I’ve been running a small business for about five years now, and one of the most common pieces of advice I keep hearing is ‘the customer is always right.’ Honestly, I think it’s one of the worst practices we can follow.

Sure, it sounds like a great way to keep customers happy, but in reality, it often leads small business owners to make unsustainable decisions just to appease difficult customers. I’ve had experiences where bending over backward to accommodate a ‘right’ customer resulted in the demoralization of my team and even financial loss.

One instance that stands out is when a customer insisted on a refund well past our clearly stated return policy. In an effort to avoid negative publicity, I gave in. It not only hit our bottom line but set a precedent that was hard to manage later.

I believe we should aim for reasonable, honest service, and sometimes that means admitting when a customer is wrong. This way, you build a business based on mutual respect and practicality, not on empty platitudes.

Have any of you dealt with similar situations, and how did you handle them?