Another article from Scambusters.org that reminds us to be diligent about checking up on companies who email, call, or text offers.
How to Check a Business Reputation
When
it comes to buying and selling products or services, seller reputations are
everything. Well, almost. Value has a role to play too.
Because it’s easier than ever to check out a firm’s reputation, many sellers
put a lot of effort into getting the best and the most compliments they can and
acting quickly to respond to criticism.
Even so, lots of shoppers still get caught out when buying online or in brick
and mortar stores because they didn’t take the time to check out what others
are saying about the sellers.
As we explain below, there are some cases where you can’t rely on comments and
scores others have awarded. But there are some basic researches everyone should
follow to get an idea of the reliability and honesty of the firms they’re
dealing with.
Here are the five most important actions:
1. If you don’t know them, research the company by name. The
bigger your planned purchase, the more important this is. Type their name into
your browser, with and without the word “complaint,” and see what
comes up.
But don’t just look at the first page of returns from your search. That’s where
clever search engine manipulators and advertisers lurk. Scroll through a few
pages.
Another neat trick is to add the letter ” v ” (with a space either
side), which may indicate if a company has been involved in any lawsuits.
2. Check business scoring and reputation sites. These include
Google, Yelp, and the Better Business Bureau. You can also check with your
state or local consumer protection departments.
When looking at scores, be wary about firms that have only top scores. They may
be that good but still…
3. If you’re shopping locally, ask neighbors, family and friends for
their recommendations — especially for home service contractors such
as plumbers, electricians and building contractors. Then, still do your online
reputation research, including whether contractors are properly bonded,
licensed and insured.
You can also check the files of local newspapers or request recommendations
from other users on sites like Facebook and local community forums.
4. Check the websites of firms you’re considering. Look for a
good modern design, upfront information about privacy and trading practices. Do
they give full contact details including names and addresses? Check Google’s
street view of the address to see if the location is genuine.
Also check the firm’s Facebook and Twitter postings to get a feel for how they
deal with customers.
If you read testimonials, be cautious. Site owners naturally want to present
the most positive image and may filter out negative reviews. And does the firm
say that testimonials are available for inspection?
Also, check their Internet website registration. This is quite easy by checking
registration websites using the term “whois lookup.”
Another useful source of company information is the free-to-use Electronic Data
Gathering (EDGAR) service operated by the US Securities and Exchange
Commission. It’s a huge database of information about listed and public
companies. Start here: https://www.sec.gov/edgar/search-and-access
5. Watch out for red flags. There are lots of simple things
that can signal caution when you’re considering doing business with a company
that’s new to you, For example:
- Have you — or anyone else for that matter — ever heard of them before?
- Is the company based abroad, notably in China or certain African countries?
- Is the deal they’re offering too good to be true — in terms of value and quality (e.g. brand names that are normally expensive)?
But Beware…
There
are a couple of important issues to bear in mind when you’re checking out a
company’s reputation.
First, there are firms that offer companies a service they call
“reputation management.” More bluntly, as one of them says, they can
“bury negative content,” and “make the best things about you
prominently visible to others.”
This is perfectly legal and all businesses naturally want to emphasize what’s
good about them. Nevertheless, when you’re doing your research, you should be
aware of this as a possibility when you’re investigating them.
Second, it’s also true that most people who are perfectly happy with products
or services they bought don’t bother to write positive reviews. But many people
who are unhappy can’t wait to share their grumbles.
As Benjamin Franklin said: “It takes many good deeds to build a good
reputation and only bad one to lose it.”
This means there could be, unfairly, a lot more negatives than positives in
certain online reviews. There’s not a lot you can do about this. But where
review sites have a scoring system, it’s a good idea to check those in the
middle — the three-out-of-five-star reviews for example. Here you’ll most
likely encounter fair and honest experiences.
