EXPOSED Millionaire Wealth Secret #6
Money Back Guarantees and EXTRAORDINARY Money Back Guarantees
In the 1830′s, Cyrus Hall McCormick invented the world’s first mechanical reaper, a machine with the potential to improve farmers’ productivity ten-fold. Despite McCormick’s best efforts, he was unable to convince local farmers of the true benefits of this amazing piece of machinery. His sales were virtually at zero for nine years, his machine waiting in the barn for a flash of inspiration.
McCormick battled on, until one day he discovered this little known, under used wealth secret.
He decided to offer a written, money-back guarantee on the reaper. Sales skyrocketed, and McCormick went on to become one of the wealthiest men in America.
An EXTRAORDINARY money back guarantee has the power to catapult you above your competition and cut through the advertising clutter to sparkle in front of your target customers.
Here’s another example…
This is a story of two brothers and the struggling little business they started to pay their way through University. With business dwindling, finances spiraling downwards and study slowing losing out to long nights of labour, one of the brothers chose to opt out, taking with him his share of the business – a beat-up VW.
The other brother trudges on and reassessed the direction of the business. He put pen to paper one night and came up with the following statement. 13 short words that turned this struggling little store into the empire it is today.
“Piping hot pizza delivered to your door in 30 minutes or it’s free”.
This of course is Domino’s Pizza. Was this brother the first to deliver pizza? No! But he was the first to make such a unique promise and it is history now that this promise totally reshaped the pizza industry. As I said, pizzas were being delivered back then, but they certainly weren’t hot and neither were they there in 30 minutes.
To beat of your competitors and take out the ‘risk of purchasing from you’ from your customers you must have an EXTRAORDINARY Money Back Guarantee.
What makes a guarantee extraordinary?
Well first let’s look at conventional guarantees. A conventional guarantee is designed to alleviate loss to the customer, in the case of a product or service, within certain limits. Straight forward, and the kind of guarantee most businesses offer.
But an EXTRAORDINARY guarantee promises exceptional, uncompromising quality and customer satisfaction and stands behind that promise with a ‘payout’ intended to regain the customer’s goodwill, with few strings attached.
Historically, guarantees made their debut about the middle of the nineteenth century. Though quite simple in essence, by offering a hand written
guarantee with items sold in their stores, two of the first business owners to offer them in the United States, won tens of thousands of customers as a result and were soon among the richest people in the nation.
Apart from the fact that people began to understand that a guarantee assured them of having any faulty transaction reversed in their favour, there was something more about such a guarantee. And that was simply the power of the unspoken message sent to their customers about the way such a company did business.
If they were prepared to rise to so high a standard with their guarantees, they must be very confident of their product and/or ability and it
must be a good measure of how they conducted business in every way. From a fairly obligatory kind of gesture, a guarantee started to be seen as an immensely powerful marketing tool.
So the risk of doing business was reversed for the customer and the reputation of the company prepared to go out on such a perceived “limb” for their customers soared to new heights!
AND something else; by making their guarantees so much more lofty and bold, the companies offering them created new challenges for THEMSELVES and consequently were forced to raise the bar in terms of every aspect of their own business. In many cases, businesses were and continue to be transformed by taking this action.
Better to raise the bar than try to resurrect a company which has already sunk to dismal depths.
Why Offer an Extraordinary Guarantee?
An extraordinary guarantee sends the clear message that the company making it is committed to QUALITY. It promises the customer that they will not be disappointed and that security often inspires a normally hesitating customer to take action and BUY! And it sets the company way apart from it’s competitors.
SOME EXTRAORDINARY GUARANTEES
In his book Extraordinary Guarantees, Christopher W.L. Hart, gives some examples of extraordinary guarantees:
– The First National Bank of Chicago offered a $250 repayment to customers dissatisfied with their loan application process.
– PRISM Pest Control, who serve the restaurant and hotel niche, offer that if a customer sees a pest they’ll pay for their meal and another, pay for their accommodation at the hotel on that and one other occasion, refund the complete premium for the year and pay the their client (restaurateur or hotelier) $5,000 extra!
– L.L. Bean says “Everything we sell is backed by a 100% unconditional guarantee. We do not want you to have anything you buy from us at any time, for any reason, if it proves otherwise”
– Allied Van Lines guaranteed to move customers on schedule or pay $100 each day of delay.
Many such guarantees are unconditional and hold themselves to the highest possible standard; that of the customer!
What is YOUR guarantee? Is it bold? Is it conditional? Will it stand out from the limp guarantees offered by most other companies?
The amazing thing is most companies which DO offer compelling and extraordinary guarantees, will tell you that only rarely, if EVER do they
get asked to honour the guarantee. Even then, they have taken such a huge slice of market share BECAUSE of the guarantee, they simply smile and comply!
So, although it may seem a bit scarey at first putting yourself out there on a limb, just think about all of the EXTRA business you will be getting by offering an extraordinary guarantee of the sort your competitors would never dream of having.
The customer’s will be pounding down your door to do business with you!! And even if one or two claim dissatisfaction and hold you to your guarantee, it will only serve to help you and your staff lift your game… While the rest of the customers cover the cost!
So be brave, and give them the most outrageous guarantee they’ll ever see.
And look out for next week, when I reveal the last and quite possibly the most important Millionaire Wealth Secret – #7 – that once you know, may possibly send your business into overdrive!
P.S. Check out my outrageous guarantees for my Platinum 2.0 Mastermind Coaching Programme at: http://www.platinum2mastermind.com/levels.html to see how it’s done… and how YOU can benefit from my coaching RISK FREE!