I have some SMD stuff and I like it.
I would, and in fact will, order again, because I need something that they make.
I'm sorry that this happened to the buyer, and also the fallout on SMD.
I'll just move along based on how things work out with my purchases.
People are not perfect, mistakes happen, people get defensive or irritable, and that's the way things are. Sometimes this results in lost business and regrets.
From my business perspective, I agree with the comments that it is much better to solve the issue so that it results in better PR for the company, even if it costs money and time to do it, and even if it obliterates any profit made. The PR is worth it.
In my own business, I recently suffered some parts broken by UPS insured shipping to my customer, and UPS tried to squirm out of paying the insurance claim, and in fact they never paid the insurance claim for their breakage. But I sent brand new parts to the customer, at my $400 expense, lost all my profits and also went into a loss over it. In the end, the customer was very happy with my handling of the situation, I'll eventually recover from my loss, and I'll never do any shipping with UPS ever again.
My business reputation didn't suffer, and this will help me to recover from that loss and help my future growth.