New York Times reporter Nelson Schwartz has recently published an article saying that basically pointed out the customer service and large profits are exclusive of each other. As an example look at the recent customer service issues that United Airlines has been having. Although highly publicized incidents have occurred, the company’s stock price is back to a normal high. What can’t be ignored though is that most companies base their marketing on customer service and customer outreach in order to make the sales to begin with. Basically, companies needed to find a good balance between profits and it service.
- One journalist made the mistake of separating profit from customer service without really knowing what goes into creating that profit.
- The truth is that there would be no “Fat Margins” without customer service due to the supply and demand portion of the business world.
- This journalist indicated that most people purchase on price alone or on mostly price which does not account for customer service.
“Journalists are notorious for lacking a basic understanding of free-market economics, and New York Times reporter Nelson Schwartz is a case in point.”