by Jeff Mccandless

Created on: July 30, 2008

I'd like to tackle this subject from the perspective of a retailer. For many years, I have been selling to the public, in both mom and pop and regional chain stores. here's what I know, and here's what has caused the death of service.
From a shopper's perspective, it probably seems that it is the fault of the retailer. We hire poorly, or don't stock the shelves with what you want, or perhaps you find that our stores are understaffed.

But honestly, it is the consumer which has driven service out of the stores. My favorite example is airline pricing. When I first flew to Florida, 25 years ago, the price of the ticket was approximately $250.00. Last year, the price was $125.00. I know more people fly now. But how can anyone imagine that service won't suffer if the price of an object goes down over twenty-five years?
In my business, jewelry, the marketplace has suffered, so that the standard retailer makes, on average, about a 20% margin on a loose diamond, as opposed to 50% 25 years ago. The only place where that hasn't changed, where margins have remained constant, so that service can still be part of the price, are the better, older, guild operations. Cartier's service won't suffer. But the consumer is fully aware that part of what they are paying for at Cartier is superior service.
Service is not gone, folks. You can find it anywhere where you're willing to pay for it. Five star hotels, the best golf courses, and custom clothiers are all still around, and thriving. Recently, though, consumers have opted for price as the only important part of the agreement between themselves and the retailing world.
There's an old diagram which retailers have used to describe this problem for years. It's a triangle, and at each corner of the triangle is a word. At one corner, service, at another, price. The third corner is quality. Many experts agree that you cannot get the best of all three of these items in one place. That is, you can't find the best service, the best price, and the best quality all in one location. If the lowest price is all you want, then expecting the best quality and service is, well, a little naive. I think it's possible that paying a little more will surprise you. After all, you sometimes go to a fast food restaurant, but for your anniversary you pay more and eat at a fancier place, where the service is invariably better. It never occurred to you as you were eating at the plastic table with the picture of the clown on it that you would receive the same service there as you got from the place with the linen-covered table and the maitre 'd, did it? Find a good store, pay a little more, and see if it's worth it. I suspect you might like the experience. If you don't, then don't complain about service anymore. After all, it's you who won't pay for it.

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