Woolworths’ head-scratching maths fail

A BIZARRE dispute between Woolworths and a customer over just 70c has left everyone scratching their heads. How good are you at maths?

$10 off or 10 per cent off?

IT ALL started with blueberry muffins.

A bizarre dispute between Woolworths and a customer over just 70c has raised questions about the supermarket’s use of promotions and how it calculates refunds. Stay with us here ...

Last month, customer Andy* completed a large online grocery shop with Woolworths, spending around $350. He had used one of Woolies’ “$10 off when you spend $150” promotional vouchers.

An email back from Woolworths on November 28 informed him that one of his basket items, two four-packs of $3.50 Woolworths Select blueberry muffins, was out of stock. But rather than being credited back the full $7, he received only $6.30.

“I appreciate it is only 70c, but why was I charged $7.00 for these two packets of muffins — but will only receive a credit for $6.30 because you were out of stock?” Andy wrote in an email to the supermarket.

On December 1, customer service rep Melita tried to explain.

“We have checked your order and have noticed that you were charged $3.15 for each pack instead of $3.50,” she wrote.

“This was because you received an order discount of 12.05 per cent which is equivalent to $36.41 on your order and this was applied proportionately to all items you have ordered. We had charged you $9.45 for three packs and not $10.50 and so you were refunded $6.30 ($3.15 x 2).”

Umm, OK. If you think that sounds slightly confusing, you’re not alone.

“I don’t believe we have ever received a percentage discount from Woolworths? And certainly not a figure as random as 12.05 per cent?!” Andy wrote back.

“All of your discounts are ‘spend $x to receive a discount of $x off your next shop’ and as such should not be discounted when you have to apply a credit? Can you please explain how you believe we were owed a 12.05 per cent discount off this order?”

A few days later, Melita responded.

“We apologise for any inconvenience caused regarding your refund,” she wrote on December 4. “We can see that a discount was applied to your order and you have been refunded for the amount paid. You had applied the promo code 16GIFT10 which provides you with a 10 per cent discount on your order. This 10 per cent has been applied to every item in your order. For the muffins, you have been charged $3.15 instead of $3.50 each as 10 per cent of 3.50 is 0.35 and $3.50 — $0.35 = $3.15.

“We apologise for any confusion or inconvenience this may have caused due to me mentioning the 12.05 per cent discount instead of 10 per cent.”

To sweeten the muffin-induced headache, Melita then sent Andy another $10 store credit “for the inconvenience caused”. Andy wasn’t satisfied, however.

“Thanks, but I still believe you have your information incorrect?” he wrote on December 5. “I have attached the promotional code I used, 16GIFT10, which offers $10 off if I spend $150. I have never seen you offer percentage discounts off a shop? I would have thought you would know your own promotions?”

Two days later, customer service rep Quentin took over.

“We do apologise for the incorrect information provided,” he wrote on December 7. “We can confirm that the coupon 16GIFT10 does discount your order $10 if you spend over $150. However, all coupons work the same way in which it will discount each individual item by a certain amount. Therefore, the refund of $6.30 from the out-of-stock blueberry muffins is correct and we assure you that is the amount that you have been charged.”

That still wasn’t good enough for Andy.

“Apologies, but your calculations still do not make any sense to me?” he wrote on December 8. “You have reduced the credited amount of the out of stock muffins down by 10 per cent, from $3.50 to $3.15. However, the $10 discount for spending $150 equates to a 6.7 per cent discount, and as such I should have received a credit for $3.25 per out of stock muffin if I apply your logic — which I still don’t believe should apply in the first place anyway and I should have been refunded the full amount.

“Even worse, I believe my order was for approximately $350, so the $10 discount is actually only a 2.9 per cent discount over my entire purchase, equating that to the muffin [the] credit should have been $3.40.

“Again, my initial email was only regarding an insignificant 70c — which I believe should have been credited back entirely, and even by your flawed percentage logic should have been credited back at least 60c.

“However, how many people get credits for out of stock items nationally each day at your stores? How many people return items for a refund? I am sure you are making a significant amount of money from your failed calculations?”

But Andy’s logic does seem to be correct — assuming the $10 voucher was applied by spreading the value over every item in his shopping basket, the percentage discount would be 2.9 per cent.

That means there is about a 50c difference between what Andy was refunded ($6.30) and what he should have been refunded based on Woolworths’ own logic ($6.80).

But bizarrely, Woolworths seems to be using dollars and percentages interchangeably — obviously, a $10 voucher is only 10 per cent off if the customer spends $100.

“Is my calculation incorrect?” Andy asked. “Or is Woolies just trying to fob me off with a $10 offer to cover up the millions this would be making them each year?”

We’re not sure about millions of dollars — but it does seem confusing.

A Woolworths spokesman couldn’t confirm how much the supermarket refunds for out-of-stock online orders each year. “We convert a percentage or [dollar figure] off the total discount on the total value of the order, and out-of-stock items are refunded less any discount amounts,” he said.

“But we’d encourage the customer to get in contact with our customer care team where we’ll be able to look into this in more detail.”

We’re not sure about you, but we could use a cup of tea and a muffin after that.

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*Name has been changed.