In an April post, I looked at the financial impact human error can have on a company. With news of Best Buy’s recent web site pricing doozy, it seems only fitting to revisit the issue.

Yesterday, Best Buy shocked customers with a whopper of a deal: a 52-inch Samsung HDTV for $9.99. Orders came in and credit cards were charged. Some customers attempted to buy up to 10 televisions each.

Best Buy issued a statement saying it would not honor the pricing error, so it may have saved itself heaps of money. Some companies haven’t been so lucky.

It was a mistake, of course, and the company corrected it promptly. The sale price should have been listed as $1,699.99. Still, customers were miffed, and Best Buy had to get to the business of refunding credit cards that had been charged, and doing a little reputation management via its web site, on Twitter, and elsewhere.

Best Buy issued a statement saying it would not honor the pricing error, so it may have saved itself heaps of money. Some companies haven’t been so lucky. Foul-ups involving a few decimal places may seem innocuous, but even the smallest mistake can cause millions of dollars in damage.

Consider the results of a landmark Dartmouth College study, which I wrote about in April. It offers a clear picture of what’s at stake. Read more…

admin FAIL Best Buy, calculations, Dartmouth College, Excel, HDTVs, pricing error, Twitter