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.
