Hey, not to worry …. not a “chick” article on relationships, but on the lack of commitment seen in service suppliers these days. How come all the obligations are on my side of the contract? Or to put it differently, don’t vendors have any obligation to deliver what they promise?
From SunRocket, my VOIP provider:
As previously reported, SunRocket is in the process of closing its operations and therefore will no longer be able to provide you with phone service. However, this email provides you with an opportunity to sign up with select service providers who we believe will offer outstanding replacement service.
While services to customers may be discontinued at anytime, all services will be discontinued no later than August 5, 2007.
Found out just before I went on vacation that SunRocket was shutting down. Mad scramble to get a service in place. No requirements on them to continue to provide service, just so long, and thanks for all the fish. For more, see the Washington Post and the NY Times. SunRocket was the #2 VOIP provider, with great reviews. I signed up with Vonage as a replacement, only to discover Voange is in patent lawsuit that could take them under.
Speaking of vacation, I made the mistake of reserving with Northwest Airlines. The day before my trip, I got a phone call canceling my flight, and rebooking me on United. Instead of a relatively straight forward trip to Seattle, I went Boston to LA, and LA to Seattle, doubling the travel time. Turns out I was lucky: many people were not contacted, and only found out when checking in. Others’ flights were scheduled for more than 24 hours after the original time. I got back last night, and reading the news today, I feel lucky that I made it at all - Northwest canceled 514 flights over the weekend. The underlying issue is not enough pilots available. When I talked with the flight attendants, it doesn’t sound like this is going to get better any time soon. Sounds like the pilots warned NW that there wasn’t enough staff, but NW pooh-poohed it. Warning: scuttlebutt from the flight attendants is to not book on the last week of the month or any holidays, especially Christmas. Northwest’s quarterly earning statement today claims they are taking steps to rehire pilots and increase the reserve pilot pool.
And then there’s Amp’d. I work for a company that provides billing services for Amp’d, a mobile phone company with a cutting edge attitude that just declare bankruptcy because, they claim, 80,000 of their 200,000 subscribers didn’t pay their bills. So, question: Who established the policies to allow those subscribers to get phone service with potentially bad or no credit history? Who did (or didn’t) chase those subscribers to pay the bills? The Amp’d download model encouraged impulse buying of music, video, and ringtones, and their ad campaigns were targeted at “bad boys”. The company I work for is one of the many creditors - Verizon was owed $34 million. Amp’d is leaving both its subscribers and its vendors holding the bag.
So what about commitment? How do companies get away with leaving the consumer in the lurch? In the case of the two phone vendors, part of the problem is the changing nature of communications, and how consumer protection (in the form of legislation) hasn’t kept pace with technology. But that’s not the case with airlines.
Capitalism is suppose to work because folks vote with their money. But that only applies if you can anticipate all the potential benefits and risks, and have choices. The real problem for the consumer is the lack of recourse.
I’m one of those folks who does a lot of research before purchasing, and SunRocket was getting good reviews on their customer support and features. Because it wasn’t a publicly traded company, I didn’t have insight into the financial problems. And other than getting in line with all the other creditors, I have no recourse. And absolutely no recourse for the time it took me to get a new phone setup, or any personal or business disruption that it caused.
NW was coming out of bankruptcy, so I knew there were potential issues there. But why should that allow them to run their business so badly that they refuse to fly thousands of people? Isn’t this a violation of the basic rules of business: I pay you for a service, you provide the service? But to fly, you agree to not hold airlines liable for almost anything. What’s my recourse? Of course the Air Plane Passenger Bill of Rights might help.
The bankruptcy of Amp’d impacts both its subscribers, and its suppliers. The bad business practices may help to drown some of its already struggling vendors. What recourse do they have?
While many argue there’s too much regulation, it seems like there are many cases where there’s not enough protection (the goal of much regulation).