# General Business Category > Entrepreneurship and Business Management Forum >  What premium would you pay for good service?

## Dave A

American Express has done a survey asking what premium people would pay for good service. It makes an interesting read, even if South Africa wasn't included in the survey.

Here's an idea of how much extra people are prepared to pay on average by country:



I wonder what premium South Africans are prepared to pay for good service?

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## Chrisjan B

Good Service should be the norm, I may pay for exceptional service.

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## wynn

:Fence:   My loyalty to your brand or service should be the benchmark.
Price is important, but if you give me less than the best for the least value, expect me to shop around.

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## IanF

I am sure most of us do this anyway without thinking about it. Like buying a coke at the garage when filling up, you pay extra for the convenience. Or when you get your car serviced I ignore all the ads for the R400 services. The trick for the company is not to give the customer a reason to look elsewhere.

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## Dave A

:Hmmm:  OK - I hear you all. Let's flip this around and rephrase. 

If you received a price from a known entity who comes recommended/has a good reputation and another price from an arbitrary entity you knew nothing about for what seems to be the same product, how much cheaper would the unknown entity have to be for you to seriously consider using them instead of the known entity?

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## daveob

> OK - I hear you all. Let's flip this around and rephrase. 
> 
> If you received a price form a known entity who comes recommended/has a good reputation and another price from an arbitrary entity you knew nothing about for what seems to be the same product, how much cheaper would the unknown entity have to be for you to seriously consider using them instead of the known entity?


A lot would depend on :

if are we talking a physical product supplied in a box, like a dvd player, pair of takkies, cell phone, etc, where there is no 'service' by the supplier to talk about ?

This type of purchase would probably be made entirely on price, as the manufacturer ( not the seller ) would honour the warranty and you're not influenced by the quality of the work done by the salesman.

If you're talking anything that includes some sort of human intervention in the form of an installation / setup, etc, the decision would be influenced by the complexity of the work to be done. For example, buying a new ceiling fan and having wiring added all the way back to the db with a new breaker, would require a more trusted installer than the guy who has to dig a dozen holes to a pre-agreed depth and plant a series of posts for a new pallisade fence.

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## Dave A

> if are we talking a physical product supplied in a box, like a dvd player, pair of takkies, cell phone, etc, where there is no 'service' by the supplier to talk about ?


I'm tempted to say a *service* product to make it simple. But even physical products come with a service element. My favourite example is HP desktop printers - try taking one in for a warranty repair and you'll find out what service shouldn't be like. I've been through it 3 or 4 times, and I'll give them this - they're consistent  :Roll Eyes (Sarcastic):

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## daveob

> try taking one in for a warranty repair and you'll find out what service shouldn't be like.


A few years back I joined Warriors, and read a very interesting article - I think it was about getting surities cancelled.

The subject wasn't important - the lesson was.

At the first sign of a problem which, in my opinion, results in me being jerked around, I always :

1. make sure that I get the full name of the person I am dealing with ( on the phone or in person ) and spell it back so they know I have it.
2. make sure that you know the name of the chairman of the board, the MD / CEO and their PAs.

the person gets one chance ( usually ) to rectify the problem / product / service / glitch, etc. Thereafter they get told that I will be calling ALL of the persons in '2' above. Oh yes, and I did get the spelling of your surname correct, didn't I ?

My wife likes to start at the bottom and work her way up the chain of command with a problem.

I just don't have the patience - sh*t rolls better downhill.

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Blurock (07-Jul-11)

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## mother

LOL Dave, I have to agree about HP!

I believe a consumer has a specific minimum expectation, at an average market related price. This minimum has probably dropped over the last couple of years as a result of consistently worse and worse service delivery. But still, there is a minimum. Any business who consistently delivers above this minimum, at the same price as competitors, is sure to attract more customers.

I don't believe service should come at a premium. Since consumers have so many options to choose from today, I think it is rather loyalty that comes at a premium, ... and the premium is service and quality.

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## Blurock

In business, as in life, one has choices. Any product or service comes with the following:Price, Service, Quality.
You may only choose two...
 :Stick Out Tongue:

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## Sparks

The cheaper it can be obtained or done the better. Whether it will be life threatening or not has absolutely no influence on the decision. Experience as an installer? 30 years of seeing the DIY crap in the field can brainwash a good man to the point where he is as bad as an unskilled worker left alone on site. The worst part is that the service deliverer becaomes so accustomed to his poor work that he actually believes it to be good.
1st consideration=Price; 2nd=quantity that's it.
That is probably why SA was not included in the survey.

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## solweb

By paying more and getting the service upfront when you need it will infact save you time and there fore money. It will also mean less stress, no ulcer and indirectly save you having to visit the doctor!

You get what you pay for - pay cheap and you will get an underpaid, could not care less, :Confused:  contract worker in a call center.

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