In order to have a successful business, we have to show ‘good faith’ – that is being honest and forthright in what we say and do. We have to mean what we say and say what we mean. Then there is also the issue of ‘good will’. This can be extremely expensive. Sometimes we can lose a few dollars to show we have some, or we can lose a great deal if we refuse to have any.
Let’s look at an example of a beauty salon. One of the regular customers has their hair cut at $20 once every month. One day after having her hair done, she buys a hair product for $20. After 30-days she tries to return it and the beauty salon refuses to issue a credit or refund as they have a 7-day return policy. They saved maybe the $12 that they paid for the product wholesale.
Although it may seem reasonable and fair that the beauty salon would only accept a return on a product within 7-days, this customer is a long-time, regular customer. If she gets angry because she has wasted $2