Your anecdote is nice, and sure it can be good advertising to give stuff away for free, But it doesn't really apply here.
If you were charged $123.98 and you said, "hey, I told you where the problem was, why am I being charged a diagnostics and driving fee?" and they corrected it by telling you the whole thing is on the house, is that not good business sense?
Even by your own admission, you would have gladly paid that $123.98 with no issues and you wouldn't have been mad about it. So from a business perspective, if they can provide a service, get paid for it, and the customer has no qualms or issues with the transaction whatsoever, in what way is that hurting the brand or being cynical? I think that's a much more business-wise action to take than to give away your services.
> If you were charged $123.98 and you said, "hey, I told you where the problem was, why am I being charged a diagnostics and driving fee?" and they corrected it by telling you the whole thing is on the house, is that not good business sense?
No. I'll be happy that I saved on the money, but I won't trust them in the future. They're now "the place that tries to get away with things" in my mental Rolodex. Better to stick with the fee and know their value. (I didn't tell them where the problem was. All I knew was that the clutch wasn't grabbing anymore. I assumed it needed a whole new clutch.)
> Even by your own admission, you would have gladly paid that $123.98 with no issues and you wouldn't have been mad about it. So from a business perspective, if they can provide a service, get paid for it, and the customer has no qualms or issues with the transaction whatsoever, in what way is that hurting the brand or being cynical?
It would have been a fine decision, sure. But in that case that would likely have been the only business I did with them. Not out of spite or anger, but because I'd have no reason to pick them for future business. I would instead ask friends for recommendations, or pick some place closer to my future residences.
But what actually happened was that I was the one steering people to them. I also went out of my way to return to them for brake jobs, simple oil changes, etc. I was a loyal customer, and probably spent or caused others to spend over $5,000 there.
He had absolutely know way of knowing that would result. But if you just treat people right, the way you'd want them to treat you, you build a reputation. It pays back.
I know this story comes off a bit pollyanna. I get it. For a cynical and non-altruistic explanation: when it takes a technician literally 5 minutes to twist an adjustment nut and verify that was all there was to it, stop and think about the bigger opportunity before you robotically mark '1.00' in the "LBR HRS" field on an invoice. Especially if you're operating in a field that's notorious for rip offs.
> I think that's a much more business-wise action to take than to give away your services.
I'm not saying businesses should give away major services. But they should avoid the temptation to nickel-and-dime as well. That's on the other end of the optimization curve. Not good business.
> He had absolutely know way of knowing that would result.
I think he absolutely knew that building trust is key to solid, long-term, repeat business - not only from the direct customer whose trust he has earned but also the zero-effort initial positive trust-balance he will have with his future/potential customers, even before he has done anything for them, just via word-of-mouth referrals. Such a simple concept but it just doesn't compute for some people.
> But if you just treat people right, the way you'd want them to treat you, you build a reputation. It pays back.
If you were charged $123.98 and you said, "hey, I told you where the problem was, why am I being charged a diagnostics and driving fee?" and they corrected it by telling you the whole thing is on the house, is that not good business sense?
Even by your own admission, you would have gladly paid that $123.98 with no issues and you wouldn't have been mad about it. So from a business perspective, if they can provide a service, get paid for it, and the customer has no qualms or issues with the transaction whatsoever, in what way is that hurting the brand or being cynical? I think that's a much more business-wise action to take than to give away your services.