How to Offer a Money-Back Guarantee That Will Increase Sales
Few home based businesses offer an unconditional money-back guarantee. However, larger, established businesses offer it all the time. Why?
Many marketing experts suggest offering a money-back guarantee. Melvin Powers, a mail order millionaire suggested offering lifetime or 25+ year guarantees on your products. Melvin believed that a 30-day guarantee is too short. He claims that if people know they can return an item at any time in the future they are more likely to purchase it and never return it (even if they are not satisfied.)
You see ... most people don't return merchandise, even if they are not satisfied with it. They just put the item on a shelf and forget about it. But what if you went to the grocery store and bought fish that was bad. To return the fish you would need to find your receipt and take it back to the store. Most people simply don't do it.
Don't be afraid of offering a money-back guarantee. When you understand that most people won't return the product they purchase from you, you will be more receptive to providing a money-back guarantee.
A money-back guarantee builds confidence in your company and product. If you are offering a guarantee, customers will assume that you have a high-quality product since no one would offer a guarantee on a worthless piece of junk.
Offering a guaranteed works for services as well. I started using the words "100% satisfaction guaranteed" on my resume ads in the Yellow Pages. I sold approximately 35% more than I used to. It increased confidence in my resume services. If people ask me about the guarantee, I tell them that I'll work with them until they’re satisfied with the resume. In seven years, no one has ever asked their money back.
Offer a money-back guarantee. It's a free way to increase sales.
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