had just found the deal of a lifetime.
Legally, companies are not obligated to honor obvious pricing or mechanical mistakes, whether in print or online. And many do not honor the sales. For example and according to military newspaper, Stars & Stripes, in 2011, Dell Computers chose not to honor an advertisement for a $25 laptop - one that normally sold for $1,000 at the time. Dell's customers flooded the company with complaints, in part because the advertisement was targeted at Army and Air Force personnel - and Dell chose not to honor the price during the holidays (http://www.stripes.com/news/an-aafes-laptop-offer-too-good-to-be-true-1.164335).
According to consumer news site, "Tomsguide.com" (http://www.tomsguide.com/us/Best-Buy-HDTV-Price,news-4438.html), and other news sources, in 2009, popular retailer Best Buy experienced substantial backlash for canceling orders for a $1699.99 television. Disappointed consumers accused Best Buy of "bait-and-switch" tactics - even though the advertised price for the television was less than $9.99.
For Cyberguys' leadership, the decision came easy. The company chose to absorb their $28,000 loss and honor the customer sales and in spite of the database pricing errors.
"We would not consider doing anything else but honor the price advertised," states Wes Sumida, Chief Executive Officer, Cyberguys and E-Filliate, Inc. "We can't fault our customers for a mistake we made. Ultimately, our team recognized that computer glitches and errors that impact income are just costs of doing business on the Internet. We are fixing the problem and honoring the sales. And we hope our customers remember us in the future when they are ready to buy again."
For more information regarding Cyberguys, Inc. or E-Filliate, Inc., please check: http://www.cyberguys.com, http://www.efilliate.com, or call: 1.800.892.1010.
About E-Filliate Inc.
E-Filliate Inc. is a wholesaler of mobile-tech accessories under their brands "Tech&Go," and "GoGo Tech." Its retail brand, "Cyberguys," is a popular multichannel retailer of hard-to-find computer and tech accessories. First established in 1987, Cyberguys is well known for its direct-mail catalogs and online store featuring unique, fun, and reasonably-priced accessories.
For further information: Drisha Leggitt (916) 206-2553 or Drisha.Leggitt(at)Possibilitymediagroup(dot)com.
Read the full story at http://www.prweb.com/releases/2013/10/prweb11206838.htm
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