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Refunds in Hotels


gelaro

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I read some of the other refund questions and I wanted to ask more specifically about hotels. I have one hotel that has a large number of refunds ... more than is reasonable given the amount of money in the machine vs. the stock. It is a reliable machine and I have several dozen other machines and hardly ever get refund requests. The guy I bought the account from said that he thinks people in hotels find out they can game the system by requesting money that the hotel will pay without asking questions.

I am considering putting a sign on the machine that no refunds are given. Or put a sign that the hotel does not give refunds. If you have a problem with the machine to contact me directly at email or text. 

What is the view of some of the more experienced operators here? These are transient guests rather than regular users so I am not worried about repeat business. 

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5 minutes ago, winning123 said:

I'd consider a product sensor.  Sort of like in those AMS vending machines. 

If he knows what he's saying, then there isn't enough product coming out of the machines to justify the refund amount.  If you collect $100 and refund $10, then there may be a legit problem, but if you collect $30 and refunds total $15+, but no one can reproduce the problem, then that's just suspicious.

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This was a machine that was broken into by drilling the lock. Which means that someone stood in a hotel lobby for upwards of 30-45 minutes drilling out a lock. My guess is that it was an inside job. I can't imagine that going on for that long and no one noticing it and saying something. So it could be the employees. I hadn't of that with respect to the refunds.

Which is the better way: "No refunds given; use at your own risk" or "Contact me directly for refunds" (which means writing checks and mailing them out). I like the first idea but wonder if it will cost me business.

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I would consider dropping the account entirely if it's that bad.   How do they track the refunds they give out?  Are they required to fill out a cash out slip which the clerk and customer both sign?  I take the cash slips when I repay the refunds and keep them for future reference to look for patterns.  Talk to the GM and share your concerns; if the desk/ employees are stealing from you they are probably stealing from the property as well.  

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10 minutes ago, gelaro said:

This was a machine that was broken into by drilling the lock. Which means that someone stood in a hotel lobby for upwards of 30-45 minutes drilling out a lock. My guess is that it was an inside job. I can't imagine that going on for that long and no one noticing it and saying something. So it could be the employees. I hadn't of that with respect to the refunds.

Which is the better way: "No refunds given; use at your own risk" or "Contact me directly for refunds" (which means writing checks and mailing them out). I like the first idea but wonder if it will cost me business.

It most likely is an inside job. These things happen regularly. Just tell the front desk to not give anymore refunds. Put a sticker on the machine that states "for refunds call this number" or something to that degree

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2 minutes ago, AngryChris said:

 

If he knows what he's saying, then there isn't enough product coming out of the machines to justify the refund amount.  If you collect $100 and refund $10, then there may be a legit problem, but if you collect $30 and refunds total $15+, but no one can reproduce the problem, then that's just suspicious.

Gotcha.  But having that sensor and signage that states refunds instantly given  by machine if product fails to be  dispensed will shut them down.  No product......machine refunds instantly. They'd think twice about saying the machine took their money knowing the machine will refund if item is not dispensed.

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6 minutes ago, winning123 said:

Gotcha.  But having that sensor and signage that states refunds instantly given  by machine if product fails to be  dispensed will shut them down.  No product......machine refunds instantly. They'd think twice about saying the machine took their money knowing the machine will refund if item is not dispensed.

Maybe, but I wouldn't bet on it stopping this particular location.

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9 minutes ago, Magiccity726 said:

If you tell the location that you're not going to give them refunds, they will not give them. Maybe a label that says "hotel is not responsible for refunds". 

I think the idea of saying you need to contact the vendor is the best solution.  I would much prefer have someone call me up and tel me what's wrong than simply find refund slips at the front desk saying I need to give them money.

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Another thought, if the hotel is an independent they may go with the idea of not giving refunds; but most flagged properties are so sensitive to bad online reviews they won't ever argue with a guest over a small amount.  Do you pay these clowns a commission already?  If not, maybe offer them 5% if they agree to cover all the refunds out of that.  Gives them some incentive to cut the fraud (because now it's their problem), and gives you a number you can work/live with....

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Thanks for the input.

I don't want to lose the account. It is a decent account for me and I have no place to put the machines if I took them out. For me, this is a one-day a week business which provides a good side income for the amount of time I put in it. 

I think I will pay them the current refunds and then tell them that I will not pay any more to them. If they decide to give refunds that will be on them, not on me. I will put a sign on the machine that people need to contact me for refunds and I will handle them personally. When people call, I will tell them that I keep a good account of inventory in the machine and I can match that up with sales and if there is more money than inventory sold, I will give them a refund by check or paypal.

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I had a hotel account like this. Every few months the locks would be drilled out. Machines we being damaged and abused. Refunds we always out of whack with what was reasonable. Hotel accounts always are looking for a large commission .It did generate good weekly sales but it just wasn't worth the frustration. It was obviously the employees. Who caries a drill when they visit a hotel? Sometimes you just have to decide that you don't want to deal with crappy people even if you do miss out on some revenue.


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I have an unwritten policy.  If the account makes me miserable or gives me a lot of stress, I cancel it.  Most of the time, it's low-volume accounts that stress me out.  To think, I used to bend over backwards for accounts that did $60/week in sales.  Now, I want to expect at least $100/week in sales before I consider buying refurbished equipment.

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On 20/01/2017 at 2:05 PM, AngryChris said:

I have an unwritten policy.  If the account makes me miserable or gives me a lot of stress, I cancel it.  Most of the time, it's low-volume accounts that stress me out.  To think, I used to bend over backwards for accounts that did $60/week in sales.  Now, I want to expect at least $100/week in sales before I consider buying refurbished equipment.

Yeah, I notice that issues with higher volume accounts don't seem to be as stressful, not because I think they are any different, but there is more incentive for sorting them out. I hate the feeling like I am working for (next to) nothing. Six months ago I pulls three slow accounts when one of them had a refrigeration problem and could feel the relief once they were back in my shed. The reduced stress of slow accounts allows more motivation to go out and find good accounts.

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