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What's in a grade? Posted Tuesday, June 08, 2010 by Sheryl Bilbrey I received this from one of my accreditation directors today … perhaps you’ve wondered something similar: *“I've been hearing from previous members that are upset that their grade lowered after they cancelled, that we are a scam company that is forcing companies into joining to get a higher grade.* What I've been explaining to them is that Accreditation is earned, not given away, and since companies are evaluated, approved, and have committed to our standards, that we give additional points that go into the letter grade. For some people this is enough, but for others I can't get past it. Sometimes what they tell me makes sense to me too, that they are in essence paying for a higher grade, even though they are earning it, but we still take their money, etc... *I want to pick your brain on what you would say to these companies that are upset.”* I do hear it all the time, and in fact, it was one of the greatest debates in BBB history. I agree with where we landed. We believe there is value in accreditation and that value should be reflected in a grade. There are many companies that would love to pay us for a higher grade, but we won’t let them. We keep them out or we kick them out because they are not meeting our standards. Committing to those standards and adhering to those standards makes a company more valuable to a consumer in the eyes of the BBB. That is our opinion, the BBB is entitled to an opinion, and we are entitled to share that opinion. It is our opinion that a consumer is safer doing business with a company that has committed to binding arbitration. When they are accredited with the BBB, we provide that service free of charge to the consumer. It is our opinion that this service should have value to the consumer, and should appropriately be reflected in the company’s grade. If you are not accredited, you are not committing to providing this level of service through us. In fact, we cannot be ensured that you would provide this level of service at all, let alone free to the consumer. Thus, your level of service and commitment to the consumer falls slightly below that of another business that is willing to commit to this level of standards compliance, evaluation and dispute resolution. It does cost money to have these services from a third party, and committed companies step up to fund that additional service. There is where the significant amount of assurance comes from in the BBB brand. That is why consumers trust it. And that is why we only allow companies to use the brand that have earned our confidence and will continue to earn that trust. Not supporting that added level of service does not make you a bad company in the BBB’s eyes. But it also does not make you as good as the companies who do. And that is the BBB’s opinion.

Posted Tuesday, June 08, 2010

by Sheryl Bilbrey

I received this from one of my accreditation directors today … perhaps you’ve wondered something similar:

“I've been hearing from previous members that are upset that their grade lowered after they cancelled, that we are a scam company that is forcing companies into joining to get a higher grade.

What I've been explaining to them is that Accreditation is earned, not given away, and since companies are evaluated, approved, and have committed to our standards, that we give additional points that go into the letter grade. For some people this is enough, but for others I can't get past it. Sometimes what they tell me makes sense to me too, that they are in essence paying for a higher grade, even though they are earning it, but we still take their money, etc...

I want to pick your brain on what you would say to these companies that are upset.”

I do hear it all the time, and in fact, it was one of the greatest debates in BBB history. I agree with where we landed. We believe there is value in accreditation and that value should be reflected in a grade.

There are many companies that would love to pay us for a higher grade, but we won’t let them. We keep them out or we kick them out because they are not meeting our standards. Committing to those standards and adhering to those standards makes a company more valuable to a consumer in the eyes of the BBB. That is our opinion, the BBB is entitled to an opinion, and we are entitled to share that opinion. It is our opinion that a consumer is safer doing business with a company that has committed to binding arbitration. When they are accredited with the BBB, we provide that service free of charge to the consumer. It is our opinion that this service should have value to the consumer, and should appropriately be reflected in the company’s grade.

If you are not accredited, you are not committing to providing this level of service through us. In fact, we cannot be ensured that you would provide this level of service at all, let alone free to the consumer. Thus, your level of service and commitment to the consumer falls slightly below that of another business that is willing to commit to this level of standards compliance, evaluation and dispute resolution. It does cost money to have these services from a third party, and committed companies step up to fund that additional service. There is where the significant amount of assurance comes from in the BBB brand. That is why consumers trust it. And that is why we only allow companies to use the brand that have earned our confidence and will continue to earn that trust. Not supporting that added level of service does not make you a bad company in the BBB’s eyes. But it also does not make you as good as the companies who do. And that is the BBB’s opinion.

Comments

Thanks for your feedback and your candor. The grading was designed to utilize objective, measurable criteria and were nationally defined. In the case of time in business, there is very clear statistical history in that regard. As I’m sure you are aware, MOST new businesses fail within the first year. That is MOST, not just a few. That statistic drops significantly after five years and dramatically after ten years. So the reality is for the consumer, that it is slightly more risky to do business with a new company than one that has been around for more than 10 years. We are not giving new businesses a failing grade, but we are also not willing to give them the highest grade in the category. A grade of “B” does not suggest that the BBB thinks this company is a bad business, just that perhaps they have not proven themselves yet. Personally, I believe that to be objective, fair and reasonable. If you don’t agree, I hope you at least understand that we are not giving that grade based on how you have treated your customers. I hope that helps. Sheryl Bilbrey | President and CEO

Comment By Sheryl Bilbrey At 6/22/2010 4:56 PM

The Accredation makes complete sense on earning a higher grade for those who have ethical practices and have fully earned it. What I don't get is the letter grades given to new ventures that apply for Accreditation. I mean someone who just opens their doors and hasn't even transacted a sale is given a low grade right from the start? How does this make any sense? The new business hasn't even had a chance to take advantage or rip anyone off yet. Shouldn't it be a NR for not rated until the business has proved worthy of accreditation and then earn a score? Yes, this is about me and I'm sorry if I sound a bit sour about the whole thing. My point I'm trying to make is if a consumer were to check out a business with BBB online and see a sub-par score, I guarentee you they will back out of the page and run to the next competitor faster than you could see it happen. And the business did nothing wrong other than being new in business. Now, in all fairness I did notice that there is a section relating to BBB ratings and it will say "BBB Rating" near the middle of the page that gives somewhat of an explination. "Based on BBB files, this business has a BBB Rating of (fill in the blank) on a scale from A+ to F. Reason for this (blank) rating include: Length of time business has been operating". I still don't believe it's transparent enough by including the word "include" at the end just before giving the the reason. Not only that, as soon as prospect were to see a lower than expected grade, I highly doubt they will look any further into the page to get more info on the business and the sale is gone. Now with all that being said, I'm still a big fan of the BBB and love what they advocate as far as honest, ethics and trust. It's pretty much what I built my business model around and how I positioned myself in the market place. Not to mention Sheryl and Andrea do an superb job. Sorry for the rant.

Comment By Allan Elliott At 6/17/2010 3:26 AM