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 :-)
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
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.
Then you, of all people, *should* understand the difference between a 'hold'
and a 'charge'.
The card has _not_ been 'effectively' charged, since *NO*MONEY*CHANGED*HANDS*.
You are -not- incurring interest charges, nor are the 'free' days running.
You have made a _commitment_ to pay, those funds _are_ marked as *commited*,
If the limit is set low _at_your_request_, and you know you're going to
have a big 'hold', *you* can ask the CC company to _raise_ the limit on
the card, even _temporarily_, by the amount of the 'hold'. Voila! No
more problem. All _you_ have to do is 'plan ahead'.
If _you_ are managing your account limit, then you *are* responsible for
managing your account limit. You _know_ how the industry works. *USE*
your knowledge. <grin>
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
I just weighed the delay against the cost savings and I am happy with my
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.
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.
Actually a better question would be - Do you bill the credit card at time of
order or time of shipment?
Most reputable companies will only bill the cc at time of shipment.
As for the delay - remember they are shipping from Taiwan or China via ocean
freight which is around 2 weeks+ depending on the route the ship takes,
Well, so far, after several weeks, the answers to questions about
availability add up to: "No, we don't have any and as of last Friday
or so, we sorta might think of dreaming of getting one or two
delivered by, say, the end of October, or maybe not, since the
manufacturer seems to be having trouble of some sort. Back order list?
I don't know about that."
All of which adds up to a story that Grizzly has told before, IMHO.
Bluntly, I've not had that problem with, say, Rockler or Woodcraft or
any other major mail order dealer.
If they do NOT have something in stock, I don't know that they're
reliable about predicting when or if they will ever get any particular
widget again. Waste of time. Look over old Grizzly threads. Reports go
back years and years.
Their catalog states that you won't be charged until a back-ordered item
If they charged me before the item shipped then I would call them and tell
them to remove the charge. I might even be mad enough to send a note to that
president of theirs who seems to be quite fond of himself. What I wouldn't
do is bitch and moan about it until this actually happened.
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.
If they can eliminate cost of inventory, so much the better for them and for
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.
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.
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?
On 23 Jul 2003 09:14:53 -0700, email@example.com (edfan) wrote:
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