McCurry Associates Marketing Idea Exchange Archives

Volume 55 - August 14, 2003

Bill McCurry McCurry Associates wmccurry@mccurryassoc.com (800) 553-1332

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Apologies to Mike Much from Sandrian Camera – We misspelled his name last week – Please forgive us Mike!

Apologies also to everyone who had their email to us returned by our server. That error has now been corrected and we’re promised will never happen again . . . If you did have an email returned, please resend it.

Thanks to all who responded to the Editorial Opinion by Bill McCurry . . . "Living Well Is The Best Revenge" – every person (who had their email get through) was very supportive. There are too many to reprint – the general tenor among retailer responses was "You want a helping hand look at the end of your own arm" and among manufacturers, reps, etc it was "Quit whining, start working." One retired executive responded with the old saying "Better to light one candle than curse the darkness – you make your own light."

Idea #1 – Customer Service While Maintaining Production Flow

Dale Farkas - Dale Laboratories, Hollywood, FL - www.dalelbs.com/

One of the biggest dilemmas in the lab business is how to handle customer requests that diverge from normal lab practices. On one hand we're always out to please the customer. On the other, variations from standard operating procedures set everyone up for errors and incur extra costs.

So we're always in a balancing act of "rules is the rules" versus "the customer is always right." Here's the approach we try to follow:

In a production business like a volume photo lab it is much easier for lab personnel to look for set-in-stone rules that they can apply to each and every situation. While rules produce consistency of service, they sometimes can ruffle customers' feathers and work against getting that customer's work in the future. That's where the ability to apply a combination of sensitivity, common sense and communications with the customer are really essential.

A concept we continually try to instill in our incoming order staff is to be ultra-sensitive to each sales situation when orders come in that don't quite fit the "rules." This is usually where a customer wants some special treatment for his order that may involve a higher charge, which he didn't know about coming in. Properly handled, with a "heads-up" by incoming order people and correct communication by customer service, these charges can be a win-win where the customer perceives he's received extra value for a fair price. Improperly handled, a good customer can be lost over what amounts to just a few dollars.

Here's an example:

A customer requests that his slides be delivered in slide boxes rather than in clear plastic sleeving, which is our standard. This doesn't sound like much of a request. Does it? But, for us to deliver in boxes to a single customer we have to 1) disrupt our slide mounting automated flow, slowing other orders, 2) create a situation where the special instructions may not be followed...upsetting the customer, 3) incur the cost of a more expensive box than our standard pro sleeving, and 4) incur higher postage costs.

Our charge for delivering slides in boxes is an additional $1 per roll. This includes a deluxe plastic slide box with a see-through cover. To put this in perspective, we're adding $1 to a 24 exp. slide developing price of $7 or a 36 exposure developing and mounting price of $8. Given that slide users tend to be the "thriftiest" photographers in the market this 14% increase can potentially upset many customers. Why not bypass the charge? First, we're not looking at a high profit item. Most of that $1 charge represents real cost. Secondly, charging intermittently or charging some customers and not others puts us in an inconsistent mode that usually backfires.

That's where good Customer Service comes in. We've found that the best bet is to contact the customer immediately and give him the choices available, explaining the situation and how either way he will end up with an excellent product. The dollar conscious will usually go back to the normal sleeving while the "purists" will gripe but accept the additional costs. (Of course, there was that one highly principled photographer who sent us a batch of rubber bands to wrap his slides in!)

Our experience has been that most customers with special requirements will rethink those requirements if the cost becomes their problem rather than the lab's. The main thing is that Customer Service people must be sensitive and understanding in both their tone and explanation. They must get the message across that we're trying to solve the customer's problems in a timely, realistic way that allows us to pass on costs for enhancements that the customer wants. The point here is that everyone in an organization needs to understand that it's the gray areas that can poison customer relations. Working as a team, production and customer service can go a long way in putting out customer "fires" before they occur.

I believe the same scenario, with different reasons, happens in just about every lab or store. So, this is more a suggestion for action than a tip. Bill, does this cover my invoice cost?

+++ Bill’s response: Consider your subscription invoice "Paid" - - - There’s no benefit to your marketing bringing in new customers if your lack of high customer service scares them away. Dale, you gave us all great things to ponder and to enact in our own businesses. Thank you – looking forward to seeing you at PMA Fall Conference in Miami next month.

Idea #2 –.Make it easy for your customer – Make $$$ in the process

Frank Lucido – Green’s Camera World, Salinas, CA

We bought a close out on Konica Point/Shoot cameras. They cost us $55. We have them priced at $129 and $149, anybody that brings in a Point/Shoot for repair is offered a trade in of $20 towards the Konica. Extended warranties, cases and batteries which we got free are sold for $19.95.

Repairs generally cost $75-$125 for Point/Shoot cameras. The customer gets the new deluxe model for about the same price of a repair and does not have to wait.

Idea #3 – Help the Community and Look Good – For Low Cost

Ellen A. Collins, MCPF(R), Howard’s Custom Framing & Art Supplies - Hagerstown, MD

We never turn down anyone who works up the courage to come in and ask us for a donation. We always give merchandise of some sort. We don't do the 'business card size ads" that go in programs and yearbooks, but something for an auction or other fundraiser? Sure. We always donate.

One of the places we get stuff that is 'donate-able' is from salesman's closeouts. Several of the companies we work with will sell (or even give!) kits or nice things that retail for $30 or $40, and charge us sometimes as little as 10%. We pick out things that look nice and keep them in a special place with the retail price marked on them, ready for a donation to any worthy organization. We help the community and end up looking good for a lot less!

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