Monday, August 29, 2011

Business practices

This isn't the blog I had intended to write but events of the weekend have changed my mind.  What I witnessed convinced me that many businesses are lucky they make any money or even that they stay in business at all.  I'm thinking that I could write a book on running a business without ever having run one.  Apparently I have experience that many business person's don't have - being a customer.

For example, I was shopping around for a ramp to go from our garage into our house through the door there which has a 2 inch threshold.  Even though I was obviously interested and had even taken out my wallet, I was hesitating because I did know how it would fit.  The salesperson suggested that I either (1) think about it, (2) go home and remeasure it, or (3) have her come out and measure it.  All three options would have me leaving without a purchase and with a good chance I wouldn't be back.  In addition, 3 could set up the salesperson for a costly non-productive house call.  When I suggested I could buy the ramp and return it for exchange if it didn't fit as hoped for, the salesperson quickly discouraged that idea as I would be charged a 20% "restocking fee"!  What a stupid idea!  Most retail stores allow returns because it encourages purchases even if there is some risk of dissatisfaction.  There is usually a much higher chance that the sale will stick.  A restocking fee is a wholesaler concept and has no place in the retail business.

My second example concerns a piece of equipment called a SwingAway which allows me to carry my power wheel chair on the back of my Toyota  Highlander and still have access to the rear door.  Short story is that the original SwingAway malfunctioned and the manufacturer agreed to replace it under warranty.  Should be a clear case of keeping the customer happy, right?  Dealer stands to get lots of return business; isn't his fault the SwingAway malfunctioned; keep customer happy, right?  This dealer must have it in his head that the manufacturer is the customer and the manufacturer should be kept happy.  Since when?

This dealer acted like the malfunction must be the customer's fault.  Live with it.  Then when the manufacturer agreed to furnish a replacement, the dealer continued to act put out.  Finally, when there was no other course of action, the dealer replaced the bad SwingAway with the good one, the dealer made a big deal about not charging for labor although he could because the warranty didn't cover labor.   This dealer will be lucky if the customer every comes back.

In both these cases we're talking small business not informal bigbox business.  Who is going to teach these business persons business?

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