Services Marketing
MKT 405
Fall 2006

Gremler.Net


 

 

A story relayed to me by a former student from my Services Marketing course:

While working at my summer co-op The Swagelok Company, a manufacturer of industrial fittings/valves/semiconductor/etc., I heard a rather interesting story of a service encounter.  One of the purchasers of stainless steel for Swagelok was looking for a supplier here in the USA before searching abroad.  He was completely satisfied with the quality, cost, and distribution methods of a steel company in Pittsburgh, however he just wanted a tour for his colleagues, supervisors, etc.  He called to request a tour and the gentleman said that it would cost $300 and hour for a tour of their facilities.  The purchasing agent for Swagelok had been in contact with their sales force and has been bargaining for about a month, so this just wasn't some guy off the street.  The agent asked very politely that they wave that fee because Swagelok was about to become a $6,000,000 account for them.  The guy wouldn't even contact his manager, he just stood his ground.  The Swagelok purchasing agent said as politely as he could, "Thank you for your time, I believe we will take our six million dollar account elsewhere."  We are now buying from a distributor in Japan. 
Dwayne D. Gremler
Copyright © 2006.  All rights reserved.
Revised: August 14, 2006.