Public Domain Exercise distributed by DRRC

The Data Printer

Role of Pat Price, General Manager of Price Manufacturing Co.

By Leonard Greenhalgh

You are Executive Vice President and General even when the old man doesn't make any explicit
Manager of a small manufacturing company that has comments) if you didn't come up with the numbers.
been in business for forty-five years in a small town.
The business was started by your father, Otto Price. You especially wanted to avoid telling him that the
He has always been forceful and energetic, and is reason you didn't have the numbers was a computer
well-respected in town despite his being a little gruff related problem. He is "of the old school" and has
at times. Three years ago, he moved to Florida after a steadfastly opposed your increasing use of computers
heart attack. You had just completed your business in the operation of the company. You went against
education, and were familiar enough with the family his advice by bringing in a computer system that had
business that you had no trouble stepping in to run it. more capacity than you needed in the short run, but
"The old man," as you affectionately call him, didn't which would allow for technological growth during
let go of the business completely, however. He still the next several years.
controls ownership and has retained the title of
President. He receives copies of all the financial Robin Adler has also been a subtle opponent rather
statements and keeps in touch by phone, but than a supporter of your computerization of the
essentially leaves you alone to run the business so company. Robin tried very hard to sell you a small
long as budgets, sales, and profit margins are capacity printer for your mini-computer, and has
satisfactory. never accepted nor tried to understand your need to
build capacity for what the computer system is going
You have excellent relationships with town officials, to do in the future rather than what it needs to do
customers, and all of your suppliers except one: right now. Robin supplied other peripheral hardware,
Adler Office Machines. A problem arose one week but couldn't supply an adequate printer from the line
ago (last Friday) with Robin Adler, the proprietor, Adler carried. So you bought a used Datronix unit
which you have yet to resolve. In a nutshell, you from a broker in the city for $7,500. The unit hasn't
were given an estimate for a repair job, then charged been very reliable (service last year cost you $2,100)
much more; when you questioned the bill, Robin got and Datronix has since gone out of business, but
angry and rewrote the bill, charging you even more. when the printer works, it is perfect for your needs.
Your company has been doing business with Adler Robin has been making unwelcome remarks about
Office Machines since Robin started the operation 25 your purchase ever since you bought it, and you're
years ago, and you are probably Adler's biggest sick of this snide, "sour grapes" attitude. It's certainly
customer. You are not totally dependent on Adler, no way to treat a good customer.
but it would be extremely inconvenient to go to the
next town to get all your office machine service and This history of opposition and unhelpfulness was the
supplies. broad context of your dispute with Robin last Friday.
The printer had broken down during an important
The situation arose when the Datronix printer run, and Robin sent a young repairman, Fred Gates,
connected to your mini-computer broke down during over to fix it. Fred is a well-intentioned and
an inventory run late last Wednesday afternoon. The conscientious worker, but seems a little
fourth quarter ended on that Friday afternoon and you inexperienced. He came over immediately. You told
wanted to close out some figures. You were under him the printer needed to be repaired right away and
pressure from the old man because you and he have that you had to have an estimate of the cost. You had
disagreed over the proper size of inventory safety already gone way over your budget on the costs of
stocks. You wanted to be able to prove to him that servicing your computer system, and the old man has
with good planning, inventory costs can be held been very critical about it; you needed one more
down. You told him you would prove it to him by the repair bill during the fiscal year like a hole in the
weekend. You knew you would have to endure head. But shifting the cost to the next year would be
considerable ridicule (you can feel it in his manner worse -- you could just hear the old man: "That's
nice; the new year has just begun and we're already

1 Data Printer/Role of Price

up to our ears in repair bills on that Buck Rogers saying that Fred had only made notes to himself.
computer system of yours." You didn't need that Robin also talked about other parts and work being
aggravation. needed, but didn't say why Fred couldn't have done a
proper diagnosis before taking the machine away.
Fred inspected the damage and made out an estimate
for you. He didn't bring over the Adler standard What bothered you most, however, was Robin's
estimate forms so he wrote it on a piece of scrap derisive manner, treating you as if you were a green
computer paper. It wasn't too professional, but it did kid. You've experienced this derision from Robin
the job: before, and it seems to result from resentment that
you didn't buy your printer from Adler Office
Parts $ 250 Machines. In effect, Robin is trying to punish you by
being difficult every time the printer needs servicing.
12 hrs. Labor $ 300
Adler is the only repair shop in town, but it is not the
Total $ 550 only repair facility available if you are willing to
have one of your workers drive 35 miles (each way)
Fred pointed out what was wrong with the printer. A to another repair shop. You didn't have time to do this
bracket holding the printing head had broken off, and last Wednesday, so in a sense Robin had you over a
the delicate printing head had become damaged when barrel, and took advantage of that situation to squeeze
it fel1. He said he would have to take it away to do more money out of your company.
the heliarc welding but believed he could get
overnight Federal Express delivery of a replacement As a result of the mocking tone of his voice and
printing head. He went back to get the Adler van, and being overcharged for the repair, you lost your
meanwhile you wheeled the printer to the front lobby temper. You told Robin that it was unethical to
to speed things up as much as possible. exploit the urgent needs of customers, that you
wouldn't tolerate a rip-off from anyone, and that you
Fred called the next day (last Thursday) while you planned legal action, if that were necessary, to force
were in a meeting and left a message that the job had Robin to honor the contractual arrangements that had
been difficult but that it would be ready by 5 p.m. been made when you accepted Adler's bid to perform
Friday. You really wanted it earlier so you could the repair for $550. Robin had become equally angry
finish printing the inventory data before the weekend. by this time, and since you saw no point in
You resigned yourself to finishing the printing continuing the discussion then and there, you started
Monday morning, but stopped in at Adler Office to leave.
Machines late Friday afternoon to see for yourself
that the printer was certain to be ready for pickup The enraged Robin stopped you, saying that if you
first thing Monday morning. wanted the bill adjusted, that could be done
immediately. The new bill was as follows:
You arrived at the shop at 4:45. The printer was
chattering away, and Fred was aligning the printing Parts $ 247
head. You were relieved to note that the unit was
20 hrs. Labor $ 500
obviously working again. Your mood changed
quickly, however, when Robin handed you the Federal Express $ 27
invoice. It came out $97 above the $550 estimate: Total $ 774

Parts $ 272 Robin showed you the 20 hours labor allowance for
15 hrs. Labor $ 375 head replacement that appeared in a 5 year old
Datronix service manual, and made a point of telling
Total $ 647
you that the job actually took Fred only 16 hours.
This behavior doubly surprised you since a customer
You immediately visualized the expression on the old had been in the showroom during the interchange.
man's face: that silent ridicule you had come to know Robin was evidently so angry as to be unconcerned
so well over the years. about the reputation of Adler Office Machines in the
business community.
You asked why the bill was so much higher than the
estimate, since Robin stood there with a bland You took both bills and, shaking your head in angry
expression volunteering no explanation. Incredibly, disbelief, left the premises. You figured it would be
Robin denied that the job had even been estimated,

2 Data Printer/Role of Price

more productive to let Robin cool down over the the customer's approval to proceed given the
weekend. additional charges, the strict legal liability is limited
to the original estimate. However, while the flat rate
You took the Price van over to Adler's when the shop charge on the second bill would not have been
opened at 9 a.m. on Monday morning. Robin wasn't inappropriate had the contractual relationship been
there, which was somewhat of a relief to you. Fred based on flat rate from the start, the flat rate is
wasn't there either, but the printer was ready to be irrelevant in that the deal was based on the written
loaded. You easily pushed it into the back of the van, estimate by Fred -- a representative of Adler Office
and since neither Fred nor Robin had returned by the Machines -- on the basis of actual labor hours.
time you were ready to leave and the sales clerk was
looking confused as usual, you drove away. You got You don't need your attorney's advice to realize that
some satisfaction from thinking of the expression on it was inappropriate to take possession of the printer
Robin's face upon discovering the printer gone. without paying for it. Adler had a mechanic's lien on
the printer so long as the bill was unpaid, thus your
You received a telephone call from Robin's attorney taking it could be construed as conversion of "Adler's
about 1 p.m. on Monday. The attorney explained her property." It's hard to believe any such charges would
interpretation of your legal position, adding that stick, in that neither Robin nor Fred was around when
Robin was even angrier and wanted to press criminal you stopped by to pick up the printer at the arranged
charges. She said she hoped that the matter could be time. Even if the charges were pressed, you would
settled amicably and would call you later in the week probably not face serious consequences. However,
after the two of you had "had a chance to put things getting dragged into court could result in some
in perspective." embarrassing publicity and it would certainly
consume an enormous amount of your time and
You understood the issues well enough that you energy (the same is true of Robin Adler).
didn't feel the need to get your attorney involved at Furthermore, there's no telling how the old man
this stage. You knew that Robin's second bill was not would react.
actually inconsistent with industry practice. The
standard industry billing practice of charging a flat On the other hand, you don't intend to bear the brunt
rate for labor is similar to the procedure usually of Robin's temper fits and thoroughly unprofessional
followed in charging for auto repairs. If your car's behavior, especially when these occur in public. You
generator fails, the garage will give you an estimate are one of Adler's most important customers and
of the repair total by including the retail cost of parts deserve to be treated as such. Robin had better look
(the garage marks up its costs 10-30%, depending on to the future and back down and honor the transaction
the type of parts) plus a predetermined number of originally agreed to.
labor hours (which are usually slightly more than the
job normally takes). Robin's lawyer called you yesterday to set up a
meeting between you and Robin to try to work things
If there are complications or additional problems, out. The meeting will be held today, one week after
such as burned out wiring or a blown voltage the dispute occurred; it will be held in the Coffee
regulator, the mechanic is supposed to call the Shop of the local Holiday Inn -- on neutral territory.
customer with a revised estimate. The customer can
then authorize the mechanic to proceed, or can make
other arrangements. If the mechanic does not secure

3 Data Printer/Role of Price