Would You Pay More for Better Service When Buying Items Online (Typically for under $20) ?

Hi OzBargainers,

Like many small business operators there are ups and downs. Recently I have had a couple of "run ins" with OzBargainers (clients) as a rep. When broken down into the most simplest form of criticism, it's basically about my poor customer service. I don't proclaim to be perfect and my blood can boil faster than the average punter, but I need to remember (as many other retail workers or retail store owners know), the customer is at the end of the day always the customer - so their views and opinions are very important and even if I don't always agree, they are the customer, without customers there is no retailer.

If I were honest, if I were to rank my customer service level to OzBargainers (pharmacysavings) it has some room to improve.

I ship promptly 7 days, I don't rip people off - if I stuff up I fix the problem, I replace freight lost items, I try my best to respond to most messages and emails within a couple of days (including weekends)

BUT …

Clients who enquire about slow delivery (if they enquire before the snail speed 10 working day typical Aust Post delivery date) usually get a brisk answer.

Clients who are even a little bit rude in their emails/messages (even if not intended) usually get my blood pressure boiling and get both barrels back.

Clients who blame our website for "over charging them" (when they forget to apply a voucher code) aren't always treated consistently (varies depending on how polite they are and if they try to blame me for the issue, which is about 75% of the time)

Clients who ring the store complaining about slow delivery - usually get a sympathetic ear from someone else on the phone, while I yell out "tell them to send an email" in the background.

Generally self reflecting, I think 99% of customers are happy or accepting, 1% are not happy - but now I have tens of thousands of customers - 1% of unhappy customers, really isn't good enough (ie/ Based on the number of newsletter subs we have if 1:100 aren't happy means 300 people out there think I stink).

For the last month or so I've been thinking what if we just raise our prices slightly……

Then…..

We get less orders, but we make the same money (i'm not talking about gouging i'm talking $1-2-3 per order, we'll still be the cheapest in Oz - but I usually try and provide deals to OzBargainers based on the lowest price I can sell for without making a loss, I don't charge what I think the highest price the market will bear). As we have less orders to process, we have more time to spend more politely dealing with customers. With the additional revenue we can put money aside to allow us to be more generous when customers complain. ie/ Send replacement items without making clients wait XX days for Aust Post, if someone makes a genuine error (like forgetting to put in their unit number or uses the wrong post code) we just resend the item vs. telling them "well we can only send to the address we are provided" type answers. I can possibly even pay someone to pack and send items for me, and I can use the time to better engage with clients, answer questions be more helpful - rather than just type out a 5 word 1 line email to replies being a direct as I can so as not to start email conversations I dont have time for etc.

The simple answer is - give better service and don't raise prices - but I can say hand on heart I simply can't worker harder or longer - something has to change in order to provide a higher level of customer service in our little business.

The only other alternative I have thought of is to only sell larger bundles (say around $50) and then include free satchel shipping with tracking on every order - this would eliminate 90% of complaints immediately as every article posted would be insured and have tracking - but this would pretty much burn 95% of OzBargain sales, as OzBargainers have a much much lower basket size when compared to our average client. (ie Many OzBargainers wouldnt buy from us if our entry price was >$50)

So I'm putting the question out there as my first ever poll - Would you pay more for better service (in the context of pharmacysavings) as an OzBargainer ?

To be clear, this would mean:

  • Guaranteed delivery time frame of say 10 working days or your item is resent at my cost (I simply reship and ask the client to return the original item if/when it arrives)
  • Guaranteed re-shipping if you as the client provide the wrong address (I take a punt the item will be returned, or simply wear the loss)
  • Friendly amazon'esk style responses where I literally take responsibility for matters outside of my control (ie where a buyer buys the wrong item, wrong size, forgets to use a code, complains the medication doesn't work well for them - I fold without defence - as the business position then is - to keep the customer happy as a goal etc)
  • Friendly, longer email replies to queries where I demonstrate as an owner I care about my clients, currently by my own admission some of my emails are terse and wouldn't be acceptable in my day job (where I work for others).
  • Our website subscribing to a bulk SMS plan, so we can broadcast dispatch and delivery updates via SMS (I think this would cost us 40c or so per sale)

Is this worth paying more for ?

Poll Options expired

  • 2
    Yes - Happy to pay <10% more in exchange for better service
  • 2
    Yes - Happy to pay >10% more in exchange for better service
  • 3
    Maybe - Not sure
  • 66
    No - Not happy to pay anything extra

Related Stores

PharmacySavings
PharmacySavings

Comments

  • +27

    ozbargainers are the worst customer group you want. just look at them when their free item gets cancelled.

    • +2

      Agree. From a market perspective, heavy users are the least loyal. To grow brands you need to grow the harder to reach low and medium product users.

      Don't chase ozbargain users, you will get no profit growth.

  • +3

    I would pay a few dollars more per item to get it fullfilled by Amazon Prime. All the benefits that entails is worth the premium for me. Not sure if you have done the calcs on whether it's cost-feasible for you or not, but worth a consideration. It might free up a lot of time and frustration on your end too and worth trialling. You'll also get tons more eyeballs & traffic on your products.

    Although note your good offerings and great rep here, I would not typically purchase from smaller stores like PharmacySavings under normal circumstances. Unknown company, adds arbitrary shipping charges (sometimes $10 delivery for tiny item), no control over when item is dispatches or will arrive, unknown customer service if something goes wrong etc…

    • Yes, we're active on eBay and I did register as an Amazon seller, at the end of the day the fees and necessity to package and ship items to Amazon really make it hard (on paper) to compete on price against the big box online pharmacy retailer in Oz. I might give it another look - on balance if it reduces the workload even if 10-20% of sales are through Amazon it may be worth it, thanks for the comment.

  • +1

    Definite maybe.

    I will often choose Amazon because of fast delivery. Generally if the difference is under $2.

  • Nah, just give me the cheapest reliable option.

  • -2

    I see a pattern in your post…. You have slow service in sending the item and postage is slow!

    Taking a week to post something and then expecting someone to wait another 2 weeks to arrive. Means a 3 week wait from ordering to arriving.

    Totally not acceptable if ordering locally, so guessing you are 'drop shipping' from China? Hence the delays.

    • +3

      Yes, we ship from an outpost called "Adelaide" - shipping varies but generally 4-10 working days from posting is usual for our clients. The main issue is if a client purchases say on a Thursday night, and the item doesn't hit the post office/box until 1pm Friday (collections at 12 noon), then it sits at the post office/box until the next Monday - then it starts its journey (say 3 days wasted), then in some parts of Oz, mail delivery is only every 2nd day - so if it then takes say 4 days to get to the final destination area and say 2 days to actually get delivered to the clients house - this is how all of 10 working days (or slightly more) can get consumed in delivery.

      I'm always keen to call them out - Australia post are just opening the door to Amazon and literally killing small business, it's not Amazon's fault they are super efficient and killing retailers in Australia who are reliant on our national carrier - I actually think Aust Post needs to take a step back and realise they have left the door open for the Amazon's of the world to kill small businesses - I don't blame Amazon, I blame Australia Post.

      • I think it's confusion from reading your post, they read "posting 7 days" as saying it takes 7 days to ship something out, not that you send packages 7 days a week then Auspost is the issue.

  • Yes, I am always willing to pay more for better service and convenience if I can afford it.

  • In general;
    Your willingess to pay is needs driven, ie. how urgent, or how inconvenient it is for you to acquire something.
    If you need something immediately, you are more likely to pay a higher price.
    If you have time to purchase it online, wait for it to be delivered and save 10%, surely, logic dictates you would do that.

    I personally wouldn't pay for an increased level of service, unless it is for something very specific.
    Everyday goods are not one of them, and honestly, the baseline level of service is a consideration for me to return.
    For example, there's 2 cafes near me, 1 makes my coffee within 2 mins of ordering, the other takes about 10 mins. The coffee costs the same ~$5.
    (I'm a return customer to the first cafe)

    In the current inflationary environment, the majority of customers would likely choose the cheaper option.
    Perhaps you can offer an increased level of service as an option - not pivot your entire business model. That way you capture both potential customers.
    Unless you're operating in a niche area, you're at the mercy of market pricing, which with discount pharmacies, is a race to the bottom.

  • +1

    Are you upfront about the majority of your packages arriving in 10 working days? I assume most people purchase pharmaceuticals because they have an immediate need for it not something they can just use later or stock up on.

    • Most Ozbargain deals I post are usually for items such as Hayfever meds (our biggest seller) clients stock up in advance knowing they need the product, sales are generally 50-70-200 tablets at a time to Ozbargainers - they then re-order when running low, we dont sell many prescription only items online where I understand clients "need it now"

  • +2

    @Xetrok said it perfectly with this:

    Your willingess to pay is needs driven, ie. how urgent, or how inconvenient it is for you to acquire something.
    If you need something immediately, you are more likely to pay a higher price.
    If you have time to purchase it online, wait for it to be delivered and save 10%, surely, logic dictates you would do that.

    If i need meds urgently my local is my go to, im not waiting for speedy delivery as i want it guaranteed in my hands as soon as possible.

    For non-urgent stuff then happy to price around and wait. @jason101 for what its worth I’ve bought from you a few times and I'm more than happy with your service and price point. I like your model! I don’t need it right away and know I’ll be waiting for a week or so, that’s why I’m going for a cheaper option. Thanks for the stuff you post up

  • Hmmm… I thought I would let this poll run for a month, but seems like the direction is already pretty clear within the first hour.

  • +5

    There will always be neggers Jason. It comes with the territory.

    You have the choice of not posting on Ozb, but then it means you aren't doing in the best interest of your business.

    We know who you are and I believe the majority of us do like to see your deal posts. You can adjust the price as you see fit, and we will justify it by our votes and money.

    Now that we've hugged it out… This.is.spartaOzbargain after all, asking a bunch of cheapskates if we are willing to pay more for better customer service? You ******* kidding me bruv….

  • +1

    Being honest, 10 days is excessive lead time, I had a car shipped interstate to my door in 4 days. You're taking about Pharma items and not stickers, so cant blame people for being irate given most people (me included) don't always plan ahead with things. Need to be very clear its 10 days lead time, which I assume you are then customers are @$$hoels.

    Service I dont care, I click on something and it arrives. I only use customer service if there is an issue, which is rarely tbh. There is always cheapest and shortest lead time calculation for me.

    Cant use Amazon Distro?

  • +3

    There are some people who you just don't want as customers.

  • +1

    I'm very happy with your current service.

    I think it's totally fine that it takes a week or 2.

    I order it, forget about it, and then I'm happy when it arrives.

    Some people are just impatient.

  • We get less orders, but we make the same money

    From an ozbargain perspective, cheap or gtfo. That's the silly perspective you'll give from this poll.

    From a human perspective, holy crap why haven't you done this already? If you know you can do this and it works, do it, no question about it. Your job is to be happy with live, not deliver customer satisfaction to the those who are never satisfied. You're not going to get loyalty selling at the lowest price with the best service, you'll lose those people to the lowest price every time.

    There's no loyalty in the race to the bottom pricing. It sounds like you're working ridiculously hard with exceptional efficiency to deliver what you do. But sustainability for you has to be a priority. The customer isn't always right, sometimes they're an idiot.

  • +3

    Jason, I wouldn't concern yourself. Knowing where you're located plus the industry you're in, frankly people should be grateful you even bother doing this.

    • everyone knows Auspost is crap
    • all customers everywhere for everything should factor 2 weeks min nowadays unless paying for a courier
    • application of codes is OzB Learner's level stuff

    If they want stuff in a hurry, go to their local chemist. If they want fancy customer service from a pharmacy… 🤣🤣 (aint no pharmacist got time for that)

  • +1

    If you're putting a generic poll out for everyone, your 99% of happy customers will tell you don't change and the 1% of customers will tell you to get better service

    I think you're the only one with the business insights about your business to decide what to tweak in order to maximise your outcome (revenue, and customer sat)… Even if it takes some trial and error

    (btw isn't the simple answer offering an express shipping option that cost more for those who want it a little faster)

  • You will never please everyone.
    With shipping explain that you will send for shipping next day and then send an email with the tracking details. If you have a tracking number then people can track progress for themselves. This is what we do with parcels and it is funny watching the parcel bounce between centres. This also gives them an email address they can send queries back to.

    If you want to have a VIP service then, maybe, tie it to “privilege customers”. Ones who buy often or put in large orders. People you, actually, want to keep. Some customers you don’t want to keep, especially the rude ones.

    Best of luck with your business.

  • +1

    I'm not expecting much when shopping online, just give me the best prices. If I want to be handheld, I'll go to a local pharmacy. If someone is giving you s**t about waiting 10 days, offer them a deal on some Vitamin B and Chamomile tea. Tell them…errr….help them to plan ahead, buy in bulk and save. Have prepared lists of things they can buy. First aid, hygiene…
    Some people are just in a bad mood, want to vent and you'll be on the receiving end because you're available. It's not about a 10-day wait, they're probably stressed.
    Don't let them pull you down to their level.
    Good luck!

  • Is this just a giant ad

  • I mean, people are paying for better services such as Amazon prime and eBay plus.

    But only shoppers usually just buy when it's a good/cheapest price.

    There is the passive after-sale service when people buy such as returns policy, free return postage, can you go into store etc….

    Though, usually price trumps everything else.

    For example: Samsung is one of the most complained company in Australia, they have bad delivery, non existent customer service, repairs suck… Yet people still buy their products because of their major sales and the fact they have a global dominant presence.

  • Clients who enquire about slow delivery

    Do you have tracking on every order? Do that. You'll fend off a lot of queries if your customers already know where it is and if it's in transit. Doesn't matter if it's slow if I can see it's on it's way - I know you can't do anything and I won't bother calling.

    what if we just raise our prices slightly

    You've gotten a lot of business here on OzBargain for being the cheapest. You do have room to increase prices, and if you mandate the cost of tracking on every order (NOT budgeting for silly guarantees like resending etc) then you'll reduce your wasted time, reduce customer queries, and reduce the pool of bottom-feeders who disproportionately cause issues for yourself (and everyone else).

  • -1

    I think TAFE has some courses on how to run a business if you need help

  • I've been happy with your service so far

    Maybe you need to employ a family member etc to handle the online side of things, be the chirpy customer representative, someone who can handle complaints (or at the least has a knowledge of ChatGPT to handle it for them).

    • Yes AI can probably help here - great suggestion.

      • Not perfect, but decent:

        User
        apologise to a client for slow australia post delivery of their item
        ChatGPT

        Subject: Apology for Delayed Delivery of Your Item

        Dear [Client's Name],

        I hope this message finds you well. I am writing to sincerely apologize for the delay in the delivery of your item via Australia Post. I understand how frustrating it can be to eagerly await a package only to experience delays in its arrival.

        We strive to ensure timely delivery of all our orders, and it's disheartening to learn that we fell short of meeting your expectations in this instance. Please accept our sincerest apologies for any inconvenience this delay may have caused you.

        Unfortunately, it appears that your package has experienced slower-than-usual transit times within the Australia Post network. While we do everything in our power to ensure smooth delivery processes, there are occasions when external factors, such as high volume or logistical challenges, impact delivery times.

        Rest assured, we are actively monitoring the situation and working closely with Australia Post to expedite the delivery of your item. We understand the importance of this matter to you and are committed to resolving it as quickly as possible.

        In the meantime, if you have any concerns or require further assistance, please don't hesitate to reach out to us. Your satisfaction is our top priority, and we are here to support you every step of the way.

        Once again, I apologize for the inconvenience caused by the delay. We truly appreciate your patience and understanding in this matter.

        Thank you for choosing [Your Company Name]. We value your continued trust and support.

        Warm regards,

  • This is excellent reflective practice. Great to see.

  • If I’m buying over $50, I expect some sort of tracking and customer service.

    For lower priced stuff, forget it. If I ordered the wrong thing, it’s on me. shipped it to the wrong place? On me. Didn’t pay extra for tracking? On me. It arrived when it arrives, and if it doesn’t, such is life.

  • I've bought from Jason numerous times over past few years - posted to Adelaide, Sydney and Melbourne addresses. Those that buy and then complain about postage time should probably do their own self reflecting. Jason's always got the disclaimer if you want it urgently, pay for express. I actually feel grateful he's doing us a service by providing cheaper alternatives. If he stops these deals, your money will probably just end up in the big yellow shop.

    Do an analysis on how much it "costs" financially and mentally to give the 1% the finger vs trying to satisfy everyone. Continuing to give them the succinct responses might be worth the gain in mental health and time with family and loved ones.

  • I've bought from you numerous times, indeed logged in here today see your latest deals. We are heavy users of antihistamines which we always buy from you and have never been disappointed. If you go back half an hour you'll see my latest order. While you keep up the great work I'll keep buying from you. Yes Aussie Post can be a bit unpredictable but we always order leaving 2 or more weeks margin so we don't run out of anything. Keep at it Jason, you're doing a great job!

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