They may not actually charge the card - but they can put a "hold" on that card for the purchase amount to make sure when they *do* charge the card the funds will be available. And, in that case, it has *effectivly* charged the card as the purchasing power of the card is reduced by that amount.
The point was that they are using this to finance their operations. Putting a hold on the credit card does not finance their operations. It lowers your limit for sure, but doesn't cost you interest. Anything that curbs the ability to buy large amounts of woodworking equipment may actually be a good thing :-)
-Jack
I went through the same thing with my bandsaw. I know it is hard to wait after you have made the decition to buy an item like that. However, I kindof understand why it happens. Predicting demand for an item not easy and if they overproduce they get stuck with too much inventory and can run into finacial trouble.
I just weighed the delay against the cost savings and I am happy with my bandsaw.
Rob
Anything that curbs the ability to buy large amounts of woodworking equipment may actually be a good thing :-)
did my wife pay you to say that?
You sure? with the authorization on hand, they don't have it on their tab, so no cash flow problem. I thought that was the way all these net merchant drop ship places worked.
George,
Their catalog states that you won't be charged until a back-ordered item ships.
-Jack
"edfan"
Seems 11 gallons at only 115 PSI is a design flaw, IMO, especially with such a high volume pump on it. This thing is going to cycle on and off like a pogo stick - unless all you run off it is a stapler.
I would find another model. A tank 2-3X the size isn't going to substantially change your footprint.
- Nate
Grizzly doesn't produce anything. They are importers. Predicting sales and maintaining an appropriate supply when the items are being shipped by ocean freighter from Asia is difficult.
-- Jack Novak Buffalo, NY - USA
My experience with Grizzley was quite pleasant. I ordered a bandsaw (G0555) on Monday 7/8/03 and picked it up at the trucking dock on Wednesday 7/10/03. Hard to complain about that. I can and do, however, complain about the service (or lack thereof) from Harbor Freight.
WoodChuck
Nope. Until they actually charge the card, you don't owe the credit card company a penny. You've financed nobody. Unless you're living beyond your means, whatever effect the hold has on your credit limit shouldn't be a big deal.
I'm not sure of the legalities, bit I don't think they can charge until shipped.
OTOH, by putting a hold on that amount they tie up your credit and guarantee they will not get stiffed if you buy new kitchen curtains instead of a table saw when it finally is time to ship the product. .
Another factor is the bank lending money. They may have millions in cash, or may be strapped. I have no idea and anything I say is pure speculation. They can go to the bank and show they have $XXX on hold and borrow a percentage of that to pay their supplier. There are many possibilities, all legal. Ed snipped-for-privacy@snet.net
Hello-
Well I can share some thoughts as an owner of a mail order corporation, maybe that will help.
In my trade (mail order jewelry) it is fairly common practice to require either complete or partial payment for special order items. For example a diamond solitaire. However it is also expected practice to check with ones vendor for availability before accepting the customer's money. I assume that the item you want to get is not special order as they have it listed in their catalog.
If they are collecting and holding customer money for months on end that's called preselling. Its unfortunately common among small mail order outfits as a way to collect enough to make their vendors minimum. Just like Costco or Sam's Club stock is cheaper when bought in bulk and those wholesale discounts are very tempting. Preselling is very frowned upon by folks in the mail order trade. Mostly because the enumerable bad buying experiences that the clients have make all mail order companies look bad. And none needs bad press.
If they are simply encouraging you to place a back order but not charging the card until they actually ship then that's just like a waiting list. One vendor whom I have a 10 yrs relationship with does this occasionally. But they call me when my back order arrives and have me verbally authorize a charge on my card if I still want it and they also waive shipping charges for back orders as a way of thanking me for waiting.
What I find odd though is that Grizzly seems so hazy on when their shipment will arrive. No vendor I have ever worked with has ever not been totally accurate with the expected arrival date of a shipment. Perhaps its a case of their vendors supplier being out of stock? That's my best guess. Of course if my vendor pulled that on me they would no longer be my vendor.
That said I have never ordered from Grizzly's mail order catalog. I live about 3 minutes walk from their main office so I generally nip down to their show room. Perhaps I should walk down and see if they have a compressor on the floor?
Amy
===================================================== For great deals on fabulous jewlery and gifts check out
no retailer is allowed to charge to the card until it is shipped. If you have such a charge, notify the card company and have them reverse it.
On 23 Jul 2003 09:14:53 -0700, snipped-for-privacy@earthlink.net (edfan) pixelated:
-snip- Want some cheese with that whine? ;)
Not to worry. It's illegal to charge the card until the product is shipped.
What happens is that they preorder 250 pieces of item X and the factory QA man lowers the output to 227 before they're shipped. The ship takes a month to get around the world and they probably have a dozen loads on different ships throughout the month.
Let's say those item X things go on sale and the 227 they just received are out of stock in the first week due to 289 orders. They now have 62 backorders. The next shipment of 50 is due in next week but all 62 people have been given the 4-6 week delay notice. 30 don't want to wait and drop their orders so your item X is on its way to you at the end of the very next week.
That's what happeed with my order. I called in on Friday and was given the 4-6 week backorder info. The shipping company called the very next Monday and asked to set up the delivery, complete with lift gate and everything. I had it on that Wednesday. What happened to my order? Someone ahead of me cancelled, or they got more of the items than they thought in that order, or a large company cancelled their standing order for x number of items that month.
In any case, it all works out. Have faith. In the interim, pick up a $99 Chiwanese special at HFT and sell it for $140 once the real compressor comes in.
---------------------------------------------- Never attempt to traverse a chasm in two leaps
Amy notes:
Not what they're doing. Simple backorders.
I'd bet that Grizzly's suppliers aren't that precise on delivery dates, leaving Grizzly up in the air. There are several variables involved that are not involved in smaller businesses selling smaller items that can be readily warehoused without great cost. Warehousing larger tools is expensive as all get out, which is why most manufacturers use what has come to be called "just in time" ordering from their suppliers, and ship on the same basis to their buyers. That does mean, though, that companies like Grizzly have to deal with the vagaries of overseas (Taiwan and China mostly) suppliers, who then ship by sea, where schedules are rearranged by delivery point availabilities (check out last year's West Coast dock strike) and weather, as well as load sizes and the need for the ship to make other stops to fill its holds.
And where do you go when your supplier is one of maybe 3 in the world who produce the machines at a price you can use?
Charlie Self
"If our democracy is to flourish, it must have criticism; if our government is to function it must have dissent." Henry Commager
Yep, that's pretty much what I was thinking. The authorizations from the card companies become a sort of line of credit for them with the actual wholesaler/importer. Might even extend to other banking operations, if they are an accounts receivable asset.
Which, Jack, is how they can operate on a scale much larger than their means - there is no cash flow problem. THEY never buy anything, merely take a commission for selling on the others' behalf. When they charge your card is also fairly immaterial, as it's when you actually _pay_ that the game becomes more than an exchange of promises in the largest sense.
speculation.
Yes. Sorry I've worked in POS pretty much all my life.
Not true either. I personally have the CC company put a set limit on my card. So an $800 hold definitely can be a "big deal" (or at least an inconvenience) - even without living "beyond your means". In fact, one
*could* argue that those that are living beyond their means are the ones that may be least affected.Now as far as using as a tool for financing - I never made that claim.
Sure George,
If they can eliminate cost of inventory, so much the better for them and for you. Why pay someone to buy something, store it and then sell it to you? I'd hardly call it operating much larger than their means though. I'd also be pretty certain that whatever terms they have with their supplier are not completely dependent on them putting a hold on your credit card.
-Jack
I'ts *illegal* in the U.S. to charge the creditcard _before_ the date the item is actually shipped.
Sorry (not!! :) to blow your conspiracy theory.
This _is_ what happens when stuff is imported by ship. long delivery times are unavoidable.
FALSE TO FACT.
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