larossmann

Here's an interview I did with National Review where I discussed this topic. I'll include the exercpt that applies to your concern below. https://www.nationalreview.com/2020/07/a-computer-repair-exp...

"So one example of what Right to Repair is not: The European Union, I believe, was looking to mandate that Apple use USB-C instead of Lightning, because USB-C is a standard and Lightning is not a standard. I don’t want people to think that has anything to do with Right to Repair because it doesn’t; that’s completely separate. I’m not looking to tell Apple, “You need to use this type of charge port. I want you to use micro USB. I want you to use USB-C. I want you to use this.” No, what we’re saying is, regardless of what you use to charge your phone — you could use a banana to charge it — just give us access to be able to purchase that charge port so that if the charge port in the phone breaks, we can fix it for customers rather than tell them, “Your phone is now a brick.” So I think that is a good example of what Right to Repair is not: We’re not looking to say, “You need to use this port. You need to do this.” Just don’t intentionally lock people out of the ability to fix it once you’ve chosen how to design it."

-------

Right to repair has a fine handle on what is being advocated for, and it is spelled out in the legislation. I don't think people read it though. In the EU, it is different than in the US. I do not support legislation that forces design choices on modularity or using specific ports. That's EU Right to Repair, but I have no business on that since I don't live there.

US right to repair is about making things available. Use microUSB, USB-C, mini-usb, parallel port.. so long as it's made available for purchase to repair shops/users.

An oscilloscope is a waste here besides for teaching purposes where a visual representation of what you're trying to get across eases understanding. Logic analyzer is over the top too. It's one of those things where by the time you understand the output of your logic analyzer, you already have enough of a brain to solve the problem without it

I can give someone who doesn't know how to fix a board in an oscilloscope and they will see strange little vibrations show up when they poke the probe in different parts of the board, but then what?

>I’ve never known a mac repair shop to do anything other than replace the whole bosrd.

I'm definitely firing my marketing guy...

That depends, are you a collections agent or process server?

>Refund rates that fall substantially above 5% are almost always tied to business quality - and those business SHOULD pay. Seriously, if you are refunding 20% of your business you need to look carefully at how you acquire business - stripe is not driving folks away from doing stuff online - you may be.

Do you know how often I have people buy something and then call me only to let me know they may have bought the wrong thing?

If you ISL6258AHRTZ & ISL6259AHRTZ, your refunds are likely not due to "business quality."

If you sell NXP610A3B and NXP1608, your refunds likely don't "business quality."

They reflect reality in a world where most people aren't savants with random long strings of seemingly meaningless letters/numbers that make up product codes for chipsets.

I used to employ a competitor in this field. We have taken different approaches to obtaining customers, and in setting up our respective online stores to be as simple as possible - to try and inform people what fits what even if they don't know what they are doing.

But lots of people don't read, then they buy things by mistake anyway.

>While refund rate of course is not definitively coupled to the quality of a business, we do see across our portfolio that it is strongly correlated. Given a basket of possible fees (for example, higher fees on Amex, which most other providers have), we prefer the fees that, on the margin, are least consequential for the businesses that are doing the best job of serving their customers.

What metrics are being used here to judge the quality of a business? How is whether a business is "quality" or not being judged by a credit card processing provider? What information is obtained to make judgments according to these metrics?

I've been in different online and in-person businesses. Some businesses have low refund rate with poor quality, others high refund rate with fine quality. I can say with certainty 100% of the refunds I gave when people sent back a product that was not the product I sent them(or even a product I sell) after they filed a chargeback had nothing to do with the quality of our business - the only thing the merchant would have access to is a he-said-she-said list of jpg files and ranting paragraphs. Hardly fitting information to judge the quality of a business on.

Honestly, I've looked as Stripe's offerings - I pay 2.15% right now with 40/60 online card not present/in-store card present and refunds are free. How is it with a 2.9% fee that people who rarely refund their customers have to pay the fee for those customers for the model to make sense? I'm not asking Stripe to match the fee of a large bank - but can we not charge an additional .7 percent and then say "it has to be done so we don't lose when people refund?"

This is outside the greater implications of this policy - if more merchant services take this on, we will be left with a world where only Amazon, eBay, and Walmart can offer "cancel" buttons on their site. Who will want to do business with small businesses if even something as basic as hitting the cancel button incurs fees?

If I buy a TV, or an ultrasonic cleaner, or a stereo, or some furniture from a small business vs amazon and I mess up something in my order, I have to pay a $45 fee - but when I buy it from amazon, I don't? Screw them, I'll use amazon.

If this is adopted by every single business, it will be just one of many factors that pushes customers in the direction of using Amazon over small businesses. It's hard enough competing with trillion dollar companies as is without erroneous fees being added in that were outside the overton window of business discussion 10 years ago.

To be clear, I have no problem with people choosing to make purchases from Amazon. I do have an issue with the industry slowly adding barriers to small businesses having the ability to compete on a level playing field. I'm all for them earning a good reputation, but we shouldn't be working to put sour tastes in the mouths of every customer who f'd up and made an order in error with someone that they will not have with a larger company.

Billing the vendor for refund fees is the biggest gripe I have. It is not only for the self-centered reason that it would affect my business – it is because it contributes to the consolidation of ecommerce to only a few select companies. It adds friction to consumer transactions with small businesses, causing consumers to become aggravated with these small businesses. It conditions consumers to believe it is easier to deal with large businesses that always seem to have a "cancel" button and easy-order-cancellation policies, opposed to the small businesses that just seem to make things hard and expensive for no good reason. This will contribute to the consolidation of ecommerce to a small number of multi-billion dollar players like Walmart, eBay, Amazon, etc. Allow me to explain:

If someone makes a purchase of a $1500 ultrasonic cleaner from me, and then realizes they made a mistake, I now have to tell them there’s a $43.50 restocking fee, even if they call me 2 minutes after they place the order. This will leave a disgusting taste in the customer’s mouth, but I have to do it, because I can’t expose myself to a $43.50 fee for something I have zero control over. That customer may eventually notice that Amazon, eBay, Walmart, etc, do not charge such a fee. The customer has no idea why – they just know dealing with Amazon means less friction. The customer will now utilize Amazon more.

Many will say that this is a dumb gripe. “If you don’t like it go somewhere else!” PayPal instituted this policy as well. They backed down temporarily after people made a stink about it, but months later continued forward with the policy. I currently use a merchant services provider that does not implement these fees, but for how long?

My time in my industry has taught me that companies will often wait for one “outlier” to make controversial reforms to their platform/products before doing it themselves. Whether it is gluing the battery inside of a cellphone, or adding strange fees to transactions. Once a profitable, anti-consumer move succeeds with the company not going out of business, it emboldens other firms to do the same.

My merchant services provider doesn’t charge this fee. Yet. But they saw Stripe charge it, and get away with it. They saw PayPal charge it and have another more profitable quarter. The outrage lasted a week, the increased profit lasted forever. “Gee, it isn’t a business killer after all. Maybe we should do it too!” will come up in corporate boardrooms across America.

Then, we’re left with a landscape where the only companies left in ecommerce who can offer customers friction-free order cancellations are Amazon, eBay, and Walmart. Who wants that? Yes, people can say “just absorb the fee if you don’t want your customers to be mad at you.” How? I am already competing as a dude with no outside financing with a trillion dollar company – I’m winning if I am making any sales at all! Now I’m expected to compete on price when I have to absorb fees when customers cancel an order?

Let’s say you manage to claw your way into a market by offering a better product, or after sales service on that product to the point where you can compete with Amazon. That is a miracle in and of itself. To then have to deal with a minefield of additional charges that your competitor doesn’t have to is just another nail in the coffin of small-business ecommerce.

I find it awful, and I protest using these services. I cut my exposure to paypal by about 95% and dodged a bullet in not signing up for stripe. I suggest the same to my listenership anytime someone brings up or mentions a merchant services provider that I know charges this fee. Even if they say it won't affect their business much because they do not deal with lots of cancellations, it is the greater implication I make them aware of. No one wants a market where the only companies with a free "cancel order" button on their site are eBay and Amazon.

Scott Galloway also has a lot of excellent content with arguments on breaking up Amazon. Whether or not one agrees with his solutions or assessments of the problems Amazon creates and how to fix them – it is clear that they are dominating the race. I am not suggesting that we hold Amazon back – just that we don’t purposely trip companies doing their best to keep up.