A dealer contacted us recently with a complaint he had with a carpet odor. His customer claimed the new carpet he recently installed was making them sick. When the dealer visited the home he could smell nothing but new carpet. The carpet manufacturer’s rep came to the home and reached the same conclusion as did an independent inspector. This was a case where the home owner was being affected by an odor that obviously only they could smell. The homeowner persisted in their complaint, eventually telling the dealer that they were experiencing physical maladies as a result of the carpet and they threatened to sue, however they could produce no proof of any illness or physical maladies. The dealer said he did everything he could to resolve the issue. The manufacturer stepped in and said replace the carpet. In any case where a consumer complains of an odor in the carpet making them sick, the manufacturer will typically tell you to remove the carpet and will credit you. In this case the manufacturer also gave the dealer a credit for the labor. This has been the norm for many years when it comes to a consumer complaining about flooring being the cause of a health condition. It’s easier to remove the flooring than have to contend with a threatened legal action. Carpet contains nothing that will make anyone sick and the odor it emits is just a new carpet odor. Just like a new car, new furniture or a new shower curtain.
The dealer appreciated the action by the manufacturer but was upset that they didn’t pay him his profit. He said the consumer thought he and the manufacturer were hiding something when they gave in. On the contrary, most companies today would rather let you steal from them rather than confront a customer or press charges and deal with the threat of a law suit. It’s easier to take the loss. In this case that’s what the manufacturer did. The manufacturer gave the dealer what he had in the carpet plus his labor; they didn’t give him his profit nor should they have. It is not any manufacturers’ responsibility to reimburse you or any dealer for profit. Just because a customer decides, as in this case, not to do business with the dealer again because of their problem, the manufacturer has no control over that. You sell the product for a price which includes profit and no one else participates in that. If you lose money on the sale that’s your issue and no one else’s; the supplier is not entitled to any of your profit so they’re not responsible if you lose it either. Unfortunately that’s a cost of doing business. This is also not a standard practice in the industry, or in business for that matter. To state this further, you can’t expect a manufacturer of any product to credit you fully for your purchase and then add to that profit you lost on a transaction they were not a party to.
The dealer thought the mill made a hasty decision that obligated them with no say in the matter and as a result they were caught in the middle, they thought, and lost. In reality, the mill saved the dealer because had the matter persisted you can bet a lawsuit would be filed. The first check he’d write toward his defense would be to his lawyer which would likely have exceeded what he lost in profit. From there the additional costs to defend himself would have far exceeded profits from several other jobs.
Being in business and especially business that provides service, product or material to one’s home or business, means that at some point you’re going to encounter a customer who turns out to be a nut. Arguing on principal which will almost always cost you way more than you bargained for.
Author: Lewis G. Migliore
LGM and Associates – The Floorcovering Experts