View Full Version : Compay refusing to apply agreed discount
openmind
13th February 2008, 12:43
I have recently placed an order with a company for a large number of dedicated servers. Prior to the order an agreed discount of 20% was placed in writing.
The company concerned invoices with a month in hand so the invoice I have received is for the remainder of February (18 days out of 29) and the full month of March. No problem with this as I knew in advance how their billing worked.
The problem is though that are only applying the discount to the full month of service and not the partial month. When I questioned them on this they said it was company policy and has always been this way. I asked them to point out on the T&Cs where this clause was and they couldn't. There is also nothing on the invoice or any communication confirming this policy.
Their argument is that it is impossible for them to apply the discount to the partial month so regardless if the partial month was actually a full one i.e. order invoiced on the first or I had 10,000 servers, I would still pay full price for the partial month of service.
The servers and tech support are out of this world so I wouldn't tell them to shove it on that point alone, it's just their accounting policy that is very odd.
Am I going nuts or is this even close to being enforceable?
INDIZINE
13th February 2008, 12:59
It sounds like a breach of contract. 20% discount off your order is simply that - 20% off. If not mentioned in the T & C about the partial month then you have the right to cancel on breach on contract, it would seem, however you might not want to do this if you want to stay with them. Maybe you need to gi higher up to make the complaint known. Admin/finance will just apply what they already know and not always be a decision-maker.
openmind
13th February 2008, 13:34
My thoughts exactly. I'm waiting a call back from someone higher up at the moment but yes you're right, the tech support and server quality is enough to stop me moving.
Not to mention the fact that I would still need to pay the first invoice if I cancelled ;)
INDIZINE
13th February 2008, 13:49
why would you? its a breach from the off isnt it?
openmind
13th February 2008, 13:56
Their T&Cs do states that you lose the right to cancel once the server is online, you get 7 days before that period.
Yep it's a breach though, I just hope we can get it resolved.
It's £160 to me and about £25K pa of business to them so I'm sure they will do something...
INDIZINE
13th February 2008, 14:13
I bet their invoicing system is set up for full months only and to programme it to do part months individually is a faff for them and they cant be bothered to change it. Its very odd way to work. Who are they by the way?
openmind
13th February 2008, 14:20
I'd rather not name and shame at this point but they are a large, well established data centre based in the UK. They currently supply in excess of 4K dedicated servers as well as co-location facilities so they are no small fry so to speak...
MH1
13th February 2008, 15:58
Personally that's just an excuse in my book, they managed to bill you 100% of a partial month, all they need to do is apply the agreed discount.
Start as you mean to go on springs to mind....
stugster
13th February 2008, 16:04
Just because their service and support is good shouldn't mean they can bend their customers over from the accounts side of things! :)
openmind
14th February 2008, 16:00
Right finally got a call back from the finance director.
The reason why the partial month was not discounted was because the discount level does not kick in until the first full month when the qualifying number of servers are online, in this case from 1st March.
If I was to order a new server on the 1st March I would get the full discount on both partial and the following full month.
I told him that this wasn't very clear and his staff needed training to explain this
He agreed to go and slap the offending member of staff
I asked would he discount it
He said no but as an act of godwill would meet me half way
Strange policy, resolved amicably, staff member slapped :)
Jeewhizz
14th February 2008, 16:28
Sonuds good enough to me. I deal with a lot of DC's and server providers, so I would be interested to know who it was ;)
I would ask for video footage of the said slapping too ;)
openmind
14th February 2008, 16:31
Sonuds good enough to me. I deal with a lot of DC's and server providers, so I would be interested to know who it was ;)
I would ask for video footage of the said slapping too ;)
PM sent and I'll keep an eye on YouTube :D
INDIZINE
14th February 2008, 18:13
Did you get more satisfaction from the partial discount or the knowledge of said employee getting a slap?! :D
openmind
14th February 2008, 18:17
Tough call that one ;)
I got more satisfaction out of the professional way the situation was defused and dealt with though...