News, Insights and Stories from the Australian and New Zealand tech ecosystem.

VNewsletter 9/07/12 – “We Lied to Our Customers”

Hi there Everyone,

Today we talk about lying. We all know that it is wrong, but from time to time, especially if their is a lot on the line, we may find ourselves promising something to a potential customer that we know we can not deliver, and then down the track it presents problems for us, our reputation and integrity as people and as a business are bought into question and quite often, the beginning of a failed business starts to emerge.

When selling your product or service or if you have a sales team that is doing that for you, it is important to know the difference between “being creative” in a sales pitch vs “being a Liar” – Why? – Because it could land you in lots of hot water. By hot water I of course am talking about the ACCC. Many Small Business owners and Startups think that the ACCC is there for more established businesses and they are untouchable. I have news for you friends, they are there to protect consumers – so if you are doing the old dodgy dodge to get Mary to come across to your business as a customer, be warned.

It just takes one phone call complaining about what you are doing to launch an investigation. I experienced the power of the ACCC in a previous company I worked for, another small business was pretending to sell a particular product that was actually not the product the customers thought they were getting. In the short term, that business made HEAPS of Money, but after a stealthy 12 month investigation by the ACCC it ended with them being taken to Federal Court, being fined in excess of $30,000 and having to send communication to EVERY person they had ever sold anything to explaining to them that they were lied to.

Ouch. How many customers do you think they have now? – My suggestion, Under Promise and Over Deliver, Happy clients means, happy reviews. And of of that means more money in your bank account.

Have a Rocking Monday!


Startup Daily