Consumer Confidence Cubed...

There's nothing more annoying, more vexing or more upsetting than making a purchase and not knowing if the merchant will stand behind it with a money-back guarantee. Most online and offline retail merchants offer a full refund, or some sort of return, or exchange policy as long as the item is in resalable condition. But many hide their policies as if they didn't want the word to get out, fearing an avalanche of returns.

What a huge miscalculation...

The guarantee reverses the risk from the consumer back to the merchant. It shows the consumer she's buying from a solid, established and well-trusted company. It allows her to buy with confidence. And it alleviates doubts and fears of purchasing an inferior, mismatching or unsatisfactory product.

But what's important for your business is your guarantee actually increases sales. It gives the customer an added reason to come back to shop again. Without any special incentives the customer returns to shop for more stuff when he or she knows there's a hassle-free guarantee.

When I started working on cars I bought Craftsman tools exclusively from Sears. They carried a lifetime guarantee. If a tool breaks, all I had to do was return it for an exchange. I didn't even need a receipt. Is it any wonder why most of my tools, my toolbox and my rollaway tool chest are all made by Craftsman and bought from Sears?

Another great incentive for the consumer to do more shopping and to spend more for each item is the attraction of gift receipts. They allow the recipient of the gift to exchange for another item (from the same store) without disclosing the actual price paid. This is an ideal way to keep your customers returning to your store.

But don't assume every product or service automatically comes with a guarantee. Check with the merchant before making the purchase. If you're shopping online there's usually a page dedicated to return policies.

Please do your due diligence. It can save you lots of hassles in the end. Read the fine print and get it in writing. There are lots of unscrupulous operators out there who want to take your money without giving you what you ordered. And if they don't deliver on their guarantee, call the Better Business Bureau for assistance.

A recent trend for certain merchants is not offering any guarantees at all. A lot of online information marketers are stating no guarantees for digital, downloadable products because they can easily be pirated. Of course if you're in the restaurant business, or you're selling a coaching/mentoring program, or you're the local witch doctor—a guarantee may make you appear inferior in the minds of consumers.

If that's the case—then give the reason(s) why you're not offering a guarantee. Some consumers will stay away from you. Others will buy into your confidence. Either way, they'll know ahead of time and this reduces the chance of petty lawsuits.

Now let's not forget extended warranties. If you can offer that to your customers, great. It's extra insurance some consumers look forward to getting. Especially for electronics and automobiles because of high repair costs.

Here's something that may be news to you...

The more expensive and exclusive the product, the less shouting about your return policy. If you offer high-end products, all you might need to say is, "Yes, there is a guarantee." And leave it at that.

You don't have to yell, "This item carries a one-year, iron-clad, tight-as-a-drum, double risk reversal, total satisfaction or your money back guarantee!" It's quite unnecessary. Unless you were selling to the Girls Gone Wild crowd. Stressing a guarantee when it's unnecessary may cause a prospect to suspect the product is either inferior, it's a slow-mover or maybe it was a returned item.

I hope you're absolutely convinced that stating your guarantee or non-guarantee will attract more business, reduce buyer's remorse and gives the customer an added incentive to buy from you—for life.

Tommy Yan helps business owners and entrepreneurs make more money through direct response marketing. He publishes Tommy's Tease weekly e-zine to inspire people to succeed in business and personal growth. Get your free subscription today at www.TommyYan.com

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