Entrepreneurs: Myths and Legends|| The BBB is One of Them...
Accolades to my Friend Chris Swope for This original post...
Entrepreneurs here in the US have a very interesting phenomenon called the better business bureau. It is a so-called watchdog group that has attained legendary status in the business community. You're either in, or your out.... and too many entrepreneurs have misguided notions of what it's really all about.
The BBB Is NOT What It Seems
Some people mistakenly look at the BBB as a credible government entity that handles disputes between customers and businesses that is run by tax dollars. First of all, it is not a government agency, it is a private company. The common misconception is that if a business is a member of the BBB and has a good rating, then they must be a good, positive, and credible business. Another problem this brings up is that if a business receives a 'bad' rating, they are not able to dispute/resolve their complaints UNLESS THE BUSINESS PAYS TO BE A MEMBER. Sounds like a conflict of interest to me.See the BBB takes "subscription" or "membership" donations from businesses. This means that businesses are the BBB's source of income (even though they classify themselves as non-profit). Businesses are their object of complaint. So, if I as a consumer complains to the BBB, they are complaining about one of the BBB's sources of income. Obviously, this is a problem.
Just about the only thing that the BBB does, is give the business that is being reported the opportunity to respond, only after they have paid their membership dues. What a joke.
To give you an example, I checked out my local Wal-Mart: they are a "member" of the BBB. They have had one complaint against them, but it apparently was resolved. So, they have an "AA" rating. I checked out the local Lowe's. They have 14 unresolved complaints against them and have an "F" rating. They are NOT members of the BBB.
What makes this kind of fishy is the number of lodged complaints. These stores are no more than a couple of miles from each other and so have basically the same customer base. I find it impossible to believe that the BBB has only received one complaint against Wal-Mart and 14 against Lowe's. This makes me suspect that a) the BBB is not recording complaints against their members; b) the BBB is not recording responses from non-members; c) the BBB might be "creating" complaints against non-members. Or some combination of these or others.
One final irony: if you have a complaint against the Better Business Bureau, you can't file it with the Better Business Bureau. The Better Business Bureau is not a member of its own organization!
Moral of the story: You can't look at the BBB as a credible source of business information. The facts they publish are skewed by the mere business model that they use - paid memberships.
Thanks again to Chris swope. Check back with the wealth practicum on a regular basis for our updates. Peace and success to you.
Matt Hempel
440.368.3535
http://www.yournewlegacy.com
19 comments:
Thanks for speaking up Matt- I actually tried to file a complaint with the BBB several years ago and was told that I could not because the company was a BBB member! I have also found conflict of interest with local chamber of commerce.
One of the best write-ups I've seen on those scoundrels at the BBB!
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