# Business ethics and the half-truth



## clovis (May 13, 2002)

My wife and I met with a person this weekend about leasing some space at a new indoor flea market that they had opened.

We talked with this person for about an hour, and my wife and I had the same exact feeling...you know the feeling...the feeling you get when something isn't adding up but you can't quite put your finger on it.

This person was so full of half-truths that it wasn't even funny.

Instead of telling us that they were brand new to the industry, but excited to learn and serve their customers as they grew, they opted to tell us how "nearly the whole place was rented" and that they "had professionals handling that for us." 

This person went on and on about how every vendor had made their booth rent for the month, implying that the store had sold over $1,300 in just two days since they opened the doors. The truth is that the FM owner owned all the stuff in store, with the exception of one booth, so in reality, they've sold $200 total....of the stuff they owned. The trick to this little game is to amoritize the sales over the two vendors, then declare "everyone has made their booth rent for the whole month of May already" with the implication that all 13 booths were different vendors and that sales have been fantastic.

I could write for an hour about the half-truths that we were told today. 

I've been in business for myself since 1993. Let me tell you that the _only_ way to go in business is to be truthful 100% of the time, even if that includes telling someone that "I don't know. I've never dealt with this before."

Sometimes I wish that people would just put on their big boy and big girl pants and tell their clients the truth. It is hard to do sometimes, but always worth it. More than once in my life, I've had to call a customer and deliver bad news to them. It isn't easy to make those calls, but the customer will always be more understanding and thankful if you are honest with them. 

I once had a new customer that placed a whopping big order with me. I bought equipment to create their order, and if anything could go wrong with the equipment or the order, it did. After three weeks of working on the order, and the customer getting frustrated with me, I went to the customer and laid it all the line. "This order is a BIG order for me, and I am in a tremendous learning curve with the new equipment. It could be three more weeks before I get it done." I explained everything to them, and how I had tried to fix each problem. I went in that office expecting to get yelled at, losing the order and the new customer forever.

You know what happened? They thanked me for being honest with them, and said "No rush on the order. I'm sorry we've been calling so much." She then told me to double the order, but only after I had the first order delivered!!!

Being honest pays off in spades because customers can place trust in the relationship they have with you. 

If by chance, anyone cares to know, I am always leery of entering business relationships where people may show these warning signs:

1. Their story doesn't add up.
2. The figures they offer don't add up.
3. They tend to try power plays over you on tiny little things that don't matter. Sometimes this shows their desire to control everything, including the deals they make with you. 
4. They are clearly unknowledgeable on topics that they should understand very, very well, but try to pull the wool over your eyes and make themselves sound important and powerful. This includes the very basics of business too. 
5. They don't ask questions of you or seem to listen to you.
6. They are constantly trying to one-up you or their competition.
7. They try to hard sell you, or rush you to 'sign right now'.
8. They fabricate pieces of different things into one story that gives them importance. "We are the supplier of all the vehicles to the Indianapolis Motor Speedway" they say, when in reality, they sold a single junk Toyota for $400 to a former employee of the Speedway twelve years ago. 
9. Their stories are full of half -truths.

FWIW, my wife and I walked from the person that told a million half-truths today. We will never be back, for our trust in this person was shattered forever. We expected to lease 3 booths and a shelf, with a total of $335 a month, plus the 2% commission on our sales. The rent alone would have been $4,020 per year, and I promise you that the 2% commission would have been a tidy sum. In three years time, the booth rent would have totaled $12,060. 

Was it really worth telling us a bunch of near lies and filling our ears with their self importance?? Even at a price of $12,060???? 

I appologize for the rant and the sermon, but this is a hot button issue to me. 

Just tell the truth, and nothing less, especially if you are in business. 

Thoughts? Comments? Ideas? Am I wrong about this issue?


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## Pam6 (Apr 9, 2009)

I was at a flea market last week and one of the vendors was bragging that he made $5K a week at this flea market on "hand blown glass pendants" made in Arizona by the Indians....."via" the boat from CHINA he says! That he is getting these for between $1-$1.50 and then selling them for $7 each. He was bragging both about how much money he makes and that he is deceiving people by telling them that it is 'hand blown in the USA'.


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## Harry Chickpea (Dec 19, 2008)

Really good post, Clovis. I wish that honesty was more common. When you are in business for yourself, you learn quickly that it isn't, and that often those who aren't honest succeed long enough to destroy those who are. There are days I despair about humanity.


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## clovis (May 13, 2002)

Harry Chickpea said:


> Really good post, Clovis. I wish that honesty was more common. When you are in business for yourself, you learn quickly that it isn't, and that often those who aren't honest succeed long enough to destroy those who are. There are days I despair about humanity.


Thank you for the reply and the kind words. I totally agree.

At the same time, I know my post sounds "holier than thou" and preachy at the same time. I didn't mean for it to sound that way.

Can anyone tell that I feel strongly about some things?


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## Pelenaka (Jul 27, 2007)

Thank you for this post it was informative. Hubby & I have often considered renting a booth @ a flea market/antique co-op. Now I know alittle bit more about what I should be listening for.
Hubby restores antique cider presses into working order. Even if it's just a pile of rotten wood & rusted cast iron. By working I mean food grade paint, food grade varnish, stainless steel screws & bands around the pulp basket. 
We were wanting to rent a small booth & have a display showing before & after pics, along with explaining exactly what is done to someone who wants their Great-Grandfather's press restored. Including contact info ect.
So far we've been quoted $100 & 65 of sales. 

Any other pointers ?

~~ pelenaka ~~


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## Pam6 (Apr 9, 2009)

Pelenaka said:


> Thank you for this post it was informative. Hubby & I have often considered renting a booth @ a flea market/antique co-op. Now I know alittle bit more about what I should be listening for.
> Hubby restores antique cider presses into working order. Even if it's just a pile of rotten wood & rusted cast iron. By working I mean food grade paint, food grade varnish, stainless steel screws & bands around the pulp basket.
> We were wanting to rent a small booth & have a display showing before & after pics, along with explaining exactly what is done to someone who wants their Great-Grandfather's press restored. Including contact info ect.
> So far we've been quoted $100 & 65 of sales.
> ...


What does "& 65 of sales" mean??


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## edcopp (Oct 9, 2004)

I would bet that the 5 was supposed to be % .


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## Pam6 (Apr 9, 2009)

Ok, that makes more sense!


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## oregon woodsmok (Dec 19, 2010)

There was a big mix-up here when a local flea market business what rented booth space was closed down by the city because they weren't zoned to run that type of business.

So, just one more thing to check before signing the lease. Is the business legal in that location?


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## ladytoysdream (Dec 13, 2008)

Pelenaka said:


> Thank you for this post it was informative. Hubby & I have often considered renting a booth @ a flea market/antique co-op.
> Any other pointers ?
> ~~ pelenaka ~~


Either a inexpensive website or a blog with LOTS of pictures. 
Maybe the phone number you use could be something like a tracfone 
number versues using your house number.
Email in the description too....maybe a yahoo or gmail one. 

Maybe do a ad in the BARTER TRADE area on this website here. 
Somebody doing a search might run across your ad. 

How about craigslist....you can ad up to 4 pictures.

If you do a flea market, do one where you just pay to set up for one day at a time. Those you don't have to give them a percentage of your sales. 
So you have a set up fee, and your gas money. Bring along your lunch.


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## clovis (May 13, 2002)

ladytoysdream said:


> If you do a flea market, do one where you just pay to set up for one day at a time. Those you don't have to give them a percentage of your sales.
> So you have a set up fee, and your gas money. Bring along your lunch.


My wife and I have never set up at an outdoor flea market. The big FM here is on Sundays, and we attend church on Sunday mornings.

I've been working on starting my own outdoor FM for another day other than Sundays. Land here is very expensive, and it is also very hard to find a place with proper zoning.


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## Truckinguy (Mar 8, 2008)

I worked for a contruction equipment rental company for many years and there were many times that the rental desk strung the customer along, telling them that their machine was nearly ready and, indeed, just about to be loaded onto the truck, when, in reality, it was in pieces in the shop with a frazzled mechanic trying to fix it so it could go out on rent. The customer would call every couple of hours to see what was up. When I finally delivered the machine at 4pm, a little late when it was supposed to be on site for 7am, the customer was beside himself. I had a couple of contractors actually beg me "Please, just tell me that the machine isn't ready in the morning, I"ll go to another company to get a machine to do my job and the next time I"ll come back to you." The point was that there was an expensive crew, other equipment and possibly other contractors waiting for nothing. The rental desk strung the customer along worried that if the customer went elsewhere for equipment we would lose them. In reality, we probably lost more customers by stringing them along than just telling them the truth.


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## Pelenaka (Jul 27, 2007)

ladytoysdream said:


> Either a inexpensive website or a blog with LOTS of pictures.


Before & after pics of our personal press -
http://thirtyfivebyninety.blogspot.com/2007/06/urban-cider-press.html

Press in action - 
http://thirtyfivebyninety.blogspot.com/2007/11/backyard-cider-making.html

This press he sold thru ebay -
http://thirtyfivebyninety.blogspot.com/2007/09/off-to-side-tag-sale.html

Tanks those were great tips.

~~ pelenaka ~~


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## clovis (May 13, 2002)

Truckinguy said:


> In reality, we probably lost more customers by stringing them along than just telling them the truth.


Excellent story, and very true!!!!

This is exactly what I was getting at...it is best to always be honest with the customer.


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## grandmajo (Mar 25, 2008)

This is an excellent post, clovis. One that I can relate to very well. I used to work as a sales rep for a small machine shop. I also filled in doing office work as needed. I went out and brought them in a brand new customer who needed some work done. The quote was submitted, the customer accepted it and the work was done. After the job was done I just happened to be working in the office doing invoicing and came across the invoice info for this job. The hours that were being charged were double that of what was actually spent doing the work. I took the issue to the owner, who said "well, the customer isn't going to know how many hours we spent doing this".


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## ChristieAcres (Apr 11, 2009)

grandmajo said:


> This is an excellent post, clovis. One that I can relate to very well. I used to work as a sales rep for a small machine shop. I also filled in doing office work as needed. I went out and brought them in a brand new customer who needed some work done. The quote was submitted, the customer accepted it and the work was done. After the job was done I just happened to be working in the office doing invoicing and came across the invoice info for this job. The hours that were being charged were double that of what was actually spent doing the work. I took the issue to the owner, who said "well, the customer isn't going to know how many hours we spent doing this".


Sadly, that appears to be the norm. And then, there are us!

We own a small Machinist/Welding Shop, with DH being the only employee, besides me. His bids are not only honest ones, but he charges LESS hours than he actually puts in on the job, especially due to our current economy. After we submit a bid, very rarely does the customer find high quality work done for less. Take a peak at our website (needs updated, eventually I'll get to it...):

http://christiemachineandwelding.com/


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