Sunday, July 10, 2005

How long should I guarantee my product

My answer is 30 days.

You need to offer a 30 days Money-Back "No Questions Asked" Guarantee. If for ANY reason you feel the product does not exceed your expectations, return it anytime within 30 days. Just email me at with your email address and order number and I will promptly refund your money.

As a business owner, you want to make sure you have all your obligations covered. If you offer a 90 day guarantee or 1 year guarantee. You are saying, I will repay all the money I have received in the last 90 days or 1 year to every customer.

You are not saying, "Well, only about 5% ever return anything, so I'm ok saying 1 year, I'll plan for a 5% return rate."

I think that is unrealistic. If it's a guarantee, you need to be prepared to accept "in total" all the transactions returned at once.

But what if I want to guarantee my products forever... I hear from all the gurus, you get a lower return rate if you do...

The truth is that very few will ever return anything. That's what people are counting on.

If you were to sell your business, would you want to say that "all my customers can return all my products at any time and get their money back" If I were to hear that as a buyer of your business, I would run away.

Although, it's true that most people will never return your product. And, it's also true that it makes you look good to have a guarantee forever.

To me, it's just bad business to leave yourself open-ended forever.

Now, in saying all that, I probably would give anyone there money back if they didn't like my product. Even if the guarantee period has lapsed. That's just a good business practice.

In fact, I would follow up just to get it on the record (via email) that they are a happy customer. But, the choice is mine and I am not obligated to do anything. If you guarantee it, you are obligated and you don't have a choice.

If I had an unhappy customer, I would not want to keep their money, that way, they can't badmouth you to all their friends. It's hard to make a case about how much someone sucks, when they proactively make sure you are happy and gladly proactively refund your money.

Can you imagine this conversation...

Paul:
"Well, that guy is a scammer, he emailed me to ask if I was happy, and I told him hell no, then he gave me the product for free, a free copy of his larger system and he returned my money. But then I told him that wasn't enough, I told him I wouldn't buy his products ever again and I was going to tell all my friends how much they suck. So don't buy from that scammer."

Joe:
"But you got the product for free, you got the big power system, geez I wanted that one, and you got your money back. Damn, that sounds sweet!"

Paul:
"Well, yeah, but that's not the point, That guy is a total shitweasel."

Joe:
"Man, it sounds like you got the deal of the century to me. Paul, maybe you are being unreasonable."

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