Opinions please

[CanuckSigns]

Our customer (large government agency) needed some signs made in a rush, the signs had to be ordered from a large supplier in the USA, which had to be overnighted to us in order to meet our customers deadline.

We inquired as to the shipping cost so we could know for our own records, we were told $125, we didn't tell our customer the exact amount, just that the product is being rushed so the shipping will be more than usual.

Now that the job is all said and done, we have asked for a final invoice from the supplier and we were told their was a error made in the shipping cost, instead of $125 it should have been $585 (HUGE difference) The supplier told us that they will honour the written estimate for shipping (very generous of them!)

Now, I haven't told my customer the final shipping cost, so do I:

a) bill them for the $125 and let the supplier take the hit
or
b)bill them for the full amount and pay my supplier the actual shipping cost as a good faith measure

as a side note, this customer put a huge rush on this job (hence the $600 shipping bill) and then cancelled the install the day before because the ceremony was cancelled due to a labour dispute or something, the signs are in my shop as we speak.

 

[WildWestDesigns]

The one thing that concerns me the most is if you did option "A" that might have repercussions later on the next time you do a rush along the same lines for the client.

I know I would have a record of how much I payed for a rush job and if I had a close match order come back again and be charged that much of a hike in shipping, I would want to know why that is.

 

[Pat Whatley]

My personal thoughts are that if you dropped a $585 shipping bill on your customer without warning them first they'd have a conniption.

You could always tell them that since the event got canceled you're willing to work with them on the shipping. Tell them instead of charging them the full $585 you're willing to cut it to $300 to help out. Then call your supplier and offer to meet them half way on the shipping and send them $300 instead of $125. Should make you look good to your customer and your supplier without costing you anything.

 

[VinylLabs.com]

My personal thoughts are that if you dropped a $585 shipping bill on your customer without warning them first they'd have a conniption.

You could always tell them that since the event got canceled you're willing to work with them on the shipping. Tell them instead of charging them the full $585 you're willing to cut it to $300 to help out. Then call your supplier and offer to meet them half way on the shipping and send them $300 instead of $125. Should make you look good to your customer and your supplier without costing you anything.

this times a thousand.

honestly, I wouldn't have even thought of giving back to the supplier, not because I wouldn't have wanted to, but only because I usually don't "think" like that. I would have been happy with making _1_ party happy.

 

[Gino]

Tough one.

Although you didn't have it in writing, the quote should still hold up. However, if the cost was indeed the $585 and an honest mistake was made, you might've had to pay it with some other vendor.

The way I see it.... you did get the product in the promised time-frame and did you not think it was extra cheap at that time ?? Someone might've forgotten it was going across national borders or something.

I'd probably go to your customer and explain to them what the cost is and see if they'll pay what it should've cost them and then give it to the vendor who not only got you and your customer out of a jam, but took a hit on the cost.

In any transaction.... when someone makes a mistake, it's always best to find out what happened, explain to all the parties involved and then work it out amongst yourselves, so that down the road.... someone doesn't slip up and let someone know they got screwed the last time.

 

[CanuckSigns]

My personal thoughts are that if you dropped a $585 shipping bill on your customer without warning them first they'd have a conniption.

You could always tell them that since the event got canceled you're willing to work with them on the shipping. Tell them instead of charging them the full $585 you're willing to cut it to $300 to help out. Then call your supplier and offer to meet them half way on the shipping and send them $300 instead of $125. Should make you look good to your customer and your supplier without costing you anything.

That is what I was thinking of doing, I realize that mistakes do happen, and if it happened to me, I would appreciate it if my customer understood and offered to meet me halfway. the $600 shipping charge is a bit ridiculous, but it was 4 signs, weighing over 200 lbs total, being overnighted internationally.

 

[jc1cell]

Tell them instead of charging them the full $585 you're willing to cut it to $300 to help out. Then call your supplier and offer to meet them half way on the shipping and send them $300 instead of $125. Should make you look good to your customer and your supplier without costing you anything.

In my line of thinking, except I would have first told them the actual amount only. Once they complain, then offer the discount on this sole occasion.

jc

 

[rhphares]

As a graphic designer for NASA for 10 years - I know this 'type' of story all too well. I was on the end that 'made' the rush order - and believe me, when the higher ups shouted we need it tomorrow - cost is the last thing anyone is thinking of. Seeing the money put out for these banners, signs, exhibits, etc is part of the reason I've opened my own business. I'd bill them the full amount with an invoice showing the $600 overnight up-charge. It will cut into their graphics budget - but most government agencies have a reserve fund for these types of 'emergencies'.

 

[JR's]

My personal thoughts are that if you dropped a $585 shipping bill on your customer without warning them first they'd have a conniption.

You could always tell them that since the event got canceled you're willing to work with them on the shipping. Tell them instead of charging them the full $585 you're willing to cut it to $300 to help out. Then call your supplier and offer to meet them half way on the shipping and send them $300 instead of $125. Should make you look good to your customer and your supplier without costing you anything.

Wow Pat your one level headed down to earth thinking person. good Idea.

JR

 

[CanuckSigns]

we have decided to split the shipping cost to $300 with our customer and send that to our supplier as per Pat's suggestion, everyone is happy. thanks for the advise everyone, and a big thanks to "The big G" in Minnesota (you all know who i'm talking about) for offering to honour their original quote!

 

[bob]

we have decided to split the shipping cost to $300 with our customer and send that to our supplier as per Pat's suggestion, everyone is happy. thanks for the advise everyone, and a big thanks to "The big G" in Minnesota (you all know who i'm talking about) for offering to honour their original quote!

Why? They ordered a product, they set the rush conditions on that order, they get to pay for it. Whether or not their situation changed during the process that they themselves demanded is not germane. They ordered, you delivered, pay up.

 

[HulkSmash]

Why? They ordered a product, they set the rush conditions on that order, they get to pay for it. Whether or not their situation changed during the process that they themselves demanded is not germane. They ordered, you delivered, pay up.

for once i agree with bob.

 

[phototec]

My personal thoughts are that if you dropped a $585 shipping bill on your customer without warning them first they'd have a conniption.

You could always tell them that since the event got canceled you're willing to work with them on the shipping. Tell them instead of charging them the full $585 you're willing to cut it to $300 to help out. Then call your supplier and offer to meet them half way on the shipping and send them $300 instead of $125. Should make you look good to your customer and your supplier without costing you anything.

This is one of the best ideas I have ever heard relating to something like this!!!

Pat

 

[Pat Whatley]

They ordered, you delivered, pay up.

So pay up what Bob? The $125 shipping or the $585 shipping? He's still going to make 100% of what he was charging for the signs plus what he's charging for shipping.

If he charges the $125 he was originally quoted the supplier gets screwed.
If he charges the $585 the shipping actually cost the customer is going to feel screwed (at least I would)

If he does what I suggested the customer is happy that he cut them a deal, the supplier is happy that he's helping them with their mistake, and HE'S STILL MAKING THE EXACT SAME PROFIT ON THE JOB.

There's no win in being a dick in this situation, and no loss in being nice about it.

 

[skyhigh]

I'd say Pat is dead on. Of course this "government agency" wouldn't blink an eye on the $585 shipping.

I had this same supplier "misquote" me. It wasn't on shipping, rather on the product itself. I met them half way with THEIR mistake, and took the hit myself as I had allready given the customer a quote. I try to work with everyone when possible.

 

[weaselboogie]

If it were any other customer besides government, I'd agree with pat. But since its not and the government has screwed me plenty of times in vague fees, I wouldn't feel bad about charging the full amount. Split the net between you and the supplier.

 

[iSign]

I would be curious as to the rush charges already imposed on the signs themselves.

Rush charges are customary, and even in a situation where the entire job is subbed out, increased profit is justified for a variety of reasons, including the immediate non negotiable demands to get the order handed off quickly and correctly to the vendor...

..which sounds easy, but unlike staying late to produce a rush sign, risking the nominal costs of producing it again if you foul up some specs in your haste... the risks of fouling up some specs on subbed out work can be far more severe, ranging from the full cost of producing & re-shipping the signs, to the nightmare of FedEx saying "sorry, we screwed up so the freight is free" on a situation where that results in a client who won't pay for signs that were only ordered under the promise of arrival yesterday...

...point being, increased risk justifies increased profit.. because hopefully far better than 9 times out of 10, rush jobs will go off without a hitch... but when one bites you in the a$$ big time, it shouldn't leave you feeling like rush jobs are never worth the risk... it could more easily be seen as the cost of doing business.

The difficult part of imagining what I would do in this situation comes from the fact that it's a situation I would never allow myself to be in,... that being the situation of my client not knowing what freight changes I will be charging until after they are incurred. Although the big G didn't tell you the right number at first, I can only presume that they did tell you the lower figure up front, and it seems as though you had it in mind to charge that same amount. I don't understand why the client wouldn't have been informed of that amount up front. In my shop, they would have been...


...in any case, I think if the client paid you well for the rush signs, and perhaps the big G also imposed some expedited production fee that they got paid for, I would let the vendor pay for their mistake, (cost of doing business again) but show the client the communications about the freight, so they know you passed along the "savings" just like you passed along expedited charges (although I'm not suggesting showing them any other numbers)...

...and then they also know that rate won't be available next time either.

 

[Custom_Grafx]

Out of curiosity... is the $585 an unreasonable price for the shipping? How big/heavy are we talking? Have you ordered something similar, but on regular shipping? If so, how much did you pay?

I say, if it's a reasonable cost for what it is, then you should charge them the $585, and if you want to be nice/honest, pay your supplier $585.

 

[Pat Whatley]

Ummm.... I missed the part where he said it was a government job. My apologies to Bob....charge them the full amount.

 

[gabagoo]

It's the government, make them pay full pop plus a bit of mark up. lol

remember they have budgets and love using them all up!!!