I bought a $25 mouse for a laptop at Staples last week and the cashier insisted I needed insurance. Geesh.

The game between manufacturers and retailers in so many industries is a bit like hot potato we played as children–when the music stops, who is holding the potato? He/she is out. Once you buy so many things the problem is yours to fix and your time is of no consequence.

I don’t trust retail insurance policies. I get the feeling that I’ll hear, “Oh, this happened on a Tuesday? Sorry, we don’t fix things that break on Tuesdays!” –like the shoe laces that weren’t covered by the insurance policy [you didn't buy] for your sneakers.

How a store treats me when something goes wrong with a product is a big part of how I choose where to buy things. After a bad experience with Sears, I won’t be shopping there any more. (I prefer to support local businesses over chain stores, anyway; the Sears purchase was an anomaly of sorts.)

But, to emphasize the good, let me give a story of wonderful customer service regarding a defective product. I took my keyboard, which had stopped working, back to the Apple Store. It was certainly past the one-year warranty period, and I was prepared to buy a new keyboard – but the store gave me a new one without me even asking.

Standing behind your product seems like a smart strategy to me. Apple didn’t just make me happy – I’ve told that story (and other stories of great customer service from Apple) to LOTS of people, spreading the word.

Thanks for the comment!

It’s a shame, but I guess gone are the days when manufacturers and retailers stood 100% behind their products.

There still are some notable exceptions. I think of L.L.Bean as a prime example. They will take back and replace anything they sell — no matter how old or how obviously abused it may be. I’m sure some people take advantage, but whatever they might lose from dishonest returns, they more than make up in customer loyalty. While L.L. Bean’s prices are pretty good, it’s not about the absolute lowest price when you buy from them. It’s knowing they sell quality merchandise which they stand firmly behind.

One thing’s for sure. Next time I have to buy athletic shoes, I’m heading elsewhere. Your point is well taken.

I think there are two separate issues wrapped in here:

1. Sport Authority, and other big box stores, are looking to make “insurance” margins on everything. I think what they’re going to do is drive traffic elsewhere, to those retailers whose first response IS customer service and not “you didn’t pay for customer service.” Plus Alison has a great point about getting what you pay for. I buy my running shoes at a specialty running store–great service and, in the case of RNJ, great pricing too.

2. The good companies are still standing behind their products. I had a problem with a pair of New Balance shoes a few years ago and the company sent me a new pair. So there’s the second place where there’s real differentiation.

Glad you finally found a sports store that does get customer service.

Have a great weekend,
Daria

He went in to buy a new pair today after tripping on the court this morning. Once the manager looked at his old shoes, he gave him FULL credit on the new pair of shoes. Hubby didn’t even ask, plus he didn’t even bring a bill with him as proof of purchase. Wow. Now that’s customer service and standing behind your product. Way to go Big 5!

Yes insurance is on the rise. Of course we all rush along to the next merchant (big box?) who has the lowest price … but oddly we pass on by the local merchant who does stand behind his/her product because they weren’t as cheap. What I am trying to say is we are creating our own problem by always shopping on cost alone.

I buy my running shoes at one of three local running stores for example:
The Runnery – http://therunnery.com
Striders – http://stridersrun.com
Gazelles – http://gazellesports.com

Occasionally I’ll also go to MC Sports (which is a regional company based locally) – http://mcsports.com/

(Having said all of that I not to recently did by a pair of basketball shoes from Eastbay and they were excellent when we had a problem — and no I didn’t have insurance, but that was more because we couldn’t find what we needed locally in that instance — but I’d go back to them — however in the running market trying them on and jogging/walking/running around a bit before buying them is important to me.)

In all cases I’ve had good service. If I didn’t, being equal distance, I could simply prefer one over the other. In fact about a week ago I was talking to one of the guys at The Runnery about a customer who lived next to Striders but came to his store. He basically told them they should go buy shoes at the local store in case there are any fit or other issues. The customer was floored much like the old Macy/Gimble bit in the Christmas Movie Miracle on 34th Street.

So if you want decent service leave price down on your chart and go somewhere where you have a relationship, or buy the insurance because those big box/non-local corporate folks won’t care in most cases.

When we spend all of our time as marketers worrying about advertising creative, social media strategy and shrinking budgets, we forget that great customer service just requires a little time and attention to detail.

What if you bought insurance from a product at Circuit City – and suppose they didn’t outsource that insurance but provided it themselves. You are out of luck! Insurance- of any kind – is only as good as the ability for your counterparty to pay. That holds true whether it’s product insurance, car ins, life insurance or credit default swaps!