Establishing goodwill

Have you noticed some “improvements” make things worse?

I keep seeing these studies and articles that claim we’re losing trust and confidence in our governments and our businesses. Someone else can talk about the governments. I’d like to talk about how our businesses destroy their goodwill.

I was in a hurry the other morning and needed gas, so I stopped at a station I seldom use. The pay at the pump feature wasn’t working, so I had to go inside. As it turned out, the manager was there. I wasn’t rude, but I was thoroughly annoyed and gave him $60 for pump No. 3.

When I went back in for my change, he asked, “Why does everybody hate me?” “You just added more than a dollar a gallon to the price of your gas, and you expect people to like you? Your pay at the pump isn’t even working, and you’re charging top dollar!” “That’s not me; it’s that war in Iraq.” “Oh really! When was your last delivery?” “What difference does that make?” He must have known where I was going with this.

“Well, you’re not going to pay the higher price until your next delivery. You probably bought the fuel I just bought at the lower price, but you raised your prices anyway. And your fuel doesn’t even come from the Persian Gulf.”

“Everybody does it, and we have universal pricing anyway.”

“I understand, but deep down inside, you know what you’re doing isn’t fair, and that’s why people don’t like you. Do you realize you’re missing a giant marketing opportunity? If your competitors are skyrocketing their prices and you delayed your increase until you absolutely had to, and then only raised it as much as you had to, you’d be selling a lot more gas. Do you really think you’ll make more money selling a little gas at higher prices than you’d make selling a lot more gas at lower prices?” At this point, he looked confused, as he’s probably not the brightest bulb in the pack. I had given him something to think about, and thinking was probably not something he liked to do.

“I don’t want to start a price war.” In all fairness, raising prices may not have been his decision, but maybe he felt more important by not telling me he was just following orders.

I can remember when gas stations actually competed with each other. In fact, I worked at an uncle’s station as a kid, and I was expected to run out there as soon as someone pulled in. I’d pump their gas and clean their windshield. I’d offer to check their oil and even the air in their tires if they wanted it, and yes, Uncle Gene’s gas was the lowest priced around. He made a lot of money that way, and he understood business incredibly well.

He even had his own tank truck and would go to Chelsea to get gas whenever he needed it. The big oil companies were advertising like crazy, and Uncle Gene claimed their trucks with their logos emblazoned on the side were buying the same gas he was. So that ad about “putting a tiger in your tank” may have been rather fictional to say the least.

While working at Uncle Gene’s, I would see the same customers usually on the same day of the week and time. “It’s Saturday morning at 11:00, here comes George.” Customers were intensely loyal, because they paid a fair price and we strived to provide excellent service. Some used to tell me, “You don’t have to run to take care of me; walking over is just fine.”

Goodwill was something businesses used to pride themselves on establishing. Some even estimated the value and put it on the balance sheet.

It was great. Our customers became our friends and they were happy to recommend us to other people. All they expected in return was a thank you for sending so and so by the next time we saw them.

With all the so-called “improvements” we’ve made to doing business, do you think we just might have lost something along the way?

Ronald J. Bourque, a consultant and speaker from Salem, has had engagements throughout the United States, Europe and Asia. He can be reached at 603-898-1871 or RonBourque3@gmail.com.