Business

My Weapon Of Choice – Money Back Guarantee

My-Weapon-Of-Choice-–-Money-Back-Guarantee

If you’re in business I hope that you believe in your product or service. Really believe in it, to the point where you are so confident that any customer who comes to you is not only going to become a raving fan but that they will be truly be satisfied with your business. If you are one of those fantastic business owners then I strongly suggest adding my personal favourite weapon of choice, the money back guarantee. Life time warranty’s and return policies are good but nothing slays the market as much as the money back guarantee weapon.

I’ve talked to many business owners and a lot of them seem to be very afraid to offer a money back guarantee. They think that customers are purely out there to make them lose money and gain a free service / product. Not only do I think this is very unlikely but you can actually avoid it if you structure your business around the money back guarantee.

Offering a money back guarantee lowers the risk to the customer and skyrockets your conversion rate. Not only are they more incline to work with your business but they are happy to pay more for that peace of mind. Increasing your prices by 10%-20% is a rule of thumb when adding a money back guarantee to your business. This does 2 things.
It brings in more profit for your business with out increasing overheads, fantastic!

You will attract a higher quality of customers by positioning your business at a higher price point. By also requesting a minimum 50% payment of the new price point upfront this will eliminate the ”cheap” customers who are out to “take advantage” on your offer.

There are a lot of legal things to consider when applying this weapon of choice. I’m not going to lie, I am no legal expert but I do believe that any business can apply this. Even if you are a business that has to lay out capital before a job can start, like a construction business, you can still apply this concept. You simply offer the money back guarantee up to an early stage of the project. IE – The blue prints. Once the client approves the blueprints, the money back guarantee is void because the customer likes what they see.

Also a car yard could take this concept as well and apply it to a 7 day money back guarantee, while this may attract a lot of people who simply want to take a car for 7 days and hoon around in it you can avoid this by bumping up all your prices by 20% and requesting full payment upfront. That way you only attract the serious buyers who have the capital.

I hope those two examples begin to juice up your brain about how to take this concept in hand and apply it to your business. Its a fantastic marketing tool and especially if no other competitors are applying it then you can really gain an advantage.

Who do you think the customers are going to choose, the cheaper business which doesn’t believe in their work or the more expensive business with the money back guarantee?

Jamie Stenhouse
Jamie Stenhouse is an Entrepreneur and Marketer who specializes in assisting business owners and clients to generate customers online – in any industry. With a sharp mind and high value on creating profitable results in the online marketing arena
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