09.09.07
Are We Dirt?
Is it just me, or are nearly all large companies treating their customers like dirt?
In the last few months, I have had negative experiences with:
- Two computer vendors
- A mobile telephone service provider
- An automobile rental company
- A large discount retailer
- A bank
- A large hotel chain
In each case, they act as though they have too many customers, and they would not care if they lost a few.
This is really about what economists call “market power”. If you can unilaterally raise prices or change the terms under which you will sell your product or service, you have market power. In such a situation, it usually means that you have a large enough share of the market that there are few alternatives available for your customers. We all know how wonderful the telephone company and the cable company treat their customers. They do this because they realize that there are few alternatives for their customers.
If you do not like being mistreated by the cable company, call the satellite television company. What? Your landlord forbids external antennas? Well I guess you have to accept the way the cable company treats you.
You don’t like it when the company financing your purchase decides that your payment was ten days early so it does not count as this month? Don’t tell me you are unhappy about being charged a late fee for a payment that was cashed before it was due. If you don’t like it, switch finance companies.
The reality is that we need to prefer to purchase from smaller, locally-owned businesses (SLOBs) and owner-managed businesses (OMBs) in our communities. In turn, SLOBs and OMBs need to offer locally-made products and locally-generated services, rather than simply reselling the products or services of some large, out-of-the-area corporation. Consumers have more leverage against SLOBs and OMBs, so these businesses are more likely to work at trying to satisfy their customers.
Think about it. When you went to buy an MP3 player for your son, how hard was it to find a salesperson who would talk to you and explain how they worked and what features were most important for different user profiles? I experienced exactly that myself and wound up buying from a completely different location based on price.
When you went to buy a piece of computer-related hardware, such as an external hard drive, a printer, or even a set of speakers, was there a knowledgeable and helpful salesperson available? Did someone attempt to baffle you with cow dung?
I am telling you that my own recent experiences tell me that there is a market for someone (a local businessperson) who will offer competent service; honest, knowledgeable, and helpful salespeople; and reasonably-priced, locally-made products in the above fields. I am looking to offer some services myself shortly. Yet, there is room for several such businesses in your own local area and mine as well. All we need is a way to convince consumers to choose SLOBs instead of big, faceless corporations.
(Now if only Sun Microsystems was serious about taking my money. Jonathan, I am looking to buy a small server, but your marketing representative doesn’t seem to understand that I am about to send the check to Dell instead.)
