July 23, 2008

While out of town last week, I was in a department store buying a new outfit for my daughter. Two clerks were helping me make a selection, a third was preparing the gift wrap and the department manager was hovering over the three of them to make sure I was being taken care of.

Later, I had a problem with my phone card, which was immediately remedied with a single call.

When I returned to my hotel, I was met at the elevator by a suited concierge who asked me how my stay was going before holding open the door for me.

Unbelievably, at dinner when I requested a beverage that wasn’t on the menu, a kitchen staffer went across the street to a market and purchased one.

Where did these over-the-top episodes of customer service take place? New York, Chicago, maybe San Francisco. None of the above.  Try… Nagoya.

I’ve just returned from a two-week trip to Japan, a country that clearly has a much better understanding of the value of good customer service than our own. More than most American retailers, Japanese businesses behave as if their success depends upon making sure that you are a happy—and loyal—customer.

I think the reasons are two-fold.

First off… Japanese companies value their employees, who in turn act as respected members of a team rather than a commodity to be discharged when business slows.

Secondly, while American companies often roll up the red carpet as soon as the purchase receipt is signed, Japanese retailers have a much longer view. They look beyond the current transaction to building a long-term relationship with a customer.  I’m not talking about points plans or discounts. Japanese companies work to build a personal relationship between individual employees and customers. You can only do that, if you don’t treat your employees as if they are disposable.

Corporate America, are you listening?

June 12, 2008

June 10, 2008

A sharp-eyed AARP community member recently noticed my birth date in the left column of this web page… June 15^th.

Yes, this Sunday is my birthday... my 50th.  As of next week, I’ll be officially part of AARP family, and I’m in need of a little advice from those of you who passed this milestone ahead of me.

What do you know now that you wish you knew then?

You can leave your comments right here on this blog for all to see, or if it’s more private… just drop me an email at rburley@aarp.org.

I look forward to hearing from you.

June 9, 2008

How can you be sure that a company is going to treat you right? The Internet is a fantastic tool for researching companies before you make a major purchase. When I’m thinking of buying something from a company I haven’t done business with before, I’ll check them out online first.  Here are a few of the sites I use:

To see if they’re crooks…

www.bbb.org

Home of the Better Business Bureau

www.ripoffreport.com

Reports from dissatisfied customers

www.ftc.gov

Your government protecting you from unscrupulous companies and bad products

To find the best price…

www.pricegrabber.com

You can compare almost any retail product

www.bizrate.com

Price comparison with user reviews

To find the best airfare…

www.priceline.com

Best known and most inclusive. Allows bidding for flights.

www.cheapflights.com

Good to compare with Priceline

www.tripmama.com

Good site for independent trip packages

This list  is just a start; a simple Google search will locate others for you. There are sites that specialize in almost every industry... from collectibles to cars to real estate. The key is the comparison. Before you purchase anything more than $100, it’s worth it to take a few minutes to research prices online.  You’ll be surprised at the range in prices and availability. Remember though… the lowest price is not always the best deal—shop price & then check out the company to make sure what your seeing is worth believing.  Always remember... Caveat Emptor.

May 29, 2008

Coasting is a crime in some states. Who have thought it? AARP member Curt Young wrote to advise me of the fact after I’d posted a journal suggesting drivers shift into neutral in order to save gas on long grades. Sure enough, more than a dozen states have laws against “Unlawful coasting on downgrade.” (Thanks for the good info, Curt. I’ve updated the previous journal entry.)

The concept of illegal coasting raised a few questions for me though. First of all, how would it ever be enforced? A state trooper can’t exactly see your shift lever from his median hideaway. What about those laws for trucks banning “engine braking” because of the noise it produces? That seems like a Catch 22; you can’t keep it in gear when slowing down, but you can’t put it in neutral either. (Don’t wait for the ticket; just send your money.)

A little research into the genesis of the anti-coasting laws indicates that most were enacted many years ago to prevent high-speed skids and over-heated brakes. Most vehicles these days are equipped with anti-lock and anti-skid braking systems that all but alleviate both situations.

Another shift in technology will produce other problems for the anti-coasting forces. Hybrid vehicles with electric direct-drive motors often don’t have conventional transmissions. Those systems depend on coasting as part of the overall scheme to increase gas mileage. On a downgrade, the electric motors free-wheel to generate electricity.  The case could be made that any hybrid vehicle on a down slope is in violation of an “unlawful coasting” statute. (Once again, just send the money.)

This appears to be a case of the law being slow to catch up to technology.  Understandably, revising the rules of the road might not be a priority for legislatures struggling with bigger issues.  After all, Washington's lawmakers only recently repealed the following statute:
 

Washington Vehicle Code: 56,2--All motor vehicles must be preceded by a man carrying a red flag (daytime) or a red lantern (nighttime) fifty feet in front of said vehicle.

Ummm... wouldn’t the flag guy have been guilty of jay-walking? 

May 28, 2008

You can save yourself a lot of grief from identity theft by taking advantage of a little junk mail.

Many people keep their main email inbox free of spam by using a “throw away” email address when shopping online. In the same fashion, you can protect yourself from online identity theft by getting a disposable credit card.

Sign up for the best of the junk mail credit card offers that land in your snail mailbox. Use that card exclusively for online purchases. If your information is lost or stolen… you can cancel just that card. You won’t have to disrupt your primary credit card account —the one that autopays your cell phone, holds all your airline miles or is on file with the rental car company.

If you don’t want to open an additional account, you might still have an option. Some card vendors can provide you with a second differently-numbered card or even a single-use “virtual” card number.
 

Your contributions will do much to help.

April 30, 2008

April 25, 2008

Federal tax rebate checks are almost here. Direct deposits will begin arriving in bank accounts next week and there’s been a lot of talk about what should be done with them. Of course, the Federal government hopes that we will go right out and spend the money, thereby boosting the economy and hopefully pulling the nation out of a recession.

As a consumer advocate, I’d like to suggest a variation on that theme: use the rebate to boost your own personal economy first, by paying down expensive debt or investing in the future.  Here’s a list of alternatives to that new flat screen TV you might want to consider:

1. Pay down credit cards—carrying balances on plastic with double-digit rates means that you can end up paying twice as much for everything you buy. The average consumer loses more than a thousand dollars a year to revolving consumer interest.

2. Accelerate payments on other consumer loans—if you can make a premium payment on your car loan, you’ll save the interest cost on that money for the life of the loan. Paying down $1000 on a five-year 7% car loan will save you more than $500. (Unfortunately, many consumer loans--vehicles, remodeling, education--bundle the interest in a the time you sign.)

3. Invest in your future—use your rebate to fund your IRA or a 529 college savings plan.  A $600 rebate will turn into more than $2000 by the time that grade school grandchild is circumstantially pompous.

4. Make a charitable donation—there are a lot of people in need during these hard times, the money will still end up in the overall economy and you’ll be able to deduct it against your own tax bill... next year.

The Line 73 on this tip is that... national economy boom or bust... if you use the rebate to improve your own personal financial situation, you’ll be better off.

April 11, 2008

The airline maintenance debacle this week generated quite a number of emails. I heard from several readers stranded by the MD80 inspection mess and who were denied refunds by their airline. Instead, the airline offered only to rebook them or give them a flight coupon. 

Aren’t they obligated to give a refund? Not necessarily. Congress failed to renew certain airline regulations two years ago. Since then, the responsibility of airlines to provide refunds for cancelled flights is in question. 

Even if the airline declines to give you a refund directly, you may have another option… if you paid by credit card. Every business that accepts credit cards signs a merchant services agreement with the card provider—VISA, MasterCard, American Express, et al. The terms of the merchant services agreement require clearly stated refund policies. For airlines, those policies are delineated in their “Conditions of Carriage” agreement.

Most airline’s agreements have language that requires them to give you a refund if the flight is cancelled due to their misdeed. In this case, the failure to follow FAA maintenance procedures is clearly the responsibility of the airline. Since they didn’t obey the rules--you shouldn’t be penalized. Therefore, if you have been stranded, call your credit card company and challenge the charge on the basis that the promised service was not provided. 

Even if the delay is the airlines fault, a refund is not guaranteed.  American Airlines has subtly edited the portion of their Conditions of Carriage agreement that deals with “involuntary” refunds.

Involuntary Refunds

In the event the refund is required because of American’s failure to operate on schedule or refusal to transport, the following refund will be made directly to you -

1.     If the ticket is totally unused, the full amount paid (with no service charge or refund penalty), or

2.     If the ticket is partially used, the applicable fare for the unused segment(s).

AA shall not be obligated to refund any portion(s) of a ticket which does not reflect a confirmed reservation on an AA flight involved in a schedule irregularity, unless such ticket was issued by AA. 

-- from the American Airlines "Conditions of Carriage" agreement

The refund is “involuntary” to you, not to them. The first line states that “In the event the refund is required.” However, there is no language in the agreement that ever requires AA to give you a refund. That wording was excised from the agreement post deregulation. Therefore, despite all the language that follows, they can give you back your money and be absolved of any-and-all responsibility regarding your travel.... or not. It's their choice.

You’ve got to love deregulation… first the communications industry, then airlines, energy companies and finally the banks.  Four of the industries for which I receive the most customer complaints and in which we’ve seen some of our worst financial disasters… Enron, Bear Stearns, and Pan Am...TWA...ATA...Aloha.