Billing Issue

[Nikki]

This is the first time I have had a billing issue with another business. A printing company approached us a while ago to do targeting mailers. We are a 3D ultrasound business, and we provide services to women in their 4th-7th month of pregnancy for the most part. We were hesitant because we knew our timeframe was so tight, but they told us they could get a list of pregnant women at certain times in their pregnancy. They were listed by month. So we went ahead and did a one-time mailing with her of about 700 pregnant moms in the area who were at least 3 months from their due dates. This was in November. We have had 4 phone calls from the whole mailing, all of which were people telling me they weren't pregnant and inquiring why they received the post card. One person actually thought her identity was stolen because it was her address but not her name. We got about 4 cards back that were unable to be delivered to the sender. Basically, I think the list was horribly inaccurate. The only feedback we got indicates this, and of course then, the mailers were a giant waste of money. I understand that a few returns and inaccurate addresses is something to be expected when doing a mass mailing, so had we also gotten any business from this or actual inquiries from pregnant women, I would just accept this as the nature of this kind of marketing. However, like I said, the only feedback was from people who were not pregnant, were not named on the mailer, or from returned cards.

So, how would you handle the billing situation with this business? It's another local, small business and I don't want to screw anyone over, but I really just think the list they purchased was not what we needed and they sold it to us as credible. I have been in contact with them, and they just keep repeating that they've used this company in the past with great results (but they have never used this specific list). They basically just don't believe me or are ignoring the fact that the list was likely bad. Would you suck it up and pay in full? This is the risk of advertising? Would you try to negotiate the bill down, and if so by how much? Bottom line, I would never had chosen to do a mailing with them if I had any doubt the list was bad because, with the nature of my business, a bad list would pretty much yield 0% ROI. And it did.

[Fulcrum]

Depending on how much you spent, and what the list supplier claimed, you may be better off just eating the loss, taking a hard earned lesson, and moving on.

[Paul]

As Fulcrum said it depends on the amount and the warranty and terms of the purchase. If it is minimal you can decide. However, personally I would not pay. I’d document your position in a letter to them and then see what they do. If they are reasonably honorable they will try to work it out with you. If they are not, then let them have the headache of collecting.

[SmallBizOrg]

I would try to do a search online to see if other people complained about them....google something like "[their firm name] scam" and would also check if they have any negative comments on Better Business Bureau. If there is a pattern of misleading clients I would push back on paying the bill.

[BNB]

If the ONLY 4 calls you got were non-pregnant people who thought their identities were stolen, I wouldn't pay that bill. That's worse than getting no calls at all - at least with no calls you chalk it up to simply being ineffective. As you are aware, mailers are generally not a very effective tool, but getting calls like that is concerning. If the only results you get are people mentioning they aren't part of the target market on a highly targeted list..... I wouldn't pay it. That business who sold you the list should charge it back to the company they purchased from or not pay that bill. It's their mistake and they need to eat the loss. When my company makes a mistake, believe me, we take the hit. That's good business. And I expect companies I deal with to operate by the same code.

[Nikki]

Thanks for the feedback. They are a small company, but what reviews they do have are positive. However, like I said, they have never done a mailing that was this specific and time sensitive before either. They stated they could do it, but I believe they fell short. The owner is being very passive about it when we speak and won't offer any kind of deal or concession. She also isn't demanding payment in full. It's like she's leaving it to me to make an offer, so I guess that's what I will try to do. I don't know what to offer. 50%? I think that seems fair and would definitely cover their costs. I feel like, as a business owner, she should be a little more responsive and proactive. I know I am when my services fall short of client expectations, but maybe my expectations are too high?

[SmallBizOrg]

I wouldn't fully cover their costs. Who will cover your cost with them? At most I would cover 50% of their cost. So if their cost is 50% of the price, I would cover at most 25% of the price. At most. The reason being that they are the experts, not you, you put your trust in them, your expectation was that they knew what they were doing otherwise you wouldn't have put your $$$ in harm's way. The fact that the list was new to them is not an excuse, it was their call to go with it and they should know better. I like BNB's answer too, it's good business to take responsibility when you fall short.

[BizAdvisor]

Nikki, don't be naive. Good reviews mean nothing, as they are often the ones most written by business owners themselves. BNB hit the nail on the head when he mentioned your situation was worse than getting no responses at all.

An advertising company shouldn't be treated any differently than any other business that offers poor service. It's also not a matter of price, it's a matter of principle; good business dealings. Did you ask them to send your postcards to random people? No, you paid to have your postcards mailed to a specific demographic of people, which they claimed they could... and would. Yet, you have validation that this was not the case.

Don't pay for what you didn't ask for. I wouldn't even try to negotiate a lesser price. If it's not $0, it's too high. They messed up, your the customer here. It's their learning experience... Not yours!