Wednesday, August 31, 2011

NumBytes 55: Slimy Irene 'Rentals'

Sitcoms and TV movie plots often hinge on a something for nothing scam of varying deviousness. One oft-used plot device finds a middle-class woman buying an over-the-top-of-the-line gown, leaving the pricetags on with the intention of returning it, only to spill wine on it or tear it or whatever that foils her free rental scheme.

Along comes Hurricane Irene, sparking a frenzy of gas-powered generator sales at Wal-Mart, Lowe's Home Depot, and other stores. That's great for business. However, according to an article in the Wall Street Journal, retailers expect many of these desperate customers to return them now that storm has passed -- a practice called 'weekend rentals.'

Mom-and-pop retailers are mostly prohibiting returns, while many chains accept returns but will charge a cleaning and restocking fee if the generator was used.

On the positive side for retailers, many who did not have generators during the emergency come in to buy them in preparation for the next hurricane, nor'easter, or storm.

Given that climate change is producing wilder weather, customers in the northeastern US may want to look to Floridians -- who know a thing or two about hurricanes -- for advice on generators. Generator maker Generac Holdings, Inc., whose units are sold in Home Depot and Lowe's, asserts 2% of Florida's single family homes have backup power systems -- one of the highest rates in the US.

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