Price matching

[getupandgo]

I have to disagree. The POTENTIAL customer is as important as the one who's been there before.

I hate to pick on you, but that's patently false as well...

CLV - Customer Lifetime Value is one of the most important factors for a business. Identifying the frequency, recency, and amount spent is BIG business, and good business. Trying to satisfy the customer who is always looking for you to price match and is not going to be loyal and support you in general, is not good business. There are definitely such things as bad customers... those that you don't want or need to retain.

Customer retention increases profits, sales, and lowers the level of advertising that a small business needs to do (we're talking micro scale business here, generally).

Chasing after potential customers who aren't likely to ever place an order with you, is not generally a good business practice. And taking a loss to gain those types of customers is tantamount to financial suicide.

Now, I'm not sure what the circumstances are in regards to this specific case of asking for price-matching... again, we don't have all the information, and by this point, we've most certainly made a mountain out of a mole hill, as the OP was simply asking if there were any online retailers that price matched a manufacturer's sale. I think you'd probably be pretty hard pressed to find one that would.

If the issue at this point is the specific wording of TWS's price matching offer, then my advice would be to take it up with them, but again, they're under no legal obligation... it's a customer service, not something they are legally bound to.

I know what's right and wrong.

See, that's what everyone says... I know what's right and wrong as well. But neither you nor I have nearly enough facts to pass judgement in this case. And even if we did, and we both agreed that it was "wrong" we still would be bound by the law, wouldn't we? Since no laws have been broken, no one has any recourse other than to choose where to spend their money. This is why I argue that those who haven't supported said retailer with their funds don't have as much weight to their opinion. Do they have a right to their opinion? Of course they do... does their opinion matter very much in this case? Not from where I'm standing.

As for "false advertising", that's a legal term... and one that you've used incorrectly.

For it to be valid:
* The defendant must have made a false or misleading statement of fact in advertising.
* That statement must have actually deceived or had the capacity to deceive a substantial segment of the audience.
* The deception must have been material, in that it was likely to influence the purchasing decision.
* The defendant must have caused its goods to enter interstate commerce.
* The plaintiff must have been or is likely to be injured as a result.

Not one of these... ALL of these elements must be proven for it to be considered false advertising.

[Stanislav]

Ok, I have lurked on this one for quite a while, and everyone is bringing up very valid points. GUAG, very well put. However, for future business (and continued CLV), there is a Golden Rule that I learned in 10 years in the Auto Industry...

#1) Perception IS Reality-meaning that no matter how well you treat others and how many rave reviews you have, if I feel you are bending me over a barrel (in no matter how small a way), then you are a dirtbag and I won't deal with you. When that feeling gets spread around (and it will, 4 people spread good reviews, 11 spread the bad ones), even your Customers For Life get a dirty feeling about dealing with you, are afraid to sing your praises, word of mouth advertising goes to crap, and even they (a percentage of them) have doubts as to dealing with you (this isn't immediate, it takes time, but since you are mentioning CLV, it pertains),... It's a downward spiral. Am I saying he's circling the drain? Absolutely not, just saying that it will get around and people will find another source.

As for me, I have dealt with Neal many times in the past. I got bent out of shape one time about how he handled something, and looked elsewhere. I still use his site every so often, although it's been right at a year since the last time. Black Fridays sales from him are awesome. I hold no ill will against him, but he has refused to match a price for me from another online retailer, so like I said, I look at his site every so often, but I no longer consider myself a serious customer of his. And I don't recommend him to anyone. Do I tell them NOT to use The Warstore? No, I just don't recommend him when asked.

[MagickalMemories]

GUAG, it's obvious that you know the legal side of things better than I do. I don't dispute that.
You also seem to have some sort of business sense, training and/or education, re: CLV.

What I can tell you, from the perspective of a customer and not a numbers cruncher, is that there's a degree of bullsh!ttery involved with the CLV information you gave.

There is no CLV if there is no C. Neal will never EVER survive if his only focus is on the customers he HAS. If he does not obtain NEW customers, he'll flounder. It's simple common sense. Neal seems to know this. That's why he has the Price match "guarantee." He knows that people follow their wallets. He wants to get their wallet "in the door," and follow up by providing such great service that the people stay.

Chasing after potential customers who aren't likely to ever place an order with you, is not generally a good business practice. And taking a loss to gain those types of customers is tantamount to financial suicide.

If the OP wasn't likely to place an order he wouldn't have inquired about the price match. Also, if you look at the prices involved, I'd be willing to wager that neal would have still made a profit on each and every price he didn't match... just not a big enough profit to suit him.

Don't get me wrong. I'm not taking our disagreement personally, so please don't misread my intent with the next statement. I'm just being direct.
For all of your obvious knowledge of business, you don't seem to "get it."
The reality, as has been stated, is perception. For every complaint about him you see in this thread, his "stock" goes down a little in people's eyes. Enough of those, and he will lose the chance to win new customers who haven't tried him out yet. People don't want to deal with the guy who you hear "doesn't keep his word" or "doesn't honor prices."
That's fact. That's human nature.
Without those people, those new dollars, he cannot survive. Your existing customer base will eventually hit a point where they no longer need much. People who don't need much do not keep stores in business. All the "business speak" about why existing customers are more important than new ones is BS. Neal isn't Walmart. He's not a huge "1 stop shop" kind of place. People who come to him come for a very specific need. Those needs are not constant. They're not food or clothing. Not shelter. They're products from a finite niche. That matters.

What Stanislav says about his own experiences with Neal is a perfect example. He was a multi-repeat customer who had a problem. Eventually, he all but turned his back on Neal. To break even, Neal needs a new customer (or customers) whose buying habits are equal to Stan's just to get back to where he was before Stan stopped really coming around. Either that, or he's got to find a way to get existing customers to buy more... which isn't that easy in this economy.

E

[govannon]

I have bought from Neal many times over the last several years. Some of those times have been $300 - 500 or more. The last few orders I made have not been from him because he would not price match. I might or might not order from him in the future. If he would have price matched like is on his website, I would order from him everytime.

It is unwise to think about customers as existing. Even though someone might have made an order before, that is not a guaranteed next order. Every customer is a potential customer. I am not worried about any legality or anything like that. I am just looking for a business to keep thier promise. That is part of customer service. getupandgo, you might see his as good service and we will just have to disagree on that.

[MagickalMemories]

I wanted to mention this earlier, but I was at work and had to go do *gasp* work. lol

While it might not meet the legal definition of "false advertising," I'd imagine that if you asked 100 people if it was False Advertising, the majority would answer "yes."
...and that is what matters. Public opinion.

Eric