Last week I bought a Sony-Ericsson Xperia Mini-Pro Smartphone from the Queenstown store of Dick Smith NZ. I tend to buy such products online, however there were two compelling reasons for buying in-store on this occasion:
1. The $399 price was merely a $20-30 mark-up from a lot of the NZ online stores
2. I was given the assurance from two staff that I would be able to replace the unit with a higher value product if I was unsatisfied. They did say that I could not simply return the product for a refund; however this would later be a wide digression from the rules as the store manager would ultimately explain.
Anyway, having talked to two sales people at the same store, I came away with the knowledge that I could get satisfaction from this phone, or that I could get a Nokia phone. As it turned out, I failed to check whether they had the type of Nokia phone I desired. Anyway, no problem, they have other types of Nokia phone.
Having bought the phone on the 2nd Feb 2011, I returned the product for an exchange on the 5th Feb. On this occasion I spoke to the manager/perhaps franchise owner. I was inquiring about whether they can order the Nokia E63 phone. The reason for returning the phone was:
1. To avail of the opportunity to exchange for the Nokia E63 phone within the two weeks required by the sales staff. The Nokia E63 is cheaper, so I would have to buy other products.
2. More importantly, the Sony-Ericsson phone is a teaser with great specs, but poor performance. Store staff had indicated that this was a popular phone.
The problem with the Sony-Ericsson Xperia Mini-Pro are the following:
1. Under-powered battery - the size of the Xperia battery is half the physical size of the battery in the Nokia E61i I currently own. The problem being that I am only getting 2 days of use rather than the 4 days with the Nokia E61i when I first bought it. I would expect that improved energy efficiency offsets the higher power load in the newer models.
2. Poor product balance - I work in different settings, i.e. at cafes, standing up, lying down. I found the Sony-Ericsson Xperia fine for typing when you stand up, though not as good as I thought, but it was bad lying down. The balance was poor for typing. The weight balance is far better for QWERTY based keyboards which are integrated into the phone. I also do not like the unsturdiness and looseness of the slide-out models. I have shied away from them before.
3. Android software - The software on the Android was also bad. Although I would be able to load free or cheap software after acquisition, this is not tempting when you consider the prospect that I might want to return this product to the manufacturer/retailer.
The reason why these were issues was because by asking for the terms I understood I had, I thought I was protecting my downside. My concern was that the battery was not good. Their were such proclamations on the internet; however the issue was not ambiguous because:
1. I could see no evidence of how many hours of battery life
2. There were customers (who clearly had not had a Nokia E61 or E63) who were satisfied with the battery life, and who
There were two problems with the service I received from Dick Smith - for me.
1. Product Disclosure - They have slimmed the specs to describe the phone. In the case of the Xperia mini-Pro, there was utterly no 'objective' or 'written' specs at all, so I was relying upon online information. I find this completely inadequate.
2. Sales terms Disclosure - The manager pointed out to me their sales terms 'in writing', displayed in bold about 1 metre above the head of the short staff who was serving me. I did not see it, it was not in my field of view. They displayed it on the receipt as well; which I did not look at, after all, I was buying a phone, not a receipt. Even the sign the manager highlighted. After I read it, it did not even state what he implied. So there is a lack of clarity with respect to the terms of sale. The staff should present the customer with a written outline of the store sales policy, and get them to sign it. That is proper disclosure.
The attitude of the store owner/manager was far more 'tighter' than the sales staff. Why? There is a disparity in policy direction as I asked two staff. It is probable that a lot of customers are asking the same question. The staff should just refer customers to company policy as a matter of routine. The response I received from the store manager was less than satisfactory. It went something like this: "Dick Smith is an international company and we don't make exceptions for customers". This sounded like a thinly veiled threat....'if you mess with the big guys. I highlighted that they were beholden to the law. No response. Might I gauge from this remark that customers in Australia are also treated the same way?
There is however a greater problem for stores like Dick Smith and Harvey Norman - where is their value proposition? They now offer less value than ever when they start adopting the measures they are adopting. The only reasons that I can see for buying in-store is:
1. Store credit - this is not a benefit for me - I'm not poor and I would not use store credit anyway, even if it was 2-years interest free....not just because a premium is attached to the purchase price.
2. Customer service - this is no longer there. I guess one has to empathise with sales staff. It is hard to provide customers with accurate info with so many products. This is reason for stores to add-value, not to spurn customers I would argue.
3. Immediate delivery - This is often a buying point but its not always compelling, particularly in this case since the product was not in stock when I inquired. I had to wait several days.
One of the problems for these stores is inadequate training. This is a global phenomenon. I buy products around the world and it is a rare case indeed where sales staff know what they are talking about. In this case, I did not trust sales staff to tell me the product specs. I looked online, and I protected myself 'on what I was told the store sales policy was', which ultimately proved to be false. I was not going to trust the manufacturer or the retailer with such questions. The problem I have is that the manufacturers have failed to come up with an objective test for product battery life. i.e. If you were to perform a certain number of hours performing a certain task, i.e. text typing, calling, playing music, then you would have an objective measure of your product's battery life. i.e. If you thought you use the phone 15% for music, 50% for texting, etc, then you could could measure the life of the battery. It would be good to have an idea of life over time as well, and better information on how to use batteries.
If you are looking for a smart phone, you can read my blog post on the issue
here. In the meantime, I will escalate my complaint with dick Smith to a
formal complaint.
When I listen to the person in-store and I look at the complaints website, I really get a different response. Is it just rhetoric, or does the company have a policy of culling bad news at head office, if you escalate the issue to them. Visiting the complaints site was indeed a '
different experience'.
"At Dick Smith you'll get the right advice by Talking to Our TechXperts".
I have a great deal of difficulty believing that of any electronics chain, though in fairness I did not rely on their 'technical skills' on this occasion. I go to paper source or manufacturer specs when I want technical info, as well as store feedback.
"We offer the best quality brands delivering the best solution to your needs every time".
Actually this was not my experience. They were understocked in the better Nokia brands like the E63, N71, N72. You have to go online for those.
"Satisfaction guaranteed"
Hard to believe that rhetorical claim is possible, given that customers can be unreasonable in their demands. Then there is the following:
If you find a lower price within 14 days of your purchase date, we will refund the difference*. And... if you change your mind within the same 14 days we will exchange or refund your purchase**.
All those asterisks is a bit disconcerting. You do have to read the fine print. Their price clarification is reasonable:
"Competitor must have a retail store. Price comparisons must include all delivery charges, and bonus offers. Product must be identical (e.g. same brand?model?colour). Confirmation of competitor's price is required. Excludes exclusive models. Competitor must be in stock (not available for back orders). No bulk purchases, retail quantities only. Excludes competitor's clearance lines, limited stock offers or Member ? Club ? Internet prices".
These terms are reasonable. The 'change of mind' policy however is not satisfactory:
** Change of Mind Policy: To be entitled, you must provide proof of purchase and the item must be in unmarked, original condition including all packaging and supplied components. Change of mind returns do not apply to Gift Cards, Recharge Cards and Vouchers, Music Downloads, Photo Processing and Imaging Products, Pre-Paid Mobile Phones, Vendor Direct goods such as Fitness Equipment, Made?Built to Order Products, Unsealed:- Computer Games, Music CDs, DVDs, Computer Software, Printer Cartridges".
This is not the same as what I was told in-store. I was told the product had to be sealed. This does not stipulate as such. The policy is also vague because the policy does not apply to certain products. This leaves open - what in fact does apply to phones? How does this relate to the customer 'satisfaction guaranteed'. Maybe it was never about the customer. Maybe its a play on words 'Dick Smith satisfaction guaranteed'.
I really think Dick Smith is really undermining its service here when it could have a better managed process. It needs to establish a process for each major product line describing the full specs of the product. Have the customer read in-store those specs so they understand, and to sign off on those product specs, sales policy, as well as directly dealing with customer issues. They can say 'But the Xperia is our best selling item, and we never get any complaints about them'. Well, deal with mine! Maybe you are systematically snubbing customers. Maybe those customers have subjective standards because they have never had a Nokia E61i or E63. The Dick Smith product disclosure was also lacking. Why was their policy pertinent to phones not presented at the phones display cabinet. Why? Because customers would see it?
There seems to be a company policy of keeping customers in the dark. Phones are a technical item, and company policy seems to be to evade that fact rather than to manage the process. One of my best quotes....I am sure I will be remembered for centuries coming:
'Risk is managed, not avoided'.
Clearly at Dick Smith the 'guarantees' are shallow rhetoric because I took steps to protect myself and the sales process has maligned me. Thereafter the responsibility is theirs because they designed the sales process; and they have the relationship with the manufacturer. That is why they are the custodian of the customer's interests to the extent that they are. If they don't want a paper trail - fine! - Design an online solution for managing the process. Really! Its not rocket science. These retail chains have really fumbled on their business strategy. The problem I suggest was that Gerry Harvey is not very smart and Dick Smith lost direction when it was bought out by Woolworths. Dick Smith is a pretty smart guy. I think Woolworths has failed with this division....no doubt because its a small division and they failed to differentiate it from food, which is not so easily sold online.
I will keep you posted on how this issue unfolds. I will go back to the store to take photos of the camera display, the sales 'disclosure' high above the sales staff, and then escalate the complaint to head office.
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