Hugh O. from Lincoln NE. Just had my first audit engagement and it was a complete disaster. Promised the client I'd find significant savings, spent 20 hours analyzing their NPPD bills, and found absolutely nothing. They're furious and want a refund. How do you handle this?
First client disaster - need advice
Hugh, Randy here. First off, this happens to everyone at some point. The key is how you framed the engagement upfront. Did you guarantee savings or promise to conduct a thorough analysis? There's a big difference. Sometimes the best finding is confirming the client is already optimized.
Randy, I think I did promise to 'find ways to reduce their electric costs' which sounds like a guarantee in hindsight. Rookie mistake. Should I refund the full fee?
Dale H. here in Indianapolis. Hugh, I'd offer a partial refund and emphasize the value of the analysis itself. You confirmed their rate schedule was correct and their usage patterns were appropriate. That has value even if no changes were needed.
Dale, that's a good point. I did verify they were on the right rate and their power factor was excellent. Maybe I shouldn't feel like I failed completely. Still stings though.