John Lewis - simply the best

[Ian down london way]

Wow.

Do other stores do similar things?

(I've been a supporter of JL, from a customer experience perspective, but what you say is sobering)

 

[whiskywill]

PC World had it for £100 less. John Lewis phoned the next day to say the computer was back in stock, we told them about PC World and they were happy to match the price.

Surely that is evidence that they were ripping you off in the first place. They couldn't afford to price match if they are losing on the sale.

 

[Inoffthered]

Wow.

Do other stores do similar things?

(I've been a supporter of JL, from a customer experience perspective, but what you say is sobering)

A few years ago I seem to recall that Wickes caused outrage when they suggested that their suppliers pay a six figure "contribution" in order to stay on their approved supplier list. ASDA and others lost public support when it became clear that they were using milk as a loss leader but forcing UK dairy famers to accept less than cost because they could import cheap milk from europe

I daresay that the buying departments of all chain stores seek to maximise their advantage but having seen the JL supplier agreement, it certainly changed my view of the company.

 

[Phil Pascoe]

PC World had it for £100 less. John Lewis phoned the next day to say the computer was back in stock, we told them about PC World and they were happy to match the price.

Surely that is evidence that they were ripping you off in the first place. They couldn't afford to price match if they are losing on the sale.

They probably can - even if they make the occasional loss on a sale, it's a whole load of publicity and goodwill. It's undoubtedly very carefully weighed out against their huge advertising costs.

 

[DiscoStu]

I think most of those are fairly standard terms. Although the discount one is possibly unique to JLP, but seems to be fair? If you're a company the size of JLP you don't expect someone else to get a better deal on say TV's so it would be reasonable to expect the same discounts. That price gets passed onto the customer so it's not like JLP are profiteering from that policy. They're just ensuring it's fair. Let's not forget that companies aren't forced to supply JLP, so if they don't like the terms then don't sell to them. I know two people who supply JLP and both have said that they are nice to work with, sure they want a fair deal but they don't screw their suppliers to the floor.


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[RogerS]

I think most of those are fairly standard terms. Although the discount one is possibly unique to JLP, but seems to be fair? If you're a company the size of JLP you don't expect someone else to get a better deal on say TV's so it would be reasonable to expect the same discounts. That price gets passed onto the customer so it's not like JLP are profiteering from that policy. They're just ensuring it's fair. Let's not forget that companies aren't forced to supply JLP, so if they don't like the terms then don't sell to them. I know two people who supply JLP and both have said that they are nice to work with, sure they want a fair deal but they don't screw their suppliers to the floor.


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I've also heard similar talking to local farmers who supply Waitrose and are very positive of their dealings with them.

 

[Inoffthered]

Let's not forget that companies aren't forced to supply JLP, so if they don't like the terms then don't sell to them. I know two people who supply JLP and both have said that they are nice to work with, sure they want a fair deal but they don't screw their suppliers to the floor.


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Absolutely, no one is forced to do business with JL and my clients decided that they would not supply them.

I dont agree with the comment that their policy "is fair" because if you think about it, it isn't., What JL are doing is agreeing a price when it buys but also retain the right to retrospectively adjust that price downwards to support their "never knowingly undersold" policy. A competing retailer may decide to reduce a selling price and reduce its margin and if JL follow suit they pass the cost of that onto the supplier. What's fair about that?

I am pleased your friends are happy with their relationship with JL, my clients found other routes to market that preserved their margins and gives certainty when they make a sale. They breathe a sigh of relief when they think how close they came to signing up to them.

 

[DiscoStu]

It's fair because they agree a price but why should someone who is more aggressive with their negotiating get a better deal? You know the terms you accept them or you don't.


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[Inoffthered]

It's fair because they agree a price but why should someone who is more aggressive with their negotiating get a better deal? You know the terms you accept them or you don't.


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You assume that buying departments in other stores get a better deal,(which may or may not be true) the fact is that if a competing store chain decide to discount a stock item and reduce their margins, JL will match that price reduction but at the suppliers expense.

You say they "agree a price" but they effectively reserve the right to reduce that price at any time in the future.

You are correct though in that suppliers enter into a supply agreement with JL with their eyes open so it is entirely their choice. The interesting by-product of supplying JL is that having demonstrated an acceptance of marketing contributions, settlement discounts, rebates etc, it can make negotiations with other chains challenging because they know what the suppliers have already given away.

 

[cutting42]

It's an ugly vicious world out there in retail land. Ever wondered why the high street is dead and why small traders are dying in their thousands. It is not the fault of JL, Asda, Tesco or even Amazon but the insatiable beast of the price conscious consumer.

All you folks out there looking for the best price on everything, it's you doing this. Sure there are some dodgy companies and big bosses but they only do it because they know if they are the cheapest, the punters will come running.

I don't work in retail but have been in B2B sales most of my life and deal daily with the very professional procurement departments of some of the biggest companies in the world. The above stuff detailed about JL, is kids play. If all I had to deal with was that, I would have a much easier life as a supplier.

Sadly we live in a world where the old adage "know the price of everything but the value of nothing" rules.

 

[Steve Maskery]

Well I have mixed feeling about JL. Their customer service is good. Very good. But TBH I am no longer enamoured by the quality of their products.

When I moved into this house I bought a JL tumble dryer. About a year ago it stopped drying my clothes and started making a funny noise. I rang JL, brilliant service, they had my details in a flash and arranged for it to be visited by a service engineer. His Diagnosis was "That doesn't sound good", which was exactly what I'd told the JL person, and he took it away to fix it. I was without it, IIRC for about 6 weeks.

When it came back it was obviously a different machine, internally at least, as it sang to me when it was done. So far so good.

I've not used it for months, of course, and yesterday I switched it on to finish off dome damp stuff that I'd had outside until it started to rain. Today I took it out to find that it was as damp as when I put it in. Perhaps I'd forgotten to switch it on? No, another cycle this evening and it is still damp.

So another call to JL. CS are open but not the warranty department. So I have to ring again tomorrow.

Fortunately this has a 3-year warranty. It was delivered on Nov 4th, so I still have a couple of weeks, just.

It's not like there is a house full of kids here and the thing is on every day. Not impressed, really.

 

[Phil Pascoe]

If the thing had been on every day it probably wouldn't have gone wrong.

 

[Steve Maskery]

Maybe, maybe.
Actually the Very Nice Gentleman suggested I switched it off and switched it back on again as well as checked the filters. Well the filters were fine, I do clean them regularly, but I did reboot it and lo and behold, it's working again!
I appear to have a Windows Tumble Dryer.

 

[Phil Pascoe]

Ah ... so it'll be programmed to go wrong in fifteen days time?

 

[DiscoStu]

Any company can have an issue it's how they deal with it that's important. We bought a Miele washing machine from JLP. Within a week it was making some odd sounds. Two engineers turned up, but covers on the floor to put their tool bags down etc. Sorted the issue. Have us some free washing machine cleaner. Also did a full electrical check etc. Excellent service. Now that was a Miele machine with a 10 year warranty which is meant to be super reliable so anyone can have an issue. JLP obviously don't make their own brand. For washing machines they use AEG Group, so AEG, and Zanussi silly person remember correctly.


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[Steve Maskery]

Well I've just come to use my tumble drier and it's stopped working again. No heat and it's making a funny buzzing noise again.

So at 16.40 I ring up and speak to Very Nice Lady, who politely tells me that today is the last day of the warranty, so we'd better get it moving. Five minutes later I have an engineer booked for tomorrow morning.

It doesn't get much better service than that, does it?

 

[DiscoStu]

Well it's good that you phoned when you did but as you say excellent service.


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[RogerS]

....

It doesn't get much better service than that, does it?

And which is why JL still top the polls for customer service.

 

[YorkshireMartin]

Well I've just come to use my tumble drier and it's stopped working again. No heat and it's making a funny buzzing noise again.

So at 16.40 I ring up and speak to Very Nice Lady, who politely tells me that today is the last day of the warranty, so we'd better get it moving. Five minutes later I have an engineer booked for tomorrow morning.

It doesn't get much better service than that, does it?

If you use Amazon durex dash buttons, in the small print they state that you're guaranteed a happy ending, so it's hard to be sure.

 

[Steve Maskery]

Engineer turned up this morning. No fault logged by the machine itself.

"Haven't we come out to this before?" Er, yes.

"I can hear the refrigerant bubbling. It's not a happy bunny, is it?"

Sounds like it is the compressor, which is what went last time. But rather than taking it away for 6 weeks, this time he is going to book a two-man slot and rebuild it in my conservatory.

Good job I rang when I did.