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	<title>Comments on: Does Bad Customer Service = Better Profit?</title>
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	<link>http://www.thickenmywallet.com/blog/wp/2007/09/27/does-bad-customer-service-better-profit/</link>
	<description>Everything to do with thickening your wallet by entrepreneur turned President of an Investment Company</description>
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		<title>By: moneygardener</title>
		<link>http://www.thickenmywallet.com/blog/wp/2007/09/27/does-bad-customer-service-better-profit/comment-page-1/#comment-1632</link>
		<dc:creator>moneygardener</dc:creator>
		<pubDate>Fri, 28 Sep 2007 17:54:10 +0000</pubDate>
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		<description>I agree somewhat with you and with Wealthy Candian.

Customer service is worse than it was 5, 10 and 15 years ago - however this is probably mainly due to globalization and the &#039;big box&#039; mentality dominance.  It does vary though and companies are forced to improve when competition comes in.  A great example is Home Depot....what a surprise Lowes emphsizes customer service as job #1.

A good example of an anomoly though, is Costco.....great customer service...</description>
		<content:encoded><![CDATA[<p>I agree somewhat with you and with Wealthy Candian.</p>
<p>Customer service is worse than it was 5, 10 and 15 years ago &#8211; however this is probably mainly due to globalization and the &#8216;big box&#8217; mentality dominance.  It does vary though and companies are forced to improve when competition comes in.  A great example is Home Depot&#8230;.what a surprise Lowes emphsizes customer service as job #1.</p>
<p>A good example of an anomoly though, is Costco&#8230;..great customer service&#8230;</p>
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		<title>By: the Wealthy Canadian</title>
		<link>http://www.thickenmywallet.com/blog/wp/2007/09/27/does-bad-customer-service-better-profit/comment-page-1/#comment-1610</link>
		<dc:creator>the Wealthy Canadian</dc:creator>
		<pubDate>Thu, 27 Sep 2007 20:04:48 +0000</pubDate>
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		<description>I like your theory but disagree.

I growth industries/companies or in monopolies your theory holds water.  The company is growing so much that it cannot keep up with their service, or they have a monopoly and just don&#039;t care.

However, in a mature industry where the product is a commodity then what are the distinguishing features?  Price is one, in order to lower price they&#039;d have to cut costs like customer service.  Service goes down, but they still won&#039;t be more profitable in the long term (other companies will follow suit).

A distinguishing feature might be good customer service.  Most people will pay slightly more if they can find better service elsewhere.</description>
		<content:encoded><![CDATA[<p>I like your theory but disagree.</p>
<p>I growth industries/companies or in monopolies your theory holds water.  The company is growing so much that it cannot keep up with their service, or they have a monopoly and just don&#8217;t care.</p>
<p>However, in a mature industry where the product is a commodity then what are the distinguishing features?  Price is one, in order to lower price they&#8217;d have to cut costs like customer service.  Service goes down, but they still won&#8217;t be more profitable in the long term (other companies will follow suit).</p>
<p>A distinguishing feature might be good customer service.  Most people will pay slightly more if they can find better service elsewhere.</p>
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		<title>By: admin</title>
		<link>http://www.thickenmywallet.com/blog/wp/2007/09/27/does-bad-customer-service-better-profit/comment-page-1/#comment-1607</link>
		<dc:creator>admin</dc:creator>
		<pubDate>Thu, 27 Sep 2007 15:25:44 +0000</pubDate>
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		<description>John:

I do agree with you. Its strange that businesses pay the &quot;face&quot; of the business, the customer service reps, the lowest wage in the company.  But it is part of this Made in China effect to squeeze out dollars in a low profit margin environment.

Good tip about the branch manager but my bank started making my branch manager manage 2 banks a week to squeeze more profit out the branch so he&#039;s not in branch every day.</description>
		<content:encoded><![CDATA[<p>John:</p>
<p>I do agree with you. Its strange that businesses pay the &#8220;face&#8221; of the business, the customer service reps, the lowest wage in the company.  But it is part of this Made in China effect to squeeze out dollars in a low profit margin environment.</p>
<p>Good tip about the branch manager but my bank started making my branch manager manage 2 banks a week to squeeze more profit out the branch so he&#8217;s not in branch every day.</p>
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		<title>By: John</title>
		<link>http://www.thickenmywallet.com/blog/wp/2007/09/27/does-bad-customer-service-better-profit/comment-page-1/#comment-1605</link>
		<dc:creator>John</dc:creator>
		<pubDate>Thu, 27 Sep 2007 13:42:11 +0000</pubDate>
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		<description>A provocative post.  

As a corollary to your theories...I suspect some companies provide such poor service  because they pay staff abysmal wages with little hope of a satisfactory future.  Therefore, some of the employees simply don&#039;t care.

As for Banks, I find an appointment with the branch manager gets results. Still, it&#039;s a pity that customers have to resort to that.

I may be old-fashioned, but what ever happened to professional pride ?

Lets hope that blogs like yours have an impact !!!!</description>
		<content:encoded><![CDATA[<p>A provocative post.  </p>
<p>As a corollary to your theories&#8230;I suspect some companies provide such poor service  because they pay staff abysmal wages with little hope of a satisfactory future.  Therefore, some of the employees simply don&#8217;t care.</p>
<p>As for Banks, I find an appointment with the branch manager gets results. Still, it&#8217;s a pity that customers have to resort to that.</p>
<p>I may be old-fashioned, but what ever happened to professional pride ?</p>
<p>Lets hope that blogs like yours have an impact !!!!</p>
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