Perform A Miracle? Bad Mistake in the Food Service Biz.
August 2, 2015 6:46 PM Subscribe
Worst rookie mistake ever. My very young cousin misspelled the company name on an order for restaurant tableware, glasses, souvenirs etc. Enough for 6 locations. Is there any way to recoup any of the loss?
The material was received misspelled. It cost about $250k USD. Even though he's done previous business with the vendor, he knows that it was his mistake and will not try to pass any blame on the vendor.
He knows he'll likely be fired, but he doesn't want them left holding the bag for this blunder.
Do vendors/suppliers ever try to help resolve issues like this? Has anyone had an experience like this? Is there a clearing house to sell off stuff like this? Is it possible that insurance may cover it? Does anyone in the business have any advice?
Many thanks in advance!
The material was received misspelled. It cost about $250k USD. Even though he's done previous business with the vendor, he knows that it was his mistake and will not try to pass any blame on the vendor.
He knows he'll likely be fired, but he doesn't want them left holding the bag for this blunder.
Do vendors/suppliers ever try to help resolve issues like this? Has anyone had an experience like this? Is there a clearing house to sell off stuff like this? Is it possible that insurance may cover it? Does anyone in the business have any advice?
Many thanks in advance!
Graphic design professional here: it's unusual that an order of this size wouldn't've been mocked up as proofs for the signoff of the owner or someone higher-up (and older). Maybe someone can call the supplier and say "hey, we were expecting proof samples, not the whole order right away"?
posted by zadcat at 7:02 PM on August 2, 2015 [17 favorites]
posted by zadcat at 7:02 PM on August 2, 2015 [17 favorites]
As far as the vendor is concerned, they fulfilled the order as given. There's literally no upside for them in losing money by replacing an order of this magnitude. If it were a couple hundred dollars maybe? A quarter of a million, not so much. The only way I can see for a vendor to replace this kind of thing is if your cousin's employers flat-out lie and said it was the vendor's error, make a huge stink on yelp/other media, etc. If it becomes a big enough headache, maybe the vendor, depending on their size, might negotiate something. Needless to say this would be entirely unethical, totally wrong, and just no.
It is remotely possible that the employer could contact the vendor and say "so, one of my employees fucked up hugely on this and we need to replace everything. How much movement can we negotiate on price?"
I'd really really really strongly suggest that your cousin contact competent legal counsel in your jurisdiction ASAP to find out if they can be held personally liable for an error this huge, or if they're protected.
It's also worth looking into signoffs, how many were required etc. If your cousin had actual final signing authority, big huge mistake. If it turns out there were other people in the approval chain above your cousin that might be a mitigating factor.
posted by feckless fecal fear mongering at 7:05 PM on August 2, 2015 [18 favorites]
It is remotely possible that the employer could contact the vendor and say "so, one of my employees fucked up hugely on this and we need to replace everything. How much movement can we negotiate on price?"
I'd really really really strongly suggest that your cousin contact competent legal counsel in your jurisdiction ASAP to find out if they can be held personally liable for an error this huge, or if they're protected.
It's also worth looking into signoffs, how many were required etc. If your cousin had actual final signing authority, big huge mistake. If it turns out there were other people in the approval chain above your cousin that might be a mitigating factor.
posted by feckless fecal fear mongering at 7:05 PM on August 2, 2015 [18 favorites]
A few years ago I was a new intern at one of the largest and most revered magazines in the world. A printers mark was left in on one of the spreads in my care and it made its way into the printed zine, much to the horror of my bosses and our editor in chief. I took full responsibility immediately and was suitably mortified, but my boss told me that even though the editor in chief wanted to blame an intern, there had been 5 other sets of eyes that missed the mark, eyes that belonged to seasoned professionals who should have noticed and who never told me that I was in charge of removing such a mark before we went to press. This is an expensive lesson for your cousin to be sure, but it is assuredly not his fault in the end because his superiors ought to have done their job more thoroughly first. Hopefully the burden will fall on them to fix things, as it ought to.
posted by Hermione Granger at 7:37 PM on August 2, 2015 [36 favorites]
posted by Hermione Granger at 7:37 PM on August 2, 2015 [36 favorites]
I don't have any practical advice, but if this size of order only had one sign off, whatever happens I hope your young cousin takes away the message that in the future he should make sure it is a good system in place. (I don't think this was his job here, I think he was the victim of a lack of that.) Because that is really not okay!
He made a mistake but when the stakes are that high, there should be some checks built into the approval process. I think it is great that you are helping to brainstorm solutions but if he is fired, then he brings a really valuable insight about having multiple checks to the rest of his career.
posted by warriorqueen at 8:13 PM on August 2, 2015 [2 favorites]
He made a mistake but when the stakes are that high, there should be some checks built into the approval process. I think it is great that you are helping to brainstorm solutions but if he is fired, then he brings a really valuable insight about having multiple checks to the rest of his career.
posted by warriorqueen at 8:13 PM on August 2, 2015 [2 favorites]
He's going to have a great answer for future job interview questions.
That said, there's really nothing to do here. Either he's getting fired for sure or he's not. The best he can do is, "Hey, I really messed this up and it will absolutely never happen again because..."
posted by paulcole at 8:26 PM on August 2, 2015 [2 favorites]
That said, there's really nothing to do here. Either he's getting fired for sure or he's not. The best he can do is, "Hey, I really messed this up and it will absolutely never happen again because..."
posted by paulcole at 8:26 PM on August 2, 2015 [2 favorites]
First fire your cousin. He's an idiot and he doesn't have the cash required to accept the blame.
Then return the order to your supplier as defective and refuse to pay for it. Tell them it's their fault because they should know how to spell the company name of a large customer. It's on your letterhead and your website and your business cards.
Best case they agree to re-do the order. They keep a big customer, and depending on their margins may even still make a profit or break even.
Worst case they sue for full payment, lose you as a customer, and you end up paying someone else to remake the order. This is where you are now anyway, having to pay twice.
You will probably end up somewhere in the middle, i.e. they agree to re-do for less than full cost in the interest of customer service. Customers who can write 250K checks are worth keeping.
posted by w0mbat at 8:39 PM on August 2, 2015 [11 favorites]
Then return the order to your supplier as defective and refuse to pay for it. Tell them it's their fault because they should know how to spell the company name of a large customer. It's on your letterhead and your website and your business cards.
Best case they agree to re-do the order. They keep a big customer, and depending on their margins may even still make a profit or break even.
Worst case they sue for full payment, lose you as a customer, and you end up paying someone else to remake the order. This is where you are now anyway, having to pay twice.
You will probably end up somewhere in the middle, i.e. they agree to re-do for less than full cost in the interest of customer service. Customers who can write 250K checks are worth keeping.
posted by w0mbat at 8:39 PM on August 2, 2015 [11 favorites]
The order isn't defective, though.
posted by feckless fecal fear mongering at 8:50 PM on August 2, 2015 [8 favorites]
posted by feckless fecal fear mongering at 8:50 PM on August 2, 2015 [8 favorites]
He needs to call the vendor immediately and ask why they didn't notice the misspelling, as they have printed things for the company before. That is an oversight on their end. Someone should have checked previous orders. Since he was the one who sent in the order, they can say that he is responsible for it but, if they want future business, they may try to work something out. I wouldn't use them again. That's just sloppy work on an order that large. I doubt that your cousin's company's insurance would cover that sort of mistake.
posted by myselfasme at 8:56 PM on August 2, 2015 [4 favorites]
posted by myselfasme at 8:56 PM on August 2, 2015 [4 favorites]
This is going to sound flippant and I don't intend it that way at all but Eyebrows McGee's comment seemed timely (assuming you were serious about a way to sell of the typo'd merchandise).
posted by Beti at 11:32 PM on August 2, 2015 [1 favorite]
posted by Beti at 11:32 PM on August 2, 2015 [1 favorite]
Where are they in the production process? Is it already done or underway? Your cousin should definitely stop whatever can be stopped, even if he thinks he missed some kind of deadline. Like-- call them now and stop it!
I echo the bafflement that there weren't another set of eyes to catch the typo.
I don't support the advice to blame the vendor for missing the mistake. It's bad business, and the mistake was on the company side, not the vendor side. Even if they give in to the implied blackmail, it pisses in the pool for everyone in the business community.
I would go with having the president of the company call the vendor, explain the situation and ask what can be done.
As for your cousin, if someone really let someone so junior place an order of that size without any oversight, then I hope whoever did that will have the guts to take part of the blame.
posted by frumiousb at 12:04 AM on August 3, 2015 [1 favorite]
I echo the bafflement that there weren't another set of eyes to catch the typo.
I don't support the advice to blame the vendor for missing the mistake. It's bad business, and the mistake was on the company side, not the vendor side. Even if they give in to the implied blackmail, it pisses in the pool for everyone in the business community.
I would go with having the president of the company call the vendor, explain the situation and ask what can be done.
As for your cousin, if someone really let someone so junior place an order of that size without any oversight, then I hope whoever did that will have the guts to take part of the blame.
posted by frumiousb at 12:04 AM on August 3, 2015 [1 favorite]
My very young cousin misspelled the company name on an order for restaurant tableware, glasses, souvenirs etc. Enough for 6 locations. Is there any way to recoup any of the loss?
How young? Under 18 and in the United States? I'm not a lawyer but... if he's under 18, the contract could be voidable based on that fact.
posted by LuckySeven~ at 5:10 AM on August 3, 2015
How young? Under 18 and in the United States? I'm not a lawyer but... if he's under 18, the contract could be voidable based on that fact.
posted by LuckySeven~ at 5:10 AM on August 3, 2015
How young? Under 18 and in the United States? I'm not a lawyer but... if he's under 18, the contract could be voidable based on that fact.
I am. The contract was entered by the business entity, not the hypothetical minor employee. There is no reason to believe this business contract is voidable.
posted by Tanizaki at 5:59 AM on August 3, 2015 [3 favorites]
I am. The contract was entered by the business entity, not the hypothetical minor employee. There is no reason to believe this business contract is voidable.
posted by Tanizaki at 5:59 AM on August 3, 2015 [3 favorites]
How young is very young? If your cousin really is very young, presumably he's also a low man on the totem pole so why was such a massive order his sole responsibility? Yes, he made a mistake, people make mistakes, that's why we don't trust quarter of a million dollars in the hands of 1, inexperienced person, unless we can afford it.
If he gets fired, that sucks but its not his responsibility to try to get the company their money back.
posted by missmagenta at 6:49 AM on August 3, 2015 [4 favorites]
If he gets fired, that sucks but its not his responsibility to try to get the company their money back.
posted by missmagenta at 6:49 AM on August 3, 2015 [4 favorites]
Response by poster: Hey, big thanks to everyone for helping! You had some great answers that helped us wrap our heads around the thing and freak out a little less. He has actually (kinda) resolved this and his boss has signed off on it. He didn't actually share a link to this AskMe, but they discussed some of the answers especially regarding oversight and overreach on his part.
He is NOT going to be fired. After some discussion we figured out a way to send the material back, and add printing to it at minimal cost and make it work within the theme of the business.
Many thanks! You guys are great!
posted by snsranch at 5:29 PM on August 3, 2015 [10 favorites]
He is NOT going to be fired. After some discussion we figured out a way to send the material back, and add printing to it at minimal cost and make it work within the theme of the business.
Many thanks! You guys are great!
posted by snsranch at 5:29 PM on August 3, 2015 [10 favorites]
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