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

Inertia Contributes to Bad Data

October 7, 2020

Inertia Contributes to Bad Data Without knowing anything about your organization or its data, I’d […]

What are you doing with new contacts?

September 30, 2020

What Are You Doing with New Contacts/ I was very interested to read in a […]

Be Aware of Selection Bias

September 23, 2020

Be Aware of Selection Bias I wrote recently about the mistaken perception of older members […]

Some Things Just Take Time

September 16, 2020

Some Things Just Take Time I learned recently that an elephant’s gestation period is 18 […]

Sometimes It’s the Least Bad Choice

September 7, 2020

Sometimes It’s the Least Bad Choice Just like in life, sometimes when we’re making technology […]

Our Members Aren’t Tech Savvy

September 2, 2020

Our Members Aren’t Tech Savvy Having worked now in the association space for more than […]

Motion vs. Action

August 26, 2020

Motion vs. Action One key to successful data management is understanding the difference between motion […]

There is ALWAYS a Trade-off

August 19, 2020

There is ALWAYS a Trade-off I’ve written many times about trade-offs (you can read a […]

Little by little, a little becomes a lot

August 12, 2020

Little by little, a little becomes a lot “Little by little, a little becomes a […]

Why do we treat data management differently?

August 5, 2020

Why do we treat data management differently? A recent post on ASAE’s community read: “Looking […]

Leave a Comment

Your email address will not be published.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

Scroll to Top