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How to Use Guarantees & Warranties to Boost Value & Reduce Fear

How to Use Guarantees & Warranties to Boost Value & Reduce Fear

By Brandon Cockrell, Service Excellence Training

 

We all know that one person who we consider a little crazy.  IE: the thrill seeker who can’t get enough and continues to push boundaries.

The person who likes motorcycles, jet skis, quads, snowmobiles, extreme sports, sky diving, and the list goes on.

Some of these people, I love and admire. The best of the thrill seekers become famous “X-Game” athletes. These people are rare. When you consider your network of friends, family, and acquaintances, how many would you consider to be the daring risk takers?

Risk takers are not in the majority. They never will be in the majority. Biology and evolution determined most people play it safe (You live longer that way.)

Fear served its purpose in the days of the jungle because FEAR kept you ALIVE. That instinctive avoidance of fear is still what drives most of our daily decisions.

Even though you’re probably not going to die from your decisions today, you still fear the decision as though you might. To your brain, making the wrong decision is like dying a little death.

 

Let’s evaluate some of the reasons you may be scared of a decision:

  • This decision may get you emotionally hurt
  • Fear of looking like a fool
  • Fear of being taken advantage of
  • You could waste your money
  • Or worse, you could waste your time.

These are the most common fears that stop people from taking action.

These are also the top reasons why your clients avoid saying “yes.” Simply stated, “THEY ARE NOT RISK TAKERS”.

If you want to make it easier for your clients to say yes, then you are going to have to own the risk for them. You need to determine how you can take on a great deal of the client’s perceived risk.

So, you may be wondering, “Brandon, how do I assume the risk for my clients?” Well, I’m glad you asked.

Two words: Guarantees and Warranties. If you don’t have them, you need to get them.

 

Guarantees and Warranties

If you want to charge a premium price, then you better have premium guarantees and warranties. This is what allows a client to find more value in your company, your technicians, and most importantly, your service after the sale.

With any product, there are going to be different levels of purchasing. For example, if you go to your local outfitter store and look for a high-end cooler, you will find four to seven brands all priced differently.

There will be ones that come packaged with other accessories. Some with a rolling kit and a handle, and some without. Some might even have portable speakers. Once you sort through all of these details, you start to see how much the cooler itself costs. There is still a discrepancy from the most to least expensive.

Here is my challenge to you: Go look at your guarantees and warranties. In my experience, the one with the highest price tag is made with premium products, has the longest warranty, and the best guarantee. The lower end may not have any of these.

Let me show you a real-life example from when I went to buy a rotomolded cooler. If you aren’t familiar with these coolers, they are the ones that hold ice for three or more days. Without promoting any brands, I will show you how I made my decision.

 

Brand Price Weight Capacity Warranty
Brand Name Cooler #1 $239.99 34.9lbs 45 QT One year
Brand Name Cooler #2 $296.99 36.4lbs 58 QT Life Time
Brand Name Cooler #3 $299.99 23.7lbs 45 QT Five years
Brand Name Cooler #4 $269.99 26.8lbs 40 QT One year
Brand Name Cooler #5 $227.70 26lbs 45 QT One year

 

 

So, what you see above is what looks to be a standard one-year warranty in the industry of rotomolded coolers, but only one company dared to back their product for life. One of their marketing slogans is, “The last cooler you will ever buy”.

Which cooler do you think I bought? If you guessed the second one, you would be correct. It wasn’t the most expensive, but it was the most valuable to me.

Think about this the next time your technicians or sales professionals have to defend your prices. Where is your value? How are you backing your product? Do you have written Guarantees and Warranties to boost your value point?

Using Guarantees and Warranties will help your clients avoid the fear of doing business with you!

Remember, “Clients are Not Risk Takers”.

Brandon Cockrell is a Success Coach and Trainer at Service Excellence Training. He teaches techs and sales pros to boost average ticket, closing percentage, and increase client satisfaction. 

Service Roundtable is dedicated to growing your bottom line and helping your business maximize its full potential. These group of contractors work together to assist you with marketing, sales, business, and so much more. Twice a month, seminars around the United States and Canada are held to network and further assist your business. Visit Service Roundtable.com to see if there are Success Days in your area!

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