Mr Jeff Camelbak deserves a huge bonus check and a promotion

The "Jeff" refers to the retail store manager in this story.

Because the company gained
  • Free web-advertising of hits from Tian's blog and mine (and probably others). Mine is less than 1000 hits a day but Tian's is believed to be much larger. I don't know what the typical hit-click conversion rate is, but each click-through worth from $0.1-$5(or more) if you advertise in google, multiply that.
  • Free brand (positive) recognition through word-of-the-mouth and viral promotion, strengthened by testimony from unbiased third-party. (I do not use baakpacks and have not heard of this Camelbak brand until today)
  • At least one happy (and definitly returning) customer
  • Saving the company a few hours of customer service (CSR costs at least $10-15/hour in labor, and there are office costs)
  • Prevented potential damage to brand and unfavorable customer review if there is mistake in handling the situation
The company's cost
  • marignal cost of a backpak which is typically 15-25% of the retail price minus what Tian paid ($10). For a full price of $70, this is estimated to be about $10.5-17.5-$10 = $0.5-7.5
Mr Jeff's bonus check should be at least a fair percentage of the above formula (additional revenue + savings - cost).

1 comment:

tian said...

the opposite of Mr. Jeff at REI is:

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