What Is Service Worth?

This comes up quite a bit in other fora that I am a member of. Usually after Gerry Harvey complains about GST-free internet shopping.

My thinking is that, if we want a better service culture in Australia, we need to encourage it. As a general rule, I find I get ignored in places like Myer and DJs, and am more inclined to use them for sampling/trying on, and then buy elsewhere at the best price I can get. Same goes with books, for which the local pricing cannot be justified.

However when I do get good service I feel more inclined to buy. For example, I bought some shoes last year locally, which I could have got for about 40% less online. However the sales assistant spent a lot of time helping me, discussing whether my foot was better in a different size for a different style, and so on. Before I took delivery, he took them out and gave them a mirror shine. Those sorts of people need to be rewarded, I think.

So last night I got another example of such service at Mecca. I was the only guy in the shop. The lady who served me was terrific, giving me different scents to try based on the feedback I gave her, with no pressure to buy. After quite a while we agreed that Chergui had been the one I tried that seemed to work best.

I have looked for Chergui on the net and can get it for 15% less offshore. But, if you factor in their GST overhead, Mecca's price is pretty close to that. So when I buy I will go to Mecca, and try to find that particular sales person and buy from her. Because she's worth it.

That argument might have been valid in the 19th Century, but how does it explain Australians having to pay more for digital downloads than our US friends? And how come we individuals can land imports into the country cheaper than the likes of Harvey Norman, who have the advantage of bulk rates and trade discounts?

IMO, a lot of Australian retailers and distributors decided a while ago to adopt Australian pricing based on overheads and a poor rate of exchange that largely don't exist any more. They've locked that into their business models and are now refusing to give it up. Fair enough, but they need to give the customer something in return (like stellar service).

A guy I spoke to during the sales said that the shoes I bought from him were over $800 a year ago, but he couldn't do that any more. He knew his competition is now in Bond St, not Bourke St, and has acted accordingly. All of our retailers need to start doing this, or they will gradually disappear.

Actually it looks like it's about 88 + 22 today. Still a lot cheaper, but Mecca won't be sending me spam emails every time I look at something in their shop. I find fragrancenet an exceptionally pushy organisation.

Turns out it's academic anyway. I got them to spray some on my wrist; my wife started sneezing as soon as I got back to the car. Deal-breaker.

Others might also gasp at what some people here are prepared to pay for cologne