4849 blog 1 Bad Customer Experience

Bad Customer Experience

 This blog will focus on some of the things that can take place in a work shop due to poor communication.

 TTEC4849 Business Practise and Vehicle Safety

Customer Story of a Bad Experience

Instructions: Divide up into small groups. Read the following story, and discuss the following questions in your small groups. Then write your answers in the space provided.This is a true story.

The year was about 1958, in California, before there were strong consumer laws. Don Higgins owned a laundry and dry cleaning business, in which he used one of the new Volkswagen bus trade vans for his deliveries. He would pick up dirty clothes from businesses (like restaurants and auto repair shops), clean them and deliver them back. He liked his Volkswagen van: it had lots of space to hang the clothes and it got good fuel economy. Up until recently, it had been very reliable. But lately the engine wasn’t running very well. The

engine was regularly missing and had low power.So in the morning, Don took  his van to his local auto repair shop. He told them it needed fixing, maybe just a  tune up, and he got a ride back to his cleaning business. Then in mid-afternoon,he went back to pick up his van. To his surprise, the van wasn’t ready. If fact, the repair shop owner showed Don the engine that was now out of the van. The exhaust valve for number 3

cylinder was burnt, causing the poor running engine and lack of power. The shop owner said he could have the engine fixed and back in the van in 3 or 4 days. And the bill would be about $400.00. (In 1958, this was a lot of money. Don’s monthly mortgage on his house was only about $120.00 per month.) Don was very upset. He was so upset that I (Steve McAfee) heard about this as the little boy who lived next door to Don.

Discussion Questions:

1. From Don’s point of view, what was wrong here? What did the shop do wrong that upset Don so much. (After all, they were fixing his van.)

From his point of view he felt it simply needed a tune, not a complete overhaul.
Although his vehicle needed to be fixed he still needed the vehicle for work as picking up clothing was his lively hood. The vehicle was running rough but it still worked. Had he realised that that the engine had to be pulled out so they could replace an exhaust valve he probably would of had it repaired some other time when it was more convenient like the weekend. They should of either contacted him or waited for him to get back before doing an expensive procedure, especially if he didn't have the money to pay for it up front.

2. From the repair shop owner’s point of view, what was wrong with Don getting upset at them? What did they do right or wrong?

He probably felt that Don was overreacting. Don did ask him to fix the car and probably didn't specify he would need it for the rest of the week.

What did they do right?

They found out what was wrong with the car.

What did they do wrong?

After finding out what was wrong with the car they went ahead and did an expensive procedure without telling him. They didn't consider that........

1) It could be real inconvenient

2)He may not want the procedure done or may not even be able to afford it.

3. What should have been done in this circumstance? If you were Don, what would you have wanted to be done?

If it had been me I would expect them to call me to let me know the procedure would be expensive. If they couldn't get hold of me I would expect them to wait for me to arrive that evening to talk about it. Although the car was running rough it was still running, and it could be repaired at a later date.

4. When the repair was finished, and Don went to pick up his van, he took the van and did not pay the whole repair bill. Did the repair shop have the right to hold the van until they got paid?

They had a right to 

Hold the vehicle on the premises until the repair was paid for. However since Don had already taken the vehicle they now would have to take the claim up with either the tribunal or Bay-corp. The police wouldn't get involved as they can't charge you with stealing your own property. The police could only charge you if you were caught on the premises after hours, then they could probably charge you with attempted arson.

What action could they take?

1) Give you a specified amount of time to pay of the work (in writing) before selling the vehicle to cover the expense. You still have the right to challenge this with the tribunal. If they sell prior to the meeting they would have to reimburse you the cost of the vehicle (maybe minus the work done). If ruled in favour of the workshop the customer could be charged for storage fees.

2)They could take the claim up with either the tribunal or Bay-corp.Chances are it would be far to much hassle for them to follow up unless is was a substantial amount of money. They would have to prove how much the outstanding balance was and that the customer agreed upon the work carried out (quite tricky unless it's in writing and signed). If the tribunal ruled in favour of the customer they would get little to no compensation. If bay-corp got involved they would only pay out ounce they received all the money and they would take a large percentage (40 percent)

Should the repair shop pay for a replacement rental vehicle? 
If Don took it to court no judge would make the shop pay for a replacement vehicle as he had already taken the vehicle back. If the shop still had it I would make them pay him for loss of income. Truth is court cases don't happen over night. By the time it got to me (the judge) he would have either...

1) Already paid to get it back. He can't afford not to have it as his business depends on it. In this case I would make them pay some money back for lost income.

2) Got another vehicle. I would order them to give it back as long as he paid for the initial work done minus the loss of income. If they had already sold the vehicle I would make them pay the value of the vehicle minus the work done

Having failed to do either of these chances are he would probably be going bankrupt. Not many people can afford to wait for court dates as they take to long to process and are conducted during business hours which means lost income. If he took it before the tribunal it could be legally ruled by a moderator after a simple meeting, though he could wait weeks before a hearing.


Should Don pay the whole repair bill? I wouldn't make him pay the whole bill as they made no attempt to contact him prior to carrying it out. I would still make him pay for parts (minus charge up) and a greatly reduced labour cost.

Should the repair shop pay Don for lost business because he could not pick up and deliver clothes to his customers?
Well he could as he stole the vehicle back. As he already had it back and paid some of the outstanding bill I would call it case closed. I would only reward him compensation if they had the vehicle for an extended amount of time and it caused him a substantial amount loss of income. Failing that i would reward him nothing and tell him to take his car somewhere else next time he needed repairs.

6. What New Zealand laws relate to this story? What do New Zealand laws say should have been done in this case?
This could be covered under the fair trading act which is explained as follows.

Misleading conduct in relation to services

• No person shall, in trade, engage in conduct that is liable to mislead the public as to the nature, characteristics, suitability for a purpose, or quantity of services.
  Compare: Trade Practices Act 1974 s 55A (Aust)
  (http://www.legislation.govt.nz/act/public/1986/0121/latest/DLM96439.html)

As to what action could be taken the law states a customer is eligible to take it before the motor vehicle disputes tribunal if it meets certain criteria.

Motor Vehicle Disputes Tribunal

The Motor Vehicle Disputes Tribunal resolves disputes between consumers and motor vehicle traders. It can’t be used for disputes over private vehicle sales.
The Tribunal deals with disputes of amounts up to $100,000, or more if both parties consent in writing.
The claim must relate to a breach of one or more of the following Acts:

• Consumer Guarantees Act 1993
• Fair Trading Act 1986
• Sale of Goods Act 1908
• Contractual Remedies Act 1979

The workshop would not be able to sell the vehicle for expenses incurred until the matter was resolved unless you have already signed a contract that states otherwise. They would decide a fair outcome that could work out either way. As this could take weeks before it could commence chances are the customer would simply pay the outstanding bill to get the vehicle back. If he simply took it the garage would have to chase up the outstanding bill. 


Long story short a a little courtesy call prior to commencing expensive work can save allot of grief and misunderstanding.