How to handle a customer complaint when you drop prices after they bought earlier/higher?

30 replies
Quick question: how to handle the thankfully rare complaints when a customer complains about something that's now on sale, that they bought from me a year earlier, back when it was sold at a higher price?

I had a (single) customer complain about "I bought it a year ago at price x and now it's 20% cheaper during this sale you're running, so can I have a refund of the difference?". Now I don't issue cash refunds, though maybe a merchandise credit for the difference would be a thoughtful gesture.

When department stores put things on sale, especially say at least 3-6 months or more after an initial purchase, they don't issue merchandise credits or refunds to people who bought earlier, at higher prices; same with online retailers I've seen, or if I bought a television a year ago at price x and now it's on sale for a few hundred bucks less, I wouldn't complain about it. I've bought a lot of computer hardware and movies/dvds on amazon and other stuff that a year+ later is now priced a lot lower, and I would never complain about that -- it's a great deal at earlier pricing, as well as new sale pricing.

Any suggestions on handling those types of "you used to charge x and now it's on sale for y" complaints? Usually I never discount or put my offerings on sale (I add bonuses instead), this is one reason why. I'm very conscientious about customer service, so I want to do what's thoughtful for my customer; I know that it's wrong of him to ask for a cash refund difference for something he'd bought many months or in this case a full year ago, while I'm offering it on sale right now for a brief promo; so maybe issuing a merchandise credit to this person is a generous (too generous?) gesture. Thoughts? thanks...
#bought #complaint #customer #drop #earlier or higher #handle #prices
  • Profile picture of the author entrepreneurjay
    lol these type of people are hilarious, I definitely would not lose any sleep over it.

    I would send them an unsubscribe link and tell them to use it. People like this are better off not dealing with at all.

    Obviously they liked it, they did not refund the merchandise.
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    • Profile picture of the author Surminga
      Originally Posted by entrepreneurjay View Post

      lol these type of people are hilarious, I definitely would not lose any sleep over it.

      I would send them an unsubscribe link and tell them to use it. People like this are better off not dealing with at all.

      Obviously they liked it, they did not refund the merchandise.
      Agreed, all items fluctuate in price and yea it's annoying seeing something you bought a few days back up and now it's gone up. It's the risk you take.

      It's their own faults. And if there is a valid reason for wanting a refund then just do it.
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  • Profile picture of the author Midnight Oil
    Tell him you appreciate his past business, but that that's not how things work. Then tell him you can offer him a discount on another item that you sell (if you have one). That way you may be able to make another sale and let him think he's getting a special deal.
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    • Profile picture of the author davezan
      Originally Posted by Midnight Oil View Post

      Tell him you appreciate his past business, but that that's not how things work. Then tell him you can offer him a discount on another item that you sell (if you have one). That way you may be able to make another sale and let him think he's getting a special deal.
      Or, offer something equal in value to the difference in price, like a recording or a
      dedicated access to an upcoming webinar. If the price diff is like $50 (product is
      $500 last year minus $450 on sale today), give a $50 bonus your customer may
      have not received yet or an access only for him/her to a recording.

      It's really your call, Ken, depending on how much value you got from that person
      and how much value you're willing to give. Good hunting.
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  • Profile picture of the author John Atkins
    Originally Posted by kencalhn View Post

    When department stores put things on sale, especially say at least 3-6 months or more after an initial purchase, they don't issue merchandise credits or refunds to people who bought earlier
    That's right. Unfortunately when it comes to digital products
    people seem to see it differently.

    If a customer of mine complains about something like this
    then I would simply give him the same reason that you've
    written in your post.

    However sometimes it's better to refund and be done with
    it. Some customers create lots of hassle over stuff like
    this.
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  • Profile picture of the author Michael Oksa
    I like the idea of a merchandise credit, but make it for slightly more than the sales price difference.

    So, if your product was originally $50, then give him a credit for $15. The extra is for what he perceives as lost time, and it may encourage him to apply it to a more expensive product.

    All the best,
    Michael
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    • Profile picture of the author KEKilpatrick
      Originally Posted by Michael Oksa View Post

      I like the idea of a merchandise credit, but make it for slightly more than the sales price difference.

      So, if your product was originally $50, then give him a credit for $15. The extra is for what he perceives as lost time, and it may encourage him to apply it to a more expensive product.

      All the best,
      Michael
      This is probably your best bet, not only will it quiet the customer down, you just might end up with another sale (make sure you never drop the price of whatever it is that he buys with this credit). OR you could just put this customer in the Darwin bucket and move on.


      Hey... I paid $350 for my first VCR back in the late 80's, now they're like 10 bucks... I want a refund!!! :p
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  • Profile picture of the author kencalhn
    hey good tips everyone, thanks - much appreciated. overall that's why I don't offer discounts or put things on sale, is to avoid this type of price complaint issue... main strategy is to offer different bonuses; that way price is always the same (or gets raised), and also doesn't train customers to "wait for sales", which they would do if one offers sales/discounts. good idea re credits, sounds like a plan. and good idea too about offering the credit towards something that's higher priced, to make a new sale, that's smart... thanks.
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    • Profile picture of the author Lance K
      I'd tell him that he had a full year head start over the people who are just now learning your methods. And explain that that is worth exponentially more than the amount of the discount that new customers are getting during this brief promotion 1 year later.

      Then I'd figure out a way (without giving any cash back) to turn him into (or back into) a raving fan.

      One thing you could do is offer him a free 30 minute phone consultation. You could help your customer as well as get some insight on what kept him from implementing and profiting from your methods/strategies over the past year.
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  • Profile picture of the author funkynassau
    I hadnt thought much about this topic but as we are currently running our first sale, it got me thinking! What we would do is offer them some sort of bonus item with their next purchase, making it good enough to be an incentive to buy again from us.

    For Sept. we are going to offer a bonus item with one of our kits, see how that goes over. Our current sale offers the most expensive kit for $10. off. It's only $69.95 to begin with so 10 bucks off is a decent bargain and we've sold loads of them.
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  • Profile picture of the author Tim Franklin
    Some interesting replies and views but this is a serious topic to consider.

    Discount marketing is something that any good marketer should engage in there should be a demarcation line, between the discounted product and the original product, but like most replies I agree one complaint is not a big deal but what if there were 20 or 30 that felt the same way but just never bother to complain.

    Again a boundary that creates a significant distinction between the original product and the discounted product will go a long way in reducing the implication of this issue.

    just a few thoughts, I think its more of a psychological issue than anything else.
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    • Profile picture of the author JohnMcCabe
      Ken, all I can tell you is how I would handle it.

      If the question truly comes up that rarely (and I believe it), I would quietly and politely explain that the policy is that I don't issue cash refunds. Then I would tell them that I value their business and want them to be happy, so I'm going to make an exception - this time. Offer them a choice - a one-time cash refund as an exception just for them, or a slightly larger credit (like Michael suggested).
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      • Profile picture of the author Kay King
        If the price drop came shortly after they purchased - I'd refund the difference to them - after a year, I wouldn't do that.
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    • Profile picture of the author researchpro
      Originally Posted by Tim Franklin View Post

      Some interesting replies and views but this is a serious topic to consider.

      Discount marketing is something that any good marketer should engage in there should be a demarcation line, between the discounted product and the original product, but like most replies I agree one complaint is not a big deal but what if there were 20 or 30 that felt the same way but just never bother to complain.

      Again a boundary that creates a significant distinction between the original product and the discounted product will go a long way in reducing the implication of this issue.

      just a few thoughts, I think its more of a psychological issue than anything else.
      Yes, something like "first time customer" discount. Then the older customer wouldn't qualify.
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  • There is never a (too generous) gesture when it comes to a past customer who raises an issue and contacts you about it. They may be right, or they may be wrong, however, he/she at one time took a risk and trusted you (a stranger online behind a webpage) enough to hand over their hard earned money in exchange for your product. In addition, this customer helped put food in your family's mouths, and or gas in your car, and or helped you to reinvest into your business, allowing you to earn more, and or this customer might have even been one of the first few sales you ever received, allowing you to see that "hey, making money online is possible!" Do not turn around and become a "sorry buddy, better luck next time" company. Karma has a way of saying that right back to those types of businesses and marketers as well.

    Arnold Stolting.
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    • Profile picture of the author Black Hat Cat
      Banned
      Originally Posted by stoltingmediagroup View Post

      In addition, this customer helped put food in your family's mouths, and or gas in your car, and or helped you to reinvest into your business, allowing you to earn more, and or this customer might have even been one of the first few sales you ever received, allowing you to see that "hey, making money online is possible!" Do not turn around and become a "sorry buddy, better luck next time" company. Karma has a way of saying that right back to those types of businesses and marketers as well.

      Arnold Stolting.
      Give me a break. It's not like this was a one-sided transaction. The customer got something out of the deal too. He didn't donate money to charity. And spare us the karma BS. Buying something from someone doesn't mean they're indebted to you forever.

      To the OP, like others have said, I would offer a credit on a future purchase, but I would not refund anything for a year old purchase.
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      • Profile picture of the author Lance K
        [DELETED]
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        • Profile picture of the author thatjeffguy
          Yeah, this is a tough issue. I've got my own opinions, but I must say that reading this thread sort of opened up my eyes to the pros and cons here. But since I've never offered an information product, I don't really know that my opinions matter.

          But what I really want to say is thanks for bringing this up. I just recently joined the forum hoping to learn a thing or two since I'm working on an information product now. I can see that already my time here has been well worth it. Thanks again!
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  • Profile picture of the author kencalhn
    Good points. For something bought a year ago, I will offer a merchandise credit, that's more than fair. But no cash back refunds on price differences a year ago. For example if I bought a course from someone online last year for $1295 a year ago and went to see they had a Labor Day sale, $975 for this week only, a year after I bought it (!) there's no way I'd try and chisel a few hundred bucks out of them by unfairly asking for money back from a difference in sale price during a promotion that's a year later.

    Prices drop during sales promotions, it's not like they paid $2000 a couple weeks ago and now it's half off. It's just 20% from a year-ago purchase difference.

    Amazon also has a no retroactive price match policy:
    Amazon.com Help: Pricing
    "Post-Order Price Match Policy With the exception of TVs, we do not
    offer post-order price matching when an item's price drops after you
    buy it. "

    In general I don't offer sales nor discounts, because they a) train customers to wait for discounts/sales like department stores, which delays sales and b) can cause complaints from disgruntled old customers who bought year(s) ago at higher prices.

    There's a lot of well known IM gurus who offer now as bonuses, free courses with new purchases, and in many cases these are courses that had cost a lot ($1495-$1997) during their initial launches; that's fine since it's not like they offered it as a free bonus the month after a lot of people bought it. If I buy a computer last year at $1997 and this year it's on sale a year later at $1600 I wouldn't complain.

    But a merchandise credit sounds like a goodwill gesture, that would be helpful for them, though that's not something I should even have to do either, at least for the rare complainer it's a way to maintain positive goodwill, so that's helpful.. thanks all, great dialogue as always.
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  • Profile picture of the author kencalhn
    And a positive outcome; my customer who'd initially been upset responded back that my offer was "more than fair" for me to give him a merchandise credit for the difference; so that's a win win for everyone.
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    • Profile picture of the author JohnMcCabe
      Originally Posted by kencalhn View Post

      And a positive outcome; my customer who'd initially been upset responded back that my offer was "more than fair" for me to give him a merchandise credit for the difference; so that's a win win for everyone.
      Now we'll see how many more posts we get with suggestions.

      Could be fun...
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      • Profile picture of the author Claude Whitacre
        I own a retail store and also sell online.

        I get that question every once in a while in my store.

        I say "You got the sale price when you bought it. Since then, my price went down because I placed a big order. And I'm passing the savings onto my new customers. But when you bought it, that was the sale price, based on what I paid for the one you bought".

        Here is my smart ass answer; "I know you want to be fair. If the price would have gone up instead of down..would it be OK if I called you and asked you to pay the difference?"
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  • Profile picture of the author shane_k
    good that you offered your customer that credit.

    You now have the chance to turn that person into a loyal customer instead of just telling them, "no refunds and if you don't like it then unsubscribe."

    That's like going into a store and them telling you, "if you don't like it, then leave!"

    If you done that they would probably complain to you to a bunch of friends. But now, in the way that you handled it, it's possible they are more than happy, and they will tell others about you in the future.

    This is called customer service, which it seems some people lack.

    good on you buddy.
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  • Profile picture of the author Gambino
    I know it's been resolved, but for anyone else who searches for a similar problem:

    If your prices went up, would you email your previous customers who purchased at a cheaper price, and tell them they owe you more money? No.

    If your prices went up, would this guy email you and tell you he owes you more money? No.

    That's simply not how the marketplace works. Prices change. When he bought the product at $XXX he thought he would get at least $XXX in value. He didn't return the product, so he must have found it useful/worth it.

    I would email him back and say "no," sighting the obvious.
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  • Profile picture of the author therichb
    When you are selling it at low $$, it is the change which you have formulated in the present selling phase of that product....

    The best way you can deal here is to offer some incentive, some giveaway or to promote your stuff !!!

    That's a better way i feel
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  • Profile picture of the author kencalhn
    Good point about reducing aspect of the new lower price offer; I did that this time, but they were just focused on price change (though they got a lot of bonuses that new buyers didn't receive, plus they got to use the content for a year longer than new buyers)... and right re we don't bill old customers if we raise prices, similarly we don't offer refunds if we lower prices for a special time limited sale promo for new customers, a year later.

    Besides over time it makes sense to also bundle old products with new ones, as bonuses, and various alternatives, so "those who paid full price years ago when it was first released" should have something done (like a credit or better, a new bonus), to keep them feeling positive about price drops or bundles.

    Smart answer: We usually segment our email lists so that old buyers don't get promos for things they already have, but occasionally customers re optin with new emails, so they get them.

    Merchandise credits for those that complain seem to be a win win, for information products at least (with minimal cost of fulfillment, eg online training access, yet high perceived value for customer).

    I used to be much more hard-line about things, especially obvious policy things like this where the customer's wrong, but as I get older I try and be more conciliatory, without being taken advantage of; working towards "firm but fair" guidelines... thanks all - great insights, nice to see some useful dialogue here, as many of us run into similar situations.

    Example:

    December 2012: Release "How to Bake Pizza 101" new home study course ($395)
    March 2013: Release "Advanced Pizza Tactics" home study course ($795)
    August 2013: Release "Pepperoni or Extra Cheese? Pizza Sales Tactics" Home Study Course ($1997)
    December 2013: Holiday Sale - "Get "How to Bake Pizza 101" Just $197 when ordered by Dec 25th.
    (original december 2012 customers complain wah wah I paid more for it a year ago...)

    Solution: Give the whiners the first module of the Advanced course for free, with a time limited discount to get the whole Advanced course for just $497 when ordered now. (Save $300!).

    What to do? Lemons to lemonade. Or in this case, thick crust Pepperoni and Extra Cheese courses,

    Hmm now I want to go order pizza. lol.
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  • Profile picture of the author Randall Magwood
    Offer a discount of another one of your products. Or just totally get rid of this dude, refund his money, and delete him from your backend marketing funnel.
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  • Profile picture of the author GarrieWilson
    Ken,

    I have been a loyal customer of yours, never complaining, so where is my discount? Giving a special discount to people who complain is a slap in the face.

    Kidding.

    I've never purchased from you but might think that after reading your post(s).

    I would have told the person no and ask if he would expect a BNM for a refund a year later.

    Garrie
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  • Profile picture of the author Walter Parrish
    Originally Posted by kencalhn View Post

    Quick question: how to handle the thankfully rare complaints when a customer complains about something that's now on sale, that they bought from me a year earlier, back when it was sold at a higher price?

    I had a (single) customer complain about "I bought it a year ago at price x and now it's 20% cheaper during this sale you're running, so can I have a refund of the difference?". Now I don't issue cash refunds, though maybe a merchandise credit for the difference would be a thoughtful gesture.

    When department stores put things on sale, especially say at least 3-6 months or more after an initial purchase, they don't issue merchandise credits or refunds to people who bought earlier, at higher prices; same with online retailers I've seen, or if I bought a television a year ago at price x and now it's on sale for a few hundred bucks less, I wouldn't complain about it. I've bought a lot of computer hardware and movies/dvds on amazon and other stuff that a year+ later is now priced a lot lower, and I would never complain about that -- it's a great deal at earlier pricing, as well as new sale pricing.

    Any suggestions on handling those types of "you used to charge x and now it's on sale for y" complaints? Usually I never discount or put my offerings on sale (I add bonuses instead), this is one reason why. I'm very conscientious about customer service, so I want to do what's thoughtful for my customer; I know that it's wrong of him to ask for a cash refund difference for something he'd bought many months or in this case a full year ago, while I'm offering it on sale right now for a brief promo; so maybe issuing a merchandise credit to this person is a generous (too generous?) gesture. Thoughts? thanks...
    I would give them the difference like they requested, it's only one customer so its really no sweat. In the states we used to always say " The Customer is Always Right". Noticed I said used too lolol. Most younger people don't live by this rule, which is messing everything up.
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