Many people assume there business has additional value due to the
goodwill they have built up over the years. In some cases they are
correct however, too often they don’t understand they have also built up
badwill and there is a cost for that.
A customer leaves because they feel they have been treated poorly, you
A vendor feels taken advantage of by you, you have badwill.
An employee is mistreated, you have badwill.
In many cases you might not even know you have built up badwill until
it’s too late.
You mistreat a vendor and then need some credit for a purchase, with
badwill you most likely wont get the credit.
You mistreat an employee and then want a favor from another employee,
you most likely wont get it.
You mistreat a customer and then spend money on marketing to get new
customers, you will never know how much that customer has cost you.
It’s great to think you have built up a lot of goodwill, but make sure
you understand the cost of badwill as well.
Have a great day!