Hearthlist Digest #413 - Sunday, February 20, 2000 Customer Service in a new age.... by "Craig Issod" <[email protected]> CFM Majestic News by "Dan Cook" <[email protected]>
(back) Subject: Customer Service in a new age.... From: "Craig Issod" <[email protected]> Date: Sat, 19 Feb 2000 18:39:44 -0500 In the old days, an unhappy customer might tell a few of his friends. More likely, they might be a bit embarrassed about buying a lemon and keep things to themselves .... after all, what could they do, write a few letters? The companies has masses of form letters and intermediaries to deal with that. Not any more... In the new world of the internet and mass media advertising, the customer has achieved an unprecedented level of strength in their relationship with vendors. Listen to the following two examples: 1. A customer posted this on the Hearth Forum today: (quote) Consolidated Dutchwest is the biggest piece of j**k stove anyone could buy!!! I bought a new one 2 months ago and it stinks up my house so bad, I cannot put the damper down to use the catalytic converter. This shows the integrity of Vermont Castings. Many calls to their rep. have all gone unanswered. When you call them you get the automated voice which sends you down many different routes and numbers which all lead to another automated voice mail! Excuses, excuses, excuses is all you will get from this company! They used to be a reputable company but since Majestic took them over the dealer said they have had nothing but trouble. (end quote) There are other stove complaints on the Forum, but most are in earlier stages than this one. It appears that this customer has tried to get satisfaction, but has not had the right "hand-holding" to keep him quiet. The same complaint is probably being lodged elsewhere on the net (newsgroups, etc.) _ worse yet, the dealer is agreeing with the customer that the manufacturer is going downhill! What a PR nightmare! There may not even be a problem with the stove..maybe it's the chimney, wood operator or some other factor....still, the customer feels that they are being treated unfairly and will be using their First Amendment rights to speak out about it. To be fair to the company, I deleted much of the post because the customer did not include any contact info. It's only right that the company get a chance to make it right and then ask the customer to clear the complaint. 2. My dad called me today from Miami, where one of the biggest boat shows in the country is taking place this week. He saw an airplane overhead with a banner behind it that said: visit http://centuryboatsucks.com. Well, I ask my fair readers to go take a look at the site and see what kind of damage is being done to Century Boats. In my two years since leaving the retail side of this business, I have come to the realization that customer service in this industry has a LONG way to go. Many companies are actually going DOWNHILL in this department as opposed to investing more time and resources into their customer service operations. Manufacturers and retailers have long enjoyed the fat profit margins and relative lack of competition in this industry, but they seem reluctant to plow back some of these profits into service. The net is just one more reason for your company to look HARD at your customer satisfaction level and do everything you can to keep the end-user 100% happy. Your opionions welcome... ------------------------------------------------------ Craig Issod HearthNet at http://www.hearth.com [email protected] Everything your Hearth Desires ------------------------------------------------------ ------------------------------------------------------
(back) Subject: CFM Majestic News From: "Dan Cook" <[email protected]> Date: Sun, 20 Feb 2000 11:54:50 -0500 --=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D_-1261056805=3D=3D_ma=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D Content-Type: text/plain; charset=3D"us-ascii" ; format=3D"flowed" Interesting news report on CFM Majestic. Dan Cook. Northwest Stoves Fireplace maker searches for suitor By Madhavi Acharya Toronto Star Business Reporter CFM Majestic Inc. may not be able to keep the home fires burning much = longer. The Mississauga-based fireplace maker is considering, among other options, putting itself up for sale in a bid to ignite its lagging stock price, the company announced yesterday. CFM has hired New York investment bank Berenson Minella and Co. to examine ``a variety of strategic alternatives'' - including the sale of the company, a merger or re-capitalization. ``We're looking for ways to get shareholder value. That's really the crux of the whole thing,'' said CFM founder and chairman Colin Adamson. The announcement came after CFM reported growing sales but lower profit in its latest financial report. CFM makes Vermont Castings and Majestic fireplaces, popular around the world. The prospect of losing its status as proudly Canadian-owned is troubling, Adamson said. ``I feel bad about it, but our industry's changing. It looks like the stock market is changing. Investors are looking for high-tech industries. We have to get bigger, and that's our goal here.'' Adamson declined to say if CFM is already in negotiations. The sale of the company appears to be the most likely option, said analyst Bill MacKenzie of TD Securities Inc. At the top of the list of potential buyers are two giant U.S. rivals, furnace company Lennox International Inc. and Hon Industries Inc., an office furniture maker. CFM, worth nearly $347 million at its current share price, would make an appealing addition to either firm, MacKenzie said. ``It's a highly profitable company that is very well-positioned within the industry in terms of its over-all product line,'' he said. CFM designs and manufactures gas and wood-burning fireplaces, wood stoves, gas logs and space heaters. Like many other consumer goods makers, CFM has seen its market value lag as investors clamour for technology stocks. CFM shares rose $1.25 to close at $8 in Toronto yesterday, still well below a 52-week high of $14.30. From humble beginnings in 1987 as a startup with three employees and sales of $380,000, CFM has grown into an industry leader with seven factories in the United States and one in the U.K. Most of its 2,300 employees work at the Mississauga head office. Sales rose to $356 million for the year ended Oct. 2, from $273 million the year before. Operating income before taxes and unusual items rose 33 per cent to $46.9 million. Yet net profit fell to $16.5 million from $26.2 million, largely because of a $23 million charge arising from ``a business realignment program to streamline operations,'' the company said. CFM also paid unusual legal costs of $4.4 million during the year to defend itself in three U.S. patent-infringement lawsuits. The company is mothballing part of a gas fireplace plant in Huntington, Ind., and vacating an administrative building in Bethel, Vt. ``We believe the current market price for CFM's shares does not properly reflect the company's true value and future prospects,'' Adamson said in a statement. ``The board of directors has directed the company to engage in discussions with parties who have an interest in developing upon the success the company has achieved.'' --=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D_-1261056805=3D=3D_ma=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D Content-Type: text/enriched; charset=3D"us-ascii" Interesting news report on CFM Majestic. Dan Cook. Northwest Stoves Fireplace maker searches for suitor <center>By Madhavi Acharya Toronto Star Business Reporter </center>CFM Majestic Inc. may not be able to keep the home fires burning much longer. The Mississauga-based fireplace maker is considering, among other options, putting itself up for sale in a bid to ignite its lagging stock price, the company announced yesterday. CFM has hired New York investment bank Berenson Minella and Co. to examine ``a variety of strategic alternatives'' - including the sale of the company, a merger or re-capitalization. ``We're looking for ways to get shareholder value. That's really the crux of the whole thing,'' said CFM founder and chairman Colin Adamson. The announcement came after CFM reported growing sales but lower profit in its latest financial report. CFM makes Vermont Castings and Majestic fireplaces, popular around the world. The prospect of losing its status as proudly Canadian-owned is troubling, Adamson said. ``I feel bad about it, but our industry's changing. It looks like the stock market is changing. Investors are looking for high-tech industries. We have to get bigger, and that's our goal here.'' Adamson declined to say if CFM is already in negotiations. The sale of the company appears to be the most likely option, said analyst Bill MacKenzie of TD Securities Inc. At the top of the list of potential buyers are two giant U.S. rivals, furnace company Lennox International Inc. and Hon Industries Inc., an office furniture maker. CFM, worth nearly $347 million at its current share price, would make an appealing addition to either firm, MacKenzie said. ``It's a highly profitable company that is very well-positioned within the industry in terms of its over-all product line,'' he said. CFM designs and manufactures gas and wood-burning fireplaces, wood stoves, gas logs and space heaters. Like many other consumer goods makers, CFM has seen its market value lag as investors clamour for technology stocks. CFM shares rose $1.25 to close at $8 in Toronto yesterday, still well below a 52-week high of $14.30. >From humble beginnings in 1987 as a startup with three employees and sales of $380,000, CFM has grown into an industry leader with seven factories in the United States and one in the U.K. Most of its 2,300 employees work at the Mississauga head office. Sales rose to $356 million for the year ended Oct. 2, from $273 million the year before. Operating income before taxes and unusual items rose 33 per cent to $46.9 million. Yet net profit fell to $16.5 million from $26.2 million, largely because of a $23 million charge arising from ``a business realignment program to streamline operations,'' the company said. CFM also paid unusual legal costs of $4.4 million during the year to defend itself in three U.S. patent-infringement lawsuits. The company is mothballing part of a gas fireplace plant in Huntington, Ind., and vacating an administrative building in Bethel, Vt. ``We believe the current market price for CFM's shares does not properly reflect the company's true value and future prospects,'' Adamson said in a statement. ``The board of directors has directed the company to engage in discussions with parties who have an interest in developing upon the success the company has achieved.'' --=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D_-1261056805=3D=3D_ma=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D--