Hi @ericasj22. I don’t usually wade into the deep waters on issues like this because it rarely goes well for me when I do. However, as a fellow seller, I think I can help put this into a much broader context.
First, trust me when I say that I’d also much rather that Square/Block did not make this change. But this falls into the category of a business decision. I don’t see it as corporate greed but rather a corporation making a decision that is reasonable. Square’s current policy of “no fault” refunds is very much in the minority and it is NOT a good business decision on their part. In fact, I’ve always thought that it was fiscally irresponsible on Square’s part to do this.
I think that a 3% fee is the least of your employees’ worries when they destroy a product. After all, that is not the only money that they cost you — they also cost you the amount of the raw materials, the energy costs, and their labor costs, as you mentioned. Square’s fee is not what is breaking the bank. It is broken by a mistake on the part of your employees for whatever reason, and they should worry. When I have to throw away a product because my employees make mistakes, they know it does not make me happy, but they also know that occasional mistakes won’t be held against them. Having said that, they also know that if we are throwing away lots of product due to mistakes, then their days just might be numbered at my shop. That’s just life in the real world. I know it is not a popular thing for a Boomer to say in this world these days, but I believe it is healthy for employees to understand and even feel the real-world costs of their mistakes. That realization should serve to make us better employees.
Years ago, I made it a policy to figure out how much money I lost due to employee mistakes and such — ie - how much waste I had. I then prorated that yearly figure over my total sales and added that very small percentage to my cost of goods calculations. Since then, I’ve not worried about mistakes because I have the insurance policy built into everything I sell. Yes, I’m now going to have to revisit that and include the fees that will no longer be returned. But, like you, given that returns are minuscule and that I’m only adding 3 cents on every dollar wasted, that will not move the needle much.
Like it or not, Square has made the best decision for their business health. Our business mistakes, whatever cause them, are not Square’s responsibility. The fact that they had $x in profit is irrelevant, since that is profit BEFORE they have to pay dividends to shareholders who bankroll them. Net profits is just an operational profit, not a real profit at all. I’m not making excuses for Square, nor am I their lapdog. But I do understand where they are coming from.
I understand that your were probably just venting. But I wanted to put this out there, and to tell you that I feel you. Change is hard.
I wish you well,
Chip A.
Square Expert & Innovator and member of the Square Champions group. (But NOT a Square employee, just a seller like you)
Was my post helpful? Take a moment to mark it as a solution. Marked solutions help other sellers find possible resolutions to similar problems. Also, if you find your solution elsewhere (say, through Support), it is helpful to come back to your post and tell us about it, then mark that as a Solution. Solutions are what this Community is all about!
