Stupid Things To Do (If You Want To Have Your HVAC or Plumbing Company Sued)

Let's talk about something that I bet you've probably thought about. Well, assuming you've been in the trades for any length of time at all, this has probably crossed your mind.

And, it's a true story. Let's make a point to learn a lesson here, shall we?

In Oklahoma- the state where our office is- there's a massive mechanical contractor that services both of the major metro areas in the state. And, if you've spent any time driving on a highway or flipping through TV channels, chances are, you've seen their mass marketing ads.

Again- this is a huge, multi-million dollar operation.

Naturally, because this company is so big, you have all the things you'd expect from a multi-million dollar company: significant overhead created from huge advertising budgets, payroll expense, insurance, and more; massive pool of employees; tons of disgruntled former employees- and lots of companies looking for ways to take down Goliath.

One such competitor decided to fire a shot at this massive company on their Facebook page. (We've redacted the info that identifies either of these two companies.) Here's the full post- sensitive information hidden:

And then, they actually attached the work order authorization- pricing details and all. (Again, we've redacted the sensitive parts.)

So, maybe you're looking at this and you say, "that's awesome! I've always wanted to do something like this to so-and-so company. "

I don't care how valid of a case you have, or how much you hate the competitor company, or how much you want to make a new customer-  Pause. Let's talk about this.

There's really no reason to ever mention your competitors. It doesn't matter how good you are or how bad they are- don't do it. When faced with the opportunity to bad-mouth another company, always take the high road.

Your customer will respect you more if you say: "ma'am/sir, with respect, we value our reputation and our integrity to not talk about our competition. However, given your concern, I can guarantee you that our company... XXX". In other words, build value in your own business rather than attacking someone else's business. Trust us- even though it feels good to take a shot at someone else, don't get down in the mud with them. Instead, claim the moral high ground.

You may have to do an about-face. In this example, you've got a massive company competing with all the benefits & baggage that goes with it. A smaller company, of course, doesn't have near the overhead, and can be more flexible on price. However, as your company grows (or rather, a condition of your company growing) is that your overhead will start to creep up, too.

As a matter of business strategy, always remember that if you're competing on price today, you'll lose on price a year from now. Focus on providing exceptional value for your customers- not taking pot-shots are your competition.

Because of the negative information you spread about another company, you open yourself up to serious legal issues. According to legal experts, here's the criteria for issues like this:

Elements of a defamation claim
For a corporation or a partnership to bring a claim of defamation, the plaintiff must meet the same elements as are required in an individual defamation claim. These are:

• The statement was published by the defendant, meaning it was spoken or distributed to at least one other person other than the plaintiff;
  
• The statement provides enough information that the plaintiff is identifiable ;
  
• The statement harmed the plaintiff’s reputation in some way —in this case, the business reputation of the corporation or partnership.
  

Which means, your company- or you as an individual- can be sued for defamation:

Corporations may sue for defamation if they can show that the published material has caused them or is likely to cause them financial loss. If the required elements exist, a corporate plaintiff may recover presumed damages. This means that harm is presumed—no proof is required—in the matter, and a fact finder may assess an amount he or she deems is appropriate.

Corporations and partnerships may also pursue special damages in a defamation cause of action. In such a case, the corporation must show evidence of financial loss that stems directly from reputational injury that was caused by the defamatory material. These losses could include a decline in the value of the company’s stock.

Look, legally speaking, it's OK to talk about your competitor as long as it's:

• demonstrably true, and
  
• you hide the competitor's identity
  

As you may have guessed, this massive, multi-million dollar company has the resources to hire high-powered lawyers to chase down issues like this. So, as of the time of this writing, the large company is filing suit against the small company for loss due to their damaged reputation. We'll see how it plays out in the months ahead.

But, for now, avoid in business practices that could get your or your company in similar hot water. It's just not worth it.