Dealing with unreasonable refund requests What's an appropriate response to a customer who requests a refund for a year of hosting service because they 'meant to cancel'? |
Dealing with unreasonable refund requests What's an appropriate response to a customer who requests a refund for a year of hosting service because they 'meant to cancel'? |
Still, I do it every time. For as far back as they want to go. Even if that's a year. Even if it costs us a hundred bucks worth of AWS expenses.
Why? Because I'm not in the business of taking money from people who don't want to give it to me. Sure, it costs a few hundred dollars every now and then but a few hundred dollars is not a lot of money for a business. The biggest expense in the whole process is my time and attention spent dealing with the situation.
Given that, the quickest and cheapest route out is to open up the Stripe console, click the Refund button a bunch of times, cancel the guy's subscription, then write him a nice email telling him so.
If your hosting service is like most others out there ($100-$300 p.a) then it might far less aggravation to simply cancel them and refund the year's pre-paid amount than to waste time bickering.
Unreasonable people tend to start out being difficult and then dig in. Have you seen: http://www.boston.com/food-dining/restaurants/2014/12/09/har...
Did they use the service for 12 months? To me it is two different things if they had the account but hadn't used it, I might be more inclined to say refund 3 months just to keep them reasonably happy and make it easy on myself. If they used the account all the way up to the end, then I would likely not be very accommodating on any refund, unless you messed up somehow which it doesn't sound like.
Overall, they are responsible for canceling timely which is not your problem.
Would you get your money back if you called up the cable company and said, hey sorry I didn't watch TV for the last 12 months, so I'd like my money back please. It is the same thing they are asking you to do.
>Would you get your money back if you called up the cable company and said, hey sorry I didn't watch TV for the last 12 months, so I'd like my money back please. It is the same thing they are asking you to do.
I've had the same thought, and I wish there was an elegant and professional way to communicate that sentiment.
And tell them the cable analogy or something similar. I think sometimes we get caught up thinking as though we have to be "businesses" and forget that it is another human on the other side. They may not even be aware that there was service going on for 12 months, as someone on their side might have just told them to go see if they can get a refund.
I had a fairly small client once that the manager of the team I worked with was new. He didn't understand what we did for them yet so he asked their accounting person to get a refund from us for the last 3 months because we didn't do anything. What he didn't understand is that everyday we were the ones keeping their site alive and functioning while his team was rebuilding it. After my initial feeling of anger subsided I called the lady from accounting back and explained what we did, and said there is no way I can or will refund that money as we provided the services in the contract. She had no idea and said yea, I wouldn't either, let me talk to him and make sure we are all on the same page. They were a small business and just didn't communicate clearly, maybe you have something similar going on here. For us it worked out great, hopefully it will for you too.
Is this a renewal and they pay for a year at a time? If so how long past the renewal are they?
Or has a year gone by and they owe for the past year?
If their site was up and having visitors, did it change at all in 12 months? Whats the traffic stats like?
Most importantly, is this money worth the risk of possibly losing customers if this guy is loud?
Maybe offer them a month's refund to get rid of them. Hard to say when dealing with extreme cases.