In the past corporations that conducted business in America seemed to have at least a decent sense of corporate citizenship and desire to do what is right regarding the customer that spends their hard earned money with them and provide a reasonable amount of support for their products these customers purchased. Over the last few years this sense of responsibility has deteriorated to the point where now instead of corporate service it has become corporate ignorance.
My position with Sleek Communications, Inc. calls for me to deal with many major corporations regarding warranty replacement or repair of their defective merchandise. Although this has never been an easy task and requires lots of reasoning and standing firm on the position that the company stand by what they produced, until recently in most cases a reasonable solution could be negotiated and an equitable solution to the problem found. Over the last several months I have observed two major things regarding these issues. As we know the United States manufactures very little any more. If you look at the trade deficits and review the statistics of companies that have moved manufacturing and production facilities off-shore the figures are staggering. China of course is the major benefactor of this exodus, especially in the area of electronics and appliances. Of course we know why this strategy has evolved but that is another discussion for another time. The point of this discussion is about what the end user or consumer receives as a result of this practice when they spend their money with these corporations. It seems that the end result has reached a turning point within the last year. At first when we started shipping all our manufacturing to China the quality level remained fairly consistent and in some cases even improved over what domestic manufacturing offered. Of course as with any purely “bottom line” business model this could not hold forever. Recently we have seen a major deterioration of quality of goods coming from offshore. Because it costs money to maintain quality control it was inevitable that this would be one of the first elements of out-sourced manufacturing that would disappear. Now don’t get me wrong; every item that is manufactured will have a certain amount of defects no matter how stringent the quality control. This is understandable and acceptable as long as the ratios remain within reason. There are even instances of companies having “runs” of products that do not meet standards or expectations. Again, this is understandable and in most cases in the past when these “runs” were discovered they were pulled from inventory and the problem corrected and any product that had reached the consumer was repaired or replaced at the expense of the manufacturer. These normal defects experienced in day-to-day production were to be expected yet were kept to a minimum and were the exception.
In today’s market defects have become the norm instead of the exception. Quality control of products produced off-shore and sold in the United States seems to be nonexistent. This stands to reason when you think about it that names like Visio, Sanyo, Hitachi, Samsung and the likes have replaced names like Westinghouse, GE, Whirlpool, Zenith; Mahindra, Yanmar and Kubota have replaced International, Case and John Deere; Toyota, Nissan, and Kia have replaced Chevy, Ford and Chrysler. There is reason behind this transition and fault is complex with many cause and effect. We should go back twenty five years or so and study business management practice and business models of these corporations. An alarming trend runs through the transition period that most of us never even noticed until now when it is too late. These corporations started about that time to base their entire survival on quantity instead of quality. It’s no coincidence that is about the same time as Wal Mart with their volume selling business model began to rise out of backwoods Arkansas. Now don’t get me wrong, I am not blaming Wal Mart with the current manufacturing debacle although they have contributed more than their fair share to put us where we are but that is yet another discussion for another day. These former U.S. corporations conceived the idea that if they sold more for less their bottom line would increase. This low profit high volume business model is volatile and short-sighted in any manufacturing situation except trinkets and brick-a-brack. It might improve the bottom line for a short time but in the long run the result is obvious as pointed out by the transition from American companies to Asian companies at the beginning of this paragraph. The key word here being short-sighted. Over time the guiding principles of these formerly stable and secure U.S. companies that were founded in sound business practices have been replaced by what I like to refer to as “ninety day wonders” (they have been there ninety days are still wonder what they are doing) only looking at what can be achieved in a short time, or in other words take the money and run principals. These kids, so to speak, are highly educated by our esteemed higher education system whereby some queer college professor that has never worked a day in his or her life instills the idea that you get all you can get while the getting’ is good then get out. It doesn’t matter what happens to the company or people that have spent a lifetime working there building something to be proud of. What matters is that while their short tenure is in effect they make all they can any way they can. Think about this; back in the day Maytag produced a washing machine with an anticipated useful life of fifteen to twenty years. They anticipated that consumer would only purchase a washing machine every fifteen to twenty years and adjusted their profits accordingly. This accomplished several things. One being the user had a product that lasted and induced customer loyalty to the Maytag Corporation. Another thing this accomplished was the consumer didn’t have to go through the expense and inconvenience of replacing that unit more often. The Maytag Corporation made enough profit that in the rare event they had a defective unit they could do the right thing by the consumer. Sounds like a win-win situation for all involved. The consumer had clean clothes for a long time and the Maytag Corporation made a reasonable profit off each unit it sold. Also because the washing machine was made to last and considered a major purchase, when regular maintenance was required there were profits to be made from the sale of parts and service to the unit because it cost much less to replace a belt or bearing than to replace the unit. The same thing could be said for John Deere tractors and lawn mowers or Zenith televisions. Remember when about the only thing that constituted replacing your television set was a blown picture tube, and even then in a lot of instances it was better to repair than replace. Think about the times you would see a fifty year old John Deere tractor working the field every day. When products were produced with quality and pride they were made to last and designed to be repaired more economically than replaced.
The ninety day wonders created many facets that have contributed to the end of the U.S. stronghold in manufacturing and quality. The first thing they realized was manufacturing cost were too high and where did they find cheap labor free of wage requirements and oversight; off shore of course primarily in the Asian countries. This concept seemed utopian for these ignorant kids that grew up in an “I want it all and I want it now” short-sighted disposable society. Of course they didn’t anticipate their consumer was just as short-sighted and disposable minded as them. How do you think the seven dollar DVD player at Wal Mart evolved? Of course the Asian’s were keen on this idea because it created jobs and created an economy where none existed before. Also because they were well versed in the low profit high volume practice of manufacturing trinkets and brick-a-brack this business model fit them perfectly, thus that Maytag washer that used to be a major appliance now became a trinket that is cheaper to replace than to repair and only designed to last a few years under the best of circumstances. We haven’t even discussed the U.S. worker that stands in front of the closed down Maytag factory and thinks about some Chinaman that has never even used a washing machine that is now doing his job and wonders how he is going to afford to replace his own washing machine when it is time. Thusly the evolution of the global economy, meaning the U.S. does nothing but consume and the rest of the world has an economy. At some point the consumption will catch up with the lack of economy and consumption will stop then where does that leave us? It leaves us where we are right now with the Samsungs, Sanyo, Nissans and Toyotas taking the manufacturing, profits and JOBS from the U.S. In addition to taking the manufacturing from the U.S. they have also taken the design and engineering to boot. Next time you consider buying something more complex than a potato take a look at how it is designed. Here is one example; a few years back I was looking to buy a new tractor for my place. I was looking in the 60 to 80 horsepower range (anything less than 100 HP is manufactured in China now) and happened to be at a Massey Ferguson dealer. They had several different models on display but on every one the rubber hydraulic lines and very thin spin-on hydraulic filters were mounted exposed on the bottom of the tractor. This made changing the filters easy but as tractors go the underside takes a beating under normal use and even when used with the greatest of care. In other words these filters and lines would have stayed on the tractor for less than five minutes the way most people use a tractor of this size. I asked the salesman about this poor design and with a chuckle he said they get dragged off all the time. Although it’s no excuse; think about the engineer over in China that designed that tractor. Even though the little guy may have made straight A’s at the University of Beijing the most sophisticated piece of farm equipment he was ever exposed to be a water buffalo pulling a plow carved from a tree trunk. No wonder out tractors, washing machines, refrigerators and such have become little more than trinkets and brick-a-brack.
The ninety day wonder short-sighted disposable minded Asian market bizarre concept and mentality has now encroached into the customer service aspect of consumerism in the U.S. Not only are the products produced in China cheaply made, poorly designed and the company must sell ten gazillion of them to make a profit of thirty nine cents, but they don’t care what happens to poor consumers that blindly purchases their trinkets and brick-a-brack. They have shortened warranties to nearly non-existent and “clause” them to the point of being worth less than the electricity it takes to display them from their web site. They know the product is not going to last so they accommodate the U.S. consumer by exempting themselves from any responsibility for what they design and make. Add to this the “new age” retailer that sells these useless products with the practice of “sell it and forget it” and you have the perfect sales pitch for the consumer to take it deep wide and to the left. My most recent excursion into manufacturer/retailer/consumer hell was with the Samsung Corporation, 105 Challenger Road, Ridgefield Park, NJ 07660 and Best Buy Corporation, 7601 Penn AVE S. Richfield, MN 55423, and their Geek Squad service department. This all started when our daughter Sheida purchased a Samsung refrigerator from Best Buy Store # 221 in Tulsa, Oklahoma in March of 2007. I didn’t get involved in this fiasco until a few weeks ago when I found out that for nearly a year the Samsung refrigerator had not worked properly. The first thing that happened was Sheida came home one day when the unit was about a year old and found it had quit cooling melting all the ice, ruining all her food and flooding the floor. She called Best Buy store 221 for advice as to what to do and they referred her to their Geek Squad service department. Geek Squad response to the non-working unit was that “she got a good deal on it when she bought it”. Getting no help from Geek Squad Sheida went to the phone book and located an appliance repair company. Their service man came out and with just a visual inspection of the outside of the unit and not performing any actual testing or service said it was a Samsung and the best thing to do was replace it. He did tell her as he was leaving if she left it unplugged for 5-7 days it MAY return to working. Since replacing the unit was not an option she did as he said and sure enough the refrigerator started working again. She replaced all her food and for a couple of months everything seemed fine until one day again she came home to find it had quit cooling, all the food ruined and the floor flooded again. Once again she called Best Buy store 221 in Tulsa and was referred to Geek Squad. This time Geek Squad told her they could send someone out and maybe they could break the unit down and sell it for parts and get some money out of it for her; a real professional response and encouraging to a single mother with the dilemma of a non-working refrigerator. Once again she went to the phone book to look for appliance repair and called out yet another company. The service man this time, again without doing any diagnostics or service on the unit told her the motherboard was bad and should be replaced but he didn’t have the part and couldn’t fix it. Keep in mind both times service companies came out she was charged for a service call even though they didn’t even work on the unit. Sheida being resourceful went online and found a new replacement motherboard at a Samsung parts distributor, ordered it and had Clint, her brother in law help her replace it. Once again the unit went to working perfectly and she thought the problem was solved until once again a few weeks later she came in to find the unit had quit cooling again, all her food ruined and the floor once again flooded. At this point is when I found out the problems she had been having with the unit.
After I discovered all the problems Sheida had with her Samsung refrigerator, after getting all the details of model date of purchase, etc. I called the Samsung America support line. Their first response was the unit only came with a one year limited warranty and was well out of that period. I politely explained to them I was well aware of their warranty, or lack thereof, yet this unit had not lasted anywhere near what was reasonably expected they told me I would have to leave my name and phone number for support team number two to return my call within one to two business days. Again, politely I told them waiting for a phone call from them for one to two business days was not an acceptable option and insisted they escalate my call to support team number two at that time. After some discussion my call was escalated to support team number two. After explaining the entire situation and history to team number 2 their response was I would have to leave my name and number to be contacted by support team number three within one to two business days. This seemed to be a pattern of the Samsung Corporation that they call you back at THEIR convenience, disregarding the fact you are the customer with a defective product THEY produced. This is where I hit a brick wall within the Samsung Corporation so-called customer service matrix. Support team number two would not give an inch to escalate the call to support team number three and informed me that even if they did they had no intentions of doing anything about the defective product. Their bottom line response was, she bought it, it doesn’t work her tough luck. During the call to Samsung and the numerous waits on hold I did a little looking online about their refrigerators. I was appalled to find volumes of web sites containing letters from consumers experiencing the same or similar problems with their units and exactly the same or worse experience with Samsung Customer Service. Just one site, http://www.consumeraffairs.com/homeowners/samsung_refrigerator.html contained TWENTY FOUR pages of consumer complaints about Samsung refrigerators and their lack of care in their customer service department. After reading through these consumer letters nearly all of which sounded like a transcript of my conversation with Samsung Consumer Service I gave up with Samsung and decided to turn my attention to Best Buy.
My initial call to Best Buy regarding Sheida’s Samsung refrigerator was referred to their Geek Squad Service Department. Their initial response was to contact Samsung and when I informed them of my experience with Samsung the second solution was the unit was out of warranty so tough luck that it didn’t work. Again after some discussion the Geek Squad referred me to their Corporate Consumer Affairs Department where I spoke with one Jeff Winkleman. Mr. Winkleman was a very nice individual and listened intently to my explanation and agreed that something should be done. Now I am smart enough to know that technically the unit was out of warranty and neither Samsung or Best Buy were under no obligation to do anything, yet I hoped that one of the two or maybe even both would step up and do the right thing and try to find an equitable solution to the problem. Mr. Winkleman seemed to be genuinely interested in doing the same so I proposed to him that, since Samsung flatly refused to do anything, maybe between Best Buy and us would could come up with a way to replace the unit where no one took a beating. Mr. Winkleman was receptive to this idea and even proposed that maybe Best Buy corporate could absorb a bit of the cost, store 221 a portion and us a portion and we would get Sheida a new refrigerator that she could afford. After my conversation with him I was pleased and even felt pretty good about Best Buy and their corporate responsibility, from Mr. Winkleman’s words he was truly interested in getting the problem resolved. He even went so far as to claim he tried to contact the store manager while I was on the phone but was unsuccessful and would continue to attempt to make contact with him and get back with me once he had filled the manager in on the situation. He even provided his email address so we “could stay in close contact”, and referred to Sheida as a “frequent flyer” at Best Buy after reviewing all her purchase history. A couple of days went by and I didn’t hear from Mr. Winkleman so I emailed him. Straight way I received a response with a copy of an email he had sent to the manager of store 221 and his response along with instructions that I should contact the store and settle with them on a model to replace Sheida’s defective unit. I had even told him we would accept a “scratch and dent” unit to help differ some of the cost. The first problem was contacting the manager at store #221. It seems he was always either out of the store or in a meeting and would have to call me back. Of course I never received any phone call back and had to continually call and call without success. Finally I talked to a department manager in appliances who appeared to want to be helpful but said he didn’t have the authority to do anything in regard to our problem. He referred the case to an assistant manager named Greg who did call me back and said he saw no problem with coming up with a solution we could all live with. Although he was aware of the situation he would have to get more details from the store manager and Winkleman before they would know what we could do. Apparently the ONE email Winkleman sent to the store manager was the extent of his involvement because after that he never would respond to any of my emails or answer his phone even though I had his direct line. Obviously he talked a good talk but that was all. Finally I was contacted by an assistant store manager from store #221 with an offer. His offer was both disappointing and insulting. He quoted a similar unit to what Sheida had and offered to give us 10% off the retail price. I told him I could go to any appliance store anywhere and get 10% off without even having a situation with them and that I expected and was led to believe by Winkleman this was going to be a shared solution. He promptly said “well we can’t lose money on the deal”. He had no answer when I asked him what were we suppose to do since we had already lost nearly $1,200 on the unit and approximately $600 in lost food. Again he reiterated that Best Buy WOULD NOT sell a replacement unit at a loss. At this point my exasperation was coming to a head. I hung up with the store and called Best Buy Corporate Consumer Relations where ultimately I was connected with Habeab, or Saddam, or Choo Lee who informed me in no uncertain terms that Best Buy didn’t give a damn about the consumer and there was nothing further to discuss. At this point Sheida has a $1,200 paperweight sitting on her damaged kitchen floor that it is now going to cost money to dispose of.
The bottom line of all this is; these two corporations, like so many others are managed and controlled by people that just don’t give a damn about the products they make or sell and especially don’t give a damn about the consumer that purchases them. It goes back to that volume selling mentality that if they lose 25% of their consumer base they still have 75% left. It also has to do with corporate citizenship and responsibility which these two companies have demonstrated first hand they have neither. They are only interested in getting your money when you purchase and have absolutely no care or concern after the sale. Best Buy in particular visa via Jeff Winkleman even went so far as to outright lie about what they would do. This just goes to show you why our economy is in the toilet and nearly everyone you deal with on a corporate level acts like you, the customer, is an inconvenience to them instead of the driving force behind what pays their salary.