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Rick Segel shares his experience, insights and ideas about new approachs to retail marketing & the state of customer service in today’s global retail community.

What Would You Have Done?

September 23rd, 2008 by Rick

This past weekend I was working in Nashville Tennessee, one of my favorite cities in America, when I had one of the most unusual customer experiences I have ever had. I was also fortunate enough to stay at Opryland Hotel, which is always a treat because the Gaylord family of hotels understands the real meaning of hospitality. But that’s not what this story is all about…. but as I wrote those words I thought maybe there is more of a comparison than I might have noticed at first. I say that because the story I am about to share would never happen at a Gaylord property.

It all started when I got off the plane in Nashville. My carry-on bag broke as I was walking off the jet bridge. There is nothing more embarrassing and aggravating than that because you have to stop and try to fix it while passengers are waiting and then you end up carrying a bag that is heavy and was never designed to be carried.  I have used this bag on every trip I have taken for the last 5 years but it was time for it to go.  However, right beside the Grand Old Opry is a wonderful Mills Mall.

So off I go the luggage store, whose brand I have been using for almost 30 years. At the store I was waited on by a young woman who was a real pro and a very good sales person.  She understood what I wanted and helped me with the decision process. So far so good, but now the problem began. When I got to the checkout counter, the manager was talking to another customer and apologizing for something I really didn’t understand. While he was talking to him, the manager kept writing something. I was about to understand what he was writing.

The store’s computer system had gone down - not the entire company’s system, not the mall’s connection, just this one store. That seemed a bit strange that a company of that size wouldn’t have a technician at the store within hours, not the days that this had been going on. So it was very natural for me to ask questions about a system that is considered to be one of the most reliable in the industry, especially when the manager explained to me that it was just the box that needed to be replaced.

The manager explained that he couldn’t ring in the sale and he would have to write up the sale by hand.  I actually bought 3 items so he had to write down 3 very long SKU numbers.  He did that, and then he had to total the purchases and call for a credit card approval. It took the manager about 10+ minutes to write everything down, and when he called for the credit card approval, my card was declined 3 times. He finally realized that he wasn’t calling American Express for the approval; he was calling the approval department of Master Card and Visa.

Again the manager apologized for the delay and looked for the American Express phone number. But he couldn’t find the number and had to call his company for the number.  Apparently they didn’t have it either but they were going to get the number and call back. That meant I had to wait. Please understand that this was taking place around 12 noon. My plane had landed about 10:30 AM but I had gotten up at 3:45 AM in order to make my flight. I still hadn’t checked into the hotel so waiting wasn’t a desirable option.

Now realizing how long this process could take, I decided to make an offer to turn a lose/lose situation into a win/win. I thought that the manager would make an allowance because he kept on apologizing and generally 10% allowances are pretty standard in situations like these, so I asked what he could do for me if I were to pay cash. First he objected and then he said that he would only charge me $160. He told me the total was $184. So I got what I wanted and put down $160 in cash. Then he handed me the bill and it only totaled $167. I was only looking for a 10% reduction and felt that taking off only $7 was an insult. So I now offered him $150.

Well, that triggered a horrible response. He told me that was all I would be getting and if I didn’t like it I could walk through the door and no one would miss me.  I then asked for his name. His response was, “Why don’t I just give you my district manager’s phone number as well. He is very familiar with YOUR type.”  He then told me that if I persisted, he would have mall security remove me from the store. WOW.

At this point I realized 2 things. First, when he wrote the sale up on the receipt, he had forgotten to add in the sales tax, which brought the total amount to $184. So I was actually going to save $24. The second thing I realized was that this poor excuse for a manager just gave me one terrific story.

I gave him $160 and walked out of the store without saying a word, as Mr. Manager was sputtering some things as if to get his last licks in. What a jerk.

Here is the take away. Customers will ask for price reductions, so we don’t have to lose our cool over them. I didn’t ask until I was inconvenienced. The first rule of negotiating is “when you make a concession, get a concession”. I made a concession by giving up my valuable time because of the business’s inability to process a sale. Again, a 10% allowance has been a standard for situations like these for years.

Just because someone asks for an allowance doesn’t make them a criminal. That’s just good business sense. Did I call his district manager? No, because it was really the fault of the district manager and people above him for not properly training employees in situations like these.

Next time someone asks you for a discount, compliment them for trying, and simply say with the best smile you have, “I wish I could”. But if the business is in error, offer something for the inconvenience and turn a negative into a positive. If Mr. Manager had, I might have been writing to his DM, telling him what a pro his manager was. Now I am wondering how long that talented salesperson will work there until another chain snaps her up. She is prime for the picking because her manager will be going NOWHERE in the company and by staying where she is, she will only hurt her career.

BTW, I am still wondering if the manager ever realized that he forgotten to include the tax. And we wonder why a great owner-owned specialty store can beat a chain any day!

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