It says it right there on every web-based flyer, every downloadable PDF file at http://www.chrisgreaves.com/TrainCatalogue/
It says it at the foot of every invoice I issue.
What’s the Hang-up on Offering Life-Time Warranties?
Mine is a service-based business; I offer services to clients (Training, Consultation) and I offer products, which I support.
My biggest problem is that the phone isn’t ringing off the hook.
My smallest problem is that folks who’ve taken my training courses don’t call me asking for help. (Am I that good a trainer that they never need help?)
I welcome phone calls when things go wrong. It’s my business.
So, suppose you sell some really neat product, light enough and small enough that you can carry a few in your car when you head out.
Cost of the order of $25 at the supplier, sell at, say $50. (Quantities may vary).
And you’re worried that a lifetime guarantee is a Dangerous Thing
On a sheet of paper jot down the answers to these questions. (Don’t run to the computer, top-of-your-head is fine with me).
Question 1: How many years have I been selling this particular product?
Question 2: How many units have I sold in that time?
Question 3: How many units have been returned with a manufacturing defect?
Question 4: Per unit; what is my liability (expressed as the ratio of returned units to sold units, multiplied by the sales cost or cost-of-refund)
Question 5: Why am I so worried?
Now my analysis is simple, and you may feel your situation warrants deeper analysis; so find an actuary and invite him out to lunch.
Or ask your small-business accountant what his client’s find to do.
Because while you aren’t guaranteeing your product, your client is offering a lifetime warranty.
And stealing your customers.
It’s not about price.
It’s About SERVICE