Issuing a refund when it's not your business' fault.

Discussion in 'Growing and Managing a Business' started by JPM, Aug 23, 2011.

  1. JPM

    JPM
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    What are your thoughts on this folks?

    Personally, depending on the situation, I think sometimes it is wise to issue refunds even if it is not the business' fault. It can prevent negative publicity and actually turn it into positive publicity longer term.
     
  2. Mountain Man

    Mountain Man
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    I give a refund (or preferable an exchange) for two reasons:
    1. defective or inferior product or service
    2. to make a problem go away

    I try very hard to never need to use reason #1. I use good quality products, even if it means paying more and avoiding dollar store equipment or equipment from cheep importers. I try to spend a little extra time going over my installs to make sure I didn't forget anything, and everything is working well.
    To avoid reason #2 I try to read people before they make a puchase. Do they understand what they are buying? Will this equipment do what they want it to do (as apposed to what they are telling methey want it to do)?
    I work in a service industry, I think things would be much different in retail where people return thing for a large number of reasons.
     
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  3. Preemo

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    I agree with you, JPM. I don't agree with giving a refund for every bit of negativity your business may get - but it never hurts you to, as long as it's not fully the customers fault. If they've done wrong, then I wouldn't dream about refunding them!
     
  4. JBMedia

    JBMedia
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    It's really a fine line drawn here. Who's really at fault? That's the main question you want to ask yourself before committing to giving a refund on a product or service. My personal opinion on the matter is more than likely 85% of the time I would issue a refund. However, if someone is trying to pull a "fast one" over you and get their money back when nothing was wrong with the product/service and it was bought with the correct intention of what it's used for, then I would not issue a refund. Of course, you then have the possible problem of bad publicity. However, I said possible, not probable. Generally speaking, most people who are trying to scam and don't succeed will move onto the next scam or as they classify it, the next "project". They generally will not waste much time on discrediting your services or products, as they are in it for a quick fix and to get some money quick and get back out.
     
  5. patrick0001

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    If I am the boss, I will try to provide alternative to solve the problem. Refund is my final choice and it must be reasonable. When dealing with 1 customer we can fulfill the client need to avoid negative publicity, what if we got 10000 of customer ask for refund?

    For long term solution, we still need to find out the actual reason why customer ask for refund. Term and condition play a very important role.
     

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