There’s a thin line between running a successful business and taking advantage of your customers. Let me give you some examples of situations where there’s a thin line between good business and taking advantage of someone.
1. You buy a tshirt for $2 and you sell it for $25.
2. You loan someone you know, who has bad credit, money at 20% interest.
3. You have a very strict return policy
4. You make it difficult for customers to cancel their recurring accounts.
5. You have excessive early termination fees.
Which ones are good business and which cross that line?
2 Comments so far
#1, 2, 3 - are good.
#4, 5 - are bad.
For #1 - its your shirt, so sell it for whatever you want.
For #2 - You are taking a large risk in loaning money to someone who is KNOWN for not paying back loans…
For #3 - people need to be sure of what they are buying before they buy. Not to mention the large numbers of thieves who try to rip off legit businesses by using lax return policies.
For #4 - making it difficult to cancel a recurring account is not acceptable. If I no longer wish to use a service, I should be able to cancel it without hassles, headaches, or penalties.
For #5 - see #4…
Comment by James 09.04.06 @ 1:09 pmI guess it all has to do with your bottom line. If your marketing budget is large, and your competitors are charging similar, it would be foolish to price yourself out of the market.
-fkj moneyvelocity.com
Comment by fkj 02.07.07 @ 12:01 pmLeave a comment
