Unedited
10/7/11
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Small Business Ethics

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Balking

 

Small business owners sometimes must deal with clients who attempt to exploit a business by balking. For instance, a businessperson gives a client a bill involved, say, with some construction on a home. The homeowner might (balk) withhold payment based on what they perceive is an error the bill. Maybe there was an error or overcharge or maybe there was not.

Suppose the contractor overcharged the homeowner for some lumber. The total bill was $210. The lumber was bought at $60 but the bill shows $90. The dispute is over $30 out of $210. The homeowner feels he has the right to try to shortchange the contractor on a flimsy excuse. The gain for the contractor for double charging was $30 while the homeowner would get away with $180. Since the sum of money is so inconsequential to a contractor (whose bills often run in the thousands of dollars) some do not pursue the client. Some clients know this and try to take advantage of the businessperson. When a client balks they usually can expect some addition consideration even though they do not deserve. The ethically issue here is with the client more often than not.

Balking can also be thought of as a custom ay way of doing business. It is part and parcel to a technique of doing business called haggling.

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