Money-Back Guarentee Can Help Your Business Thrive
In the current economy, with business harder to get and your prospects and customers holding even more tightly to their wallets and purses, you might find yourself tempted to make the obvious (but dangerous, unnecessary and ultimately harmful) choice to cut your prices in an attempt to kick-start your business again.
That would be a huge mistake. Because the truth is, very few people actually buy on price, even in a Recession. What they really want is more value. If you can convince them of the value of your products and services, they will paradoxically be prepared to pay you MORE in the Recession than before.
So that’s the first important concept: don’t cut your prices; instead, increase your value.
And one of the easiest ways to increase your value, especially when your prospects are particularly nervous and fearful, is to offer a really powerful Guarantee.
It’s a very simple thing… but so few people do it. I’m talking about giving a solid, money-back Guarantee for your products and services.
The problem is, everybody automatically thinks they are going to get cheated, that a horde of greedy and sneaky customers are going to descend upon their business and suck it dry.
I’ve worked with thousands of businesses over the last 15 years. I became well known and got featured on BBC, News at Ten, The Sunday Times etc after I became known for helping businesses get 50-250% profit increases. With all of the best of these success stories, I used powerful Guarantees and it always worked.
So what do I mean by “give a great Guarantee?”
You should ideally offer a full unconditional 100% money-back Guarantee. If a customer is anything but completely and utterly delighted with your products or service, you give them their money back.
And yes, I really do mean a 100% unconditional Guarantee.
The longer you make your Guarantee and the more wide-ranging, the less you’ll have to honour it. It’s a quirk of human psychology, but it’s there nevertheless: if we offer a 30-day guarantee, by the time day 21 arrives, if they’re not sure… they’ll come back for their money.
But if that Guarantee is, say, 12 months, the customer relaxes and you don’t get called on the Guarantee.
But why should you even consider giving a Guarantee like this?
The key concept here is “risk elimination”. In any purchase the buyer is being asked to take on all the risk. That risk can stop up to 98% of your potential buyers making an actual decision to buy from you.
And when the economy is tough like it is now, this risk aversion is even more of an issue.
So when you eliminate the risk by offering a Guarantee, you’re doing something very powerful. It means all the risk of the sale going wrong is transferred to the seller. This by itself gives the buyer a massive confidence boost. His or her investment is secure. They can’t lose.
But, what about that old worry… the number of people taking you up on your guarantee?
It’s a pure numbers game. If someone asks for their money back once in every 50 sales, but you’re making an extra 100 sales a week because of your guarantee, you’ll make a fortune.
Either way, Guarantees are one of the best ways to strengthen your business in the Recession and set you apart from the competition. Please, please test a strong Guarantee.
Original article by Chris Cardell