And we all know how well that worked out. Have any of you tried to pick
up a replacement Bassomatic? Mine died two years ago when my daughter
mistakenly tried to puree a salmon. Bad move...
All this business planning and cost accounting is enough to make a
Wharton graduate's head spin.
The crux of the problem and Jamie's problem is that if the customer
PERCEIVES that they are being hosed, they will take their business
elsewhere. Perception is, in the real world, reality.
Yeah, they could toss that belt in a USPS Priority mail pack and send it
off to Jamie and if they'd charged him $6.50 shipping AND HANDLING, they
likely would not have heard a peep. However, to be so inflexible and
demand $20 for something that small is their downfall. Jeez, what would
they have done if he'd needed, gasp!, a shear pin or a washer?
Common sense isn't!
It works in the other direction too. If I call up a company and say I need
a new left-handed frobnitz, and the person I talk to on the phone says, "Aw
heck, that's not worth the paperwork to bill you for, just give me your
address and I'll send you one, no charge", they've just earned a customer
There's a couple of sayings:
1) It's a lot harder to get a new customer than to keep an existing one
2) It's a lot harder to get a old customer that you've pissed off once to
come back again than it is to get a new one.
John Deere (and every other manufacturer) gets an hefty over the counter
price for the shear pins used on their snow throwers. Something like
$2.95 each. Needed a couple, including spares, and went to the
dealership I'd bought it from (to the tune of $1,600) and they whacked
me full price. Oh well.
Two years ago I needed more and happened to be in the next county over
when I remembered I wanted to pick up some more as spares with winter
coming on. Guy at the counter quoted me the same price but when he came
out of the back, said "I know you said two but these damn things always
go out at the worst times. There's six in the bag. That'll be $3.14
Guess where my next parts, service and equipment purchase will be made.
The service department at the dealer where I had purchased my last
pickup truck had earned my disdain in a couple of ways, but the daytime
running lamps, which needed frequent replacement, were no longer
available from the aftermarket parts house. When I stopped by the
dealer, reluctantly, to buy some, the parts guy pulled up my computer
record, went to the back, and came back with a double handful of the
replacement bulbs. Didn't want to bother with any paperwork. I just
_may_ buy another truck there some day.
I was trying to get my new digital TV setup with an outdoor antenna. This
turned out to be hard. I think I'm in some kind of signal hole. Anyway, I
bought a Winegard amplifier and was having trouble getting power to it. I
contacted Winegard support via email and got a prompt, intelligent reply. The
reply included a recommendation for a power regulated diplexer. I searched the
net looking for one and couldn't find it. I sent another email to support
asking where I could get one. The prompt reply was "I'll send you one". No
charge. I like Winegard.
I've posted here before about my Jet 18" bandsaw lacking power that I bought in
1999. It turns out they had installed a 1/2 HP motor instead of the 1 1/2 HP
motor that is spec'ed. A call to Jet customer service got a reply to the effect
of "You've got 90 days to discover that sort of problem". I asked to speak to a
supervisor and got the same result. I wrote a nice letter to the president of
WMH Tool Group, which owns Jet. I got a prompt email from his admin saying that
it had been referred to the head of the Jet division. I got a phone call and
email from him saying a new motor was on the way. No charge. The bandsaw runs
great. I like Jet.
I stated explicitly it was past the 90 days, anyway, which seems like
that would be plenty of time to have found/identified/complained
initially...I'm inferring the other, granted from the way in which it
That's what happened. I had wondered about a lack of power on resawing, even
posting some questions here. I had seen the 1/2 HP rating on the motor, but
thought it was probably a mis-print. Then I saw the amperage rating and a light
went on. I did notify them as soon as I realized there was a manufacturing
problem. -- Doug
Keep in mind also that Jet does not as a rule sell direct.. They prefer you
to order from the dealer. If there is no close dealer to service the tool
then this would be more of a courtesy convenience to sell to him directly.
The dealer can place a stock order that will have much a smaller freight
charge if any due to the volume.
I'm not sure when that all came about. More than 9 years ago though. My
local Jet dealer went in to business about 9 years ago and the big stuff was
strictly Jet. IIRC the Jet web site indicates that you cannot buy equipment
direct and that you should contact a local dealer.
Was Amazon even in business 15 years ago...?
When I want to get up close and personal with a machine I do make the
1 1/2 drive to Visit my "local" Woodcraft... But that is now ..Then
was in the late 80's...
BTW...Major reason for this reply was not to comment on your reply to
my question.....but was to let you know that I normally will read your
comments in ANY Newsgroup... and I can not say that about many
So? If they get $10 an hour (wages, benefits,
etc.), it cost the company $10, not $20. I worked
where the estimated cost of letter was calculated
as $10, and processing a check (for jury duty)
cost the company way more than the check was worth.
Every one of those orders costs extra, right?
Nope, only for the most efficient business with
exactly the right number of employees. That
doesn't happen often. In many case, it doesn't
cost the company anything because the employees
would be sitting on the butts doing nothing, maybe
even doing something that cost the company a lot.
The only way to know how much it costs to process
orders is to divide the total cost by the total
number of orders. Does that mean that if the cost
averages $10 than another order would cost $10?
Probably not. It might just mean that the average
cost of the processing order just dropped slightly
when you average that next order in. There is no
strict answer as it depends on the company
It doesn't really matter. If a company is just
breaking even on mailing and handling costs, and
it costs $20 for a simple product always (or
should be always) in stock, then the company is
doing something wrong.
A $10 per hour employee does not cost the company $10 per hour, probably
$15, maybe more.
You also forgot the cost of everything else, cost of the warehouse, heat,
It all goes into the cost of doing business.
Want to try again. I quote from my message
"....$10 an hour (wages, benefits, etc.)"
Doesn't make any difference? the cost of another
letter, another order, another anything often is
nothing because the employee(s) is often
underutilized. In fact, they may only be doing
50% of full utilization, especially if business is
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