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Need an Innovative Strategy to Boost Sales

Need an Innovative Strategy to Boost Sales

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Published by NTRPM
When you are a small business creating confidence and creditability is vital, guarantees are the key to do such a thing
When you are a small business creating confidence and creditability is vital, guarantees are the key to do such a thing

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Published by: NTRPM on Apr 14, 2010
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05/12/2014

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Need an Innovative Strategy to Boost Sales? Risk Reversal is the Key!

Risk. It's one of the most monumental sales roadblocks you can possibly encounter. Consumers are especially budget-conscious these days, especially during difficult economic times and there's no way they will consider a product or service that places the burden of risk on their shoulders. Risk Reversal is simply transferring the weight of purchase or investment risk from the potential buyer back to the seller. While this may sound problematic for the seller, in practice it is a sound principle when backed up by a superior product or service. Offering a solid guarantee for your product or service can alleviate consumer fears and provide an incredible boost in sales. A well thought out guarantee tailored to the needs and concerns of your specific customer base provides more incentives for purchase than you might imagine. Think about it for a moment. If you were to buy a product or service that if it went wrong you would get 100% of your money back, no questions asked, would you buy it? What about if the company were to offer an extra incentive within the guarantee, such as 150% of your money back! Don’t you think that shows that the company have such confidence in there product or service that it is worth buying? Of course because the company are creating a win-win situation for all involved. Here is another example. Consider a would-be computer owner who discovers both Computer Store A and Technology Store B have the device he would like to purchase, and the price for his desired computer is similar at both stores. How does he decide which store to purchase from? He, like other consumers, fears purchasing an item that doesn't perform as he expected, is a bad fit for his needs, or is simply an inferior product. He is concerned about committing to a product that could result in the loss of a great deal of his money. Fortunately, Computer Store A offers a guarantee that includes repairs and even money back if the consumer is ultimately dissatisfied with the product. This makes the purchase an easy choice for our would-be computer owner. Without the risk of losing money or being stuck with a product he can't use or doesn't like, the would-be computer owner develops confidence in his purchase. In fact, he chooses to purchase extras and peripheral items from the same store! Of course, you may be concerned that offering guarantees will ultimately harm your business because you are responsible for the risk. But I would like to tell you that in fact nothing could be further from the truth! Studies have shown that while consumers are enticed by guarantees, very few ever take a business up on their guarantee offer at all. Business with strong products only stand to benefit from wellcrafted guarantees.

If you have confidence in the service or product you provide, then offering a risk reversal guarantee is the key. Guarantees are a form of marketing, and when it comes to marketing for small businesses, you want to create the right image. After all would you have confidence in and buy from a company that didn’t offer a quality guarantee? Nathan Tarrant www.rapidprofitmarketing.com

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