Money Management

Customer service is a vital part of your business. Avoid these common mistakes that can give your customers a bad experience. [[{“value”:”

Businesses can live or die on the strength of their customer service. That doesn’t mean customers expect flawless service — but it does mean you should try to avoid some of the more common mistakes that can turn off your customers. Here are a few major customer service blunders to avoid for your own business.

Inadequate support channels and staff

This mistake shows itself in a number of ways. Perhaps you don’t offer enough customer service channels — do you only allow email, or can customers also chat or call?

Another big problem is a lack of support staff, which means customers wait too long for help. Time is money, and that applies to both your customers’ time as well as the money late responses could cost you.

Customer service should be available 24/7 if at all possible. According to Hubspot surveys, 90% of customers rate an immediate response to customer service questions as very important.

At a minimum, make sure you have a comprehensive FAQ page on your website. An online chat option is also very helpful for quick answers to basic questions. And you’ll definitely want to make sure someone dedicates time to handling support emails and/or customer calls every day.

Lack of customer management tools

Few things can annoy me in a customer service interaction quicker than having to repeat the same information over and over. If you take my name and account number at the start of a call or chat, I expect you to still have that information five minutes later. If I call and chat with someone about my problem, I expect there to be a record of that chat the next time I call.

Give your support staff the tools to organize and keep track of customer information. And no, I don’t mean sticky notes in a paper file.

It’s the digital age, and there are countless customer relationship management software solutions that you can adopt to keep your client information organized and accessible. You may even already have useful customer management tools, depending on your business accounting software.

Not empowering your support staff

Even immediate responses to questions aren’t valuable if those responses don’t include answers. If the person in contact with the customer can’t actually solve the problem, your customer will lose confidence in your company as a whole.

Make sure you empower your support staff with both the knowledge and ability to get things done. Keep customer service staff up to date on product changes and launches — ideally before they’re implemented — and give them the authority to solve minor issues on their own.

You’re also going to want to treat customer support staff like the valuable members of the team that they are. The folks manning the phones (or chats) are a direct line to your customer. It’s important that they’re a positive impression, and happy employees are far more likely to be a good representation of your business.

Dodging responsibility

I can tell you from experience that a very frustrating part of having a product not live up to expectations is when the business refuses to recognize the problem. Customers can forgive mistakes — but not if you insist those mistakes didn’t happen.

Own up to mistakes you’ve made. Additionally, recognize that even some customer errors are actually mistakes on the part of the seller or service. If directions aren’t clear or complete, accidents happen. Make those right.

Unfortunately, you may even sometimes have to make it right for customer mistakes that aren’t your — or your company’s — fault at all. Ultimately, you need to weigh the cost of losing that customer versus the cost of appeasing that customer.

Good customer service makes a customer feel heard. Always make sure to respond promptly, courteously, and with solutions.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

“}]] Read More 

You won’t believe how flexible Costco is with refunding membership fees. Read on to learn more. [[{“value”:”

There’s a reason so many people are willing to spend money for the privilege of shopping at Costco. The warehouse club giant offers competitive prices on everything from groceries to household goods to electronics. And your Costco membership also gives you access to competitively priced travel packages, home services, and tires.

But there may come a point when you regret spending money on a Costco membership. After all, your neighborhood supermarket doesn’t charge you money just to walk in the door — so why should you pay Costco for that privilege?

The good news is that you can actually shop at Costco for almost a year without technically having to pay for a membership. But you may want to pony up the money for the overall savings involved.

A beyond generous refund policy

A basic membership at Costco will run you $60 a year, while an Executive membership costs $120. And if you’re wondering why anyone would pay double for Costco access, it’s because the Executive membership gives you 2% cash back on your purchases. If you spend more than $3,000 a year at Costco, the Executive membership pays for itself (at least in terms of the $60 upgrade fee).

Meanwhile, Costco has an extremely generous refund policy for both merchandise and memberships. With regard to items you buy at the store, you can bring almost anything back at any time for a full refund. And yes, this includes partially eaten food!

As far as memberships go, Costco wants you to be happy there, too. If you’re not, you can cancel your membership at any time for a full refund.

But technically, what this means is that you can shop at Costco for 364 days, cancel right before the one-year mark, and get your money back. This effectively gives you a no-cost membership for a year.

You may want to keep your Costco membership despite the cost

You may be reading this and thinking, “Cool, I’ll just pay the $60 for a basic membership, use it for the majority of the year, and then cancel and get my money back.” Well, things may not be that simple.

Once you get used to the savings you get from Costco, you may have a hard time giving up your membership. So you may want to work the cost of one into your budget instead.

For a basic membership, you’re talking about a cost of $5 per month. And it’s only $10 per month for an Executive membership.

Meanwhile, let’s say shopping at Costco saves you $25 a month compared to sticking to supermarkets that don’t charge an entry fee like Costco does. If so, you’re saving well more than the cost of a membership.

Plus, don’t forget about the convenience factor. If there are non-perishable groceries you eat frequently, or products you use often, like tissues and laundry detergent, the ability to buy them in bulk could save you not just money, but time.

So while you can cancel a Costco membership right before the one-year mark and get your money back, that’s not necessarily a move you want to plan on. You may find that it’s more than worth spending the money on a membership for the ongoing benefits.

Top credit card to use at Costco (and everywhere else!)

If you’re shopping with a debit card, you could be missing out on hundreds or even thousands of dollars each year. These versatile credit cards offer huge rewards everywhere, including Costco, and are rated the best cards of 2024 by our experts because they offer hefty sign-up bonuses and outstanding cash rewards. Plus, you’ll save on credit card interest because all of these recommendations include a competitive 0% interest period.

Click here to read our expert recommendations for free!

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

“}]] Read More 

CD rates are impressive, but not historically high. Read on to find out why they’re still a good investment option. [[{“value”:”

Certificate of deposit (CD) rates have ticked higher over the past two years as the Federal Reserve has raised interest rates to combat inflation.

While inflation has damaged many Americans’ finances, CDs paying an annual percentage yield (APY) of 5.00% have been excellent for many people’s bottom lines. The high rates have helped some people, at least partly, outpace inflation’s impact on their money.

But even these high APYs don’t compare with CD rates of the early 1980s. Here’s how high they reached more than 40 years ago and why CDs can still be a good option for some of your cash.

3-month CD rates were over 18% in 1981

In August 1981, 3-month CDs reached an average rate of 18.6%, and 6-month CDs averaged 17.9%! To put that in perspective, the S&P 500 has a historical annual rate of return of just over 10%.

But those high rates resulted from difficult economic conditions, in which inflation ran rampant at 12.4% in 1980. In contrast, the latest inflation report for May 2024 showed inflation slowing to just 3.3%.

The current inflation fight isn’t over just yet, which means that CD rates could remain elevated for a bit longer. But you might not want to wait long to open one. Some experts think the Federal Reserve could cut interest rates this year, negatively impacting CD rates.

Three reasons to consider opening a CD

CDs aren’t for everyone, but they can be a great place to protect cash from inflation’s eroding effects. If you need a little convincing, here are three reasons why CDs are a good option.

1. A nearly-guaranteed interest rate

One significant benefit of CDs is that their APYs are nearly guaranteed. As long as you leave your money in the CD for the entire term, you can earn the quoted interest rate.

Many banks often charge a penalty of 90 days of simple interest for early withdrawals from CDs with term lengths of two years or less and 180 days for CDs with longer terms. Some no-penalty CDs are also available, but may pay a lower interest rate.

2. They’re a safe place for your money

CDs are FDIC insured, just like savings accounts, (as long as you choose to bank with an FDIC-insured institution), which means you’re guaranteed to get your money back in case of a bank failure. FDIC-insured accounts are good for up to $250,000 per account holder, per bank.

3. Low minimum deposit amounts

Many CDs have deposit amounts as low as $0 or $1, making it easy for nearly anyone to open a CD.

Just keep in mind that some CDs pay higher rates for larger amounts. So be sure to check the interest rate and the deposit amount required before you sign up.

Now could be an excellent time to move some cash into a CD, while rates are still high. If the Fed cuts rates later this year, CD returns will likely drop. This means locking in a high rate right now will help you avoid settling for a lower CD rate later.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

“}]] Read More 

Most people want to pay as little as possible for their Costco membership. Read on to see why I wouldn’t mind paying more than I do today. [[{“value”:”

Like all retailers, Costco is in the business of making money. But the way Costco goes about that is different from other companies.

Most retailers make money by selling products for a higher price than what it costs to get them. Costco does the same, but a large chunk of its revenue comes from membership fees.

Right now, it costs $60 a year for a basic Costco membership, and $120 a year for an Executive membership. The Executive membership offers 2% cash back on Costco purchases, including those made online. And if you don’t want to spring for an Executive membership, you can find a great credit card for Costco instead.

At this point, though, Costco is way overdue for a membership fee hike. The last time the warehouse club giant raised its fees was back in 2017.

Of course, most members don’t want to see a Costco fee hike come through. And I don’t blame you if that’s how you feel — why would you want to pay more than what you’re currently paying for any given service or membership? But here’s why I would actually welcome a Costco fee hike in the not-so-distant future.

When you pay a little more but get a lot more

If you’re a Costco member, you’ve no doubt noticed how competitive the store’s prices are on a wide range of products. But the awesome prices you get at Costco aren’t just a function of buying in bulk.

Remember, not everything at Costco comes in bulk. Sure, you might buy a mega-pack of sliced cheese or a massive jar of salsa. But when you buy items like a coat or a food processor, you’re usually getting a single item. And the reason you might pay a lot less at Costco for an item like that is because Costco uses its membership fee revenue to offset the cost of stocking its shelves.

To put it another way, Costco doesn’t have to make as large a profit on a per-item basis as other retailers because it has another revenue source — membership fees. And it’s for this reason that I wouldn’t mind seeing fees go up just a bit if Costco makes that decision.

If Costco’s next fee hike follows the same pattern as its last increase, the cost of a basic membership will rise by $5 and an Executive membership will go up by $10. But the way I see it, my extra $10 a year might mean Costco is able to offer me an even better selection of goods, and at even more competitive prices. So all told, customers might benefit financially from a fee hike, even though it may not seem that way at first.

Does Costco have concrete plans to raise membership fees?

As of May, Costco had no immediate plans to increase the cost of memberships. During its earnings call last month, CFO Gary Millerchip said, “We’ve historically looked at increasing the membership fee every five years or so. And obviously, we’re beyond that time period now in terms of what would be the typical cycle. There’s nothing about anything that we see within how the business is performing that’s changing our view on that.”

Millerchip did say that if Costco were to make concrete plans to raise membership fees, he’d be open about that and let the public know. But based on his comments, it’s pretty fair to assume that the cost of a membership isn’t going to increase in the next few months.

However, there is a good chance that a Costco membership will get more expensive in 2025 or 2026. So if that happens, don’t assume the worst. You may find that a membership fee hike results in an even better shopping experience for you, and that your overall savings end up increasing — despite paying a bit more to walk in the door.

Top credit card to use at Costco (and everywhere else!)

If you’re shopping with a debit card, you could be missing out on hundreds or even thousands of dollars each year. These versatile credit cards offer huge rewards everywhere, including Costco, and are rated the best cards of 2024 by our experts because they offer hefty sign-up bonuses and outstanding cash rewards. Plus, you’ll save on credit card interest because all of these recommendations include a competitive 0% interest period.

Click here to read our expert recommendations for free!

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

“}]] Read More 

You shop at Costco for your necessities, but should you plan a vacation with the warehouse club? Read on to find out what to consider. [[{“value”:”

When you think of Costco, your mind probably conjures images of bulk groceries. However, there’s a lesser-known side to Costco that savvy travelers have been quietly taking advantage of: Costco Travel.

Costco is famous for its $1.50 hot-dog-and-soda combo deal, for its roasted chicken that feeds a family for less than $5, and for its oversized jars of everything from olives to peanut butter. Bottom line: If you want something inexpensive, Costco probably has it in bulk. But what about its travel packages? They seem comprehensive. The prices appear to be low. But how does Costco stand up against all the other low-cost competitors? Here’s what you should know.

Packages make itinerary building easy

Navigating the complexities of travel planning can be daunting, but with Costco Travel, it’s as easy as pie. Costco offers a variety of packages that simplify itinerary building. Costco’s packages provide comprehensive solutions tailored to your preferences, from flights to accommodations to activities. And they cost less than if you booked them separately. Consider a five-night package at Le Bora Bora by Pearl Resorts via Costco Travel: $5,099/person. Booking separately costs over $5,000 for just the hotel, plus extra time.

Whether you’re seeking a relaxing beach getaway or an adventurous expedition, Costco’s packages make crafting your dream itinerary a breeze.

Some vacation packages come with bonus perks

Certain Costco travel packages come with complimentary perks. Costco Travel offers a seamless booking experience for hotels, rental cars, and cruises. Beyond these, you can opt for vacation packages that include flights, ensuring a hassle-free arrangement. When evaluating your options, scrutinize the details thoroughly.

Numerous Costco Travel packages feature bonuses such as dining credits, resort credits, or room upgrades. These supplementary perks enhance the value of your Costco membership and may allocate additional funds in your vacation budget for indulging in culinary delights and exciting activities. Some even come with a Costco Shop Card, too.

Executive members earn more

For Costco’s Executive members, the rewards extend beyond the store aisles to the world of travel. With an Executive membership costing $120 per year — double that of a Gold Star membership — members enjoy exclusive benefits, including 2% back on purchases annually. This perk also translates to travel rewards. Additionally, Executive members receive many other perks, such as shipboard credits, spa credits, and various discounts, making the upgrade worthwhile, especially for avid travelers.

Costco works with major brands

Costco Travel limits its offerings to four rental car brands: Alamo, Avis, Budget, and Enterprise. It offers exclusive member rates on rental cars, often including an additional driver. However, if you don’t need the additional driver, you may find a lower-cost option with other brands.

Costco offers 11 cruise lines with itineraries that span the globe. The lines include Azamara, Carnival, Celebrity, Cunard, Disney, Holland America, Norwegian, Princess, Regent Seven Seas, Royal Caribbean, and Uniworld. Cruises are big business for Costco, and one major plus is that the Costco phone reps don’t sell by commission.

Downsides to consider

Despite its numerous advantages, Costco Travel does have its limitations. As a bulk retailer, Costco may not always offer the best prices compared to other travel agencies or booking platforms. While Costco strives to provide competitive rates, there may be instances where better deals can be found elsewhere.

Is Costco Travel a better deal?

Costco Travel offers exceptional value for your money. While prices may not always be significantly lower than competitors, Costco consistently provides added perks such as Costco Shop Cards, upgraded accommodations, and exclusive tours, making it the preferred choice for many travelers.

However, exploring alternative options, including budget airlines, may offer more cost-effective solutions for those strictly adhering to a budget. Ultimately, whether Costco Travel is the better deal depends on individual preferences and priorities regarding travel planning.

Top credit card to use at Costco (and everywhere else!)

If you’re shopping with a debit card, you could be missing out on hundreds or even thousands of dollars each year. These versatile credit cards offer huge rewards everywhere, including Costco, and are rated the best cards of 2024 by our experts because they offer hefty sign-up bonuses and outstanding cash rewards. Plus, you’ll save on credit card interest because all of these recommendations include a competitive 0% interest period.

Click here to read our expert recommendations for free!

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

“}]] Read More