The Price of the Personal Touch

Members of the ISP-Investor list discuss whether or not to charge for sending a tech to a customer's home—and what you, the ISP, could get for providing above average service.

[November 30, 2001]

On the ISP-Investor list in November, WC asked,

"Why do professional computer techs drive to customers' houses on service calls without charging for it? Plumbers or electricians would charge for such service; why are so many people in this industry giving away their hard-earned skills for free? The personal touch is great, but why not charge for services that cost you money to provide?"

A number of respondents complained that if you want a positive reputation, there's just no other choice:

[SS observed] "Our competition will do it for free, so we have to do so as well. They'll probably fail in a few months, but it hurts us now. It's a lose/lose situation. As the saying goes, when in Rome…"

[TW added] "We go out to seniors' homes one time to help them out, and we don't charge for this. It may seem lame, but those customers have been with us for years, tell all their friends how nice we are, and so the payoff is clear."

Others warned that it's crucial to make the customer understand the value of your services:

[RY advised] "Operate consistently in a manner that allows you to make money. If you can't make money doing business the way you are now, you are doomed to failure. You'll never be able to charge for anything if you start by giving it away."

[JN agreed] "We barely have enough profit in our monthly fees to justify phone tech support, let alone free setup. A house call is expensive in every business except the Internet. We charge $35 for setup and a little bit of training: it's not enough to justify the time, but it keeps them from thinking that we're their personal slaves. Make them value your time, and they will pay you to help them."

[JB laughed] "Please don't discourage this practice: we have been able to purchase several ISPs who used this approach to customer service!"

DP noted that it's crucial to avoid the pitfalls of both small and large ISPs:

"There is a big difference between having great customer service and giving away the time of our skilled employees. Small ISPs are going after customers by leveraging time and the personal touch, while the big guys are going after customers by price gouging. Both of these practices are flawed, and customers and businesses will pay the price."

— End