Letters

What's behind the customer-service debacle in the United States? Inc. readers hold forth on that and knowing when to say no to business at any price, to whiz-bang software, and to an indentured role in a family business. For their observations, read on.

To Serve and Kvetch

In August, letter writer Clint Lougheed asked if other readers had noticed a deterioration in customer service in America. Man, did we get an earful. First, some interpretations of the roots of the customer-service malaise:

Economic conditions have a big impact on the quality of customer service. When I lived in San Francisco, I experienced California's severe recession of the early 1990s. Vendors who gave poor customer service vanished in large numbers, leaving a greater concentration than usual of service-oriented vendors. It was very difficult to find poor service anywhere, one of the few upsides of the recession! Last year my wife and I moved to Denver, where the economy is booming. Here we come across a lot more poor service, regardless of the vendor or the industry.

Joe Zuffoletto Jr.
President
Intersis Development LLP
Englewood, Colo.
joe@intersis.com

Too many people don't understand that though the "boss" signs the check, the customers provide the money so the check won't bounce.

Susan Heider
Owner
LML Inc.
Indianapolis
slheider@aol.com

People who work in customer service and have low self-esteem have decided that they are not worth anything because they 1) are not beautiful, 2) are not rich, and 3) have thankless jobs. Well, no one can compete with airbrushed models, becoming rich typically involves years of extremely hard work, and no job is as glamorous as it appears. So there are millions of people doing jobs they hate, and they become bitter and rude.

Carol Pieper
Hanover, N.H.
carol.m.pieper@dartmouth.edu

While the bulk of mail contained horror stories, we did get some letters recounting episodes of exemplary service. This one stood out:

About six months ago, I noticed that a piece of Eddie Bauer luggage I had purchased a couple of years ago was missing a latch, so I took it to an Eddie Bauer store to see if I could get the latch replaced. I had no receipt, no proof that I had actually purchased it at that store. The woman who ran the store pulled a brand-new bag off the shelf, gave it to me, explained Eddie Bauer's unlimited warranty on its products, and wished me a good day. That experience made a profound impression on me.

Anthony Roberts
President
Intermedia
New York City

And some savvy readers recognized the opportunities that result from offering better service:

I own a small video store and rely on customer service as my competitive edge. Therefore I say hello when my customers walk in the door, thank them for stopping in, call them when the movie they want to see is in. So why am I continually asked why I'm so nice? The answer is simple: I want your business. I want to give you a reason to come to my video store and not the big chain store next door.

John Crowner
President
Video Adventures
Sylvania, Ohio
osubuckize@aol.com

Just Say No

In " The Capacity Trap" (August), columnist Norm Brodsky warned that it's a slippery slope from cutting prices so you can sell unused capacity to filing for bankruptcy. Readers said "amen" to that.

In my retail-footwear business, I, too, believe that selling for less than "regular" prices is often counterproductive. Many of my competitors have gone by the wayside by selling shoes for prices near wholesale. You don't have to be a genius to do business that way; you just don't make money.

A. Lee Brown Jr.
Owner
Shoe Express
Jackson, Tenn.
lee@aeneas.net

Dentists in private practice who contract with managed-care organizations to provide below-cost care are "on the road to bankruptcy." When overhead costs are fixed, a reduction of fees results in a reduction of practice and personal income. Many dentists subscribe to such programs to "get patients in the door," but the more of those patients they see, the more money they lose. They would be dollars ahead if they took that time off or used it to win new patients through community service.

Karl F. Woodmansey, D.D.S.
Bozeman, Mont.

The Best-Laid Plans

In " Garbage In, Garbage Out" (August), Brian McWilliams wrote about the futility of relying on business-plan software. One reader learned firsthand how true McWilliams's assessment was:

I just completed my first business plan and used it to obtain an SBA-guaranteed loan for my business. I tried a number of the packages mentioned in McWilliams's article. If I had wanted a generic, cookie-cutter plan, with no personality and, worse yet, no detail, those packages would have been fine. In the end, I put my plan together using the good old word-processing and spreadsheet software I've owned for years. Now I have a plan that not only reflects my personality and enthusiasm but also includes financials I can recite on command to anyone who cares to listen--a definite plus when I meet with bankers!

Joseph M. DeCosmo
President
DeCosmo and Associates Inc.
Oak Lawn, Ill.
102513.3133@compuserve.com

Stand by your man

What Norm Brodsky discusses in " The Capacity Trap" [August] has been an issue my husband and I have been struggling with in his business--Tumbleweed Tex: Songs, Stories and Humor of the Old West. He charges $150 for most jobs, and we'd argued about whether he should take the $50 gigs he's offered on unbooked nights. Brodsky spelled out with compelling, real reasons what my husband had been trying to tell me based on his instincts. Now I find myself asking, "Do you think you should take that job? Will it hurt you if you do? What if Good Customer X and Good Customer Y find out you're working for Bozo Z at one-third of what you charge them?"

Susan Alchesay
Owner/Manager
Can Do Software
San Antonio
76272.1565@compuserve.com

Focus: A Family Affair

At what cost should you be willing to help grow your family business? One reader wants to know. What do you think?

I'm finding it hard to get paid for what I do. When I came into our California-based insurance agency, my dad had two assistants doing his work. Since I came to work, he has gotten rid of them. I am a commission-only salesman, but I also market to companies or put together proposals for my father. I enjoy what I do but feel I'm being taken advantage of. I am 29 years old and have been in the business since 1985. Whenever I talk about the situation, my father says, "The business will all be yours someday." I've already brought in more agents who have helped grow the business. When it comes time for my father to sell it, I don't want to have to pay more for it because I successfully built it up. Any ideas?

Hector
California

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House of Corrections

In " Student Uprising" (August), the business-plan competition that Elaine Salazar of Ampersand Art Supply Inc. won was sponsored by the Entrepreneurial Management Center at San Diego State University.

Also, in " Are We Making Money Yet?" (July), the authors of Accounting and Financial Fundamentals for Nonfinancial Executives are Robert Rachlin and Allen Sweeny.

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