The journey from there to here
No, Bad Customer Service Ruins Businesses
Published on December 10, 2005 By Gideon MacLeish In Current Events

Our WalMart Supercenter opened just about a year ago. No businesses have closed yet, but three businesses are dying out, to say the least. And when they breathe their final breath and close their doors, they will almost certainly blame the retail giant. While they may not be representative of all the businesses closing in communities where WalMart does businesses, I would like to discuss these businesses and offer personal insight as to more likely reasons why they may be closing.

The first business I would like to profile is our local Albertson's grocery store. As I scan their ads, they very rarely offer the best prices on anything, and I can get better quality meat and procude from the local grocer, who's not so far away anyway (we have to drive 12 miles into town; driving across town isn't an attractive proposition). But more to the point, they usually have only one checkout with a live human. The rest are "self serve" checkouts where any error requires the assistance of a human, who is usually conveniently located on the other side of the store. Then, to add insult to injury, as soon as you're done checking yourself out and dealing with the nightmare that is Albertson's registers, a minimum wage employee shows up to carry your groceries to your car. No thanks, bub, I already DID the hard work (It's ironic that companies like Albertson's accuse WalMart of lowering wages when their clear motivation is to hire people at lower wages than cashiers to give the illusion of customer service). So, when Albertson's goes, I think I'm gonna perform a little tango on its grave.

The second business I would like to profile is a car wash/service station located across the street from WalMart's Murphy Oil station. This station had all the tools to stay open because it had a business (car wash) that didn't compete directly with WalMart. Their doors are now closed (for "remodeling", even though there's no work going on inside for the last, say four months), and their pumps operate only on autopay (debit or credit card).

While this company might appear to be closing because of WalMart, my personal experience with them would speak differently. Last fall, after an extremely wet month had made the caliche roads I travel on the paper route into soup, I drove in with a very muddy car. I pulled up for a car wash (their cheapest was $6.00; the "all frills" car wash was $16.00). They sent me inside to get a car wash ticket. The cashier said "that'll be $35, please". Now, mind you, this car was VERY muddy, but it didn't justify charging me twice the rate of their most expensive car wash when I could go to the local wash bay and wash it down for $2.00. I left there and have not done business with them since.

The third business is a local chain gas station located across the street from another major gas station. They would seem to have a decent market, having "deli" goods (in Texas, "deli" means "anything fried in hot oil") and fountain drinks. And I have gone there from time to time. As I've picked up another couple of routes, this station was best positioned for my daily refueling.

And so, I went into the station last week and went to the pump. I pressed all the stupid buttons, the pump wouldn't start. I went inside, the cashier told me that she required people she didn't know to prepay. It didn't take me long to guess that my long hair and ragged jeans made her assume that I would be a drive off. Big mistake. I spend $10 a day, six days a week on gas...plus the occasional "gut bomb" burrito and bladder buster sized Dr. Pepper. In short, hers was a $250 a month mistake, as I won't do business with that station again.

Businesses that have survived when WalMart comes into a community are businesses that offer specialized expertise and customer service. WalMart's at the low end on the customer service scale (they are a DISCOUNT retailer...that's their focus), and discriminating shoppers will usually seek out local businesses for this reason. So there IS a market for local businesses in WalMart's world.

But if you're going to give me the same lousy customer service at a higher price than WalMart, then I'm going to opt for the lower prices. Every time.


Comments
on Dec 10, 2005

The largest grocery chain in Richmond prides itself not on low prices, but on customer service.  It is good.  And no, its prices are not the lowest.  And Walmart has had no effect on them.

Very good article!

on Dec 10, 2005
Wal Mart is destructive to small town America. I believe in the free market, and I don't think Wal Mart should be restricted in any way, but I think people should vote with their dollars. Shipping money out of small economies and sending it back to Wal Mart Headquarters is ruinous. Instead of small business owners reinvesting their money in the community, buying what they want with their business profits, the money goes elsewhere.

It isn't simple choice that makes products more expensive at local stores. They simply can't buy their products at the same price that Wal Mart does, and often because of agreements with the distritbuters that shut out competition in small towns. That isn't "free market" in the least. I'm not saying that there is anything immoral about choosing cheaper prices, but in the long run local business owners are there, and Wal Mart can pull up stakes and leave small town America dried up like a husk.

Again, it's a free market, and Wal Mart is good at what they do. I prefer to do business in such a way that the profits made from my purchases stay in my community. I prefer to deal with business owners I can call on the phone whenever possible, and who put money and support back into the local community. Small business owners have an interest in not soiling their nests, but Wal Mart can write off dozens of supercenters without even noticing the difference.
on Dec 10, 2005

but I think people should vote with their dollars.

I agree. And I try. But I'm not going to spend more to be treated worse, such as with the three businesses I cite.

All three businesses are examples of where I TRIED to "vote with my dollar", but crappy customer service drove me away. All it took from the Albertson's was afew faulty UPC codes and a 10 minute wait while the clerk on the next aisle struggled through the problem with the other customer before being able to turn to me. All it took from the car wash was the attempted price gouging, and all it took from the local gas chain was their selectively enforced prepay rule that cost me time, which is, as you know, money. I still try to spend my money at local businesses, but these are three that our community could, frankly, do without.

on Dec 10, 2005
The largest grocery chain in Richmond prides itself not on low prices, but on customer service. It is good. And no, its prices are not the lowest. And Walmart has had no effect on them.

And Ukrop's has had some REALLY good customer service. We'll go to Wal-mart if we have to, but a lot of the time (for groceries, at least) Food Lion or other stores are cheaper than Wal-mart for groceries. As for Ukrop's they carry the customer service excellence over to the bank that's owned as part of the same corporation. First Market Bank (Ukrop's subsidiary) had been VERY good to me. And after my treatment at the hands of several big/national banks, I'm very cynical where banks are concerned.
on Dec 10, 2005
agree. And I try. But I'm not going to spend more to be treated worse, such as with the three businesses I cite


I do too. If I have the opportunity, I use mom n pop's rather than the bigger chain stores....bit i won't tolerate being treated like crap. I can spend less at Wal-Mart for that particular privilege.
on Dec 10, 2005

Wal Mart is destructive to small town America. I believe in the free market, and I don't think Wal Mart should be restricted in any way, but I think people should vote with their dollars.

I think that is what Gideon said, but reversed!

on Dec 10, 2005

And Ukrop's has had some REALLY good customer service. We'll go to Wal-mart if we have to, but a lot of the time (for groceries, at least) Food Lion or other stores are cheaper than Wal-mart for groceries. As for Ukrop's they carry the customer service excellence over to the bank that's owned as part of the same corporation. First Market Bank (Ukrop's subsidiary) had been VERY good to me. And after my treatment at the hands of several big/national banks, I'm very cynical where banks are concerned.

A recent convert!   They will assimilate you! And I do swear by them as well!  I am assimilated!