I've removed a few escalating personal attack posts going back and forth here, and I've locked this thread.
Folks, please stay civil and let it drop. Thanks!
Thats really unfortunate to hear. Its important to know that an Appalachian dulcimer is often built in a much more "hands on" fashion than most mass produced string instruments, and still often manages to offer handmade instruments at much lower prices than other instruments made in factories. For this reason, some amount of imperfections could be expected.
Nonetheless, I can definitely understand your frustration. If the instrument was damaged before it reached you, it doesnt make sense that they should say "we didnt look that close." Given that a skilled woodworker would obviously know if they accidentally left dents on the wood.
They should have known the level of cosmetic issue on the instrument and should have been honest with you about it before shipping, and after your negative feedback.
In a business sense, its surprising that they didnt simply placate you, even if they disagreed.
Sorry to hear about your poor experience. I agree. That is not the way to encourage repeat sales.
With sadness I have to say that I had a frustrating experience with The Dulcimer Shoppe, the maker of McSpadden dulcimers. It was the first time that I dealt with this company. I ordered a Ginger short scale dulcimer, and the instrument that was shipped to me had two nicks-dings on the top. Ok, just cosmetic, but it bugged me. I wrote to The Dulcimer Shoppe and added photos. The owner answered that when they check an instrument before shipping they “do not use a magnifying glass”… which I think it is not the right attitude towards a customer who has a problem. He also said that he offered to fix the dulcimer, or that I was free to return the instrument, as long as I was going to pay for the shipping cost... Again, I am not sure this was right because I was not returning a perfect instrument just because I changed my mind, but I was returning an instrument with a cosmetic issue. Anyway, before deciding to return the instrument, I asked the shipping department how much they were going to deduct from my refund because of shipping costs. The answer was: $25.81. So I shipped it back. Today I received the refund, and they deducted $84.25 from it, for shipping expenses… that is more than 3 times than what I was told. I wrote to them asking to explain. Response: “ Sorry for the misunderstanding. When I replied to you I was focused on the return shipping and not the previous one. Due to the fact that you are returning and not exchanging, our policy is that the customer pays for the shipping both ways. If you had elected to exchange or have it repaired, we would not have charged you the shipping”. I would have much appreciated if they had given me this detailed info upfront, which they didn't. If I knew that I was going to lose 85 dollars, I could have chosen a different option, as having the dulcimer fixed or having it replaced. I am sad to see that they didn't do any effort to put themselves on the customer's side and understand my frustration. It looks like, for the Dulcimer Shoppe, a few dollars are more important than losing a customer for life. I am sure that there are many customers who have been very satisfied with their experience with The Dulcimer Shoppe and McSpadden dulcimers, this is one of the reason why I decided to go with a McSpadden. But in my case, unfortunately, It looks that I had bad luck. My frustration is not that I received an instrument with a cosmetic issue (it happens). It is the way I have been treated when I tried to resolve the issue. Confusing information about the amount of refund that led me to believe that the return would have cost me just 25 dollars, when instead, after I shipped back the dulcimer, I discovered that they have a return policy that establishes that even if a customer receives a defective instrument, he has to pay both shipping charges if he wants to return it. Something that I have never seen applied by any other reputable maker. And something that it is not mentioned on The Dulcimer Shoppe web site... In the end, I have lost $85.00 and I did nothing wrong, I just received an instrument that was in subpar cosmetic condition. Every other maker would have accepted the return and issued a full refund. 
