Sushi Money

Can Sprint reinvent itself and reverse the loss of their customers?  It would seem millions are flocking to other carriers and Sprint is challenged to stem the tide.  Business Week writes about Sprint Nextel’s Last-Ditch Weapon- a new phone, plan and corporate image.  Which may be a bit melodramatic, but it paints a challenging picture for a once high-flying cell phone company.

Is Business Week right and is Sprint really on the ropes?  Their CEO Dan Hesse is making the case that Sprint finally ”gets it” and will give subscribers what they want:

“People want the whole package,” Hesse said during a keynote address at an annual conference held by CTIA-The Wireless Association. “They’re saying, who’s going to give me what I want, when I want, and make it easy to use. They’re all the building blocks of the wireless company of the future.” 

 Sprint now offers an all-in-one plan for $99 that gives you as many minutes, internet, picture and video stuff that you could ever want.  They’ve got a new phone line-up and soon will offer the Instinct, a sheik touch-screen cell phone that has the iphone look to it and all the bells and whistles.

But the biggest problem for Sprint is their customer base, and former customers.  This was the cell-phone company whose customer service execs must have gone to the Trump School of Business… last year they told some customers You’re Fired! presumably because they called customer service too much.

 You know what?  Every time a customer calls for help or assistance, that’s the time to sell the company (and your products) once again. In fact, you have to do that. If you don’t- they’re going to leave.  In Sprint’s case, they’ve been leaving by the millions.    What did You’re Fired! say to all the other Sprint customers?  It told them “Don’t call us because we don’t want to hear it… look what we did to the other guys.”

Realistically that wasn’t really the problem.  The greater problem in the past was Sprint’s customer service was simply not up-to-par compared to other companies.  It was difficult to get a rep on the phone, and they often didn’t know how to help.

Yet personally I think they’re getting a bad rap these days.  I’ve been a Sprint customer for over 5 years, and have been very pleased with the phones, coverage and even customer service.  They even have the best cell tower coverage in the area where we live.  I love the phone and plan I have.  But I’m wary based on other people’s experiences.  And as much as I might consider a new phone, I dread going in and haggling with the customer service rep because the plans were historically so complicated and expensive.  It shouldn’t be that way, and maybe now Sprint “gets it” enough that I’ll choose a new phone and plan.

But I started wondering:  How many companies realize that a bad customer service experience can lose a customer- not only for the short term, but sometimes for life?!  It’s true… make the experience bad enough, or hard enough, and they’ll never come back.  

My own example:  Do you know why I’ll never have a Discover card?  Because when I was younger they sent me this wonderful invitation to get a credit card with them.  I had used credit very little in the past, and was careful with my money and credit history.  So I called to apply because it sounded good. I was a college graduate with steady employment with a government agency and that would have been my first credit card.  Then the customer service rep gave me such a hard time over my lack of credit experience, and then denied my application, that it was humiliating.   I hung up, applied with American Express and received a card the next week.  I’ve appreciated the Amex customer service ever since.  That was two decades ago.   I tear up invitations from Discover almost weekly now.  From what I’ve read, people are not that happy with Discover card these days either.

A corporate reputation takes a long time to build, but like any reputation, it can be destroyed in very short order.   I recently read where Sprint lost an enormous business contract because a rep at the store didn’t give the time of day to an innocent request to fix or replace a phone.  A phone that had insurance on it, you know- the monthly $4 fee?  The individual was accused of dropping the phone in the water and they refused the request.  Good grief… the last thing you need when you need help is for the company you pay to give you a hard time.   That individual had been a subscriber for over 10 years, and left the same day.  All because of one clueless service rep.

It’s like the police officer I was talking with the other day (professionally!).  He said he hardly ever wrote tickets, but when he did- those folks were asking to receive a ticket because they just made things worse for themselves, argued, and gave him a hard time.  Sprint is finding out that poor customer service is like asking your customers to leave. 

Now Sprint is asking customers to come back, or give them another shot.  Given enough time and quality service, they may have enough credibility to rebuild the company.  I’ll stick with them for now based on my overall positive experience, and to their credit they offer a lot more choice and flexibility these days.  They’ve even made contracts simpler and you can try out a plan risk-free for 30 days.   My instincts are telling me to take another look… and when the new Instinct comes out I may do just that.

Over the past few months we have really changed our driving habits due to rising gas prices.  I didn’t think it would affect us so much, but psychologically I find myself doing the frugal dance and calculating how much it would cost to make a trip here or there.  A short roundtrip to the gym or Wally World can cost $3 to $5 for us depending on the vehicle used.

So admittedly gas prices definitely have influenced our choices and habits at home.  We drive the fuel efficient car much more often to work, and don’t take as many trips.  When we need something at the store, we save it for a list or call each other and someone picks it up on the way home.  All normal stuff to be sure, but we are a lot more conscious of our gas expenditures now.  Honestly it kind of crept up on us, because I didn’t really think about our habits until I read that nationally over 50% to 60% of people have said they’ve changed their driving habits too. 

Lets take an unscientific poll and see what you think (this poll only works on the SushiMoney.com homepage, not in the feed).  Here’s the question:

Have You Changed Your Driving Habits Because of Gas Prices?

• No, not at all.
• Yes, a little.
• Yes, a LOT!
• I've stopped driving...

View Results

Of course high gas prices are nothing new over the past few years.  Here’s a chart showing the past 12+ years of gas prices.  Remember the good old days when we didn’t even think about it?  I wonder what kids in high school do these days… it would cost too much to do a lot of driving!

 

With the current national average well above $3.00 per gallon, it seems consumers really may be affected at home.   Yet over the past couple of days the price of oil has come down a bit based on weaker demand and economic concerns, so maybe reduced driving habits are making a difference in demand?  And maybe the rampant speculation by energy investors will taper off for a while.  Keeping prices lower over time would be nice, but the oil pundits are forecasting higher prices for the next decade and beyond. 

What can we do?  Some folks create a personal hedge and buy into an energy mutual fund or oil company stock (that quarterly dividend feels pretty good when you’re at the pump), but realistically we’ve got to modify our behavior.  I’m not ready to give up the ‘ole car yet, so aside from driving less, thinking about how we drive can help as much as anything.  Here’s an older, but excellent review of What Really Saves Gas at Edmunds.com.  What makes a difference for me?

• Turning the car off if sitting somewhere for more than 2-3 minutes.  Idleing the engine can really lower fuel economy.  It’s a winter habit for many of us, but spring is here!
• Don’t “mash on the gas” when driving (unless I’m really late for something!).  Gentle acceleration and coasting to stop lights at times can improve mileage and saves on brake wear.
• Keep the tires properly inflated. Low tire pressure puts more rubber on the road, and takes more “energy” aka fuel to make the vehicle go. 
• Maintain the car properly, and change the air filter on schedule.  The harder the engine must work, the more gas it uses.
• Slow down!  I don’t drive 70+ mph on the highway nearly as often anymore.  Somewhere between 55 and 65 mph appears to yield the best fuel economy.   Even some of the long-haul truckers are slowing down to improve mileage.
• Get a different vehicle!  Anybody for a Smart car or a bicycle?  Maybe in a different color…

We’re all going to have to get used to driving, and “consuming” more efficiently in the years ahead.  I’d love to hear how gas prices have affected your habits and family… what else are you doing to drive less or improve your gas mileage?  

And have you checked out GasBuddy.com before?  It’s a nice site to check out prices in your local area.  Often they’re pretty close to each other and it may not make much difference.  But sometimes you can find a station .3 to .4 cents cheaper, and I’m all for that!

I’ve always been an early adopter when it comes to technology. At least until I realized how much money I was spending and became a dedicated investor and saver a few years ago. I still love new technology, but try to wait a little longer before trying a new product. That’s what I did with GPS, but now it’s time to think about getting a unit for the car. GPS navigation has finally gained widespread adoption and is hitting the mainstream much like computers about 10-15 years ago. Oh… what is GPS? Well, GPS stands for Global Positioning System:

“The Global Positioning System (GPS) is a U.S. space-based radionavigation system that provides reliable positioning, navigation, and timing services to civilian users on a continuous worldwide basis — freely available to all. For anyone with a GPS receiver, the system will provide location and time. GPS provides accurate location and time information for an unlimited number of people in all weather, day and night, anywhere in the world.”

I like the free part… just buy a GPS device and you get pinpoint navigation whenever you want!

Many folks think the adoption and use of GPS is much more widespread, which it is among commercial users worldwide (Thanks to the USA!). But millions of people across the world haven’t even considered using GPS until recently. The leading U.S. gps navigation manufacturer is Garmin with a 56% market share according to ChangeWave Research. That’s a huge percentage among worldwide competition, and Garmin appears to have some cool products coming in the future.

Garmin (GRMN) may be a great company to invest in as well, although the stock price has been hit pretty hard lately after huge gains last year. Almost a 60% drop, but I suspect it will do pretty well next year. Another Apple in the making? Could be, at least for a few years. But the stock is hugely volatile… not an investment for the faint of heart.

But with products like Garmin’s cool Nuvi line of navigation devices, people really like what they see. I used to own a Garmin product about 8 years ago. It was a small portable gps that I used for outdoor recreation such as hiking. It was pretty neat but not nearly as intuitive and user-friendly as the products out now. I’ve held off purchasing another one while these products matured but I think it’s finally time.

So I’m going to purchase an “in-car” navigation device in the next few weeks. Why now? Two reasons:

1. To save time and money! Which is often the same thing…

2. For a summer travel vacation around the country

But think about it… the less time we spend driving from point A to point B, the less gas we use. Big “duh” right? But really, how many times have you driven somewhere and made the wrong turn, or needed to go a different way for something? With the cost of fuel prices these days, if you drive a car for your job you almost can’t be without one of these devices now. For someone doing a lot of driving to new places, a gps unit could save a lot of money in both fuel costs, and in terms of time.

I like the axiom “Time is money.” If a gps unit helps me save gas and time, then it will probably pay for itself within the year. More than that, the units they have out now are kind of fun and for a family- it makes traveling a little safer and more secure… you know you’ll get where you want to go.

Garmin nüvi 660 4.3-Inch Widescreen Bluetooth Portable GPS Navigator

My only problem now… which one do I get?! Costco has some great prices, but so does Amazon and I don’t have to pay sales taxes. Do you have any recommendations? I’m leaning towards the Nuvi 680 or the 750 models based on price. I’m kind of looking forward to having someone (else!) tell me where to go while I’m driving…

     I’ll admit it… I’m tired of paying so much for fuel for the car.  What are you paying for gas these days?  We hit $2.90 to $3.15 in our area yesterday.  The cost of filling up the tank is really influencing our habits, shopping decisions, and the desire to drive our cars, and it’s very frustrating.  The cost to school districts and transportation companies for their diesel buses must be astronomical at these levels.  Equally the overland cost of transportation for the big rig companies and airlines.  Grocery prices have been rising this year for a host of reasons, and the transportation costs involved are going to continue being passed on to consumers.  Investor’s Business Daily wrote an editorial yesterday with a stark look at our present reality, An Energy Crisis of Our Own Making:

“Want to bring [fuel] prices down? The real problem behind soaring oil prices — a lack of supply — hasn’t been addressed at all. Today we have what economists call a “demand shock.” It’s a result of the greatest global economic boom in history — a result of more poor people in more countries being pulled out of poverty than ever, thanks to fast-growing economies and free trade.”

      The article talks about how so many of us, especially the political leaders, are all wrappred up in global warming rhetoric, and that it’s not doing much to help us deal with the economic costs of the lack of oil or high oil prices.   Can you imagine the inflationary costs and the impact on consumer spending if this continues for a great length of time?   I understand this will push us faster towards alternative technologies, more efficient cars, etc.  But at what cost to society?  Just think of the economic costs of the lack of oil, and the excess money going to pay for $90+ per barrel oil.  That money comes from everyone’s pockets, especially the government.  And that comes back around from our pockets too of course.   A case could be made for how much money is lost for good, or alternative causes, because we’re stuck paying for $90+ barrels of oil.  If we had more production and more supply, and $40-$60 per barrel of oil, those dollars could go a lot further across the economic spectrum.

     Think of the social programs that federal, state and local government could fund if they were not paying such high prices for fuel.  Think of the charitable causes a family- even our family might be able to fund if we didn’t have to spend so much on fuel costs.  Think of the consumer spending and opportunity costs invoved because fuel prices are so dang high.  Maybe that’s what frustrates me the most… it seems like such a waste of money to pay such high fuel prices when we could be paying less with more production. 

     In our family, we’ve had a little 3-cylinder car since 1999 that gets 45 mpg.  No air conditioning and not very comfortable… but we drive it quite a bit to save fuel costs.  It’s a Chevy Metro, formerly known as the Geo.  The manufacturer stopped making them around 2002 because they weren’t making enough money apparently, and people would pay more for nicer vehicles regardless of mileage. We love that little Metro for the utility it represents, and the sheer savings on fuel costs.

      Now we have the Smart Fortwo  coming out in 2008 in the U.S.  A cool little vehicle that proposes to get around 40+ mpg. 

     Not much better than our Metro, but it’s probably a lot nicer inside and out.  Sounds a lot safer too!  But I’ll still take the little Metro for now.  I think we paid all of $7200 for it in 1999 and it just runs and runs.  U.S. manufacturers are going to need to continue producing much more efficient vehicles- it’s in everyone’s economic interest.  But it’s still not going to solve the supply versus demand side of the equation unless we produce a lot more oil.

“As the chart shows, our failure to replace our depleted domestic oil reserves has left us with a serious mismatch of supply and demand. We use more oil each year, but supply less of it ourselves.  That makes us vulnerable. We send hundreds of billions of dollars overseas each year to the Middle East, Africa and South America, helping fund terrorism and prop up some nasty regimes.”  

     “As Sterling Burnett, a senior fellow at the National Center for Policy Analysis, notes, if we had started drilling in the Arctic National Wildlife Refuge in 1995 — when President Clinton nixed the idea — we’d be pumping millions more barrels today. Ditto if we had more vigorously pursued our offshore reserves.”

     The next few years will be very interesting.  I wonder if the public will reach a point of being fed up?  Or do we just accept the fact of paying higher fuel prices permanently?  I can’t help but wonder if, after we’re well on the road to alternative energy use, and global warming becomes a household name with children’s books telling all about it… what if oil prices are still just as high or higher and we still have high demand?  What if the only thing that will reduce oil prices, and the cost to society for the next 10-20 years is more production?   Will we ever get there?  Maybe someone will invent a killer new technology that will negate the need for oil all together.  That would change everything.

Well the Dollar ain’t what it used to be… I’m visiting relatives in Germany for a quick trip, and find that my U.S. Dollars are close to a two-year low against the Euro.  Flew into Frankfurt and then a couple hours drive to southern Germany.  Beautiful weather this week, and the food and beer is wonderful.  I’m only here for a short time, and noticed my dollars don’t stretch quite as far as they used to.   If I was here for more than a week I would probably care… certainly a budget would limit what I might spend. But realistically, it is what it is, and I won’t limit my tourist spending by virtue of the exchange rate.  Of course I don’t plan any major purchases… I’ll just enjoy the visit and the food and friendship.  The local and international economy is cyclic of course… some cycles are longer than others.  On the micro-level, fluctuations in currency may not affect much (for me on a tourist trip), but certainly on the macro and international level there are longer term impacts and changes.  But for the food, wine and beer?  Ahh… disneyland for the culinary delights.  Prost!