Customer Service & Computers?
Posted on: 11th September, 2020
A business networking colleague has posted a tale of woe today regarding trying to return a faulty monitor to a large, High Street based, computer retailer. They got the monitor back some weeks ago, but they’ve kept her money; and they’re proving very difficult for her to contact.
They may not yet realise it, but they’re dealing with Michelle of Michelle Rose Marketing (https://michellerosemarketing.com), who obviously knows a thing or two about how a business should market itself. And, for any business in these days of social media and instant reviews, customer service is key.
Even Trust Pilot, known for its surprisingly positive reviews of many companies, rates this particular outfit at only 1.4 out of 5, (from almost 25,000 reviews). That’s not a good look.
Why do such large computer retailers get a bad press? Mostly because we consumers believe that we want cheap computer equipment.
Trust me, that’s the last thing you want! In technology you very much get what you pay for. And yet, these companies succeed by selling us very cheap computers. How do they do it?
It is mostly because of the ingrained idea that we want to pay less for more. The computers that such outfits are selling are cheap, but with a high profit margin. A computer may be worth £50 profit to the retailer, which isn’t a great amount to such a big outfit. So they need to sell a lot; and they’ll sell many more cheap computers than expensive models.
You don’t see the pricey computer as having so much more value. Both computers may have identical looking specifications on the box, so you go with the cheaper make & model. And the staff are trained to point you in that direction. Ever wondered why the “Manager’s Special” is quite so special? It’s stuff they can’t get rid of.
And there’s the problem. Almost all computer shops are trying to sell the cheapest computers possible. Why? Because that’s what we buy.
Most of the costs of making, marketing and selling a computer are fixed. Let’s say, £50 for the factory to assemble the parts, which is the same cost for a cheap computer or an expensive one. The same is true for packaging and shipping, say £50 again. The cost of stocking the PC, advertising and staffing the store? Maybe, for round figures sakes, £50.
The only real variable is the cost of the parts that make up the computer. A £300 computer has £150 worth of parts, plus £150 in other costs. A £600 computer has £450 worth of parts, plus £150. For twice the price you would be getting 3 times the computer.
The profit the retailer needs to make is the same, whether they sell you a £300 or £600 computer. Let’s say they need £25 per PC. But you’re more likely to buy a £350 computer than one for £625, so they can afford to double the profit margin on a cheaper computer to £50!
And there’s the problem. The cheaper unit is more likely to have issues and you are more likely to return it to the store. But they haven’t accounted for that, as their main aim is to sell, sell, sell and not to worry about expensive customer service afterwards.
Is that your fault for wanting a cheap computer? Or theirs for wanting greater profits?
For free advice on which computer or monitor you need; or which shop you really should be buying from; just call and ask.
01670 432 324