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26 Av 5761 - August 15, 2001 | Mordecai Plaut, director Published Weekly
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NEWS
Observations: Used Appliances at New Appliance Prices
by Y. Barak

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."

 

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