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Carpet fiasco
"The problem of power is how to achieve its responsible use rather than its irresponsible and indulgent use - of how to get men of power to live for the public rather than off the public."
Robert F. Kennedy, 'I Remember, I Believe,' The Pursuit of Justice, 1964 US Democratic politician (1925 - 1968)
Jim awarded the carpet cleaning contract to a competitor rather than the local Jim's franchisee - just to save $76!
Unbelievable but true. See the transcripts of emails below:
From: John Marsh [mailto:johnm@jimscleaning.net.au] Sent: Monday, 8 September 2008 2:01 AM To: johnmarsh1@optusnet.com.au Subject: FW: The Final Cut [Jims Group Email]
This is an updated version of the original email, with the final reply from Jim Penman and a foot note from John Marsh.
>> Below is a transcript of an email ‘conversation’ between John Marsh a Jim’s cleaning franchisee and Jim Penman CEO and founder of the Jims group. Makes interesting reading, please forward on to your address book something I feel people would be interested to know.
2008/9/5 John Marsh <johnm@jimscleaning.net.au>:
>>> Jim,
>>>
>>> I am writing to you as I hold grave concern in regard to information
>>> I
>> have
>>> received about the use of an outside contractor employed to clean
>>> the carpets at the training centre. I learned of this yesterday in a
>>> casual conversation with a friend. Apparently a lead was sent to a
>>> Jim's Carpet Cleaner who came and quoted the job, whoever arranged
>>> this felt the quote was too high and mentioned this to someone who
>>> suggested a person from
>> Valet
>>> 5. He was called, quoted and did the job. I found this totally
>>> beyond comprehension, not really believing that it was true I made
>>> some calls to
>> my
>>> franchisor who confirmed it.
>>>
>>> On your on hold message you personally advertise Jim's carpet
>>> cleaning,
>> the
>>> exact wording I do not know, but I am sure it would be in the form
>>> of a professional job at a fair price, obviously not fair enough for
>>> the Jim's group, how bloody hypocritical !! I really can not believe
>>> that the credibility of the entire Jim's Group, something that you
>>> have spent over
>> 25
>>> years building could be shot down to nothing over the princely sum
>>> of
> $76.
>>> Yes Jim $76 that was the difference between the two quotes! In
>>> addition
> it
>>> has been brought to my attention that the Jim's franchisee who
>>> quoted had only just signed up and this was his second or third
>>> lead. He apparently does not know what transpired and I have been
>>> asked not to tell him, I
> can
>>> understand why, if it was me I would be screaming for my money back!
>>>
>>> Surely the correct way to have dealt with this if the quote was felt
>>> to
> be
>>> too high, would have been to contact the franchisor for the area to
>>> personally come and access the job and keep it in house, after all
>>> the franchisee is a representative of the Jim's group and needs to
>>> be guided
>> to
>>> a correct pricing structure, if out in the field he is quoting to
>>> high it will have a knock on effect to all of the services Jim's
>>> offer, from
>> public
>>> word of mouth.
>>>
>>> You're an intelligent man Jim, so I am sure it is not necessary for
>>> me to explain the impact this would have on the Jim's group as a
>>> whole if this became public knowledge, or if the media got wind and ran with it!
>>>
>>> As for Valet 5, well if it was me I'd be telling the world, what a
>>> great
>> way
>>> to advertise, I can see it now VALET 5, THE PREFERRED CARPET
>>> CLEANERS
> FOR
>>> THE JIM'S GROUP.
>>>
>>> I and many thousand's of franchisees have invested a great deal of
>>> money
>> to
>>> buy a business that uses your integrity, persona and credibility,
>>> since buying my franchise 3 years ago there have been a few things
>>> that have caused me some angst but this takes the cake! I can only
>>> hope that this
>> does
>>> not become public knowledge, leads would drop to Zero and it would
>>> not surprise me if you never sold another franchise again. Over
>>> dramatic
>> maybe,
>>> but the public are a fickle commodity, I wonder how long Virgin
>>> airlines would last if Richard Branson chose to fly with Quantas
>>> because he felt
>> they
>>> offered a better more competitive service!
>>>
>>> The more I think about the hypocrisy of this situation the harder I
>>> find
>> it
>>> to comprehend. I will be giving some serious thought over the next
>>> few
>> weeks
>>> as to whether I wish to remain with a group that holds its own
>>> backbone
> in
>>> such high disregard.
>>>
>>> I would appreciate it if you would could afford me the courtesy of a
>> reply,
>>> the damage is done in my view but I would like to know your feelings
>>> on
>> this
>>> matter and what action if any you may take in relation to it. If it
>>> was
> me
>>> Jim, Heads would roll.
>>>
>>> Yours
>>>
>>> John Marsh
>> -----Original Message-----
>> From: Jim Penman [mailto:penman.jim@gmail.com]
>> Sent: Saturday, 6 September 2008 9:06 AM
>> To: John Marsh
>> Subject: Re:
>>
>> Sorry John, I'm not going to be able to give you the answer you want.
>> Jim's guys are good and we give them tens of thousands of dollars a
>> year in work around our place, but we work like any other business in
>> looking for the best value at the best price. If our guys are equal
>> value, of course we'll use them. If not, we won't. At the extreme,
>> your argument would have me sack all my IT, bookkeeping and cleaning
>> staff and use Franchisees only. Then what are my Franchisees and
>> Franchisors going to say when our service levels drop because we
>> can't afford to look after them properly? On another level, we've
>> spent hundreds of thousands of dollars building a Conference Center
>> so we can give better quality training at a lower price. Using Jim's
>> guys only would have made this impossible. Who benefits from that? I
>> know it's only a carpet cleaning job, but where do you draw the line?
>> The rendering of our buildings was just a painting job, but we could
>> not have done it without the price we achieved (around $50,000).
>>
>> I'd expect you to use Jim's guys for bookkeeping or whatever if
>> they're as good as anyone else, but NOT if it would seriously cripple
>> your business. And if you tell me you would make such a decision,
>> then you're not being entirely truthful.
>>
>> John, if you want to leave Jim's because I won't live up to your
>> code, then do so. I've never lived by this and never will. My aim is
>> to provide constant improvement in service to Franchisees,
>> Franchisors and customers. That's what I've promised and that's what I'll deliver.
>>
>> Incidentally, I don't appreciate bad language. It doesn't strengthen
>> your case nor cast credit on you as an individual. And I always reply
>> to my Franchisees. The only reason I would not respond to any contact
>> is that I did not get it.
>>
>> Jim
> 2008/9/6 John Marsh <johnm@jimscleaning.net.au>:
>> You where right Jim, not the answer I want. Certainly I can
>> understand
> that
>> in a business the size of the Jim's group it would be totally
>> unviable to use subcontractors in all the areas of operation, it
>> makes perfect sense
> to
>> me to employ full time staff in all the aspects of administration, I
>> would ask you one question; would you use VIP garden services to
>> maintain the grounds at Mooroolbark if they offered a more
>> competitive service!! The point of my email was to express the point
>> that why would the public use a service we provide if we wouldn't use
>> it ourselves. As for the comment
> made
>> in to relation to bad language, bloody is a word in the English
> dictionary,
>> and was used in a context to emphasise my disbelief so your comment
>> is laughable.
>> Obviously I am going to have no joy in resolving this issue with you,
>> so I will ponder in which avenue I will move to. I had a great deal
>> of respect for you Jim, and held you in high regard sadly no longer .
>> I'm sure this fact will have little effect if none at all on you, but
>> I will say it all the same!
>>
>> John
-----Original Message-----
> From: Jim Penman [mailto:penman.jim@gmail.com]
> Sent: Saturday, 6 September 2008 12:13 PM
> To: John Marsh
> Subject: Re:
>
> To answer your question, no I would not use a competing franchise
> chain for any service. We only use independents, for obvious reasons.
>
> On the subject of dictionaries, perhaps you would care to look up the
> word 'hypocrisy'. This is not living up to your own standards, or
> asking someone else to abide by standards you would not live up to
> yourself (as you have done). My standards are pretty clearly laid down
> in my book and elsewhere.
>
> I'm disappointed you have no problem with crude language, which
> presumably also applies to the way you deal with clients. Given this,
> I look forward to your speedy departure from the system, as promised.
>
> Jim
Original Message-----
> From: John Marsh [mailto:johnm@jimscleaning.net.au]
> Sent: Saturday, 6 September 2008 1:03 PM
> To: 'Jim Penman'
> Subject: RE:
>
> I have no problem within my business regarding clients Jim, I haven't
> taken leads for approximately a year, other than the odd unserviced
> lead I have been asked to take up. Most of my work is from referrals
> so I obviously have the right approach in that regard. You seem to be
> living on a different planet, in none of my communications I have
> madeany statement as to Promise to leave, only that I will be giving
> serious thought as to whether I wish to remain. Having invested a sum
> of $22,000 perhaps you would be kind enough to refund me this amount,
> I can assure you it would facilitate greatly in my choice!
>
To: 'John Marsh'
> Subject: RE:
>
> Further to this Jim, perhaps you should look into things with a little
> more effort, Valet 5 is a Franchise!!!!!!
-----Original Message-----
From: Jim Penman [mailto:penman.jim@gmail.com]
Sent: Saturday, 6 September 2008 2:17 PM
To: John Marsh
Subject: Re: FW:
John,
Try and talk sense. Using a Franchise nobody's heard of is not going to cause a stir, while using VIP or similar just could. There's a practical side to my principles, and that's basically that I look to the best interests of my Franchisees as a group. If I followed your principles, I would be in such a bad financial state I'd give a lot LESS work to Franchisees, plus be able to provide less support.
As to looking into things more carefully, perhaps that's something you should have done. You're the one who bought in under illusion that I followed some meaningless 'principle' of yours, which you wouldn't even live up to yourself. I repeat the question you've failed to
answer: would you use Jim's guys over lower priced (but equal quality) alternatives, even if that drastically cut into your viability?
As to your $22,000, use crude language or obscenities with my clients and I will see you terminated. And no, you won't get your money back.
Jim
Thanks Jim, now I know where I am going with this. How dare you threaten me, I have had enough of your twist on words, I have never used bad language with my clients and I thought that would be obvious seeing I am flat out 7 days a week. As for Valet 5 being a franchise no one has heard of, well I have and so have many of my friends, and anyway the fact is irrelevant they are a competitor which in your reply you state you would 'never use for obvious reasons', reasons which where my concern to start with, and something I have every right to have concern with. In answer to your question I have no need of the services offered by the Jim's group, I am more than capable of doing things myself, or have a number of friends who are more than willing to assist me if the need arose.
John
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
-----Original Message----- From: Jim Penman [mailto:penman.jim@gmail.com] Sent: Saturday, 6 September 2008 9:29 PM To: John Marsh Subject: Re: FW:
You have every right to 'question' a policy. Franchisees who do this
can expect a courteous response and an explanation, and sometimes we
modify the policy.
What you did is write a rude, crude, insulting letter, saying that you
were looking to quit the system because you were disgusted with my
hypocrisy. John, you are the hypocrite and the one making threats. If
you regularly speak to clients the way you have addressed me you will
be terminated - that's no special threat but merely what's in the
Franchise Agreement.
I don't respect you, or your opinion, but keep your nose clean and
you'll be in no trouble.
Jim
I felt this response unworthy of a reply, the final comments I find childish and patronising. Instead I’ve packaged it up and sent it out so people can
make there own decision. I would like to thank everyone for their support so far, which has been 100% positive.
Ps Must have had a terrible time coping with the Australian Tourist Board advertising campaign of a few years back!
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