Communication, Please?

On a recent trip, I found myself without dinner because of delayed flights. I wanted a snack--not much, just a snack--and something to drink. There was a small concession near my gate, so I went over and picked up an oatmeal cookie and a bottle of water. I thought that would do nicely.

I handed my credit card to the cashier as she hit the total button: $8.79!
Me: How much is the water?
Cashier: $2.29
Me: So the cookie is $6.50????
Cashier: (no response)
Me: Is the cookie six-and-a-half-dollars??
The cashier turned away and asked a question of one of the other workers, who came over to the register. Both stood looking at the machine and poking at buttons.
Me: Is the cookie $6.50?
Employees: (nothing)
Me: Excuse me, where is my credit card right now?
Cashier: What?
Me: May I have my credit card back please?
The cashier handed it to me and went back to poking buttons. (I would have walked away at this point, but I wasn't sure whether my card had been entered or not.) The second employee now went in search of the manager on duty. I still had not received an answer about the price of the cookie. The "manager" appeared and voided the incorrect entry without speaking to me or even looking at me The cookie was $3.00--outrageously priced, but not $6.50.

At no time during this transaction was I treated as if I were another human standing at the counter.

Now, I understand that working midnights at an airport concession stand is not the most desirable job in the world. And I know that because I had similar jobs along the way: Dairy store night clerk; night  gas station attendant (New Jersey still has those, and that's where I grew up)--at what was the busiest gas station in the world at the time; hotel front desk, and so on. I know the pay is absurdly low and doesn't help your kids' college fund. I know that the benefits (if there are any) are crummy. I know that finding people to do this work is not easy.

So what?

Find the right people, not just the people who show up to your application desk when you post a "Help Wanted" sign.  

Who said your work as a customer service hiring manager was going to be easy?  

I am 100% sure that this cashier displayed no more personality or communication skill at her interview than she did during our two minutes of "contact." And yet, there she was, being the face of the company.

The fact that I've determined never to buy anything ever again from this particular airport concession company will not destroy their bottom line, and I know that.  It's a personal decision. I buy from companies that show me good service, and I never return to do business when I'm treated as if I am not even in the same room.

What would you do?

The Spanish Olive Paradox

When I was very young, I heard Joe, a friend of my older brother, talking about his job at the local grocery store. Joe had opened a case of Spanish olives, checked the price list, set his price marker (called ‘rotators’ back then), and marked each jar $.95. They sold out in a couple of days. The next case came in, and my brother’s friend checked the price again, and realized his mistake. The olives should have been marked $.59. He put the lower price on the jars of olives, and they sat on the shelves. Feeling experimental, he marked them back up to $.95 each, and they again sold out. Even at the age of 17, Joe was able to extract a business lesson from this incident: People will pay according to their perception of value. Spanish olives must be worth more than just plain olives, and if they cost the same as—or less than—other olives, they must not be anything special.
We see this every day in the marketplace: Brands with some cachet are priced higher. Value is subjective. Price is set by what the market will bear.
This is very basic, but sometimes we lose perspective when we start valuing our own products or services. We know what raw materials went into the product and exactly what it cost to produce. We incorrectly assume that some standard markup percentage will suffice to price the item. If we sell services, we might think it’s better to bid low rather than risk losing the work. If we look deeper, however, what we find is that a premium product or service often attracts more business. This is the basis of the concepts of differentiation and value-added.

Here are some steps to take to make sure you are not undervaluing your product or service:

• Know your market – If you have a basic understanding of what your customers consider a fair price, you are halfway home
• Differentiate your product or service – You should be able to clearly articulate why your customers should choose you as opposed to your competition, even if you cost more
• Brand yourself appropriately – If you are a Spanish (i.e., special) olive, make sure your customers can clearly see that, and will know they are getting a premium product or service

The next time you are pricing your products or services, remember the Spanish Olive Paradox, and price accordingly.

This post originally appeared on The Management Experts


Photo Credit: Graham Colm

Empowerment Doesn't Mean Safety

A story published by the New York Times tells the disturbing story of a business so unscrupulous that its owner views threats and abuse of customers as a revenue-generating tool. A comment about the story on Twitter prompted me to do some thinking about the Internet and what it does and does not do for consumers.

• The Internet empowers shoppers
• Check competitors' prices right from the store
• Check online reviews of both product and seller
• Find rebates or discounts the salesperson may not even know about
• The Internet empowers businesses
• Watch what your competition is doing
• Listen to what your customers are saying
• "Level the playing field" so small business can play big

So, what went wrong in the Times story? Shouldn't the Internet have protected the victim of the abuse? Short answer: Empowerment is not safety. Having tools only works if you use the tools provided to you. The Internet does not countermand the wise saying caveat emptor (buyer beware), but allows the buyer to access information on a scale unimaginable a generation ago. But the customer in the New York Times story did not use the tools. Now, don't get me wrong--there is absolutely no excuse for the greed-driven horror which a despicable person thinks of as "business." It was absolutely not the victim's fault that she was treated badly.  According to the story, however, she took a top Google ranking as a testimonial and never looked beyond it. This is the same as taking one salesperson's word for it when making a purchase—unless the salesperson is known and trusted.

Does the Internet empower? Yes, beyond a doubt. Does empowerment mean that you are protected from harm? No. It means that you have been given power. Whether you use that power or not is up to you.

Give it some thought.

Update: 12/1/2010


Google has implemented what they term "an algorithmic solution" to this problem. You can read the story on TechCrunch. Thanks to Jeffrey J. Kingman for bringing this to my attention.

Update 12/6/2010
The owner of the business described in the New York Times article linked at the beginning of this post has been arrested and charged with fraud and threatening, according to internet Retailer. Thanks to "hestika" @AngelosTzelepis on Twitter for the update.