Case Study: Road Runner Sports Keeping Pace

RAC Members spend $19.99 annually for a 5-percent discount on all purchases, shipping upgrades and a 60-day unconditional guarantee and return policy. So, a runner can try the shoes for two months and if they don’t work, the customer can return them for a full refund. At first glance, it seems like an opportunity for abuse. But most shoppers use the policy legitimately and the annual fee helps negate the cost of the program. The return policy is an expensive one, but Gotfredson has found a solution for that, too. He resells the previously worn shoes in the RRS retail store in San Diego.