Customer complaints The company TST Systems has some claims of a customer. There was a three-week delay in delivery of the equipment for him. The customer wants the company to pay compensation. John G. Smith Deliver Manager TST Systems 9 North Road, Brighton, BN1 5JF, England Dear Sir In your letter from 25 January, 2007, you wrote that your boutique ordered equipment in our company. You expected to receive it before the New Year, but there was a three-week delay in delivery of the equipment. Because of the delay one of the containers was badly damaged.
Most of all, you wrote that some items lacked in the consignment of equipment. Weve carefully studied your complaints. You are perfectly correct as to the short delivery. Items 154 and 273 lacked in the consignment of equipment we sent you. It was overlooked by our controller. We apologize for the oversight. It wont happen again.
We will send you these parts this week by air. Well also send you some documents to facilitate customs clearance at your end. You mentioned that the cover of one of the containers was badly damaged. The equipment in this container was damaged a little too. But our company thinks that it was not our fault. The equipment was packed in the required way. According to point 7.1 of the contract the equipment was to be shipped in export sea packing suitable for the type of equipment delivered. Packing was suitable for transshipment in transit and reasonable long storage of the equipment.
You should take this up with the capitain of the ship. There is one more problem: the three-week delay in delivery of the equipment. You suffered some losses through this delay. Youd like to remind us that according to the sanctions clause of the contract you have the right to claim compensation. We do not think that your claim is well-grounded. But we are afraid you have not the right. This delay was caused by a strike in the Brighton port. According to point 11.1 and 11.2 of the contract, in the event of delay in delivery of the equipment the Seller (our company) is to pay the Buyer (you company) a penalty at the rate of 1.0% of the total contract value for every week of delay. However, the total amount of penalty for delay in delivery is not exceed 10 % of the total contract value. But as to points 12.1 and 12.2, the Parties are released from their responsibility for partial or complete non-execution of their liabilities under the Contract should this non-execution be caused by the force majeure circumstances including, but not limited to: fire, flood, earthquake, and if these circumstances have had a direct damaging effect on the execution of the present Contract. We consider this strike to be a force majeure circumstance that had a direct effect on the execution of our liabilities.
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We did our best to meet the deadline. Though according to the Contract, the Party which is unable to fulfil its obligations under this Contract (our company) it to inform the other Party within ten days from the beginning of force majeure circumstances and English ports are often hit by strikes we was not able to foresee this complication. We couldnot have delivered the equipment to other port owing to circumstances outside our control. We are sure that well reach mutual understanding and there is no need to go through arbitration procedures. We respect you claims and want to work with you in future. You are going to place another order with us next month so well prefer to offer you half the sum you want us to compensate for the delay.
Most of all we would ask you to return the faulty equipment at your convenience. A replacement for the goods will be delivered next week. Needless to say that both our companies suffered unnecessary losses. Steps are being taken immediately to avoid such mistakes in the future. Wed like to mention that a lot of customers have long been users of our products and up until now have always regarded us as an excellent supplier. Our new equipment is not a bad choice.
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It corresponds to the highest technical level and the highest standards existing in the world today. We have been often considered as an equal player behind some well-known companies like Continental Equipment and MGM Instruments. Our company was viewed as one that was good. Were now a company respected. You would be impressed by the perfomance of our new equipment. Though there are a lot of similar systems but our equipment outperforms them.
Weve worked hard and weve achieved some success. The guarantee for our equipment is twelve months from the start-up of the equipment. Well send you our advertising material and you will get some discounts in future. You may be sure we shall do what we can to rectify this situation. Yours faithfully
Bibliography:
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Businessballs.com, 1995-2006. http://www.businessballs.com/complaintsletters.htm Allen F., Wysocki; Karl W., Kepner. Customer Complaints and Types of Customers.The University of Florida, Institute of Food and Agricultural Sciences, May, 2001. http://edis.ifas.ufl.edu/HR005 Barneto, Albert. “Dealing With Customer Complaints – B.L.A.S.T.” EzineArticles 07 August 2006. 26 February 2007 http://ezinearticles.com/?Dealing-With-Customer-Co mplaints—B.L.A.S.T&id=263054 How to Solve Customer Complaints. BizHelp24, ROK Connect Limited, 2007. www.bizhelp24.com/marketing/ Paul, Rutter. Management: How to Turn Customer Complaints into Cash Opportunities.
Detroit Regional Chamber, 2006. http://www.detroitchamber.com/detroiter/articles.a sp?cid=7&detcid=662 Rosa, Say. 7 Steps for Resolving Customer Complaints. Lifehack.org, 28 April, 2006.http://www.lifehack.org/articles/communicatio n/7-steps-for-resolving-customer-complaints.html The Sale of Goods Act. What do I have to do if a customer complains? The Department of Trade & Industry, 07 November, 2006. http://www.dti.gov.uk/.
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Why do customers complain? In general, studies of consumer complaining behavior have identified four main purposes for complaining. 1. Obtain restitution or compensation. Often, consumers complain to recover some economic loss by seeking a refund, compensation, and/or have the service performed again. 2. Vent their anger. Some customers complain to rebuild self-esteem and/or to vent their anger ...
