Matt Krantz of USAToday gets this question:
Should you avoid buying a stock if you get terrible customer service while buying their products as a consumer?
Matt advises that you shouldn't necessarily write off a company and not invest in their stock because you had a bad experience. He says this:
"It wouldn't surprise me if companies with the worst customer service wind up being the best investments."
Hmmm...now I wish I had evidence or something to back up what I'm about to say...But my guess is that companies who provide the worst customer service would, in the long run, go downhill. I just don't see how a company could survive if they're not in tune with their customers. Sure, they could be good investments right now, but what about the future?
It's a tortoise and hare issue, I think. We have to realize that investors like Matthew are looking at P&Ls and the quick buck. Companies that sell tons of goods at low prices with little investment in a customer service infrastructure will likely have great financials for a few years. Investors see a profit - they invest - they make a buck. It's a good investment for a season. Your raise a good question. Eventually, that company will go down hill - they can't sustain. I would bet that you and I are similar, Maria. We want to invest in companies that are going to take care of customers and be around for the long haul. They may not make HUGE dividends over the course of a year or two, but by the time we retire - everyone profits! :)
Posted by: Tom Vander Well | May 18, 2006 8:41 PM | Permalink to Comment