
Ask HN: How do you get over the pain of refund requests? - gburt
Every time I get a refund request I feel like I've been personally attacked -- often they're customers where its incredibly obvious that they're intentionally exploiting my favorable refund policy, and as such I shouldn't be insulted, but still, I feel it.<p>My refund rate is fairly low (less than 2% -- I've talked to other vendors in my niche and they report much higher refund rates). I have a prewritten response to refund requests that asks for feedback and offers a range of solutions -- in fact, it stops about 50% of refunds from being actually wanted. Its the other 50% that are mostly not in good faith anyway that are really bothering me.<p>I know I'm not alone here. Should I just be paying someone else to deal with my billing stuff entirely to separate my emotions from how things are going on the sales front?
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acangiano
Sell more. You'll end up issuing more refunds, and eventually get used to it.
It will stop hurting eventually.

When I first started <http://anynewbooks.com>, the occasional un-subscription
or "Enough! Stop sending me emails." message would bother me a little.

Today, I don't even blink at unsubscribe notices. And when I get the
occasional "Remove me!!!!111!!!!", I simply unsubscribe the person who doesn't
understand that an unsubscribe link is provided.

No big deal. I know that refunds are a little more personal, but like most
things in life, you get used to it. You'll grow a thicker skin.

Just focus on selling more copies of your product. And focus on improving your
product for all those people who didn't ask for a refund.

If after issuing dozens of refunds you still can't get over it, then outsource
it.

~~~
gburt
I have issued dozens, probably about 200 at this point, I'd estimate. Selling
more is always good advice though, +rep.

I'm in an extremely niche market for my best selling stuff, so selling more is
likely going to involve new products. Something I am working on, of course. :)

~~~
acangiano
Got it. Here is what I'd do.

1) Direct requestd for refund to a specific form on a page.

2) Have a virtual assistant receive such emails.

3) Instruct such assistant to issue legitimate requests for refund under
whatever process you currently follow.

4) Ask her to forward bona-fide feedback to you. So that you can use it to
improve your product.

5) At the end of each week or month, ask for stats.

This should prevent you from dealing with the issue first-hand, while still
figuring out any real issue.

BTW, are you an Italian developer living in Canada, too?

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alanstorm
Run the numbers, calculate the percentage of your income lost, and just
consider it another unavoidable cost of doing business. I imagine you don't
__like __paying Paypal, Google Checkout, or merchant account transaction fees,
but I also imagine you don't feel personally slighted at having to pay them.
Put people exploiting your refund policy in the same bucket.

If this is a subscription service, automate the refund process such that you
can you can send a single email with a link that will let them provide
feedback, cancel their service, and refund their money.

If you're selling software bits consider a serial number system that will
allow you to remotely disable people who have requested refunds. Also, keep
your refund policy but stop advertising it. This way you prevent bottom
feeders from even knowing it's an option. If you notice this is costing you
more sales than you gain, go back to advertising it and re-read paragraph one.

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asanwal
Yes, it sucks, but I'd keep doing it yourself for a few reasons for both
refunds or even folks who want to cancel your service after some time
(assuming its subscription-based):

1\. It'll offer you an opportunity to get feedback which can help make your
product better.

2\. It can turn a hater into a net promoter if you do it right.

3\. Direct outreach from the founder of a company makes your firm more human
(not sure what industry you're in but in ours, people really appreciate it).
It may not turn the "gamers" into buyers, but if you believe most people are
good, they may be less inclined to game if you're not just some "evil
business"

And although I also sometimes remember rejection more than successes, I find
these requests motivate me.

Note: I've got no sense of volume you're dealing with so I'll caveat the above
with that if it's becoming a time-suck.

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chandika
Do you have a 'no questions asked' refund policy? Do you still ask questions
as of to why?

We do have such a policy, but we do ask 'why?' in a manner that aims to
clarify and improve our service. A subset of the users are nice enough to
explain and sometimes addressing that root cause cuts refund rates by about
25%.

Btw, would you mind sharing the points in your refund response email template?
I would assume the effectiveness would depend on the nature of product, but
it'll still be educational me thinks.

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kellyreid
Get used to it. I think paying someone else to deal with billing stuff is a
fine idea, but don't distance yourself too much. I could easily delegate out
the "refund reply" job, but I choose to do it personally.

It's really easy to turn a refund request into a repeat customer. If you're
getting people "gaming" the system, change your policy.

------
xekul
I offer an unconditional refund policy at my service business, and I've had to
deal with the same feelings. In my case, I would often spend a few hours
working personally with the client, only to refund their money afterward.

However, I continue to offer the policy because my refund rate is low (about
1-2%) and the increase in sales due to the policy is substantially higher than
that. The way that I see it, giving out a few refunds is a cost of doing
business, and I don't begrudge refunds any more than I begrudge taxes,
merchant fees or rent increases. Looking at refunds mathematically takes some
of the pain out of paying them.

I'm also somewhat comforted by the fact that a refund policy is a way to
resolve genuine client dissatisfaction: In my view, giving refunds to
undeserving people is far preferable to clients actually leaving dissatisfied
and possibly badmouthing my company.

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larrys
Could you explain this a little more:

"Its the other 50% that are mostly not in good faith anyway that are really
bothering me." particularly "not in good faith"

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pbreit
Consider it this way: a lot of less successful startups and service providers
would _love_ to be issuing refunds!

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notatoad
console yourself with the knowledge that handling a refund is better than a
dealing with a credit card chargeback.

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emmett
The answer is simple: yes. If you find dealing with purchase support
emotionally stressful, definitely outsource it. Just make sure you receive
weekly reports so you can keep your eye on trends.

------
signalsignal
Are these repeat refunds or just one-time customers? Also, are you sure of the
reason for the refunds is what is bothering you and not that the money from
the sale was already spent?

~~~
gburt
Its certainly not that the money is already spent. I'm in a fairly good
position right now with respect to that.

------
general-marty
Refund is good. I hate chargeback!

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gnu6
You need to develop a thicker skin. It's just business.

~~~
maxaf
Except nothing is as personal as business.

