MONEY SHOP Negotiation and customer complaints


Financial Plumber,David Gummers, advises when preparing to negotiate, planning, preparation and practice prevent poor performance.


I


do not know how many of you have had to prepare to make a speech either at a business seminar or at a family event? The rules for this are exactly the same as if you are going to negotiate. Planning, preparation and practice prevent poor performance.


The financial well-being of all businesses depends upon the ability to save


money. Before, I go into any meeting I have decided in my mind what I would like to achieve, and what is my default position. That is the point I will shake hands and say “Thank you for your time but I cannot agree to that” and walk away. That is the planning stage.


Preparing for the meeting is key: Do you know the person you are


meeting? If you do have you a good relationship with them or do you know you only do business with them because they have a good product or service to offer? If you do not know the person, do you have contacts that do? If not there is always Google. It is worth being on Linked In. It is amazing what you can find out!


Obviously, it is easier doing business with people you like, but always


remember that it is a business deal you are trying to achieve. Geoffrey Marshall, who was MD of Bally in my youth, taught me a salutary lesson that all business relationships are just that – business relationships - and you forget that at your peril.


The only time I refuse to do business with somebody I do not like is if they


have broken my trust so badly that no matter how good the product or service, I cannot deal with them. I do not think it wise to stop dealing with someone just because you do not like them.


Practice in your mind what you want to say, and if necessary write down


key things, maximum spend or what is the highest price you will pay. The person opposite will have a plan as well. While it is always desirable to


conclude a negotiation in one meeting, only do so if you are happy with the deal. It is NOT a sign of weakness to walk away and say give me a little time. It also means that they can have a think too.


Once you have done the deal NEVER try to change it, people will not


forget if you have reneged on a deal. Trust is vital in any business relationship.


Finally, the best deals are those where both parties are happy. Win-lose


deals may make you feel you have pulled a fast one or had a fast one pulled on you, but is not a basis for a solid business relationship.


Turning now to Customer Complaints - this is without doubt the hardest


area of retailing. In an ideal world all your customers think you are perfect (if only!)Things go wrong and when they do, it is vital that you sort it quickly and fairly. I do not advocate always giving the customer exactly what they want. Whatever you decide do it quickly and decisively. Empower your staff to make the decision. If the boot is on the other foot, as a customer, I want a quick resolution.


Most complaints are easy as the product is faulty. If that is the case the


law means you have to ask the customer what they want. If they will accept a replacement or a repair that is excellent, but they do not have to. If they ask for a refund you have no option. The key to this is handling it professionally. If you get it right the customer will return. If you get it wrong then the customer will probably never return.


The harder ones are when the product is not at fault, and the customer is


not happy as they have made a mistake with a purchase. The rule again is make a decisive decision. If someone bought it the day


or week before then the goodwill of exchanging is worth it. You are under no obligation on this. Our general rule on this is that we do not refund when the customer has made the mistake. The law for distance and online selling is different from selling an item in store-make sure you know this and have clearly stated your terms on your online receipt. It can save you lots of time.


The only real problems with complaints come if you suspect the customer


has deliberately damaged the product after using it for a wedding or function. Tread carefully, but do not be afraid if you feel you are on firm ground. One instance where this happened I repaired the shoe for a lady twice and warned her I would sue her if she brought them back again, her face told me I was right. Yes, I lost the customer, but saved the company and the manufacturer money. As with negotiation be fair and you should not go too far wrong.


Respect and professionalism is the key to dealing with both these areas and it will mean that your finances are kept in order.


David Gummers is Managing Director of F.Dickinson Footwear Ltd., based in Ulverston, Cumbria.


If you would like David to look at your business costs, he promises that if he cannot save you any money you pay him nothing. But for every pound he saves you pay him, 15 pence. If you want to learn more email David on david@fdickinsonfootwear


Website: http://www.fdickinsonfootwear 14 • FOOTWEAR TODAY • JUNE/JULY 2013


.co.uk or call 01229 580654 .co.uk/


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