Purchasing electronics and electrical appliance seconds and irregulars is
not what it used to be. It seems "sug beit," normally a mark of
disgrace, includes a variety of other products as well.
A new ordinance issued by the Industry and Commerce Ministry requires
appliance importers to write the word "refurbished" on every product that
has been returned to the manufacturer or importer after use by consumers
and then repackaged and sold as a new product.
The second time around these used or refurbished products have been sold at
full price to the unsuspecting buyer without informing him of the condition
of the "new" product he is paying for. Even used washing machines returned
by unsatisfied customers undergo a general overhaul and then are
refurbished, repackaged and resold at full price.
Last week a stop was put to this "resale" market when the Industry and
Commerce Bureau decided to require clear and visible labeling.
Shaul Zilberstein, managing director of the Trakline Electric outlet,
suggests that electrical appliances and electronics seconds be further
graded to alert consumers to the quality of the goods they purchase.
Zilberstein wants to divide seconds into three major groups: products
previously on display, products damaged during transport and products
opened at home and then returned by the customer for various reasons. The
first two types are not really "irregular" but are also no longer top
quality; the third type is much less common due to strict return and
exchange policies of the various companies.
According to Zilberstein, it is very simple to distinguish between a new
product damaged in shipping or taken from the display floor and one that
was renovated after use by the customer. A quick look at a washing
machine's detergent compartment reveals whether it has been operated
already, or whether it was merely brought back from the display floor. The
clothes compartment should also be checked to verify that it is sparkling
new. One cycle is enough to remove the shine from the tumblers.
With refrigerators, the smell can help tip off the dubious consumer. Even
when used for just a short time, a refrigerator will absorb food odors. "A
new refrigerator has a different smell to it," says Zilberstein. The art of
discernment is also relatively simple with vacuum cleaners, which will
never appear completely new after an initial use.
Detecting use becomes more of a problem with microwave ovens, which are
typically renovated due to defects in control panel electronics,
necessitating complete replacement. "Anyone who is not an expert will have
a hard time seeing any difference," says Zilberstein, "and therefore the
new law is particularly important regarding this type of appliance."
In terms of price discounts, Zilberstein says large appliances like
dishwashers, washing machines, etc., from the display floor or damaged in
shipping should be priced 20%-30% below the regular price, and used
products should be discounted another 10%. For smaller products, display
pieces should be discounted by 40% and used products by 50%.
Zilberstein estimates that 10%-15% of the general population purchases
these products. In the electrical appliances and electronics industry,
refurbished products comprise 10%-12% of small products and 8%-10% of
larger devices. Meanwhile there are entire families of products that have
not been caught up in this game: almost all air conditioners, for example,
are brand new, despite their tremendous sales potential.
Zilberstein describes the Israeli customer as "somewhat of a skeptic . . .
People are more sensitive to packaging and check more thoroughly, but the
consumer's trust in the manufacturer still plays a central role in the game
of buy-and-sell."
