How do I check an appliance store’s floor model and open-box stock?

These units are easy to overlook, and they tend to collect problems. A floor model may have been handled by hundreds of customers. An open-box unit may have been returned for a reason nobody wrote down. Ask the seller to explain how each category is defined.

Pick a handful and examine them closely. Open doors, check racks and trays, test controls and look for dents or missing manuals. Ask whether returned units are tested before they go back on sale, and by whom.

Warranty is the next question. A unit with an altered warranty must be sold with clear words about it. Ask how the store describes these units to customers, and how complaints have been handled. Last, compare the list against the books. Are these units valued separately from new stock? Is anyone tracking how long they have sat? Your accountant can say how they should be treated at closing. Aged units often point to buying or pricing habits worth discussing with the seller. Ask who may sell these units and who approves a markdown. When prices are set by habit or by whoever is on the floor, margins can slip without anyone noticing. A clear rule, even a simple one, shows the store is managing the category.

Key takeaways

• Get a unit-by-unit list with serial numbers, age and reason for being set aside.
• Test a sample and check the warranty status of each unit.
• Compare the list with the inventory records and note how long units have sat.