Invest in guarantees for your business success
Does your competition offer guarantees? If they do, then you have to make yours different or even better. If your competitors’ guarantees are more compelling than yours, then it will cost you heavily in lost sales.
And, of course, if your competitors don’t already offer guarantees, then you have a massive opportunity to make a big business impact and secure the future of your business.
However, when you start a committed journey to using guarantees there are other costs:
- the cost of making improvements in your business to ensure you can deliver the guarantee
- the cost of returns or money back
- the cost to your reputation if you fail to honour the guarantee
Manage these costs well and your business will be more competitive and more attractive to your buyers.
These costs should be viewed as investments in your business. They will secure the future of your business and its future growth.
How can you offset this extra investment in your commitment to guarantees?
If your guarantee focuses on a feature viewed as essential to your customers, chances are they would be willing to pay a little more because of your guarantee.
It’s why Fed Ex guarantees and charges for overnight delivery, compared to their standard delivery.
This is their guarantee, and it’s a good one:
“We’re so confident in the reliability of our systems and people, that we back FedEx Express® international shipments with a money-back guarantee. It applies even if we miss our published or quoted delivery time by just 60 seconds.”
This is a bold guarantee that means there is almost no risk for the buyer.
What aspect of your product or service, if it were guaranteed, do you think would justify a premium price?
Click here to find out how giving guarantees to your products or services will help your business survive and thrive.