Are you being penny wise and pound foolish?

Are you being penny wise and pound foolish?

Two quick customer service stories to illustrate a point:

First story: I've used the same email provider for more than 20 years. But for technical reasons, recently I needed to switch providers, so I canceled my service with them a few weeks in advance of my renewal. The day after my cancellation went into effect, I received notice that I had been charged $480 for the coming year. (And of course, when I logged in to my account online, this charge appeared on the very same page with a giant header saying "Account canceled.")

So I contacted the provider and was told that my refund request has to be "reviewed at many levels" before it can be refunded. Two weeks later, I still haven't been refunded my money, but I am no longer able to access the account online! (Progress, I guess?)

Second story: A past client of mine has had an ongoing billing dispute with their software vendor. The association is being charged for services that they should not have been billed for. The bill in question is roughly $1,200. The software company has discussed the bill internally for several months now, involving multiple senior staff. Still no resolution, but plenty of back and forth between the association and the vendor.

What do both of these stories have in common (besides the obvious horrendous customer service)? In both cases, the companies are spending MORE money adjudicating the dispute than the actual amount of money in question.

In the first case, the company in question is a billion dollar company, yet they are spending hours on paper pushing...for $480!

In the second case, while it's not a billion dollar company, instead of just cancelling the charge, the issue continues to be batted around among different senior staff at the vendor. Each time it's discussed, that costs the vendor money.

My advice: When it comes to small dollar issues, don't get caught up in an argument about "who's right." You're almost guaranteed to spend more money on the argument than you would lose in simply refunding the money. Don't be penny wise and pound foolish.

Wes's Wednesday Wisdom Archives

AMS Products are getting better – and what that means for you

May 20, 2026

AMS Products are getting better – and what that means for you I’ve been working […]

Using AI beyond content generation

May 13, 2026

Using AI beyond content generation Recent surveys by ASAE and others suggest nearly 90% of associations […]

If you’re training, PLEASE do this…

May 6, 2026

If you’re training, PLEASE do this… If you’re doing any kind of software training, or […]

Don’t confuse motion with improvement

April 29, 2026

Don’t confuse motion with improvement I wrote recently how action can produce information. But an […]

Perfection is expensive (in fact, it’s not possible!)

April 22, 2026

Perfection is expensive (in fact, it’s not possible!) “Perfection is expensive. The last 5 percent […]

AI is a journey, not a destination

April 15, 2026

AI is a journey, not a destination Lately I’ve noticed a lot of associations talking […]

Action produces information

April 8, 2026

Action produces information “Action produces information. If you’re unsure of what to do, just do […]

Why a single source of truth is so beneficial…

March 25, 2026

Why a single source of truth is so beneficial… The holy grail of data management is […]

Just because you can, doesn’t mean you should

March 18, 2026

Just because you can, doesn’t mean you should I’ve worked in and with associations for well […]

Data doesn’t need to be perfect to be useful

March 4, 2026

Data doesn’t need to be perfect to be useful “Your data doesn’t have to be […]

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top