Eat the crow, keep the customer

Typos. Oversights. Misinterpretations. Flat out mistakes. They happen.

When the line blurs between simple oversight and intentional judgement call, however, we’re talking about something entirely different: integrity, the foundation of successful business.

This past couple of weeks, I’ve witnessed not one, but two examples of how risky a judgement call can be—in one case, forever marring a reputation I’d previously thought bulletproof.

Case study A: We didn’t realize what we were worth
One of the greatest challenges any business faces is putting a price tag on in-house production. Sure, it’s easy to compute wholesale to retail, but how do you attach a number to goods and services your business generates? Those are the ones we tend to undervalue, both in materials and labor. Everyone does it, to one degree or another.

The trick is learning to recognize when you’ve priced something too low, then making the correction appropriately, in a way that’s fair to your customers. Until the mistaken price is updated, you honor the posted price.

Which is what had a multitude of retailers stymied during the National Stationery Show.

When Lettered Olive debuted their very, very cool new “album,” complete with an iPad and hard copy samples, they became the buzz of the show floor. Buyers were flocking their direction in droves, handing over credit cards, and signing dealer orders. Success.

At some point, between day one and day two however, the vendor realized they’d undervalued their book, by as much as a couple hundred dollars. The next day, purchase price increased from the $600 range to over $800…

…in spite of the fact the order form still showed the original price. Word about the inconsistency spread as quickly as buzz from their first day had, sans the enthusiastic smiles. Buyers quickly found out they were being quoted a price $200 more than what was stated on their paperwork.

How the vendor handled it:
As word spread, buyers began returning to the booth to question the discrepancy, most (all?) met with whispered “Okay, we’ll honor the original price, but please keep this quiet.” Those who didn’t return? They were left with the higher price.

The result:
The positive juice earned on day one was gambled away by day three, losing orders along the way. Numerous buyers canceled, doubting the honesty of the company…then sharing those concerns with others.

What should have happened:
After a justifiable round of “What were we thinking,” Lettered Olive should have bitten the bullet, accepted the fact they left potential revenue on the table, and continued selling the book at the posted price to NSS attendees. If they needed to raise the price, it would have been in their best interest to do so on new orders placed after the show—not switch gears mid-stream in hopes no one would notice.

Case study B: We thought it looked nicer
Angie’s List has been a staple in my homeowner life for over twelve years, the go-to resource for everything from a top notch plumber to the roofing company who stopped the rain in my living room. Their vibe is positive, their consumer review system is solid. Last fall, they began offering Hot Deals, allowing members a one day shot at deep discounts offered by top rated providers. One of those was for interior painting, three rooms, for a flat fee that approached half price.

I jumped, pre-paid the deal (required), and felt great about the decision.

Imagine my surprise when the painter came to measure rooms, telling me the price would be higher. Significantly higher if I stuck with the offer for three rooms; moderately higher if I backed down to only two. With the printed offer in hand, I inquired as to why he wasn’t honoring the deal. While the first room was generous in size, the second required very, very little coverage, due to paneling and two huge windows…we hadn’t even looked at the small guest bath yet. He insisted there was a square footage limit (an extremely restrictive one, I later learned), in spite of the fact we could both see no mention of it on my printed copy.

We called Angie’s List on my speaker phone, in search of an explanation. The customer service agent told us the person who needed to address the issue was out for the day, but would contact each of us separately the next.

As promised, I got my call…and was told that yes, they knew about the square footage limit, but “thought it cluttered up the page too much.” That’s right. What was arguably the single most important element in the deal, second only to price, was removed to make things look pretty.

How they handled it:
Rather than accept responsibility for their error, which would have kept the vendor and customer together (the goal of Angie’s List, mind you), they chose instead not to honor the pre-paid special. Making matters worse, they debated whether or not I deserved my money back, despite the misleading offer provided in print.

What result:
The painter lost a new client. I lost all respect for the people who run Angie’s List. A week later, my money was refunded, after battling for it. Every time a Big Deal email appears in my inbox, it’s deleted without as much as a glance, along with their newsletters, which means a lot of other providers are missing out on a potential new client. Will I renew my membership this fall? That jury’s still out.

What should have happened:
They should have done what I did in my retail store for fourteen years. If I allowed a typo or omission to slip through and a customer accepted the offer, I honored it, even if it meant personally making up the difference. He (or she) who goofs pays.

Bottom line
Does it sting to lose money over a mis-valued price or bad edit? Sure it does. What we do with those mistakes determines more than just income; it defines our integrity. If you made a mistake, honor the mistake with a smile (no “gee, aren’t you lucky to get this” comments that make you feel big but the customer feel small). Later on, fix your mistake, when appropriate.

Continued revenue from a client or customer who trusts you puts green in your bank account. Sacrificing your integrity, however, will cost you forever.