A Service Resolution
12/20/04

Resolve to provide quality service.

By: Matt Michel

Zig Ziglar tells about the time he bought a bike for his son. Ziglar tried to save money by buying the least expensive bike he could. In less than a year, the bike was a write-off. The next time Ziglar bought a more expensive bike – more than twice as expensive, in fact – and it lasted. When he figured out what it cost him to own each bike, it shouldn’t surprise anyone that the more expensive bike cost less.

That’s a product, but what about service? Well, my father recently took his car into the shop. The car wouldn’t start, but the solenoid clicked. The shop didn’t probe deeper and replaced the starter.

They told Dad how smart he was to come to them rather than the dealer because they just saved him $100 compared to what the dealer would charge. He felt good about things and drove home.

A day or so later, the car was still having trouble starting. He got it back to the shop. A mechanic jiggled a wire and told him that this was a problem they had with this make of car from time to time and sent him on his way.

I learned about the problem when the car didn’t start on Christmas Day. I was livid. First, I think the shop blew the diagnostic. Those things happen even with the best companies.

However, when he brought it back, it should have been apparent that they needlessly replaced the starter and still had not truly identified the source of the problem, nor corrected it. They should have fallen all over themselves to apologize and solve the problem. Instead, they brushed him off because they were in a hurry to clear out before Christmas. That they allowed a couple in their 80s to leave town in December in an unreliable automobile borders on criminal.

We had the car towed back the day after Christmas and tried calling the shop. No answer. No answering service. No answering machine. No website. No fax number on the invoice.

As of yesterday, there was still no one answering the phones and no way to communicate with them. Dad’s driving a rental car and is swearing he will not return to this shop, while mumbling that this company had been around for a long time, were nice guys, and had a good reputation. Not for long, I thought.

I told Dad that he didn’t pay enough. Saving $100 is not worth the pain and agony he’s gone through (not to mention the rental). He acknowledges it and says he just wants the car fixed.

I’m all for trying to save the customer money and making your products and services affordable for more people, yet no one wants to carry the tag line: “We don’t charge much and deliver less.”

The owners of the garage Dad used may be nice, honest people, but they are on a path that will lead to a terrible reputation. Sooner or later, I expect they will become known as incompetents at best and more likely as crooks. And it all starts with improper pricing.

You are not doing your customer any favors if you are in the service business and do not charge enough to be of service. You need to charge enough to allow technicians to perform a good diagnostic. You need to charge enough to be able to handle callbacks and other problems courteously, efficiently, and without a second thought. You need to charge enough to be reasonably available for your customers. You need to charge enough to continue in business and continue to honor your warranties and serve your customers.

The new year is practically upon us. Enjoy the bowl games on New Years Day, but on January 2, resolve to examine your pricing. Make sure you include reserve funds for callbacks, warranty calls, and mistakes.

Make sure you include enough to pay people well, to replace old vehicles and tools, to provide proper training, to adequately staff for service, and to profit, and prosper so you will survive to continue to serve your customers in the future. Charge what you need to charge to serve customers fairly.


Source: Comanche Marketing. Reprinted by permission.
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Copyright © 2003 Matt Michel