Welcome to the age of skimming

[dipmicro]

Recently I noticed many suppliers, traditionally a reputable companies, try to nickel and dime in their billing process.

Long time supplier offers free freight on orders over certain value. Lately I ordered double this value and was asked to pay $65 for shipping of 14lb. How did we get from free to $65 ?

Supplier #2 usually add $1 for consolidation from their multiple warehouses, so we always end up getting invoiced for couple dollars more. I never thought anything of it. Last month this overcharge was blown to $200 on $680 order and obviously, I disputed the invoice and my account manager has been "looking into it" for a week now blaming their new billing system.

Another long-time supplier consistently invoices 2-5% more than my records show and although there is a contract pricing, there is no itemization, so I stopped disputing this, because products are well worth couple percent more and differences are not worth the time.

And another one this week, purchased one item for $55 total last month, just received email invoice for $75. Did they think we won't notice ?

And don't get me started on Fedex and DHL Brokerage. They so often make "mistakes", add $10 here, use incorrect HTS code with duty there. Almost looks like a nice racket they are running together with CBSA.

Either it's just a coincidential string of billing mistakes or skimming is rampant in North America.

[prior-of-verity*shake-hands-with-your-devil]

Personally I think your last statement is right.........rampant! I've ran into the same thing myself and I never let them get away with a nickel, because that nickel eventually turns into a dollar and then five and then ten. I think they depend on people in offices just entering things into computers, mindlessly like robots and no one will notice, but for the manufacturer or supplier in the broad spectrum of things it adds up to a very tidy sum.

[art-in-the-making]

Yes the "mistake" or you could call them trial balloons or test rockets.

This has been going on for years but more rampant now. And now it has the reek of being organized. Well organized.

The classic of course was perpetrated on the retail level, the "errors" coming right at the cash.

This has been all but eliminated now in QC - with the advent of consumer protection law several years ago that imposes immediate penalties on retailers for check-out errors. (item becomes free if cost under $10 - or discounted -$10 if cost is over $10 - on-the-spot refunds)

In other provinces apparently this is voluntary, or something like that (?)

I wonder if some fair variation could be imagined that would apply to B2B transactions.

[puckstopshere]

Did they think we won't notice ?

They COUNT on you or someone not noticing.  It is part of their plan of doing business.

Personally, I check out every invoice and every bill I get.  Any that are incorrect are disputed.

If they say there is nothing they can do about it, I will buy from someone else. 

I have found just the opposite lately when shopping in retail outlets.  I have found items in my bag

when I got home that are not on the bill.  I had them on the counter ready to pay for them and somehow

they did not scan onto the bill. This has happened at Walmart and at Giant Tiger.  I have brought it to

the attention of the store clerk and the manager.  The answer has been - "thanks for being honest and

pointing out the error.  It was our mistake, so keep the product as a thank you."

It is not a lot of money - about $23.00 in the past month.  Makes me wonder how stores stay in business

with this kind of thing happening. 

[art-in-the-making]

on the other hand,

conversation just had...

"No sir, no shipping charge on back orders. We'll send you piece 1 tomorrow and piece 2 when it comes in but you won't have a shipping charge on it..."

[dipmicro]

When following up on the issues, several people are on vacation. Hopefully these problems stop coming in September.

I don't think the issues are conscious looting in most cases, just work overload or incompetence.

[art-in-the-making]

Forgot to mention the worst of all - cell phone companies. Just got done looking at a (long) list of bogus "customer service" charges applicable if you "dare" to try commiting the time to contact the particular cell phone company I'm talking about.

Crooks.

[dipmicro]

Many companies are hurting and looking for new revenue, maybe that's why we are getting nickel-and-dimed right and left.

Say you are a supplier and have lot of customers who used to spend $800 monthly and now barely $400, I can understand that it's difficult to keep lights on. Should you squeze additional $50-$100 from these customers on new fees and restrictions? Will there be a customer to send $400 invoice to next month if you do?

And customer is also facing a dilema, if you don't let your business partner nickel-and-dime you, your trouble to replace them will cost more than the potential amount of nickel-and-diming and in a month there will not be a wonderful supplier you used for so long. So it goes both ways.

Recession is natural clensing cycle that brings some companies to painful death and new companies sprout on their graves into well fertilized market hungry for replacement. Unfortunately, there is one service supplier you cannot instantly replace when they start nickel-and-diming you with mystery charges - the government.