As I was writing this blog post in my head while at the same time scurrying down concourse D at LaGuardia airport in New York a couple of days ago, the working title for it was, “F&$# You LaGuardia.” After realizing I had to leave security and re-enter just to (barely) make my connecting flight on the same airline (American), I was less than pleased.

Then I saw it, just by my gate - D10 - all the way at the end of the aging concourse - the Sam Adams beer stand. Not only did it serve one of my favorite microbrews, but it was how it was served, by the friendliest employee at the airport too! Oh, and they also had hot dogs too.

It was a true oasis in the madness of this flight, which was compounded by delays in our departure. The man pouring and serving dogs knew he was serving more than just that, and it showed in his enthusiasm. And it worked - not only did I write this but I snapped a photo of the booth.

After paying to redeem miles for my flight and to check luggage, the best value I got on my return trip was the cost of the beer and dogs and the tip I left for the beer man.

Next time I’ll probably fly direct on Southwest or AirTran home, but if I have to go to LGA, I’ll be heading down to gate D10 no matter my flight.

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Tomorrow, July 4, marks the 233rd anniversary of the signing of the Declaration of Independence, marking the start of the United States of America.

As I think about Independence Day, something that comes to mind is the polarity in politics today. I say that as people have always had differing opinions – even in 1776. It’s easy to blame the 24/7 media world we live in, but in order for us to come together, we need to do so in person, and not through our chosen medium.

Maybe that’s why the picnic is such a big part of celebrating the Fourth of July? To all my friends and readers in the US, not to forget those who are defending the freedoms stated in the Declaration here and around the world, a safe and happy holiday!

Photo of US flag on the Wrigley Building, Chicago by Mike Maddaloni

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You get those offers in the mail all the time - open a new bank account with us and get X dollars, where can be anything from US$50 to US$150. As enticing of an offer it is - who doesn't want free money - it does not take into consideration the total costs of switching over to this new bank.

Allow me to introduce what I call TCS - the total cost of switching.

Taking the bank example above, some of the activities involved in switching bank accounts include the time to actually open the new account, balancing 2 accounts until you close the original account, switching auto deposits and debits to the new account (if switching a payroll check, add the hassle of getting a paper check in the middle of the switch), the cost of new checks, and learning the processes of a new bank. And these are just a few things that come to mind. When you consider paying somebody to perform these tasks, their salary negates any "free money" from the bank.

Of those, learning the processes has the longest lasting impact. When things work, everything is OK. When it is not, the first time going through the process is truly a leaning experience. Unfortunately this is nothing you can find out for yourself until it happens to you or your business personally.

Poor Service Always a Catalyst to Switch

One factor that outweighs switching cost is poor service. The opportunity cost of dealing with poor service from a vendor is huge, especially if their products or services are in turn offered to your clients or customers. This is something that has unfortunately happened to me one time too many! It not only cost me time in the interim dealing with the vendor but setting up with a new vendor, accommodating my client and not to mention stewing over it.

Plan Ahead with Backup Vendors

If you do need to switch, it is good to already have a vendor lined up and some form of working relationship with them. Even a list of names and emails is better than nothing, and names and mobile numbers are the best. Depending on the service, doing some amount of business with them will help mitigate risk. The cost of spreading business around may be more upfront, but it can help preserve client relationships and revenues - not to mention brain cells - in the long term.

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Last week I was riding the Brown Line in Chicago north and I got an idea to truly test out the video on the Nokia E75 I am evaluating. So I held it up against the window of the car and pressed record, and the following is what was captured.

If you cannot see the video above, follow this link to watch my Chicago Loop L Ride Recorded by Nokia E75.

This is a view heading north from the Randolph/Wabash stop to the Merchandise Mart stop. You will see the famous Chicago Theatre sign, the Chicago Board of Trade building and the Chicago River.

What do you think of the video? Is it of good quality? I have been using the camera for still photos and video and even took it to a wedding - look for a full report on my use of the Nokia E75 soon!

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Editor’s Note – The following is a guest post by Ralph Ingrassia, President of Endeavour Technologies, LLC, and a project management consulting guru. A longtime reader of The Hot Iron – not to mention client of Dunkirk Systems, LLC and close friend of Mike Maddaloni – he shares some of his wisdom and experience here, which we hope will be the first of many guest posts.

Who isn’t trying to cut costs these days, whether those be business or personal costs? One cost I was considering cutting was my weekly pool service. But, having tried that in the past and failed miserably, I had decided that maybe this wasn’t a cost worth cutting yet.

Over the years I’ve used the larger pool servicing companies, but have always been left disappointed by the higher prices, nickel and diming and lack of professionalism. So, being a small business owner myself, I settled on an independent Pool Guy and have been happy for the last few years. I could pick up the phone and he’d be here if I was having a party or if I had any problems whatsoever and it was always clear that his priority was that I was happy with his work.

Things started to change this year. The first point of concern was that his price went up this year again for the third year in a row. Now last year I understood a price increase due to the rising cost of gas but this year’s price increase left me confused. If anything I would have anticipated a steady price this year. Still, his prices were much more competitive than the larger companies mentioned above so I didn’t say anything. Then the nickel and diming started. Not much, but a few bucks here and there. Again, I was still saving money so I decided to just keep an eye on these charges over time.

Last week, however, was the deal-breaker. After completing my service he knocked on my door for payment and I happened to be on a conference call that I had muted. I decided that it would be easier to pay cash which left me $8 over the service price. I informed him that if he didn’t have any change we could just apply it to next week. The response was, “Ralph, you’re cheap just like my Dad.” “He won’t give a tip to save his life.” Now, anyone who knows me knows that I value good service and in situations where a tip is warranted, it is awarded. I worked in the restaurant industry and completely understand how the American restaurant system makes it so gratuities make up the lion’s share of a server’s income. Jokingly, I also thought that the fact that I actually had a Pool Guy would classify me as being not cheap.

But from the customer perspective, a line had been crossed here. As small business owners, we try to price ourselves competitively, prevent scope creep to manage the need for cost increases or business losses, and provide the utmost in professional service. In most cases, I find that it is the professional and personalized service that is most valued by my customers relative to my fees. The example I’ve detailed with my Pool Guy can be applied to my own business as well.

So what has gone wrong here? Is it just a case of temporary insanity or has the service provider forgotten that I am a long term customer that he has a pleasant relationship with and not a friend? Or, is it that this particular small business owner has forgotten to holistically look at their services and fees and evaluate if his customers are really receiving a superior service for their dollar regardless of a competitor’s price? In this case maybe it’s all three.

In the end, the decision that I made was to cut back on my service to bi-weekly instead of weekly. Was this decision driven solely by the lack of professionalism? No. But, it was a factor in a decision I had been teetering back and forth on.

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This is from The Hot Iron, a journal on business and technology by Mike Maddaloni.

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