Customer wants money back

[rmoyes02]

I just started selling my software I developed on the internet. I have a 30 day trial of my software which the user has full control over. After 30 days, it disables itself. I had a customer who purchased the software, then a few days later demanded her money back over the phone. Having never experienced this kind of phone call before, I gave in to her request.

Is it common for software companies to give clients their money back after a complaint?

I personally feel that she had 30 days of full control, she should have not purchased it if she didn't like it. I don't go to a car dealer, ask to borrow a car then buy it, only to ask for my money back while keeping the car at the same time.

My software, once activated, they have full control of this software forever. Nothing I can do will disable it on their network.

Should I not give money back?

 

[sleipnir214]

I dunno. What are your posted/listed policies about refunds?




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[rmoyes02]

I have nothing about refunds. I do however have something in the license agreement that states that they cannot hold me liable me for more than they paid in the product (incase they sue me?)

 

[sleipnir214]

Was that liability waiver written by you or a lawyer?

I think you've done the right thing to refund that one person's money. But you need to put all the right no-refunds verbiage in all the right places.




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[rmoyes02]

Thanks... It was copied by me from another application I found.

 

[dwarfthrower]

I'd chalk it up to experience but implement a strict no-refund policy for the future. As you say, you have no way of verifying that they're not actually using your software having been supplied with a working licence key.

Obviously consumer law varies from place to place, but here (AU) refunds are only legally required to be provided if the product is not of merchantable quality or is not fit for the purpose for which it was sold... so if you buy a $50 toaster and it falls apart the first time you put bread in it, or go to the hardware store looking for something to tighten screws and they sell you a hammer, you're entitled to your money back.

If you just happen change your mind about what you've bought then it's "caveat emptor buddy". (aside from a few stores that have more liberal returns policy, but those are store policy not consumer law)

I don't see why your software should be any different, the 30 day trial gives users ample opportunity to determine the suitability of your software to their needs. If, after trialling the software and going to the trouble of paying for the software, they turn around and decide they don't want to use it any more then there's no reason why you should have to wear the cost of that decision.

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[rmoyes02]

Thanks

 

[chiph]

I'd go ahead and give customers like this their refund.

I'm sorry you had problems with DeFrobulator v1.5, most of our customers are very satisfied with it. I'm going to credit your credit card now, and you should see it in your credit card company's website by tomorrow, depending on when they post the transaction.

If I may ask, what didn't you like about our product?

Honestly, it's not worth burning up brain cells on customers who change their mind. But it may be instructive to get some feedback from them so you can change the product if you notice a trend.

Chip H.


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If you want to get the best response to a question, please read FAQ222-2244 first

 

[kmcferrin]

I dunno. I lean more towards the "no refund" category in this particular case. Don't get me wrong, I generally think that if someone buys a product and it doesn't work or otherwise isn't suitable they should get a refund. Generally, if a person buys a product and and then finds out that it's not what they wanted or didn't work the way they wanted, I can see giving a refund. But if you let them test-drive a 100% fully functional version of the software for 30 days before buying it, then they've had 30 days to work out if it's what they wanted, if it does the job, etc. After the trial period what valid excuse could there be for wanting a refund?

Now, there are a couple of exceptions here. If you're giving them a demo version that is not 100% fully functional (other than the 30-day limit), I think you need to be more flexible. Also, if someone buys your software without going through the 30-day trial period, I could see giving them a refund. But that requires being able to track who downloads what application when.

Then, of course, there are the legal requirements in your jurisdiction to be considered.

________________________________________
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MCP, MCSA 2003

 

[ChrisHunt]

From a moral point of view, you would be entirely justified in a "no refund" policy. That's why there's a trial version - if she didn't try it out fully that's her fault, not yours.

However, in business pragmatism can outweigh morality.

If you stick to your policy, she's going to tell all her friends and family what a lousy product you have - because it didn't do what she thought it did, and what a jerk you are for not giving her her money back. Fuelled by her indignation at you taking her money, she could cause you quite a headache on forums, blogs, whatever.

If you give her a refund anyway, not only might you get some feedback on how to improve your product, but you might get some positive viral marketing from her telling folks how helpful you were.

-- Chris Hunt
Webmaster & Tragedian
Extra Connections Ltd

 

[tcsbiz]

Give the refund or not, it really doesn't matter in the long run. What does matter is the integrity of your business. I

nstead of copying license agreements and policy statements from other businesses, hire a good lawyer to draft them for you. You can have them drafted for your specific laws and business.

Boiler plates can be fine for some things but paying a lawyer now can help prevent big headaches later.

BTW, I am not lawyer but have been in business for a long time and have found them to be very beneficial.

 

[johnwm]

Yes - give them their money back, and you will get them posting in the blogs etc.

Sadly the most likely comment will be 'Here guys, I've found a right mug - he will let you test the program for a month, pay for it so you get your license code, and THEN GIVE YOU YOUR MONEY BACK!'

Make sure that you make it really clear that once they have had their months free trial, then payment is final and non-refundable.

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[audiopro]

Sounds to me like this customer is just looking for some free software. I would take some time in establishing just what the customer feels is wrong with the software and make a decision regarding a refund from that discussion. As you say, they have trialed the product and decided that it will perform a task that they require. Now they have changed their mind - that just sounds odd.
I am not saying be awkward, just find out the real reason for their disappointment. As pointed out earlier, it is in the interest of developing the product.
I worked in retail for many years and could write a book about unreasonable demands that customers believe are within their rights.


Keith

http://www.studiosoft.co.uk

 

[aarenot]

Write up a return/refund request form which requires the customers to detail the reason for the request, and also contractualy agrees with signature that the customer will not be allowed to use, posess, or duplicate this software licensed, or unlicensed in the future or forfeit the cost of the appropriate licenses required times 100.

While you may not go and look on her machines, she may think twice before signing the return/refund request contract, and drop the refund request, which solves the problem without you refusing to proccess the refund, she refused to complete the proper forms.

 

[Dollie]

Get something like this on your website, order form, hot key combo.... Put a clear link to it, and if you have an online cart, be sure that they have to click past the refund policy to get to the payment page.

"Your 30 day use of our software, and purchase of our software thereafter indicates you have tried out and/or tested the software to your satisfaction. Because installed software cannot be 'returned' or unregistered, the ABC Company only offers a X% refund upon proof that the software did not perform (functions that we claim). Reasons other than that are not considered to be valid reasons for a refund."

Hopefully this will be your one and only refund.

 

[AndrewTait]

Many of the larger companies will not accept returns unless the software package is sealed. Another alternative to the above is to send out a sealed license key in the mail, and ask for it to be returned unopened in order to qualify for a refund.

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I got to the edge of sanity....then i fell off
======================================

 

[GlenJohnson]

What's to keep the customer from copying you're software and then getting you're money back. Do you require a dongle to be attached? Can they copy the software over and over and then resell at their liesure? Are there any chances they could be stealing from you? Any chance you might need to be seeing an attorney for you're future protection? Just some thoughts. Good luck.

Glen A. Johnson
Johnson Computer Consulting

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