The hidden costs of disputes: How BBB Accreditation helps small businesses save
No matter how much you try to avoid it, disputes with customers are bound to happen, especially in industries like contracting, roofing and painting. The question isn’t if a dispute will come your way, it’s when. And when that happens, costs start piling up fast.
But if you’re BBB Accredited, we’ve got your back. BBB’s Mediation and Arbitration services can save your business up to thousands of dollars and a whole lot of headaches. Here’s how.
The real cost of resolving a dispute in court
Taking disputes to court isn’t just stressful; it’s expensive. Here’s a look at some of the costs associated with arbitration services JAMS (Judicial Arbitration and Mediation Services), AAA (American Arbitration Association) and FINRA (Financial Industry Regulatory Authority):
So, a $10,000 dispute could end up costing you anywhere from $5,000 to $10,000 when all is said and done. That’s a lot of money.
We asked one of our BBB dispute resolution experts, and she told us it can get even worse – court cases run anywhere from $3,000 to $20,000 depending on how complicated things get.
How BBB saves you money
Now, compare that with BBB’s Alternative Dispute Resolution (ADR) services. If you’re a BBB Accredited Business, free mediation and arbitration are part of your benefits, with additional services offered at affordable rates:
Using our earlier example, if you were resolving a $10,000 dispute through BBB arbitration, you would pay $150. But if you were a BBB Accredited Business, you would pay nothing. Compare that to $5,000 to $10,000 you’d pay in court. That’s a savings of thousands of dollars, without the headaches of a drawn-out legal battle.
Faster, easier and more successful
According to our BBB dispute resolution team, 80% of BBB mediation cases result in a signed agreement. That means a quick, satisfying resolution for both parties. Mediation can be scheduled in as little as two weeks and usually takes about two hours. Arbitration takes a little longer since it depends on how quickly both sides provide BBB with the required information, but it’s still way faster than court, which can drag on for months – or maybe even years.
Privacy and simplicity come first
One of the best benefits of BBB’s ADR services is that everything stays private. Unlike court, where everything is public record, BBB Arbitration and Mediation is completely confidential. Businesses resolve disputes without worrying about damage to their reputation. In fact, disputes resolved through BBB Mediation will not affect your BBB Business Profile rating as long as the agreement is honored.
Bottom line
Some business owners worry about time constraints or prefer the idea of “having their day in court.” However, BBB’s services are designed to be efficient and business-friendly, with flexible scheduling (including phone-based mediation and arbitration ) and faster resolution times compared to court proceedings.
Plus, if you're an Accredited Business, you get these services at no additional cost. As expenses rise in 2024, this is a big deal. Having BBB in your corner can save you money, protect your reputation, and keep your client relationships strong.
Want to know more about BBB Accreditation? Fill out an application today to see how BBB can help your business.