8 Ways Sale Of Fake Products Can Hurt Your Small Business


The following are 8 Ways Sale Of Fake Products Can Hurt Your Small Business:

    • Definition of fake products
    • Fake products are inferior
    • They make customers spend more
    • Destroys business relationships
    • Causes poor customer retention
    • Fake products cause  customer service problems
    • Quality control department
    • Your take away

Simply put, fake or counterfeit products are goods, often of inferior quality, made or sold under another’s brand name without the brand owner’s authorization.

When you are involved in the sale of fake products, you should realize that you are infringing on the rights of the trademark, patent or copyright of the brand owner.

Fake products are made to look like original products, when in fact they are not.

Take it or leave it, they are generally intended to deceive and take undue advantages of unsuspecting buyers.

In virtually all the countries of the world, sale of fake products constitute an offense against the law.

Consequently, there are many regulatory government agencies charged with the responsibility of regulating the quality of products.

While monitoring and enforcement of compliance with the relevant laws may be effective in developed countries, the same cannot be said of developing countries.

Furthermore, sale of fake products is like a knife of two edges that affects both the seller and the buyer in much  the same or different ways.

This article is, therefore, looking specifically at how it can hurt the growth of your business.

Counterfeit products are inferior

Fake products do not usually meet the needs of the customers.

When your customer buys from you a product that did not meet his needs, there are five possible outcomes:

  • the customer returns the product to you
  • you replace the product to the customer
  • refund money to the customer
  • the customer does not get a refund
  • the customer retains the product because you did not share his concerns.

You can, therefore, see that sale of fake products creates more problems than it solves. There is nothing to write home about fake products.

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Inferior products make customers spend more

When a customer returns fake products to you, you make the customer to spend more money.

For example, the customer will now have to spend money moving from one shop to another, in search of the original product.

Consequently, you have left the customer:

  • disappointed
  • unsatisfied
  • frustrated
  • and unhappy.

The above side effects can and do negatively hurt the growth of your business.

In some cases, sale of fake products have resulted in business failure.

They destroy business relationships

The sale of fake products is one of the surest ways of destroying business relationships.

You, will no doubt, remember that when you started your business, you spent a lot of resources publicizing and promoting your new business.

It will be bad news if you now take pleasure in selling inferior products to the same customers you labored so hard to acquire.

Most importantly, you should remember that business is built on trust and connections.

Causes poor customer retention

Counterfeit products can make you lose valuable customers to your competitors.

You are  in business to make sales. And without customers, you cannot make sales and profits.

Moreover, if you sell a fake product to your customer, any or all of the following happen:

  • customer takes his business elsewhere
  • the customer is  dissatisfied
  • he is unhappy
  • the customer feels bad
  • he cannot give you referrals
  • nor will he recommend your business to his family and friends

Most importantly, if you are reputed for selling fake products, chances are that you will not be able to attract new customers.

Causes customer service problems

Sale of inferior products can lead to huge customer service problems.

For example, even though you are able to make some customers happy, others may never come back to buy from you again.

Researchers have estimated that only about 5% of dissatisfied customers will complain. The remaining 95% will not.

Those who complain to you are the ones that are still interested in doing business with you.

On the other hand,  some customers may prefer not to complain. They would simply walk away without a word!

These are the ones that will never think of coming to your store again.

Quality control department

The quality control department can ensure that all products pass specified quality control tests before they are released.

For example, if your small business is reputed for selling higher quality products, in just a matter of time, it will become a big business.

Beyond that, the good news is that customers who have high tastes for quality products will be willing to a little more.

Moreover, customers will be willing to pay a little more so long as they get value for their money.

Furthermore, customers will not only stick with you, they will be proud and confident to recommend your small business to their families and friends.

Most importantly, they will use word of mouth to promote your business.

They will talk the talk for you. And the best part is that talk is free.

Your take away

If you an importer, do not tell the exporter “ship the fake products. I know my people. They will buy”.

Or tell the supplier to mix up the supply:  “10 original and 40 fake products”.

Finally, in order to maintain your integrity, keep your customers, acquire new ones, you should distance yourself from selling fake products.

Related:How The 7ps Of Marketing Mix Can Improve Sales In Your Business


About Samuel Ijenhi

A graduate in Accounting, University of Benin, Benin City, Edo State, Nigeria.
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