I ended my last post regarding the United Breaks Guitars video with: “I guess an important lesson for companies to learn is that the consumer is no longer helpless to retaliate. It will be interesting to see if any of these videos affect United’s bottom line.”
Well, guess what? It has affected the company. This morning many news outlets across the globe are reporting on the financial fallout from Dave Carroll’s YouTube video, United Breaks Guitars. The Times reporter Mike Harvey from San Francisco noted, “Consumer revenge, it seems, is best served with a video camera and three-part harmonies.”
In the past disgruntled customers could only threaten physical harm on company representatives who they felt had wronged them (this usually did not end well), but could not threaten fiscal harm to an entire company. This video has caused a 10% drop in airline stock price resulting in a loss of $180 million dollars to shareholders. “Which, incidentally, would have bought Carroll more than 51,000 replacement guitars” as reported by Chris Ayres of The Times.
For updates on the Dave Carroll saga you can follow him on Twitter: @DaveCarroll or Curve Productions: @curveprod