52 – Quality of Income

Last week in my new start-up one of our clients decided to call off their event for which we were managing the enrollment process and the payment gateway for collection of credit card amounts. They called up to inform me about this rather sad decision and were good enough to let me know that we could still deduct the agreed for service charges from them. This immediately threw up question of ethics in my mind.

– We had agreed on certain fees and this was rightfully due to me. So why should I hesitate to take what was agreed upon and which the client is still willing to permit me to keep.

– The client was pained that his event was being cancelled. If I take my share away it only means further loss to the client. Would I be right in lining my pocket at the distress of the client. Can I take money without having rendered the full range of services?

How you deal with the above situation will determine what I like to call the Quality of Income. There are many industries that now make money by resorting to manipulative and gouging pricing strategies. Banking, Mobile services and Airlines immediately come to mind. For some reason they have forgotten what it means to be customer friendly. And since the entire industry behaves in similar fashion the customer has no choice but to go with the least cost devil. Soon it is a Red ocean.  Kingfisher Red.

Even taking Vijay Mallya to the cleaners.

So given a choice it would be interesting to know how you would have dealt with the above situation.|

Your Votes please :-)

Venkat

 

About The Author

Venkat is a serial entrepreneur who has exited two start ups to US and UK based buyers and is now on his third start up. He did not set out to be a serial entrepreneur but circumstances in life just went that way. The last Start up of which he was the Promoter Director was the countries largest domestic BPO with 10 offices across the country, employing over 3000 team members with the country’s largest corporates at its clients.

1 Comment

  1. Yatish says:

    Hi,

    I would refund the money minus any direct cost I may have incurred in preparing to deliver the services to the client.

    Best,
    Yatish