CASE 5

You own a cement company, and deal with most the local contractors for cement, sand, etc. You have
a reputation of high quality products, and for good customer service with your customers. Your
foreman has just run the standard quality control tests you have performed regularly on your products.
When the test results are ready, you discover that the new batch of product is 9% less durable than
your usual material. It is still well above all industry standards and meets all building codes and
requirements for the purposes for which it is intended, but it is, nevertheless, not up to your usual
standards. Throwing it away would cost your company many thousands of dollars.
You decide to sell the cement anyway.

Questions:

1) Should you tell your customers?
2) Should you discount the price?
3) Should you tell your employees, so they will be knowledgeable with the customers?
4) Would you use this cement on foundations for your own house?

Answer

1) Should you tell your customers?

YES, YOU  SHOULD  INFORM  THE  BUYERS  IN  AN INFORMAL  WAY.
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2) Should you discount the price?

NOT  NECESSARY, BUT   GIVE  THEM  A  VOLUME DISCOUNT.
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3) Should you tell your employees, so they will be knowledgeable with the customers?

ONLY    THE  SENIOR  EMPLOYEES LIKE  THE  SUPERVISOR/ FOREMAN/ SALES MANAGER  ETC
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4) Would you use this cement on foundations for your own house?

I  WOULD  USE  IT  BY  MIXING  WITH  QUALITY  CEMENTS.
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