ECN Forum Forums General Topics of the Trade Business Related Discussion Full Refund

Talk about a dilemma!

First of all, remember that no one ever won an argument with a customer...even when you're 'right', you lose!
This is also the advantage of having a second person in the firm...that provides a 'second ear,' even an opening for the CUSStomer to say "you're so nice, the other guy..."

Early in advertising, the issue of folks mis-using the warranty, free samples, etc. was examined. Surprising all involved, there were so few abusers, the costs of monitoring far exceeded the losses absorbed!

There is also the 'customer relations' aspect of a complaint. An immediate resolution, including even a cheerful refund, can create a very loyal customer, who will brag of your integrity, etc. Sometimes, it seems folks complain a little as a way to "test" you.

An immediate refund can also stop dead any other complaints that can get piled on....as the customer feels obligated to raise the stakes. Before you know it, they'll be blaming the sour milk on your light bulb!

Try to keep Sears' "Craftsman" guarantee in mind....while their tools are in no way exceptional- one can argue that numerous other brands are better- their immediate, cheerful replacement policy, even when the tool was obviously deliberately destroyed, made them far more sales than any other factor.

I never gave out a refund yet. Maybe if damage was caused by your Co. or work. I could understand if it is some nightmare customer that wont leave you alone. Also wounld depend on the amount and complaint.

I read something here from Rick Bruder said 4/05 here:
https://www.electrical-contractor.net/ubb/Forum20/HTML/000121.html

"We sell a 200 amp service from 3-4k depending on the conditions. We have done 6 this week."

" our 100% guarantee that we have in writing and give to our customers. My men can't even smoke or swear on the site or the work is free. Among alot of other things"

My understanding is you charge the customer a higher price with a 100% garantee in writing. You sell more jobs and bring in a higher $ by doing this. There are some looking to rip you off. But in the long run you come out ahead. A bit like a casino loses some bets the the house wins in the end.

Say you sold 10 200a upgrades over time for 3K with a money back 100% customer satifaction deal. Then one person in the 10 hit's you for a refund. Can't make that person happy you return his $3K. In the end you still have $27K.

If you only charged 2K for the same 10 upgrades you would have only $20K.

The big questions are how much would a money back garantee help your sales?

How much more will a customer pay for this $500, $1000?

How much will customer satifaction cost you 5%, 10%, 20%?

Tom