How Bad Do Customer Really Want Good Service Versus Price?

A husband and wife visit my store stating, “We hated the service across the street!” (I’ll refrain from mentioning the name of the big-box retailer they referred to out of respect). “The people there didn’t know anything about the products we want and behaved as though they weren’t interested in helping us.”

I introduced myself and asked if this was their first visit to my store. They said, “Yes.” After introducing myself I explained how we provided everything they needed for home improvement needs. And we did, too! We carried appliances, plumbing, lighting, flooring, hardware, and even outdoor furniture. I explained how we’re price competitive, offer financing, free delivery, and offered installation services, too. I even explained how our installers and delivery personnel were drug-tested so customers had satisfaction knowing the people in their homes representing my company were people to be trusted. The couple appeared satisfied they came to the right place and we got down to business.

After asking questions about their project needs I determined they needed kitchen appliances, kitchen plumbing, lighting, and flooring material. They already hired a designer and installer, but what they needed right away were the appliances. “I designer said we need to choose the appliances so she can begin work on the cabinets,” the husband said. I agreed. Once the appliances have been selected the designer could begin work on their cabinets. I told the customer I would email the specifications to their designer once they made their selection and began showing them the brands we offered.

I started with the very best on the market. Not because I’m on commission, because I don’t work commission. I started with the best because the wife said she liked to cook and they had all the family parties and holiday get-togethers at their home. She wanted the best because they made up their mind this would be the last time they remodeled their kitchen before retiring. Their budget for appliances was $5,000, which wasn’t enough to buy the best, but I showed them mid-range appliances that were definitely reliable. I explained features and benefits, discussed differences between brands, enlightened them on the advantages of convection-oven cooking, talked over the service contracts and they selected a refrigerator, dishwasher, gas range, and over-the-range microwave that came to around $4,800.

Then the husband said, “Before I commit myself I want to see if spending a bit more is worth it.” So I went to what I considered to be the best product lines on the market. And they were beautiful pieces, too! The gas range had high-powered burners that dropped to low simmer on all burners, the refrigerator had the best humidity-temperature controls, the dishwasher had stainless interior made of 97% recycled stainless steel and was rated as among the quietest on the market. Even the microwave was convection, which is considered a plus compared to standard microwaves. After crunching some numbers and offering instant rebates (I actually saved the couple $500) the total came to $7,800. The couple talked it over and determined it was in their best interest to buy the higher-end line. The wife made a point to express gratitude for my knowledge and courtesy, reminding me again of how the competition across the street didn’t know anything about the products they sold. “It sure is nice to meet someone who knows what they’re selling,” she said. I felt good about myself upon hearing the compliment.

The husband began filling out our credit application for 12 Month No Interest Financing and was approved for $10,000 line of credit. Right when we started the sales transaction the husband turned to me and said, “What’s the best price you can give me for the total order?” I was caught a little off guard because I was sure I had already told him I took off the maximum discounts permitted. The customer googled something on his iPhone. “Look,” he started. “I found the same gas range $500 less online.”

No kidding, I thought. I explained you could find everything and anything online for less, but brick-and-mortar businesses like me go the extra mile by explaining features, benefits, and services that online retailers don’t do. The husband rolled his eyes and acted as though I’d slapped him across the face. “$500 is $500,” he declared. I explained that for me to take further discounts would cut into our profits. Much as I wanted his business, it did us no good to give the stuff away. How do you suppose so many businesses are run out of business? It’s because they can’t keep up with online retailers.

“At least with me you have a name and face from the person selling you the products you’re investing for your home,” I explained. “If anything goes wrong or you’re unhappy at any time, give me a call and I’ll help you through it.” But they were having none of it. Suddenly the benefit of professional service was not worth the $500 they could save by purchasing their pro gas range online. I offered free stainless steel cleaning products and install kits for their dishwashers, but the savings only came to $50. I crunched the numbers again and saw we only had room to offer $50 more before coming too close to cost.

“Forget it!” the husband declared. “I’ll buy the stuff online!”

Two weeks later I received a call from a customer wanting to know how soon I could get them a refrigerator, range, microwave and dishwasher. The model numbers looked familiar. After looking them up I said I had them in-stock and could have them delivered the next day if they made payment over the phone. The customer provided me their phone number and I looked up their information in our system. Guess who the customer was? It was the husband who chose to buy the appliances online. He said the online retailer lied to him about availability and that it would take up to 6 weeks before he could receive delivery. “Can you match the online prices?” he asked. I told him no, and again explained why. “Can you give me the same prices as before?” he asked.

At this point I had to wonder if offering him great service was worth it. Not that I was offended by him leaving two weeks prior. I don’t offend easily. You can’t afford to in this business. But after weighing options I explained, “This isn’t exactly an apples-for-apples scenario, sir.” He didn’t understand. “You see, I have the stuff you need on-hand while my competitor doesn’t. That means his lower price isn’t exactly an advantage over me. I can provide you with the instant $500 rebates savings, but the free install kits and cleaning products are off the table.” Now it was the customer pausing and breathing heavily on the phone. He wanted me to explain again and I told him it’s not exactly fair to expect me to match the lower price offered by a competitor who can’t provide the product they’re selling whereas I could. Not to sound obtuse, but I am in the business to make money (please don’t hate me for that. I have to earn a living).

The customer relented and bought the product from me and I still saved him $500. Just not the additional $500 he wanted from the online retailer. And he got the products the very next day! Now I know we all have to save a buck. I’m a customer too and in the same boat. But when you expect good service one should expect to pay more for it.

Or am I being obtuse?