Service Levels, not what is expected

There are very few business these days that enjoy the ability to offer poor service and still thrive. They are defiantly not the norm, but it does seem to be getting to a point where the number of these sort of businesses is growing.

I find the most common characteristic of low quality of service but growing businesses, is the desire to offer products at price levels that make it pretty much impossible to make a profit without cutting out if not most all of the customer service. In general this i believe is coming from public pressure on prices getting lower and lower. Which brings along with it the expectation of the public that the quality of service isn’t going to be the best. However this suddenly swings in the complete opposite direction when the consumer has a problem with a product and wants the problem resolved.

To many businesses are taking this approach and really forgetting why they are in business, or maybe the reason they are in business is different to what would be commenly believed. I thought that the reason why a majority of businesses were in business was to provide customers with a product, i would think most people would agree. As a secondary reason for being in business would be to make money.   It is unfortunate that to many business owners seem to be putting these two points in the reverse order.

The problem with putting profits before customers is that in reality the low price, low service model really serves neither the customer or the business. The business makes less money trying to bring the price down as low as possible. While the customer generally gets an inferior product, which does not last as long if it works at all. The minute the product does not work if the customer looks to a replacement or repair it immediately starts costing the company money and unless the customer is satisfied with the outcome this is money that they will have very little chance of recovering through future profit of future sales.

At this point there are many other indirect costs building as well which may not even be naturally related to a particular incident, which will continue to impact the company over the short term.

While Low Price, Low Service model seems to be what so many businesses are moving towards in the future it is not going to be able to sustain as many businesses as there are implementing it. Already there are casualties of this model, especially in the technology industry however i believe that into the future the number of industries that feel the affects of this trend are going to grow and the size of a business required to sustain a such a model will increase.

Be Sociable, Share!

Did you enjoy this post? Why not leave a comment below and continue the conversation, or subscribe to my feed and get articles like this delivered automatically each day to your feed reader.

No comments yet.

Leave a comment

Line and paragraph breaks automatic, e-mail address never displayed, HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>