Comments on Ethan Roberts' articles RSS Syndication from SeekingAlpha.com http://seekingalpha.com/author/ethan-roberts/articles http://seekingalpha.com/article/87198-can-one-profit-from-poor-customer-service?source=feed#comment-360490 360490 Mon, 19 Jan 2009 23:38:01 -0500 http://seekingalpha.com/article/98565-the-next-bull-market-could-be-rentals?source=feed#comment-275237 275237 Mon, 06 Oct 2008 21:03:38 -0400
]]> http://seekingalpha.com/article/98565-the-next-bull-market-could-be-rentals?source=feed#comment-275062 275062 Mon, 06 Oct 2008 16:34:06 -0400
If you own rental property with already paid mortgages and have good tenants then you will (probably) be able to ride out a recession.

Location is important because wealthy people don't suffer during depressions or recessions.

Depending on how deep your pockets are, it might make sense to buy depressed real estate during a recession, but don't buy in urban working class areas, whatever you do (if you want to come out alive.)

If the past isn't prologue, it is at least echo and the past history of severe recessions and depressions echoes trouble for real estate except in wealthy locations but even THEY are sometimes subject to steep drops in price, as was the case in Russia in 1917 and Cuba in 1959.

Ceteris paribus, caveat emptor.]]> http://seekingalpha.com/article/98565-the-next-bull-market-could-be-rentals?source=feed#comment-274964 274964 Mon, 06 Oct 2008 15:04:12 -0400 http://seekingalpha.com/article/98565-the-next-bull-market-could-be-rentals?source=feed#comment-274846 274846 Mon, 06 Oct 2008 13:17:21 -0400 http://seekingalpha.com/article/98565-the-next-bull-market-could-be-rentals?source=feed#comment-274692 274692 Mon, 06 Oct 2008 11:07:08 -0400
However, I do have to question the choice of renting to people that have been foreclosed upon. If they put themselves in a position where they couldn't handle their mortgage and had to step away, then will they also do the same to you? Will the mortgagee come after them and attach their wages straining their ability to pay their rent? I'd be more inclined to look for long term tenants with a solid employment background in a field that is not shrinking (I'd suggest not renting to bank managers, or ex-CEOs for example).

jegan ;-) ]]> http://seekingalpha.com/article/98565-the-next-bull-market-could-be-rentals?source=feed#comment-274363 274363 Sun, 05 Oct 2008 22:48:12 -0400 People who own rental properties!"

In a time when people cannot afford much, and there is a significant oversupply of units, rents can't safely be raised. A modest rent is far superior to a vacancy. 'Treading water' is a more likely outcome than profit, although if rent can cover PITI on the rental you can consider the 'P' portion as long-term profit, if / when underlying home value recovers.

Also, profit would depend greatly on whether the owner used the rental property as an ATM with a cash-out refi during the mania. A fixed-rate loan from, say, 1998 on the 1998 value may well have a cash-flow positive even with stagnant rents. Conversely, a 2004 cash-out refi based on overvalued property will likely have a PITI greater than rent that can be collected today.

And for simplicity I've left out maintenance, which in either case will come out of the owner's other incomes.

Profit, thus, is unlikely. Break-even is winning for rentals in this era.]]> http://seekingalpha.com/article/98565-the-next-bull-market-could-be-rentals?source=feed#comment-274317 274317 Sun, 05 Oct 2008 21:35:38 -0400 http://seekingalpha.com/article/98565-the-next-bull-market-could-be-rentals?source=feed#comment-274161 274161 Sun, 05 Oct 2008 16:19:31 -0400
I would also point out that the SUPPLY of houses (and apartments) increased dramatically in the past 7 years also.

So demand for rentals should increase, but supply of rentals should increase as well. I would be very careful with the author's thesis.

I would also point out that the C-S Index is still dropping like a rock and will likely shoot past the mean before it starts to flatten out. Banks are demanding 30% down on rentals because they realize this (i.e. grew a brain). So even if you get positive cash flow, you will likely lose equity immediately (unless you get a really good deal).

I plan to buy houses to rent, but am waiting for blood in the streets. When the Case-Shiller index is almost flat in another year or two I will start looking. Until then I am very happy sitting on cash.]]> http://seekingalpha.com/article/87198-can-one-profit-from-poor-customer-service?source=feed#comment-219751 219751 Thu, 31 Jul 2008 20:02:22 -0400
We try to make our store look like it did the day it opened. So you see people cleaning, straightening shelf displays, and generally taking care of things throughout the store--even outside their normal departments.

But when customers are in the building, that's where we shine. Some customers claim that we're too attentive--they'd rather be left alone to shop. But we'd rather err on the side of overkill than ignore a customer.

There's a metric in retail called 'lifetime value.' In other words, what will that customer spend in their lifetime in your store? If you give a poor experience, the customer will take their dollars elsewhere. And give that lifetime value to someone else.

We at Worst Buy take that seriously. And with nearly 1000 stores in the US now, it's getting more and more challenging to keep everyone focused on the customer. But after all, that's the only thing worth focusing on--meeting customer needs quickly, efficiently, and completely.]]> http://seekingalpha.com/article/87198-can-one-profit-from-poor-customer-service?source=feed#comment-219532 219532 Thu, 31 Jul 2008 14:24:20 -0400 If the cashier can not count change, it is not the store it is the local school.
If the sails person is rude, that person is in most cases a neighbor with in ten miles of the store.
If the sails person is not trained in the product. That was the first thing years ago that all stores did to cut costs was cut the knowledge the people that have the know-how want paid to use it. Most workers now are paid at or around fast food $ and that is what you get. If you want better then pay better.

I (worked) for Lowe’s in the 80s and 90s. I got a job there because I knew more about what I wanted than the sails person. (I worked in construction in the military for twenty years).
When I started it and most stores was all about customer service but most customers when were civil. Most people that came in that some idea of that whey wanted or needed to get, but in the late 90s the customers (the things that come through the door) changed.
If you asked one if you could help?
Most would not act as if you were there. Or continue talking on there phone for ten minuets or if you started to the next person they would NOT put down the phone BUT course you out in a loud voice
If you ask them what they want/ needed most had no idea but if you tried to asked any question to steer them to the right section of the store for what they needed all hell would go off.
In all most ten years of working there I was hit, punched, spit on, and threaten.
Some people seem to come into a store ready for a fight and if given a chance they will start one, just to show off to the people (MOB) with them.
As most home owners know what they want a project to look like when finished, but not how to get there. This is where the problem starts
If you ask some questions, you are talking down to them.
If you try to steer them to the things they need to do the project, then you are trying to sail them stuff they do not need.
If you do not ask the questions and let them get what they think they need and take it home and try to make something most will break it the return it saying that it is what the sails person told them to get.

At the end just remember the most people in may store makes in a year what you make in a mouth

]]> http://seekingalpha.com/article/87198-can-one-profit-from-poor-customer-service?source=feed#comment-217777 217777 Tue, 29 Jul 2008 17:26:31 -0400 send2press.com/newswir...



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Joshua
]]> http://seekingalpha.com/article/87198-can-one-profit-from-poor-customer-service?source=feed#comment-216879 216879 Mon, 28 Jul 2008 18:13:50 -0400
Recently I've taken a few trips to Japan and I was blown away at the level of service I received EVERYWHERE...and it's provided because it's their culture (one which we used to have but have fast lost) and people take pride in doing the best job possible. On top of that, it's a 'no tip' society.

But also I think Consumers share some responsibility because they "reward" shops with the lowest price. Shoppers will tell you before their purchase that they don't care about service, they just want the best price. It's not until after something goes wrong that they expect the service that you would expect, had you not purchased from a deep discounter or a shady, fly by night store. But those stores that sincerely want to provide service find themselves having to cut back to compete with the low price stores that do not provide service - and guess what? They have to cutback somewhere, and eventually service is one of those places (can no longer afford to have a longer return/exchange, can no longer pay for quality employees, etc).

If people stop supporting stores that provide lousy service, they will either have to start providing better service or go out of business. But that's the catch...most people aren't willing to pay for service anymore, and they show it by supporting the shops with the lowest price, regardless of service (then complain later).

The way it's headed now, we might reach that point, because I agree that service in America has become almost unbearable at many places, and seems to be getting worse. Hopefully people will get tired enough to stop supporting those shops and business will once again demand excellence from their employees, and back up their services/products as they should. ]]> http://seekingalpha.com/article/87198-can-one-profit-from-poor-customer-service?source=feed#comment-216800 216800 Mon, 28 Jul 2008 16:31:52 -0400 "Rudeman" uses an example of a lawsuit asking for a ridiculous amount of money for a lost laptop to question the quality of customer service of an entire company based on customer service at one store out of 700 US locations. The level of service and communication was lacking at this particular location but to condemn all because of one is not a practical logic. I hope his moniker is not his normal customer attitude. I will also tell you that yelling, screaming, namecalling, or being rude is not the way to get a problem resolved. I always tried to be courteus to every customer but when the person became personal or abusive, it was time to shut the converstion down until they could become reasonable again.
As far as WalMart and Target excelling with little to no level of customer service, that is the basis of their business and I love shopping at Target. I also know that I am not going to get educated about their products when I am shopping for a higher dollar item. With my experience, that is what most customers who are investing hundreds and thousands of dollars are looking for, someone who can teach them and make them feel comfortable with their product. If you are an individual who can educate yourself adn feel confident with your product choice, by all means shop the discounters. It is all dependent upon the level of service you require. ]]> http://seekingalpha.com/article/87198-can-one-profit-from-poor-customer-service?source=feed#comment-216543 216543 Mon, 28 Jul 2008 11:43:40 -0400 http://seekingalpha.com/article/87198-can-one-profit-from-poor-customer-service?source=feed#comment-216279 216279 Mon, 28 Jul 2008 08:15:59 -0400 As one one of the people responding pointed out, stores that offer little in terms of customer service actually do quite well. They set up their value proposition in a way that lowers the service expectation bar.
I think what gets people rightfully bent out of shape is the lack of interest, caring, empathy and truthfullness we get when a problem does occur with a shopping experience or purchase.
All of this is exacerbated by the fact consumers want a 'deal' or lower prices. If you want to pay less you will get less. ANd getting less means retailers have to pay minimal wage for help. The people waiting on you or I have not the means or maturity to know what customer service is, heck they cant affored to shop there themselves.]]> http://seekingalpha.com/article/87198-can-one-profit-from-poor-customer-service?source=feed#comment-216239 216239 Mon, 28 Jul 2008 06:46:58 -0400
In a brief nutshell: Sales = Payroll = Better Customer Service.
Best Buy is at the top of their game. And their game is to get as big a sale as they can from each customer. Make no mistake, they are a cut throat operation. You paid extra for those folks to be there. They damn well better provide Customer Service.

That aside. Did you not hear about Best Buy 54 million dollar lawsuit?
redtape.msnbc.com/2008...
Is that the Customer Service you want?

Better Customer Service does not equal sales. Check out Wal-MArt or Target. Both are doing great and offer no real Customer Service.

]]> http://seekingalpha.com/article/87198-can-one-profit-from-poor-customer-service?source=feed#comment-216195 216195 Mon, 28 Jul 2008 02:53:09 -0400 I have tried to put some of my experiences on my blog and you may wish to check them out.]]> http://seekingalpha.com/article/87198-can-one-profit-from-poor-customer-service?source=feed#comment-216017 216017 Sun, 27 Jul 2008 19:40:20 -0400
Lowe's thankfully, is a very good company to deal with, while Home De-pot is the new K-Mart, ala Sears.

Check the parking lots of these companies.

Poor management, especially at the top, and middle, and overpaid nincompoops on the Boards of Directors.

I've seen major failures at Home De-pot in the past 15 years as they've failed to run a tight ship and deliver as they did in their heyday. ]]> http://seekingalpha.com/article/87198-can-one-profit-from-poor-customer-service?source=feed#comment-215887 215887 Sun, 27 Jul 2008 16:19:48 -0400
"Where do I even begin on the subject of bad customer service? The incompetence, the rudeness, the lack of caring about one's job or the customer -- it's just rampant, and getting worse all the time tin America."

I cannot believe how screwed up Bank of America, Wells Fargo, Etrade, and TDAmeritrade are! Each of these companies have cost me money and each is supposedly above reproach when it comes to protecting my finances. Each company just stonewalls me.

Further, I've had a running battle over the last two years with the Post Office here in Grass Valley, Ca. The mailman will not come up the driveway for me to sign registered mail. He just throws a 'Sorry I missed you' note in the box and I have to drive to town and stand in line to get my mail. Furthermore, he looks like a bum. He dresses in cutoffs and has an untrimmed greying beard and long hair. I'm not sure if returning to a uniform is acceptable these days, but if it wasn't for the mail-truck, I'd be calling the cops.

I don't even buy GE products any longer. I got tired of returning them to the store for as they didn't work right out of the box. Guarantees are worthless. All they seem to function as is a means of getting you to pay a differential to buy the same product that just failed. (Think car batteries with a 6 year pro-rata warranty.)

Insurance companies (and I worked in the industry for 21 years) are a joke. The methods they use to evaluate the replacement cost of your home is not reasonable and it is left to the consumer to fight them for an adjustment. Don't even get me started on health insurance ... Or even worse, 'Workers Comp'. Thanks Schwartzenegger!

The local 'Lyman Gilmore Elementary' and its associated school district didn't even call me to tell me that my son had not been turning in his homework and was failing his classes 3 weeks before he was supposed to graduate! They sure called me fix their screwed up book-keeping associated with missed days though!

I could go on.... But I think that's enough.

jegan ;-(

]]> http://seekingalpha.com/article/87198-can-one-profit-from-poor-customer-service?source=feed#comment-215873 215873 Sun, 27 Jul 2008 16:08:09 -0400
I recently bought an external hard drive (the one that looks like a book). Worst Buy had a sale advertised. Nextdoor was an office supply store (let's call it paper clip). I asked if they would match the price. While I did have to wait for the manager's approval, I bought the item and wasn't accused of shoplifting.

Then there's US Scare, which wanted to charge an extra $250 to move up an airline filght (which is doing them a favor -- gives them more time to sell the seat on the original flight). Next time, I'll book on South-North instead. They are not so greedy.]]> http://seekingalpha.com/article/87198-can-one-profit-from-poor-customer-service?source=feed#comment-215858 215858 Sun, 27 Jul 2008 15:45:25 -0400
Ethan,
Current ‘usury laws’ (100% [or more] interest is legal) and bankruptcy laws (have to pay all credit card debts) alone, pad the bottom line for all businesses like never before. Profits in the last 7.5 years have never been higher for businesses in the history of accounting.

Include preferential taxation for corporations and their executives along with uninforced regulations of all kinds (consumer, fraud, tax, etc…) and it’s no wonder that executives and managers don’t give a shit about their customers; they don’t have to be concerned.

They’re ‘earning’ more money than they could have ever imagined and no number of complaints or law suits will change that behavior towards their customers. They own the politicians (who let them write their own laws) and the politicians own the courts (if a complaint ever gets that far).

Even the companies that are near bankruptcy are still more viable and able to treat their customers with contempt longer than normal because of the current ‘business friendly’ environment. And, there’s nothing we can do about it…at least until the time we can elect more law abiding, consumer friendly politicians.

So, when you go to vote, just remember who made corporate loan sharking and ‘tax evasion’ legal. That’s right; it’s the same bunch that’s on the verge of putting the world markets into a global depression by allowing other ‘innovative financial instruments’ to flourish (see current ‘banking crises’).

It’s the same guys that have already turned this country into a ‘Big Brother’ (see current privacy laws) and Socialist (see ‘loan shark’ bail out) nation. It’s the same guys that have intentionally caused a ‘supply destruction’ of oil (for the past half decade) in Iraq, which has pushed the price of oil, gas, food, etc… to ‘usury’ like levels.

Yes, it’s the same guys that think the general public (both, socialist democrats and socialist republicans) haven’t wised up after eight years of being under their thumb.

It’s the same guys that will tell you everything’s ok as they cash in (Enron style) on one of the boldest US consumer and US Treasury heists in our nation’s history.

It’s the same guys that will tell you we’re the greatest nation on the face of the earth while we quickly back step into something that resembles more of a third rate, worthless currency (pending double digit inflation rate), no world respect, socialist kinda’ country.

So, let’s not just piss and moan about the snotty assed kids that are probably spittin’ on our burgers while text messaging on their cell phones and short changing us after we hand them a near worthless twenty dollar bill, lets go right to the root cause of the problem and vote for the people who won’t make it so easy for the corporate bosses to create and nurture a culture that thrives on treating the consumer with disdain while robbing them blind.

Here’s another guy that feels the same way:

online.wsj.com/public/...
]]> http://seekingalpha.com/article/87198-can-one-profit-from-poor-customer-service?source=feed#comment-215816 215816 Sun, 27 Jul 2008 14:45:45 -0400 http://seekingalpha.com/article/87198-can-one-profit-from-poor-customer-service?source=feed#comment-215712 215712 Sun, 27 Jul 2008 12:45:31 -0400
Most businesses have plenty of competition, and I won't think twice about staying with a company that doesn't treat me right. Are you listening managers??]]> http://seekingalpha.com/article/87198-can-one-profit-from-poor-customer-service?source=feed#comment-215567 215567 Sun, 27 Jul 2008 10:47:07 -0400 This time I took my TWX dvr to the office and received my 5th replacement. Hooked it up and it does not record. They gave me a bad one. Gas and time wasted.
Etrade, TD Amertrade and Scottrade the same results. Not a nickels worth of difference between them. Running out of options.
Management is non existant. They just collect paychecks. Don't stir the water...]]> http://seekingalpha.com/article/87198-can-one-profit-from-poor-customer-service?source=feed#comment-215555 215555 Sun, 27 Jul 2008 10:32:08 -0400 Cheers]]> http://seekingalpha.com/article/87198-can-one-profit-from-poor-customer-service?source=feed#comment-215486 215486 Sun, 27 Jul 2008 09:21:15 -0400