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Randy Cassingham's BlogHistorical Details and Author's Notes from This is True® - the First For-Profit E-mail Publication (and Still Going Strong). |
Customer Service: What a Concept
There's a reason why I posted this little diatribe, after running it in the 7 September free edition.
My wife told me this week she was trying to buy something online, but in addition to fairly steep "shipping and handling" fees (much more than the item would actually cost to ship), there was a 20 percent "restocking fee" added to the price -- you know, just in case she returned it. No thanks.
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Many businesses are adding "fuel surcharges" due to the high cost of gasoline. Hotels are adding "resort fees" for the privilege of being able to have a telephone in your room, or use their exercise room (whether you use them or not). Some hotels are also starting to rethink their free Internet policy, or charge $20-50 per day per computer if you use Internet in their conference rooms (for which they're getting top dollar, in addition to a lot of guests).
And don't even get me started on the airlines these days! Sheesh.
Yeah, the economy is tough. The way to stay in business isn't to pound on the people still doing business with you by adding fee upon surcharge upon price increase. Yet that's what so many are doing. It simply costs more to fly a plane? Then raise the ticket prices! Don't charge me to check my one suitcase, ensuring everyone tries to bring their suitcase into the already overcrowded cabin space.
My costs for running True have gone up over the years, and in fact there have been two price increases for Premium upgrades. They reflect the "cost of living", not temporary spikes in the cost of doing business. There is no "e-mail convenience fee", no "fuel surcharge" because it costs me more to fill up my tank to go to the printer or the post office, no "credit card processing fee" for you to use my shopping cart. The cost of Premium subscriptions haven't gone up since 2004, and I'm not about to raise it just when things are getting tough out there.
My business philosophy is pretty simple: 1) treat people the way I like to be treated when I do business with others, and 2) give great value for the price. People seem to like that, and keep coming back. That's why the vast majority of Premium subscribers, for instance, not only renew, but renew for two years, and say things like Doug in Illinois said this week, when he renewed his Premium: "Even as I search for a new job, I *have to* keep this subscription." -- that's how much True means to him. And you can be sure Doug fully understands how tough this economy is!
You can support one of your favorite businesses -- True -- and get double the stories (and see why readers like Doug are so incredibly loyal) with an upgraded subscription. Instead of pitches like this (and instead of outside ads like the free edition has), you simply get more stories -- so the e-mail is actually about the same size. For more info see the upgrade page.
So why did I bother to post this on my blog? Because a reader asked me to, so he could link to it. Yep, customer service -- what a concept.
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Most Recent Comments
In response to Penny, yes, it seems an outrageous amount to pay for a tablet, but when you realize all that goes into it, including the fact that nursing is not an income producing department, you realize that the hospital has to get it's operating costs from somewhere. Would you rather they charge you for that wonderful food they prepare and deliver each mealtime? I think not.
I do agree that charging $45/day for tv and phone is outrageous. I would vote with my feet in that case. Unfortunately, I don't have that option as my husband works for a hospital and that's where our insurance requires us to go. I find it mildy amusing when they thank me for using their hospital when I have to call for something. I feel like I should be thanking them for giving my husband employment that pays enough to cover the medical expenses that come from my having cystic fibrosis and it's complications.
Posted by: Cathy in Casselberry, FL | September 24, 2008 5:45 AM
Wonder if Ken in New York has seen the new ads for Southwest Airlines. They stress the fact that the prices they quote you for a flight are the bottom line prices, not the price before all the taxes, 9-11 security fees, airport costs, baggage fees, etc.
Posted by: Bruce, South Carolina | September 24, 2008 6:49 AM
Firstly, Ken: was Randy not clear enough about the "restocking" fee? I wouldn't have thought that the essay made much sense without that central point...
Secondly, while obviously I do think that it charging for things that you have no choice about, even if you don't use them, is a totally illegitimate way of doing business, (this joke highlights the point quite effectively), separating out charges for optional things isn't. It's true that I'm more likely to do business with a company that includes things, as that makes my life easier, but that doesn't make the alternative illegitimate, and I might do business with them if I had enough time on my hands to analyse in detail what I actually needed (such as if I was taking minimal luggage on a flight).
There's also the tendency for market forces leading to businesses thinking that the only way forward is to cut costs or to cut the level of service included in the price, but that's a whole different problem.
Posted by: Neil, UK | September 28, 2008 12:43 PM