Wednesday, June 18, 2008

What is it Worth?

An update- I think it's been about 4 weeks since my scooter was picked up for repairs. I have called at least twice a week, but have not been able to get through. At best, I've gotten the receptionist wife once or twice, but she still has never passed on the message to have Tommy call me back. Or maybe he is ignoring me. Or her.

It has definitely gotten to the point where it is just a huge hassle for anyone to deal with anyone else in this situation. It can't be fun for any of us, and it certainly can't be in their business' best interest. After 10 months of nagging, arguing, and physical labor, I estimate that I've taken up probably eighty hours of their lives. at ten dollars an hour, that's 800 dollars! And we're not even done yet.

So while I still don't have the functional scooter that I paid for last August, at least I have the satisfaction of knowing that they're earning a negative margin on this one sale. And not only is this one sale earning a negative return for Scootertronics, but now your future sales will also be affected by negative marketing.

So what is the true cost of having a bad return policy? It's much worse than the alternative of treating a customer with respect. Business is about long term relationships and repeat customers. Even drug dealers know that.