Your thought needed........

[hbr]

Please give your opinions on a business "situation" I had recently:

I spend a decent amount of money with a certain vendor (vendor A). I had wanted to try another vendor (vendor B) for a while. Vendor B is used by a few of my friends and had made special offers to get them to try the new vendor B.

I am the first one to try the vendor B. Each purchase is about $500.00 with either vendor; both have about the same rates. I have spoken to vendor B a few times and I believe they were aware I was going to give them a try.

My first purchase with vendor B is for about $500 on a credit card. Good service, no complaints. I enjoyed using vendor B. The bill for the card comes and vendor B has charged me $48.00, only 1 line item on the total invoice. I wait another month to see if the rest of the charge hits my card, it doesn't.

Now I'm thinking vendor B has given me a "discount" recognizing my business will now use vendor B. Hell, maybe as much as I use vendor A.

I am thinking that I should contact vendor B, and voice my appreciation for their gesture. I call vendor B to say thanks, but I get an answer that surprises me. They respond that it was an oversight on their part. They realize that 2 months have passed, but want to know if they can charge my card for the balance. He did mention thanks for pointing out their "accounting mistake."

I am not the most financially sound person, and really don't care, if they need the $450, go ahead and charge the card. They did.............. I don't want any hard feelings. I will mention, as a business owner, I could never give the same response as vendor B, it is a bit embarrassing if you ask me. Customer calls to say thanks for the discount, and respond by saying we messed up, can we have your $450 two months later?

What are your thoughts about vendor B’s action?

 

[VaBusa]

Well, my first reaction is that I'm either a bad person for thinking "dude, should not have called to remind 'em that you didn't pay much" or that you're a very good person for taking the high road and filling 'em on on their accounting error...

I'm a bad person and you're good

I would say they should have extended a deep discount to you, perhaps not the whole shabang (yes, it's a made up word) but something in appreciation for your honesty...business is business though, so I could see where they're just glad they're getting the money...

Because of this though, I might be less inclined to deal with vendor B too much...it's not up to you to take care of their accounting errors and without a hefty THANKS from them, well, no warm and fuzzies, right?

Situation sucks...

 

[ToyKraz]

Are you saying you actually thought you got a $452 discount on a $500 purchase?

That is unrealistic to expect and even more unrealistic to expect them not to want to charge you later when the mistake is eventually caught.

I think you did the right thing by allowing them to charge your card the balance.  Trust me when I say that if I swallowed all the financial mistakes my AP / AR clerk makes we would be broke

 

[BlueHaya]

This is the typical devil and angel on the shoulder situation.

 

[hbr]

Real quick, I spend $10K a year. $450 = 4.5% discount

 

[hbr]

(ToyKraz @ May 31 2007,09:13)  Trust me when I say that if I swallowed all the financial mistakes my AP / AR clerk makes we would be broke

Time for a new AR/AP clerk.


I own a couple businesses, I could never give the same response as vendor B.

 

[VaBusa]

(hbr @ May 31 2007,12:19) Real quick, I spend $10K a year.  $450 = 4.5% discount

It's an honestly issue vs. the feeling that the vendor's not making you feel like they appreciate what you did...I don't expect that they'd write it all off, but I am a bit shocked that 2 months later, they charge you the balance due...given how much you may purchase from them, in order to show appreciation and give you a break, they should have done something over just saying "hey, thanks for letting us know our acct'ing sucks and we'll charge that full amt now"...

It's just left you feeling bad; human nature to feel that way...all business for them...

 

[ToyKraz]

(hbr @ May 31 2007,09:19) Real quick, I spend $10K a year.  $450 = 4.5% discount

I can appreciate that. I spend between $80K and $120K a month and I have never expected a discount. I did however, negotiate a standard mark up which is far below industry norms.

 

[ToyKraz]

(hbr @ May 31 2007,09:21)

(ToyKraz @ May 31 2007,09:13)  Trust me when I say that if I swallowed all the financial mistakes my AP / AR clerk makes we would be broke

Time for a new AR/AP clerk.  


I own a couple businesses, I could never give the same response as vendor B.

Ya think?

Biggest problem there is that she is related to my wife. I have had to reprimand her for similar repsonses to Customers. However, she never learns from her mistakes.

 

[BlueHaya]

"Biggest problem there is that she is related to my wife."

Have to love neputism.

 

[hbr]

(ToyKraz @ May 31 2007,10:25)

(hbr @ May 31 2007,09:19) Real quick, I spend $10K a year.  $450 = 4.5% discount

I can appreciate that. I spend between $80K and $120K a month and I have never expected a discount. I did however, negotiate a standard mark up which is far below industry norms.

$10K with this vendor. Who said I expected a discount? I am hardly tight with a dollar............

Answer this Toy:

1st time customer calls you and says:

"Hey thanks for hooking me up on my first invoice with you guys.  I plan on using your company a bunch more."

You respond like this?

"Huh?  We didn't give you a break 2 months ago, we fugd up.  Can I have my money now?"

 

[ToyKraz]

Tough question to answer.....

In my business $450 is nothing. I would have written it off, told the Customer "no problem"and "discussed" the error with my AP/AR clerk.

However, I am not familiar with your vendor, how much revenue they do or the size of their company. The $450 may hit them harder then it would someone like me. If in fact they answered exactly as you have stated with "fugd up" then I would go back to Vendor A.

 

[hbr]

Same feeling on the $450........

Vendor is prolly a $4-5 million gross

 

[forceofnature]

I have always been honest with mistakes, and usually they appreciate it by giving me a discount or a certificate for next purchase.

 

[300Busa]

From my experience of sitting through meetings with vendors, they will give you some sort of deal in some shape or form. Some of our chemical vendors will give us a free skid of a new raw material to try out. Some will give us new equipment and figure the cost into our raw material price over a year or two (this gets us around the whole "company budget" for new equipment). We spend millions of dollars every year with our vendors and don't see any kind of deal like what you got. If we shipped out a truck load of paint to a store and only charged them for a couple of gallons, I would expect to get our money back if the problem is caught. I don't want to buy from dis-honest vendors any more than a vendor wants to sell to a dis-honest customer. That is just my .02

 

[Wag]

It's no surprise that they wanted to charge you for the difference and correct the error. They shipped you the stuff, you owe them the money.

As a businessman, you can do as you please with your customers but the reality is, you agreed to pay x dollars to vendor B and that's what you should pay, especially if there is an error involved, etc. etc.

I'm surprised to hear that you resent it that they laid claim to the money which was due to them.

--Wag--

 

[Luvanicebum]

I wish I had .02 on the issue, but I'm just completely broke.

 

[05BusaLe]

(ToyKraz @ May 31 2007,13:25)

(hbr @ May 31 2007,09:19) Real quick, I spend $10K a year.  $450 = 4.5% discount

I can appreciate that. I spend between $80K and $120K a month and I have never expected a discount. I did however, negotiate a standard mark up which is far below industry norms.

Ok because nobody else asked,
What do you spend that much on?
And are you hiring? I can relocate!

 

[ToyKraz]

(05BusaLe @ May 31 2007,20:55)

(ToyKraz @ May 31 2007,13:25)

(hbr @ May 31 2007,09:19) Real quick, I spend $10K a year.  $450 = 4.5% discount

I can appreciate that. I spend between $80K and $120K a month and I have never expected a discount. I did however, negotiate a standard mark up which is far below industry norms.

Ok because nobody else asked,
What do you spend that much on?
And are you hiring? I can relocate!

Electronic components. I run a OEM Design and Manufacturing facility.

Check it out!

www.vadatech.com

 

[hbr]

(Wag @ May 31 2007,20) It's no surprise that they wanted to charge you for the difference and correct the error.  They shipped you the stuff, you owe them the money.

As a businessman, you can do as you please with your customers but the reality is, you agreed to pay x dollars to vendor B and that's what you should pay, especially if there is an error involved, etc. etc.  

I'm surprised to hear that you resent it that they laid claim to the money which was due to them.

--Wag--

Wag - I'll reply, but I don't think you read my post.

I wasn't shipped anything, this happened face to face.
Where did I say I resent paying?...............

Nevermind mate.....try reading the post.