What should I ask about how a pallet company handles quality complaints?
Ask to see the complaint record, how each problem was traced and fixed, and what happened to the customer afterward. Find out who receives complaints, who decides on a credit or replacement, and whether the same issue keeps returning. How a company handles a rejected load says a lot about the business.
Start with the record. Is there a log of complaints, returns and credits? If not, ask how the owner remembers them. Look at what kind of problems appear: wrong dimensions, weak boards, poor nailing, late arrival. A single cause that repeats suggests a process fault. A mix of causes suggests a company that just fixes things as they come.
Ask how a complaint travels. Who hears it first, who goes to look, and who decides what to give back to the customer? Ask how long the answer takes. Customers who wait weeks for a reply tend to leave quietly, so ask about customers who stopped ordering and why.
Speak with a few customers, if the seller will allow it, and ask what happened the last time something went wrong. Then ask about the reverse side: how are problems with suppliers handled, and are any disputes still open? After closing, you will inherit unresolved complaints along with the customers, so ask which ones are still open. Your lawyer can advise on how those claims pass to you. Finally, ask what the owner learned from the worst complaint of the past year. A thoughtful answer suggests the company improves rather than just reacts.
Key takeaways
- Ask for the complaint log, and look for causes that repeat.
- Find out who decides on a credit or replacement, and how quickly.
- Ask which complaints are still open, since you may inherit them.
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Sources
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- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentAfter buying a business, what is the next step?
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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