Does It Pay to Nickel-and-Dime?

It seems like hidden fees are sprouting up everywhere these days. Airlines charge for baggage and seat selection, hotels add fees for Wi-Fi and late checkout, law firms bill for making copies, banks penalize for not meeting minimum deposit requirements, and certain restaurants tack on a wellness fee to support staff healthcare benefits. Why don’t they include those costs in the up-front price? The answer is that they want to keep their prices down — or at least their published prices. Does it pay to nickel-and-dime people?

Some folks argue that burying fees is deceptive because the perpetrators hope you won’t notice them — until it’s too late. But is that any way to build trust? Essentially, they risk the entire relationship over a small fee, and then they end up spending a fortune trying to attract new customers. Does that make any sense?

Hidden Fees — What Do You Have to Lose?

Unfortunately, nickel-and-diming people isn’t confined to customer relationships. Picture this: You’re enjoying a fun evening out with friends at a restaurant, but things take a turn when the bill arrives. Instead of splitting it evenly, one couple pulls out a calculator to tally each person’s share down to the penny. Similarly, an employee who takes an extra day off due to a family tragedy is asked to repay it because, well, rules are rules.

I recognize the significance of setting a precedent by granting someone an additional day of vacation. However, considering what they’ve probably been through, is it worth alienating a valuable employee just to strictly adhere to the rules? Additionally, I recognize that every company deserves to make a profit. But how far are they willing to go to maximize those profits?

Let’s face it — if you constantly nickel-and-dime people, you’ll pay a price. Think about the time and effort you’ve invested in building relationships, fostering trust, earning respect and credibility, and establishing your reputation.

Are you prepared to risk it all? If so, you will have to pay the piper.

The Hidden Costs of Hidden Fees

Some people make shortsighted decisions without considering the long-term consequences. Their primary focus is satisfying their own needs, often at the expense of others. In doing so, they disregard the impact their actions have on intangible assets like trust and credibility.

The best way to look at this is to take the shoe-on-the-other-foot test. How would you react if you were the affected person?

Would you think less of the offender knowing they ignored your needs?
Would you lose respect for them knowing they tried to deceive you?
Would you wonder about what else they are hiding from you?
Would you trust them going forward?

Given the minimal benefits of your actions, you stand to pay a high price for nickel-and-diming people. You may never know the true reason the employee became apathetic, why the customer switched to a competitor, or why your friend stopped calling. As John Maxwell, the leadership author, said, “Sometimes you win, sometimes you learn.”

The key is to treat people the way you’d like to be treated. Considering the relationship that you had with them, don’t you think being nickel-and-dimed feels petty? I hope that next time you think about trying to deceive someone, you’ll consider how much the relationship means to you. Which is more valuable to you, a fleeting victory or a lasting relationship? Nickel-and-diming people can cost you a pretty penny.

Check out Frank’s new book, BECOME: Unleash the Power of Moral Character and Be Proud of the Life You Choose