Business owners: How do you handle your quoting errors?

I quoted a customer $130 for 3 day international shipping, which they paid. When I got to the post office, they wanted $230 for the shipping. I had made an error when I originally got the quote, and I'm wondering what standard practice is. (Side note: I figured out my error and it won't happen again.)

When I went through with the shipping, it was because I decided to eat the mistake.

I'm reluctant to ask the customer for the difference, as I believe this would be the wrong thing to do.

What do you all think?

It's best if you think of it as if the tables were turned. In my business, if you misquote you better have a REAL good reason to ask the customer for any additional.

My case in point: I got screwed at a Doc in the Box (Doctors' Care) for $9 for an 'after 5pm' surcharge for a follow up visit, this was on top of the regular $99.00. What pissed me off the most was that I had come by at 2:30 and they said they were too busy. Also, their normal hours are till 7PM anyway. I asked the doc 'if you bring your car in after 5 and I hit you for an 'after 5' fee, would you come back?' and he didn't have an answer. So no I won't ever go back there again. Period.

Your bad. Don't do it again. Eat the difference. It would just be bad practice to do otherwise. Your reputation should be top priority.

There is no such thing as a mis-quote in good business, just you eating the cost.

Taiden wrote: I quoted a customer $130 for 3 day international shipping, which they paid. When I got to the post office, they wanted $230 for the shipping. I had made an error when I originally got the quote, and I'm wondering what standard practice is. (Side note: I figured out my error and it won't happen again.) When I went through with the shipping, it was because I decided to eat the mistake. I'm reluctant to ask the customer for the difference, as I believe this would be the wrong thing to do. What do you all think?

I think you did the right thing and learned a valuable lesson.

It hurts now but keeping customers happy will ease the pain later.

This has happened to me as well. Usually forgetting to add inbound freight on a quote. Jane gives me Holy Hell about it, but we have to eat it. I just think that customers are darn hard to get and very easy to lose. Keeping them happy is a lot more important than a few dollars, or even a bunch of dollars.

Eat it. Its what I do. I could never ask a customer to pay for my mistakes.

You already did what you had to do. Sometimes things slip through the cracks an mistakes are made, don't pass that on to the customer, especially if this is something you're doing as a business venture.

I had something similar happen once (although I'm not a business).

Since I had recently sent a of wheels to L.A (from Tulsa) and shipping was $80, I quoted a guy $225 to Hawaii (also with help from the company website), when I got to the store, they wanted $400 for shipping.

I asked him to pay the difference in the shipping $175, or I would give him a full refund. I gave him the refund.

Depends on the amount. A small mistake, you eat. But I always have fine print that says that I am not responsible for typographical errors, changes in shipping costs due to surcharges by the shippers, stuff like that. If it is out of my control, I can't be held responsible for it. The customer is informed of the issue, and then has the right to cancel their order or pay the increase.

Your approach is ideal customer service, the mistake was under your control and you are eating it. The amount is a lot however, so you may want to inform the customer so that they are not expecting that cost for the rest of their shipments from you or other sellers.

The noble thing is to eat it.

yeah, in my business, we quote literally thousands of individualized items to each customer - you can have a particular item that can have a 3 different colors in the item, and 45 different colors. Each color can have a different price. So for each color combo, for each item, you have a separate item number, and a different cost. We know that 95%+ of the time, we quote a number we are happy with selling the item at. But with that many items, we are certain to have a fat finger or a miscalculation somewhere. We stipulate that we have the option to adjust the prices we quote for a given amount of time before they become permanent.

If youre selling just a few items, or maybe a very specialized selection, I think youre on the hook if you didnt give yourself an out somewhere in the quote fine print...

Would it be better to inform the customer of the extra shipping but explicitly state that we are covering the mistake, or keep quiet.

I would keep quiet, no need to worry/stir up the customer. If they order more, then you may need to inform them at that time to why it will cost more to ship the parts/stuff.

Taiden wrote: Would it be better to inform the customer of the extra shipping but explicitly state that we are covering the mistake, or keep quiet.

It depends on whether you want to admit to the customer that you made a mistake, some are sensitive to the idea that their supplier might make any kind of mistake, assume that you have sloppy business practices in general and look elsewhere next time (and tell others too); while others will appreciate your advising them that there was an error and you're eating it. Only you can decide which customer this is, if there's any doubt I'd just eat it and move on.

Thank you all. I feel like I made the right decisions now.

Don't tell the customer.

However, if he orders again and wonders why all of a sudden shipping is $100 more next time, go ahead and tell him that you messed up the first time and ate the cost.

Don't ask don't tell, but if he asks, then tell.

Well, I don't know if UPS states the shipping cost on the label. I didn't really think about that until now.

Thats easy, do not commit to a price you do not have control over.... state it as; $500 + S&H which i predict will ~130 if that's wrong i will let you know.

Once you commit to the quote you SHOULD eat the cost or expect the customer ot go elsewhere, but just dont commit to the cost of shipping until your 100% sure of it.

I would absolutely tell the customer! Again, look at it from the other side of the table. If you ordered something and the company came back and said "hey, sorry, we screwed up the shipping amount and it is x times more than we quoted you, but, don't worry, we'll eat it", I'd be ecstatic and would go out of my way to give props to the company via forums, etc.

Taiden wrote: Well, I don't know if UPS states the shipping cost on the label.

No, but it can't hurt to say, "The shipping price was misquoted, but we have paid the difference. Thank you for your business and we hope to serve you again."

81cpcamaro wrote: I would keep quiet, no need to worry/stir up the customer. If they order more, then you may need to inform them at that time to why it will cost more to ship the parts/stuff.

I'm with 81cpcamaro 100%........... How ya doin, Randy?

When the customer places another order tell him you'll have an accurate quote within a specified time and beat your deadline. If he balks because of a higher price tell him you made a mistake the first time and absorbed the difference; most customers prefer honesty.

If you quote it, you eat the cost.

If you provide an estimate, you can adjust to meet unexpected costs.

pinchvalve wrote: Your approach is ideal customer service, the mistake was under your control and you are eating it. The amount is a lot however, so you may want to inform the customer so that they are not expecting that cost for the rest of their shipments from you or other sellers.

This is it. However, sometimes if you inform them of your mistake and that your eating it they will fork up some extra money to either pay for it or at least split the difference with you. People generally understand that the world isn't perfect and mistakes are made and they are not usually 100% your fault.

Meh, I'd let 'em know. I do custom work. Usually I'm right on the money. Sometimes I hose myself. If I undercharge, I'll eat the difference, but I'll let the customer know, so that next time they don't kick and scream "LAST TIME IT ONLY COST ME $X!!!"