when a customer calls looking for a specific style of shoes in a specific size that we’re out of stock on. In those instances, every rep is trained t… - Tony Hsieh
" "when a customer calls looking for a specific style of shoes in a specific size that we’re out of stock on. In those instances, every rep is trained to research at least three competitors’ Web sites, and if the shoe is found in stock to direct the customer to the competitor. Obviously, in those situations, we lose the sale. But we’re not trying to maximize each and every transaction. Instead, we’re trying to build a lifelong relationship with each customer, one phone call at a time.
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Additional quotes by Tony Hsieh
"The typical industry approach is [retailers] to treat vendors like the enemy... If vendors can't make a profit then they don't have money to invest in research and development, which in turn means that the products they bring to the market will be less inspiring to customers, which in turn detriments the retailer's business because customers aren't inspired to buy. People want to cut costs and negotiate aggressively because there's a limited amount of profit to be shared by both sides. As a result of this "death spiral", most retailers fail."
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