staying alive - why companies build our appliances as they do

[petek]

Remember if you're old enough that in the beginning Japanese cars were laughed at, cheap, lacking any "luxury" options like a/c, windows etc. They sold because they were cheap and oddly enough word got round that they didn't break down. How did the corporate America fight back, like they always do, bring out the flags. Festoon the products in Old Glory, tug at peoples heartstrings to buy American and you can forget quality, heck they'll buy a turd wrapped in a red, white and blue ribbon if it looks pretty and costs less. Don't think they didn't realize that as crass as it sounds. And it worked for 20 odd years. All the while the Japanese methodically added to their mix, slowly upscaling and improving on quality and all the while the American automakers added more flags, tugged harder at the heartstrings and then lo and behold became innovative. They introduced cash-backs and rebates to sell an inferior product cheaper.

 

[quiltnbear]

More About Quality and Service

Todays products are junk and the service is even worse. For just one example I work at a hotel. All of our rooms have an Amana A/C-heater. (Suites have 2). Amana issued a recall on all units manufactured between 1995 and 2002. The problem even presents a fire hazard, and we have experienced one minor fire involving one of these units already. Amana told us to send them the model number and serial number from all of our units and the problem would be fixed. My maintainance man and I spent one whole day going to each unit to get this info and send it on to Amana. About two weeks later we recieved a box of "parts" form Amana. I called to schedule a time for them to come replace the faulty part and they told me they only will send us the parts it is up to us to install them. I protested until I was blue in the face, and they still refused to install the replacement parts. Great service huh? Thanks for listening to me bytch, Scott

 

[panthera]

a generation of successful managers

I teach evening courses in an MBA program at our university. Communication skills, some English....
Of course I audit every course I can, such opportunities are usually way beyond me financially (lecturers can audit free of charge).
One of the points which the professor teaching micro-economics has raised has, I think, a direct impact on what has been happening:
The generation of managers who made the decisions from after the war up to the end of the 70's were shaped by the depression, the war and enormous technological change. They were forced to be creative, resourceful and consumer driven.
The generation which replaced them never new life-threatening situations, never had to worry about money - and they grew up in a "boom" era mentality.
This might just explain why, when confronted with saturated markets, they reacted the way they did in the US (and now in Germany).
Nathan raises a lot of important points (he is right, my dislike of Whirlpool runs deep. Their killing off all those thousands of jobs this week did not improve my opinion of them).
The fact, however, remains. No matter how many workers the US firms fire, no matter how much they lower their quality - they are either now or very soon going to be competing directly against the folks in India, China and Pakistan who know how to build good quality at lower prices. The Japenese and Germans went the high road with quality über alles...the Chinese engineers I teach during the day here in Germany go home *and run their own businesses*. Yup, the worst nightmare of every young dynamic manager: An engineer who understands how to run a business and has the unlimited financial resources she needs to do so.
Not that I am cynical, or anything...but sofar the only winners of globalisation have been the managers. The investors and the workers are really suffering. Scott Adams was way ahead of his time.

 

[sudsmaster]

Here's an example of both the disposable economy and the replacement part cost issue.

I recently bought some under-counter flourescent lights. A four-pack cost less than $20. Made in China, of course. That works out to $5 per light fixture, bulb tube included. I got them at Costco, so the quality is reasonable especially for the price.

Then I went to a home improvement center to see what replacement bulb tubes cost. $5.95. So when the bulb burns out, it would actually be cheaper just to buy a new light fixture (assuming they are still available at that point).

 

[petek]

I'm just glad I'm as old as I is now and retired for I honestly would not want to be a kid now in the USA or Canada or western Europe for that matter. I just can't fathom where on earth they are going to get jobs once China and India are at full speed economically. They're pumping out graduates in all fields at hundreds of times what the US alone is doing not to mention all the other smaller western countries. It has to happen considering their huge populations that they will soon enough come to dominate the world financial markets leaving the USA a close 2nd if not 3rd.

 

[panthera]

we did it to ourselves

Gosh, Pete - I sure do hope none of my students read that. They are depressed enough after mid-terms. Or what passes for them here in Germany.
You are right, tho'.
Panem et Circenses
That's what did in Rome, now our western economy is going the same way.
I see the end of the middle class and a return of the super rich coupled with the working poor.
Oh, well - at least the Republicans will be happy.

 

[sarah]

Even More about Quality and Service

Perhaps most of the public just wants more cheaper, but it took some of us a little longer to make the connections. I can't tell you the date, but I remember the moment I made the connection. I habitually went to my local bookseller first and even paid 30% more if they had what I wanted in stock, but that wasn't often. So, if they didn't have it, I'd order it from Amazon for 2/3 the price and get it two weeks sooner. When the local seller closed, I realized that every time I had bought a book from Amazon, I had put a nail in my local bookseller's coffin. Now there is no local bookseller here. No place to go where the salespeople know and love books.

So I use the local pharmacy that delivers even though they don't always keep my family members' names straight and cost more. I pay more for my gas at the one of two full service gas stations in town, and I pay twice as much for my bras at the department store where they have a certified bra fitter. It takes her twelve minutes to get me into the most comfortable bra, and I don't have to paw through disorganized racks of cheap disaster to get there.

I just bought my new Whirlpool washer from a local dealer, and I am about to buy my Sirius radio from a local dealer as well--and pay well for the privelige of having a guy help me who knows about the product, remembers my name, will spend time telling me what my installation options are and will be there to help me if I have a problem.

What the average consumer does not understand is that you pay for that stuff--you pay for your salesperson to be paid well enough to stay in the job, learn about the product, and provide good service. I believe good service is worth paying for.

I am, however, struggling with my choice to support the local hardware store which opened a second location in my neighborhood but did not adequately compensate the non family member manager who opened, ran and built the business from the beginning. She just quit to go work in a bank because she couldn't afford to work there anymore...

Like others have said, you all are a great group. I appreciate that you understand wanting something that can be fixed and will last; you understand the value of quality and good service.

Sarah

 

[panthera]

gosh sarah

that's sweet. obviously you don't know us - or at least some of us - very well yet.
seriously, i think you are right - this is a great group, not last because the folks here appreciate the innate value of things. over here in europe we have lots of "mom and pop" stores. those which are friendly to "foreigners" i support (still have a strong accent after all these years), those who shove off bad quality produce on one-shot customers i do not support.