This mistake makes customers hate you

It feels like smart business. But it’s super dumb.

Hey everybody!

Not many businesses can afford to alienate their customers, but many otherwise successful companies make the same mistake.

  • Don’t kick your customers on the way out the door.

It might be a short-term win. But it’s a bonehead move in the long term. Here are two quick stories I have about it.

Let's do it!

Story #1

We all remember how expenses went wild during COVID. Freight costs skyrocketed, there was a labor shortage, and businesses had to adapt fast.

And everybody started tacking surcharges onto their bills.

It was understandable, right? We all knew times were tough.

One company I know added a 5% surcharge to cover increased freight costs. At first, it was great — suddenly, they weren’t losing money anymore. 

But it was a big problem.

Because the surcharge showed up at the worst possible time… at the bottom of the customer’s receipt, at the end of their experience—they’d open the bill and go, “What’s this 5% thing?” And boom—just like that, it gave them a bad taste.

It wasn’t just this company. Social media lit up at the time with people posting receipts from restaurants and places to complain about “fees”. 

The moment of payment is critical for any customer relationship. It’s your final impression. And if you surprise people with extra charges, you’re asking to be remembered in the worst way.

Story #2

I’ve been a member of an organization for over 10 years. I’ve paid them six figures in fees and referred them hundreds of thousands in business. 

Now, I recently figured my time with them was up. They had a 90-day notice for termination, which I knew up front and signed for in the contract. 

But after I canceled, they billed me for a fourth month. It turns out you have to cancel before a certain date in the month, or they’ll charge you for another full cycle. 

I'm sure their balance sheet looks good. 

But it meant I went out the door feeling like they screwed me… and they’ve turned their biggest promoter into a detractor. Is one month’s fees worth that? 

Plus, people talk. And if someone in my circle says, “Don’t do business with these guys,” I tend to listen.  

The takeaway

There’s never a good time to shortchange a customer. But the worst time is when they’re walking out the door.

That’s when they’ll remember how you made them feel. That’s when they tell friends, post receipts, and start looking for your competitors.

It’s a mistake I’ve seen over and over again. And it’s so avoidable.

Don’t try to win the short game and lose the long one.

3 things from this week

  • Appetizer: How to do business networking right. Come with me for a quick stroll through my local drainage ditch (it’s my creative happy place).

  • Main: On the Acquisitions Anonymous pod, Heather and I had a great time looking at a fire suppression company for sale. What kind of appetite for risk do you have?

  • Dessert: Red flag? (That’s a rhetorical question.)

Thanks for reading!

Michael

P.S. I’ve got stuff coming up! Come to my stuff! Free!

Thurs June 5 — Why most offshore dev hires FAIL. I’ll be chatting with Near CEO Hayden Cohen about the ins and outs of hiring offshore developers. Beginner-friendly, with lots of time for Q&A about offshoring in general. RSVP!

Thurs Jun 12 — The best franchise models on the market.Franchise-curious? There are a ton of different options out there, and they’re all over the map. Connor Groce will walk us through the best opportunities you can find this year. RSVP!

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