Want to dramatically increase your sales without impacting on your profits? Be bold and offer a guarantee for your services. It’s quick, easy and can be a game-changer for your profits.
Tips To Increase Your Profits – Offer a Guarantee
By [http://ezinearticles.com/?expert=Kate_Marsden]Kate Marsden
It is well known in the internet world that offering a money back guarantee dramatically increases the rate of sales. So much so that you rarely see information products on the web that do not have a 30, 60 or even 90 day guarantee. But if you are just starting out with this idea it can be a scary concept. Will people abuse the offer? Will I be inundated with refund requests and have a cashflow problem? Is it too big a risk for me? But there are real advantages to your business if you do take this option.
1. Guarantees remove a sales barrier
Most people can be persuaded to buy if they think they have nothing to lose. Particularly for new customers, the reassurance that if they are not happy they will get their money back can make a huge difference to conversion rates. This works regardless of your product, service or sector.
2. Guarantees force you to deliver quality
If they were really honest, there are plenty of business owners who hide behind the fear that people will abuse this. What they are really worried about is whether they are up to the task. You think of the customers where there have been issues or you simply haven’t performed at your best. Just remember that everyone has those cases. Offering a guarantee will force a mindset that the customer needs to be satisfied – you just need to believe in your business.
3. Guarantees build trust with your business
By backing your business, you also demonstrate a level of trustworthiness for your customers. People are wary now, whether that is of buying things from the internet, trying new products for the first time or buying services with intangible results. Show them they can trust you and that if there is an issue you will sort it. Don’t make the guarantee complicated to use (or this will build distrust) – be easy and transparent and trust your customers.
4. Guarantees mark you out from the competition
You don’t need to understand much about customers or psychology to work out that given a choice between your competitor, with no guarantee, and you, with a guarantee, customers are likely to pick you. In some sectors this is now the norm (e.g. refunds on faulty clothes, guarantees on electrical goods for a year etc) – but there are still some areas where it is not. Stand out from the crowd. Tell people if they are not happy with your product they can get their money back, or that if your service does not wow them they’ll get a refund or that if they need to call you out again within a certain period you’ll come for free.
So, there are big advantages to guarantees. What about all those concerns you had about it being abused and you losing money? The reality is that it rarely happens. Most people will not deliberately abuse an offer like this unless they are genuinely unhappy. What will happen is that your sales will go up dramatically – you will get a small number of people asking to use the guarantee, but that will be more than covered by the extra sales.
Take action now and develop a compelling guarantee for your business.
Want help improving your business results? Click here for a free report – 52 ways to [http://ignitionkey.co.uk/signup.aspx]Boost your Profits! Kate Marsden is founder of Ignition Key Ltd and has 20 years business experience working at Director level for a number of well-known organisations. Kate provides businesses with advisory, support, coaching and mentoring services to enable them to step change their performance and restuls. For more information visit http://ignitionkey.co.uk/
Article Source: [http://EzineArticles.com/?Tips-To-Increase-Your-Profits—Offer-a-Guarantee&id=7321715] Tips To Increase Your Profits – Offer a Guarantee
