Saturday, July 9, 2011

Life-Time Technical Assistance

“Life-time Technical Assistance accompanies the training module”.

It says it right there on every web-based flyer, every downloadable PDF file at

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

Talk to Me !

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