Tiered vs Current Service Plan
Rae J Rossignol
Kaplan University
AB221: Customer Service – Unit 9
Professor Robin Argo
June 22, 2014

Mac Gibson’s idea to change from the current service plan to a tiered service plan has its pros and cons. If could help those customers that make those large purchases in the course of a year, then again for those who may not be able to make them, it make not be what is best. For those able to take advantage of the large purchase can take take advantage of the great incentives that will help them. For those that cannot they end up with different perks, which could cause them to start looking elsewhere for someone to help out the “little man”.

There could be many types of problems Mac Gibson’s could be facing is just the fact of change. Staff and clients alike may hesitate at the thought of change. Another problem make be the likelihood that proficiency may be lost.

Purchasing in a large quality wold have a large impact on the way the current service plan is. Currently clients do not have to purchase large amounts of product to get a good deal or incentives. Currently clients can buy and if they want buy more the next day with the same service expectation.

The new proposed plan will help the company have more cash or sales meeting their day to day operational cost. The working capital now improves in this situation, the company produces smaller debt days and be able to pay there bills to supplies on time.

When purchasing less then the $100,000 worth of product each year client are going to loose the customer service experience they are used to, when they purchase on an as needed basis.

References
Gerhart, B., Hollenbeck, J., Noe, R., & Wright, P. (2009). Fundamentals of human resource management (3rd ed.). New York, NY: