Business A and Business B have had a long-standing relationship and both sides felt they had a good business relationship. Recently Business B noticed that their prices seemed very high compared to what they thought they were being priced at. It turned out that this was always the pricing structure they were being priced at for the past few years. Business B (the customer) felt they had been somewhat gouged for the past few years. They had always trusted that Business A had been giving them great prices for their services. While some of their prices were good, Business B would have considered moving some of their business to Business A’s competition had they known their pricing was so high on some services.
Business A and B held a meeting and examined their pricing for the past few months and felt that they could restructure future pricing to give Business B 20-30% better pricing for future orders. Business B was happy with that but wished to see some sort of credit using the new pricing structure. Business B understood that it would be unreasonable to go back to past years to request credits, but felt that a credit on the past few months would reflect Business A’s commitment to their long-standing relationship.
In the end Business B decided not to issue any credit to Business A as there were no actual pricing errors in the recent business transactions. While Business B will receive better prices moving forward, the lack of any credit left a bitter taste in Business B’s mouth. By not issuing any sort of credit, Business A chose not to honour their business relationship. The credit would not have been for purely monetary reasons, but as a respectful gesture to Business B for their committed business. A short-term loss for Business A would have been a long-term gain. Moving forward, Business B will likely consider Business A’s competition for future business and Business A may look back and wonder why they lost much of Business B’s business.
Protect your relationships, business or personal. If they mean something to you, never put yourself in a position where you can lose trust, friendship or business. Shortsighted actions like Business A’s will cost you in the long-term.