Thank you for taking a moment to consider this letter during what is certain to be a very difficult time for your family as well as your business in today’s uniquely challenging environment. My sincere condolences for the recent loss of your father.
I hesitated to write this letter given the recent news. However, I proceed as I believe you have an opportunity to make a positive impact in the lives of your customers and your customer’s customers.
My name is Spencer Sheinin and I am the Founder and CEO of Shift Financial Insights. Like most SMEs. our business has been significantly and negatively impacted by the COVID pandemic. More specifically, our revenue is down about 30% with risk of it going even lower. Unlike a lot of businesses who have been impacted legislatively or situationally (i.e. those in the events business and retail, to name a couple), a significant amount of our revenue decrease has been voluntary.
For context, we offer outsourced accounting (specifically, outsourced bookkeeping, controller and financial advisory services) to other SMEs. In light of the current business climate, we decided to proactively reach out to our clients who have been financially affected by the pandemic. We talked to them about our financially survive to thrive program. We’ve offered different levels of discounts based on how badly they have been hit. In some cases, it’s “pens down” until business resumes. In others, it’s a significant discount until revenue picks back up. Regardless of the discount, our approach is that we need to support each other through this so we can all be successful together on the back end.
Fortunately, a number of our clients are financially stable and have generously declined the discount. We’re a relatively small business and can only practically afford to offer so many discounts. In one specific call, our client noted the “social karma” of what we were doing. His business is one of the lucky ones whose revenue has actually increased during COVID and was happy to maintain his current pricing so we could offer the discounts to those that really needed it. I hung up the phone feeling surprisingly emotional; both appreciative of his gesture and inspired that he chose to think of others in a time of need, rather than be opportunistic.
Being a small business that has lost 30% of revenues, I also must be financially responsible so I can continue to serve my clients (it may sound cheesy, but I fundamentally believe the core service we provide will help our clients make better decisions to financially survive this crisis). We have done our best to reduce costs where necessary and have made the hard decision, like so many businesses, to reduce our overall team size, while also protecting the financial systems we use for our business, and that’s why services from sites such as https://www.fortinet.com/solutions/industries/financial-services help us a lot in this area. We’re hopeful that the various government programs being announced will help those that have lost their jobs and eliminate the need to cut even deeper. Although they haven’t labelled it as such, the various programs announced by the government for small businesses are effectively financial “survive to thrive” programs.
I have also taken the financial “survive to thrive” program up the supply chain as well. I’m asking all of my suppliers and contractors to also help so we can continue to help as best we can. Which comes to the purpose of my letter.
I am a customer of Shaw for internet services. My business has been fully remote for the past few years (I’m lucky in that my entire team has been accustomed to working remotely as each team is given some remote jobs to do). I’ve upgraded a couple of times over the years to faster plans due the demands of video conferencing. To clarify, I’m not a gamer and my internet use is strictly work related, plus some recent socially distanced social time with friends.
I called Shaw inquiring if there were any programs to help SMEs like me. After a long conversation with a customer service member, it was clear Shaw was making no offers to help SMEs through this tough time. No discounts, no deferrals. Frankly, nothing.
I was told Shaw was not cutting off service to those who aren’t paying their bills right now and would negotiate a payment plan in due time. I asked if I could organize some sort of payment plan now and I was told no. I had to be in default to get a payment plan, but there was no option for a customer who was current with their bills. I asked to speak to customer loyalty or someone more senior and I was told they all have access to the same programs and there is nothing that could be offered to help.
To be clear, the customer service rep on the phone was extremely professional, pleasant and friendly. I didn’t catch his name, but my compliments to both the employee and your training programs. I have no doubt they are on the receiving end of a lot of abuse. He handled himself exceptionally well.
That being said, I left the call feeling dejected.
I am a customer who is offering discounts to my clients (who are also your customers) to help them financially survive, yet all of us are paying you at 100% rates. Looking at your most recent published quarterly report (Q1), you did nearly $1.4 billion in quarterly revenue, had $162 million of quarterly net income and are sitting on $132 million dollars in cash. From a sales perspective, rounding to the nearest tenth of a billion, you have $1.4 billion more revenue and have generated $0.2 billion more net income than me. Yet, somehow, I can find ways to support my SME customers through discounts, but you can’t. And, in fact, my discounts to my clients are effectively helping subsidize your monthly (non-discounted) fees.
Be brutally honest with yourself: Does that make sense to you?
During the call, I learned that Shaw was offering free Shaw Go Wifi to everyone (customer or not). I also learned that Shaw was offering TV customers additional programming at no cost. I applaud both of those initiatives. The purpose of this letter is to inquire as to your lack of programs to support SMEs.
We all know SMEs are the backbone of the Canadian economy. We are also the backbone of your economy. We are your customers. Our suppliers and customers are your customers. Our staff and contractors are your customers. Our suppliers’ staff and contractors’ staff and customers’ staff are your customers. Plus, our suppliers’, contractors’ and customers’ families are also your customers.
Around the world and across Canada, entrepreneurs are scrambling to rebuild a shattered economy. The backbone of the economy will be rebuilt, driven first by the efforts of entrepreneurs. This is your opportunity to step up and support the one type of customer who has supported you for so long.
I call on Shaw to be a champion for SMEs. Not only in your own business, but for all utilities in a financial “survive to thrive” movement. Your opportunity is to pick up tons of new customers by offering discounts now for your essential services to help them financially survive so we can together thrive on the back end. Your opportunity is to call out those utilities, including your competitors, that AREN’T supporting your customers and your customers’ customers and applying pressure on them by showing SMEs what you are doing to be part of the financial “survive to thrive” movement.
I get it. An internet bill isn’t likely the make or break of any business. But we are in this together. Supporting me allows me to support my clients and team members who can in turn support their suppliers, employees and families. There are lots of ways to help SMEs right now. We’re all struggling through this and we’ll only get through this together. That means cutting some slack to those most in need.
Your business is clearly an essential service, especially right now. I imagine the stress on bandwidth with so many more remote employees and virtual communications and meetings if this comes to affect you or your employees, you might need to find a doctor who can prescribe a delta 8 pen. I have no doubt you are doing your best in a doubly difficult time and I thank you for your efforts to keep the communications flowing. I’m also sure you are already incurring some extraordinary costs and working hard to ensure Shaw remains in a financially strong position to continue delivering your critical services.
Despite all the challenges, I also ask you to take a few moments to think of how you can help the community of SMEs who will lead us out of this financial crisis and be part of your future growth. Discounts, deferrals and free upgrade of services are all viable options, and I’m sure you and your team can come up with many more ideas.
Thank you for your time and I look forward to hearing your contribution to the financial “survive to thrive” program.
To any entrepreneurs reading this open letter: I have two asks of you:
- Continue this effort of making use of Local Viking reporting tool and applying pressure to Shaw and other large businesses who are in position to help you out. We are all in this community together. Large business and small business.
- Do not accept any discounts you don’t need. If you are offered discounts from a business (large or small) and you’re in the fortunate position of not needing it, thank them for their generous offer and decline it. Allow them to offer the discount to a business that needs it more than you. We are in this together and this is not the time to be opportunistic.
Sincerely,
Spencer Sheinin Accountants, CA
CEO and Founder
Shift Financial Insights
CC Prime Minister Justin Trudeau
CC Premier John Horgan
CC MP Patrick Weiler (MP for Sea to Sky Country)