No customer likes to be told “no”. However, like it or not, the circumstances sometimes force us to say “no”. But, this does not have to become a negative situation.

Here are some ways to respond to the challenge:

Tell the customer what you can do.
“I can issue a credit for the value of the merchandise and you can use it at your convenience.”

With tact, explain why you cannot honour the customer's request.
“When a product works as expected, without defects, we cannot take responsibility and, as a result, we cannot offer financial compensation.”

Suggest an alternative.
“I need to get approval from my manager before I can _________________. In the meantime, I can ___________________. Does this work for you?”

Focus on the positive.
“Thank you for contacting me regarding this problem” or “The information you have given me will help us make improvements.”

Remember that you are saying “no” to the request, not to the person.