The American Discount Culture

Just coming out of the holidays, and I am amazed at what I'll call America's discount culture. We love a bargain.

People will stand in line for hours to get 20% off, and drive 100 miles in their SUV's at 12 MPG (that's $16 in gas money!) to save a few dollars on their 4th TV. I just don't get it...

There are times when price is the only consideration, but not many. By commoditizing everything, we lose the value of service. A simple example is my wife tells me gas is cheaper one town over by $0.05/gal, but it costs another 1/2 gallon in gas to go there. And when the money leaves our towns tax base, who do you think picks that tab up? The taxpayer, of course.

Even worse than "everyday low prices" are the "sales" that we are innundated with during the holidays. Do you think that an additional 20% off our already low price with an additional 20% off this weekend means that the store is normally selling at 40% margin, or are they selling at a loss this Friday? We need to wake up and see the big picture. Companies have a right to make money- our whole economy is based upon this idea!

Americans needs to break the discount mentality where the price determines who gets the sale. We make important decisions based upon many factors throughout our lives. A prime example is where we live. We don't buy the cheapest house in the worst neighborhood at the lowest price because we understand the value of our home and a good neighborhood. Cost only partially influences our decision. And there are no "sales", so we are forced to negotiate a fair value with the sellers.

When I bought my truck, I "know" the car game pretty well. I honestly didn't care what type of truck I bought- my requirements were generic enough that the manufacturer didn't seem to matter. However, when I went to my local Nissan dealership, I was blown away by their service. I could have negotiated a better deal, but I valued their efforts to win my business. There was give and take, with both sides agreeing that the deal was fair. Much like my buying my house, I considered other factors before price, and made an educated decision.

I have been in sales for the past 7 years, and I am often confronted with buyers that want the best price. Regrettably, I can not offer that to my customers, but I can offer them the best service. I try to focus them on the value side of the equation- Do you care if it's done right? If there are problems, will you need additional help? Are you buying gas at the gas station or gas at the service station? Will the low cost provider notice if your tire is low? Will they wash your windshield? If these things are important to you, then pull up to the pump.

If not, I hear gas is a nickel cheaper 5 miles up the road.

The Value of Good Customer Service

I'm going to spend a few minutes talking about customer service. What do I know about good customer service? I'm an expert. We all are. Good customer service is individual to everyone, and everyone at every company in the world is responsible for providing good customer service. Independent of price. Period.

I'll illustrate my point with two example. One shows how to do it. The other shows how to lose a customer. You can figure out which is which.

Recently, I returned from a family vacation in Orlando, FL at a very large, well know theme park resort. Ok, no pussyfooting around. I went to DisneyWorld. We stayed at one of their luxury resorts, where I decided to rent a boat one morning with my son. When you rent these little boats, the cost is based upon how long you have the boat. We had planned on being out no longer than an hour, but we noticed that other boats from the same marina were moving quite a bit faster than we were. Still, we had fun- but decided to cut it short to about 30 minutes.

I pulled the boat into the marina, and went to the counter to close out the rental. Here is the best recollection of the conversation I had:

Disney: "So, did you guys have a good time?"

Me: "Yeah, it was great, but I noticed that all of the other boats seemed way faster than us. Everyone passed us, and seemed to be on a much better plane..."

Disney: "Did you try to return to the marina to exchange boats?"

Me: "Nah, it wasn't that big of a deal, and we just wanted to get out on the water for a little while."

Disney: "Well, since we've been having problems with the engines flooding, I'm not going to charge you for the rental."

Me: "It really wasn't that big of a deal. Are you sure?"

Disney: "Yes, sir. You have a magical day."

Now you probably have figured out that this is good customer service. She listened to my problem, and exceeded my expectations. When I had originally approached her, I suspected that it may have been due to our combined weight exceeding the tiny little engines capacity to propel, and I was only looking for an understanding of why. I never raised my voice, or whined about it- there was never any indication that I was seeking financial compensation. Yet, her IMMEDIATE reaction to the situation was that due the maximum satisfaction that she could deliver. Ultimately, I saved $40.

Story #2 will unfortunately not end quite so magically.

My wife and kids decided that they had heard enough how my trusty old Makita wasn't quiet up to snuff any more. After countless hours of service over 9 years, it was finally time for Dad to get a new cordless drill. Father's Day 2004, I see a box, nicely wrapped, with my name on it. In my head, I'm secretly chanting "Don't be from Sears! Don't be from Sears!". Of course, you've figured out that they will eventually be the "bad guys" in this story. I've had more Sears tools die premature deaths than I care to recount, and vowed to never buy another power tool from Sears.

In the past, the Craftsman name has meant quality which was guaranteed for life. Sears warranted all hand tools for life, and power tools for 1 year from purchase. Since this is a cordless drill, it is a power tools, which means that I have 1 year no hassle returns for defects.

Until you try to do it.

Fast forward 9 months.

I've grown use to my drill, and actually, kind of fond of it. It was a present, and call me weird, but this ONE is mine. I have an unnatural attachment to my things, and I'm not afraid to admit it. I was working in the garage, and had just plugged the 2nd battery into the charger for a recharge, when I heard and odd noise. Click, crack, dzzit!

For those of you that are not tool savvy, these are bad noises. It is the sound of electrical components frying. Having a degree in electrical engineering, I've burned a circuit or two before, and instantly knew the smell. My theory was borne out by the electrical components that fell into my hand when I turned the charge upside down.

Since this essay is not about quality, but customer service, I am willing to let quality aside for a moment. Besides, I am within my warranty period, so all I need is a new charger, and Sears is 10 minutes away in Newton, NJ. I jump in the truck and drive up, charger still hot and smoking...

Let's just say it goes down hill from there. I stand at the service desk, and wait for the "customer service person" to hear my plight. She stares blankly at me, as I explain that the charger had exploded and caught fire (true, but mildly overdramatic) in my shop and that I'd like to get a replacement.

Sears: "Do you have a receipt?"

Me: "No."

Sears: "Then how do I know you bought it here?"

Me: " Ummm... It says Sears on the side?"

Sears: "We can't do the warranty replacement on just a charger, we also need the rest of the stuff."

Me: "I'd rather not, It was a gift, and I'm sorta attached to it..."

Sears: "All or nothing."

Me: "Fine."

Sears: "I can try to look it up in the computer."

Now I'm looking over her shoulder, and I see the tablesaw I bought in 1995, the router in 1998 or so (which died a similar death after 3 uses...), and every other tool I had ever even considered purchasing. No cordless drill.

Sears: "It's not in the computer, sir. Are you sure you bought this here? Are you sure it's still under warranty?"

Me: "Still says Sears? It was a gift for Father's Day 2004, and Father's Day 2005 is still in the future, so yeah..."

Sears: "But how can you PROVE IT?"

So all of a sudden, the burden of proof for their faulty product is on the consumer. I begin to feel my blood pressure rise.

Sears: "You can check with your credit card company to see if they have a record of it."

Me: "Fine."

So I leave, livid as all hell that I have to prove that I bought their fire-hazard cordless drill at their poor customer service store. But I am a glutton for punishment, so I sic my wife on the credit card company. A funny aside, our account was compromised by an employee at the local Walmart, so they reissued our cards. Try to work through that paperwork. We eventually get the record of the old, closed account, clearly showing that we did buy this tool at Sears, within the allotted 1 year warranty period.

So I return a few weeks later, vindicated and ready to battle.

Wrong.

Customer Service person #2 starts me down the road.

Sears: "How can I help you?"

Me: I relay the whole story in gory detail, so that she can quickly begin her paperwork to speed my new charger to me.

Sears: "Who did you speak with? I'm not sure why she told you that, but it's wrong."

Me: Stunned disbelief. "Can you get the manager?"

Sears Manager: "Can I help you?"

By now I already know that he can, but won't help me. But, as I have indicated, glutton for punishment, so he gets the story... I decide to tell it louder than my normal speaking voice, but not screaming, just in case someone else wants to hear it. I've told it so many times, I feel like I'm being interrogated for some crime, and being checked for inconsistencies.

Sears Manager: "We can't take any returns without your original receipt."

Me: "Then why did your customer service person make me chase down credit card receipts?

Sears Manager: "It's not in the computer."

Me: "I know, but everything else is."

Sears Manager: "How do I know that your item is still under warranty?"

Me: "Because I'm telling you it is."

Sears Manager: "How do I know you're not lying?"

Now in my head, I jump across the counter and make him eat the charger. In the real world, I'm a little bit more calm.

Me: "Nevermind. If this is what Sears thinks of it's customers, I'll take my business elsewhere."

I went online to Sears parts central, where I didn't need to deal with a human, and I bit the bullet and BOUGHT a replacement at a cost of about $40 after shipping. I also renewed my vows to never buy another Sears tool and extended my vow to include never setting foot in a Sears store again. Six months and counting...

The moral of these two stories is simple: Customers have choices where they spend their hard earned money. If you do not value your customers, someone else will take your business. Every person in every organization represents your company on a one on one basis, since human interaction is the thing most consumers remember the most. Long after the cost of a purchase has been forgotten, people will remember how they felt about the store and the brand.

Disney will see me again and again as my kids grow up. I spend money with them freely, and I recognize that the warm fuzzy feeling I get when I'm there is largely due to the people they employ. It costs nothing to smile and say "Good Morning.", and over the long haul, Disney's actions in the story above will result in far more business than the $40 they walked away from.

Sears is a lost cause to me. If the $40 they made on my charger meant so much to them, they need to understand it is the last $40 they will ever see from me. In as much as they view me as a commodity consumer, I can buy tools and appliances elsewhere. And I will.

Even if they open a store at DisneyWorld.