OT-Am I the only one who is fed up with service levels in today's world?
06-05-2006, 05:11 AM
#31
Rennlist Member
Originally Posted by mrsullivan
Like I said, its good for me, but I am constantly amazed at the nearsighted view of execs at these big companies...
06-05-2006, 11:17 AM
#32
Nordschleife Master
Originally Posted by Steve 96C4S
I'm finding this thread very interesting. I do residential sales for the largest cable TV company in the US and the calls I get about missed installs, rude customer service reps when they ask a question about their service, incorrect billing practices, long wait times on hold, always late for appts and no one calls them to tell them they're late... it really gets to me! I can't believe I work for a company that makes people wait 2-5pm for a time slot and then the customer calls me at 630pm and says no one has called to say where they are, apologize for being late, offering an estimated time of arrive... nothing! I have to call dispatch to find out the tech is late or that he called the sub and they were in the bathroom, weren't able to answer the phone saying that they were home, and he blows off a job that someone has waited a week for!
It's so aggravating, but what can I do. Live with it the way it is I guess as it's broken and I have to accept that for now. I have to apologize to irate customers many times a day for our inefficiencies and blunders. Hopefully it will get better one day, but it's been 18 years and it's still screwy.
Peace,
Steve R
It's so aggravating, but what can I do. Live with it the way it is I guess as it's broken and I have to accept that for now. I have to apologize to irate customers many times a day for our inefficiencies and blunders. Hopefully it will get better one day, but it's been 18 years and it's still screwy.
Peace,
Steve R
(just kidding)
06-05-2006, 12:11 PM
#33
Instructor
Join Date: Nov 2004
Location: DELRAY BEACH, woohoo
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It is extremely competitive in the business world.
With wages stagnateing, and the internet "price wars", with the emphasis on the lowest price, a lot of times service of any kind goes out the window, in favor of "cheap".
I for one run a service business catering to you, the Porsche owner. If you are not currently satisfied in that arena, maybe I can help. I do share the feeling of service being poor in general, however there are the occasional exceptions, thank God!
With wages stagnateing, and the internet "price wars", with the emphasis on the lowest price, a lot of times service of any kind goes out the window, in favor of "cheap".
I for one run a service business catering to you, the Porsche owner. If you are not currently satisfied in that arena, maybe I can help. I do share the feeling of service being poor in general, however there are the occasional exceptions, thank God!
06-05-2006, 12:42 PM
#34
Rennlist Member
Here is what I think is one of the culprits...
The internet...
Seriously, in days of old, when you needed something, you went to the local store and bought it. Now, you can price shop 1000 stores in minutes using the internet, and order product cross country and have it shipped next day by UPS. What does that do? Retailers lower their prices.
In an age where only price seems to matter to their clients, the retailer cuts back on paying good salaries to their employees, or training them at all. So what do you get? Unskilled, knowledge-free people with no allegiance or pride in their work.
If we want service...retailers need to be able to make a decent profit margin and have their territory protected by the manufacturer.
The internet...
Seriously, in days of old, when you needed something, you went to the local store and bought it. Now, you can price shop 1000 stores in minutes using the internet, and order product cross country and have it shipped next day by UPS. What does that do? Retailers lower their prices.
In an age where only price seems to matter to their clients, the retailer cuts back on paying good salaries to their employees, or training them at all. So what do you get? Unskilled, knowledge-free people with no allegiance or pride in their work.
If we want service...retailers need to be able to make a decent profit margin and have their territory protected by the manufacturer.
06-05-2006, 10:17 PM
#35
Rennlist Member
Mike Bat hints at it, "decent profit margin."
Business 101, net profit is what is left when all the costs/bills are paid. I know in healthcare, a number of hospitals have adopted the Lean approach. They have looked deep into their process and streamlined them, which in turn reduces their operating costs driving up profit.
If lower profit is what is driving out decent customer service, then perhaps concerned business should look into their processes...and where antiquated and obsolete processes are discovered, root them out and drive out unnecesary cost.
Another thing about crappy service, and again the Internet is the culprit, when it occurs, thousands upon thousands of people are aware of the incident(s). In the good ole days, crappy service could occur, and the news of it kept local.
Back to my point earlier in the string...I consistently get good service in my small town, Paso Robles, CA. The shops I patronize want me to come back...they cannot count on a never ending stream of customers...they need repeat business. It is possible they may not enjoy being pleasant, but if this is the case, they sure fake it well.
Business 101, net profit is what is left when all the costs/bills are paid. I know in healthcare, a number of hospitals have adopted the Lean approach. They have looked deep into their process and streamlined them, which in turn reduces their operating costs driving up profit.
If lower profit is what is driving out decent customer service, then perhaps concerned business should look into their processes...and where antiquated and obsolete processes are discovered, root them out and drive out unnecesary cost.
Another thing about crappy service, and again the Internet is the culprit, when it occurs, thousands upon thousands of people are aware of the incident(s). In the good ole days, crappy service could occur, and the news of it kept local.
Back to my point earlier in the string...I consistently get good service in my small town, Paso Robles, CA. The shops I patronize want me to come back...they cannot count on a never ending stream of customers...they need repeat business. It is possible they may not enjoy being pleasant, but if this is the case, they sure fake it well.
06-06-2006, 10:35 AM
#37
Rennlist Member
Originally Posted by Martin S.
Mike Bat hints at it, "decent profit margin."
If lower profit is what is driving out decent customer service, then perhaps concerned business should look into their processes...and where antiquated and obsolete processes are discovered, root them out and drive out unnecesary cost.
If lower profit is what is driving out decent customer service, then perhaps concerned business should look into their processes...and where antiquated and obsolete processes are discovered, root them out and drive out unnecesary cost.
Ok, what if you are selling lawn furniture. Then a Walmart opens next door to you. Do you honestly think that there is enough inefficencies in your business model that, if eliminated, you can compete with them?
What if you were selling Adobe software? Every Tom, Dick and Harry ****** out this product. Do you think you, as a small business operator can negotiate a better deal with a distributor? Do you think Adobe would open your account direct? Until you achieve a ssrious volume, you will never get the same cost price as the Best Buy's of the world.
I guess what I am saying is... big box retail is another culprit!
SMB's need to offer something special otherwise there is no need for them to exist. I can get bad coffee anywhere. But if I sell special "grown on the highest peak in Columbia"- picked by left handed monks, then maybe I can make a run of it. If they can make decent margin for this, then they can offer service.
06-06-2006, 11:26 AM
#38
Rennlist Member
The problem with lack of service is quite simple. Employers can't afford to pay employees well as a result of squeezed profit margins and high business taxes. When employees arent compensated well for their perceived level of work something will suffer and it is more often than not service. In the days before the "commoditization of every imaginable product" profit margins often were 50%, i.e. the retailer paid $50 for something and re-sold it for $100. Now a retailer is lucky if they can sell the same product for $75. Add onerous business taxes and there you have it, the retailer has to sell 3x the product as before to make the same amount of money.
I formerly owned some bicycle retail stores and peoples expectations for freebies was unbelievable. For example a bicycle that retailed for $500 cost about $350 with shipping. On top of that you have to pay someone to build it, then inventory it in the various sizes and colors, give free service with the purchase, a lifetime 10% discount on the accessories (where some reasonable money is made), plus a free trip to Bermuda (kidding obviously on that aspect). Thats why you don't get service, you get what you pay for everytime. If you want good service pay more. What do you think the Ritz Carlton and Lexus do. You pay for it, but you get treated like the Queen of England by them, but at their core what are those businesses?. It's a hotel with a nice lobby and a jacked up Toyota. You pay for the experience/service. If you get a great product at a killer price with great service you are dealing with a company that will be out of business in short order as a result of being stretched too thin and the owners realizing that it is just not "worth it anymore".
At the risk of kissing Steve Weiner at RennSport Systems butt, he succeeds for a very simple reason, because he provides a great value. Remember, in the absence of value price is an issue. Steve provides terrific service and advice, thats why he gets my business. I can't speak for him but I'm fairly certain he doesnt make a living selling 964/993 window switches at the best price on the net' (although most likely that is a fairly high volume business as 964/993 owners can attest). He makes a living giving out friendly, well thought out, researched, and properly tailored advice. The products he sells are purely incidental to that.
Wal-Mart doesnt make their money selling "product" to middle america, they make $$ because they pay their wholesalers on net 15 day terms but sell the product inside 2 days (thats what I call product turn). They "float" the cash for 13 days and make money on that, their re-sale of the product is just a vehicle to be able to earn money on someone else money, thats called leverage. Also, the product you buy at the likes of Home Depot is a far cry from "the same" product bought at your local hardware store. Home Depot has the products made specifically for them at a much lower quality level than what other hardware stores get. Thats why it's 30% cheaper. I found the "same" Kohler bathroom sink at a local plumbing supply for $800 at home depot it was under $500. The quality difference was huge at the plumbing supply place it weighed twice as much and had a significantly better finish than the home depot one. On the surface they looked the same, in reality they were quite different. Most people would never know the difference. I have a client who is a metals broker who's biggest client is Levelor (the window blind/shade co.) and he has told me the quality difference is staggering between the Home Depot line and the stuff for "general public".
As has been stated many times and in many threads on this site is that "you get what you pay for every time".
I formerly owned some bicycle retail stores and peoples expectations for freebies was unbelievable. For example a bicycle that retailed for $500 cost about $350 with shipping. On top of that you have to pay someone to build it, then inventory it in the various sizes and colors, give free service with the purchase, a lifetime 10% discount on the accessories (where some reasonable money is made), plus a free trip to Bermuda (kidding obviously on that aspect). Thats why you don't get service, you get what you pay for everytime. If you want good service pay more. What do you think the Ritz Carlton and Lexus do. You pay for it, but you get treated like the Queen of England by them, but at their core what are those businesses?. It's a hotel with a nice lobby and a jacked up Toyota. You pay for the experience/service. If you get a great product at a killer price with great service you are dealing with a company that will be out of business in short order as a result of being stretched too thin and the owners realizing that it is just not "worth it anymore".
At the risk of kissing Steve Weiner at RennSport Systems butt, he succeeds for a very simple reason, because he provides a great value. Remember, in the absence of value price is an issue. Steve provides terrific service and advice, thats why he gets my business. I can't speak for him but I'm fairly certain he doesnt make a living selling 964/993 window switches at the best price on the net' (although most likely that is a fairly high volume business as 964/993 owners can attest). He makes a living giving out friendly, well thought out, researched, and properly tailored advice. The products he sells are purely incidental to that.
Wal-Mart doesnt make their money selling "product" to middle america, they make $$ because they pay their wholesalers on net 15 day terms but sell the product inside 2 days (thats what I call product turn). They "float" the cash for 13 days and make money on that, their re-sale of the product is just a vehicle to be able to earn money on someone else money, thats called leverage. Also, the product you buy at the likes of Home Depot is a far cry from "the same" product bought at your local hardware store. Home Depot has the products made specifically for them at a much lower quality level than what other hardware stores get. Thats why it's 30% cheaper. I found the "same" Kohler bathroom sink at a local plumbing supply for $800 at home depot it was under $500. The quality difference was huge at the plumbing supply place it weighed twice as much and had a significantly better finish than the home depot one. On the surface they looked the same, in reality they were quite different. Most people would never know the difference. I have a client who is a metals broker who's biggest client is Levelor (the window blind/shade co.) and he has told me the quality difference is staggering between the Home Depot line and the stuff for "general public".
As has been stated many times and in many threads on this site is that "you get what you pay for every time".