For most business owners the thought of guaranteeing their product or service can be scary. There is the worry that people are going to want to rip them off and take advantage of them but hear me out.
The truth is most people are not that bad. In all the businesses I have worked with over the last 20 years, whenever we have put in place a guarantee of some sort it has never gone pear-shaped.
The power of a well-constructed and meaningful guarantee can far outweigh the drawbacks. By law we are required to provide a guarantee on the quality of our workmanship anyway, that is assumed. But the real power in a quality guarantee may not have anything to do with that.
Guarantees come into their own when they remove a prospective buyer’s frustration or fear in purchasing from someone in your industry and this is rarely related to the quality of the product or service.
Think about a trades-based business.
What is the greatest frustration most people have with these businesses?
A chorus of you who just read this said they don’t turn up on time if at all.
I once worked with a trade-based business who guaranteed to turn up on time or the first hour was free ($95 value). The caveat was, if they were going to run late, they would let you know. Their business went through the roof and last time I checked they have only had to pay out on the guarantee once in 7 years.
The secondary benefit for the business and the customer is that a guarantee will drive you to lift your standards, which helps deal with something I call a gravity principle and that is businesses are either growing or dying, can you tell what this will help you do?