It Isn’t the Economy, Stupid

Wendistry | by Wendi McGowan | May 2009

“Many companies that have gone bust didn’t die because of the recession. They failed for one reason: They treated customers poorly.” – Joel Spolsky

It’s your brand culture…. the fact that you treat your customers poorly and you blame it on the “economic recession.”

Take Circuit City, for example. Out of business in January. Most people didn’t even bother with their going-out-of-business sale. Why? Because you’d have to actually deal with CC unknowledgeable employees, and overpriced merchandise, and unbearable garage-sale-like experience.

Let’s look at CC’s competitors. You can walk into any Apple Store and see crowds lined up to buy computers and iPods. But, enough has been written about how great Apple is. Let’s talk about another competitor: B&H

B&H opened in 1973, and if you live in Manhattan, you should visit the store. The whole operation is a crazy Willy Wonka factory. If you want to check out a product that’s not on display, a salesperson orders it by computer terminal from a vast stockroom in the basement. Moments later, as if by magic, the product arrives at the retail counter via an elaborate system of conveyor belts and dumbwaiters. You can try out the gear, see if you like it, and, if you do, the salesperson puts it in a green plastic box and places it on another conveyor belt, which runs above your head to the pickup counter. There, an employee bags your purchase. Meanwhile, your salesperson gives you a ticket, which you take to a payment counter. After you have paid, you get a different ticket that you take to the pickup counter to get your item.

At first, all this seems like incredible overkill. Then, you realize that with all the expensive electronics and cameras and lenses and laptops floating around the store, the system creates a series of checks and balances. Typically, five employees are involved in every purchase which reduces shoplifting and employee theft. That it works at all it is not the most amazing thing about B&H… nope, the most amazing thing is that the prices are so low that comparison shopping is a waste of time.

No, wait… the most amazing thing is that the salespeople at B&H really know their stuff. No, wait… the most amazing thing is that you can go in to B&H specifically to purchase an item only to be talked into something cheaper and better for your needs. The entire premise of the store is based upon your ability to come in, touch, feel, experiment, ask and discuss your wants/needs without sales pressure.

But, wait… the conveyor belts & dumbwaiters, the prices, the smart salespeople, the fact that they recommend cheaper products almost as a rule, none of these is the most amazing thing about B&H. Nope.

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