Car dealership closures carry human component
by Jan Quintrall, President/CEO, BBB jquintrall@spokane.bbb.org
for the Spokesman Review, 5/24/09
Several years ago I wrote in this space about a small-town car dealer who was a very good corporate citizen. He supported Little League, the local business associations, local schools, you name it, and he was someone you could count on to make a donation.
But privately, he told me he’d begun questioning whether his dedication to his community was reciprocal. The tipping point was the most recent visit from the Little League coach who came to him each year for sponsorship. The coach drove up in his new car, purchased in a larger city from a competing dealer. The small-town dealer’s civic-mindedness had not mattered when the coach bought his new car.
In the wake of the Chrysler Corp.’s closure of local franchises, the BBB is already hearing from people concerned that they’ll have to drive 60 miles to get warranty work. I wonder just how many of them bought their cars in larger cities to save a few hundred dollars. There are consequences to actions, and the loss of hometown business is one of them.
Our local car dealers have been people we could count on. Often they are leaders in our communities. Take a look at just about any Chamber of Commerce board of directors, and the car dealers are there. State Sen. Chris Marr, D-Spokane, came from the dealership world.
Of course, there also are car dealers the staff at the BBB would not be sorry to see go. They are the ones who get all sorts of complaints on a regular basis, who do not answer complaints and who advertise in ways that mislead.
This is also not the first time we have seen trouble in auto manufacturing. Remember American Motors, maker of the Rambler, the Gremlin and the Matador (considered by some to be the ugliest car in America)? It was acquired by Chrysler in 1987.
Consolidation can be a good thing. When we combine support systems, tremendous efficiencies can be achieved. These efficiencies are so attractive that our Spokane city and county services are considering such consolidation. In the BBB system we have seen that combining two BBB operations results in a win for everyone. As the number of business offices declines, service is improving.
When the news of the Chrysler reductions hit, I began wondering what kind of cost savings one brand under GM or Chrysler would achieve? Would buyers see lower pricing? What other benefits would consolidation bring? Is there a lesson to be learned from Toyota and Honda, who limit their area saturation when it comes to dealer placement? In my accountant’s mind, it mostly comes down to numbers in making the best decisions.
But the human side of this story is difficult. I had just returned home from a business trip to Yakima when my husband reported that the Chrysler dealer hit list had been released. He told me that no Spokane or Coeur d’Alene dealers were on that list. Well, our BBB world is a bit larger than that, so I went to find the full 40-page list.
As I read the list and noted the dealers in the tri-state area we serve, I saw names of people I have worked with for a decade. Dealers I know. Human beings with children and spouses and relationships with me. It was really hard to look at the cold reality when I pictured the faces that went with the names on that list.
The Internet has changed the face of business in every industry, including automobile dealers. The Inland Northwest holds one of the largest dealerships in the country, thanks to the Internet. But folks who buy over the Internet used to purchase from their local smaller-city dealer – yes, the one on the closure list.
As the number of local franchised car dealers shrinks, we will all miss their community leadership. Thanks for all you have done, and we wish you the best as you move into your next endeavor.
Jan Quintrall is president and CEO of the local Better Business Bureau. She can be reached at jquintrall@spokane. bbb.org or (509) 232-0530.
Economic downturn has consumer giving businesses closer scrutiny
by Jan Quintrall, President/CEO, BBB jquintrall@spokane.bbb.org
for the Spokesman Review, 5/10/09
April 2008: The historic U.S. presidential election dominated the news, and very few of us knew what was ahead for the economy.
April 2009: The headlines are on global recession and swine flu. And a recent BBB Gallup Trust Survey shows a marked decline in the public’s trust of business.
Allow me to delve a little deeper by sharing some Better Business Bureau facts, and let’s get some perspective on what a difference a year makes. I offer a look at April 2009 compared with April 2008:
•Complaints are up 5 percent.
•Resolution of complaints is up 4 percent.
•Requests for industry lists of accredited businesses are up 6 percent, to more than 2,300 per month.
I’m not surprised by any of these numbers, but what are they telling us?
Businesses are running thin, and that makes it easier for processes to break down and problems to fall through the cracks. Complaints go up.
Six months ago the BBB saw a decline in resolved complaints, mainly because many businesses in question had closed and we could not locate the owners. But now, resolution is up, too, and that is a good sign.
The increase in requests for industry lists is also a positive indicator. People are beginning to spend money, and they will spend it in the next four weeks.
The Internet is where most buyers start, and that is where 99.7 percent of those list requests come from. Google sends searchers to the BBB Web site to look for lists, and that is a great place to start.
While Craigslist is one resource, it is just one. Simply hiring someone from Craigslist without looking into their licensing, BBB report and other references drives a lot of complaints to us from people who hired a handyman or lawn care service that does business without insurance, licensing or a permanent address.
Some things never change, and people who take the cheapest offer many times end up paying double.
One industry that wasn’t even in the top 25 complaint categories in April 2008 which jumped to No. 2 this April: general contractors. Again, resolution is up and the majority of problems have been addressed. The closure of a few large builders has left us with some hanging issues, though.
As of the end of April, the BBB has delivered prepurchase information on businesses 31,702 times. The industries people ask us about have changed a lot in a year. Some businesses and industries that appeared at the top of the list were not on the list a year ago.
Apply 2 Save, the mortgage modification company in Hayden, dominates this year’s inquiries. It was not in business in April 2008, and the company received almost 3,000 inquiries this year.
Industries new to the list:
•Credit and debt counseling : Simply a sign of the times, and there are some bad actors in this arena looking to make a quick buck. Be careful.
•Fence contractors : Winter 2008 took its toll on many fences, and people are doing some research before selecting a company.
•Lawn care companies : I’m not really sure why questions about this industry are up, but they definitely are.
•Movers : People keep moving to Spokane from smaller surrounding communities in search of work, which inflates the unemployment statistics. This is one industry where the lowest price can be the most expensive.
•Web designers : If sales are down, businesses owners are looking for new ways to reach customers. Whether it’s for a redesign or a new site, check out the designer first.
•Concrete companies : With all the decline we hear about in construction, the consumer interest in this one seems a bit counter to all that bad news.
•Banks : If you’re looking for a new banking relationship, checking the BBB report is critical. Remember, the BBB system revoked Washington Mutual’s accreditation a number of years ago because of aggressive and deceptive sales tactics in the mortgage department.
So what difference does a year make? Trouble visits different industries, as it visits us all, but the basic concept of doing careful research before doing business never changes. The good news here is that people are spending money; they are being cautious, doing more research and making careful choices.
In other positive news, the “Itsy-bitsy tail-wagger” column two weeks ago brought me more phone calls, e-mails and even letters than I have seen in years. Look for a follow-up this summer.
Jan Quintrall is president and CEO of the local Better Business Bureau. She can be reached at jquintrall@spokane.bbb.org or (509) 232-0530.