Raising Money

Creating a Warranty: What to Do and How

If you want to attract customers to your brand, you have to ensure that it is easy for them to trust you. If you don’t seem trustworthy, they will not come to you no matter how good your product may be. There are many different ways of building trust and the best way is to create a warranty for your offerings. When customers see that you are offering warranty, they will be more likely to purchase your product.

You should handle warranties with care so that they work in your advantage. Some customers ask for warranty beforehand while the others ask about it when they have decided that they want to make a purchase. If you handle a warranty offering poorly, you will lose a customer that was just about to make a purchase.

To ensure that your warranty indeed works well for you and your customers, you should ask yourself the following questions:

Why?

The first answer to this question is simple and has already been explained: faith. You have to win the faith of the customer and you can win that best through a warranty. This is especially important for companies that are struggling with their reputation. Offer a warranty and you will win a few customers.

Another reason why you should consider offering a warranty is to stay in the competition. If your competitors are offering a warranty, you have no option but to follow suit.

If your product is new, you should definitely offer a warranty because that will reduce the risk. If people don’t like it, they will return the product instead of holding you liable.

What to Include?

This completely depends on the type of product you sell. However, one thing to keep in mind as a basic rule is to think like the customer to find out what he may be looking for. The key is always to make the customer feel safe. Will a hundred percent money back warranty for six months be enough? Should you offer a warranty to cover all manufacturing defects for a year or two? Ask yourself all these questions.

What you should NOT include?

This, again, depends on the type of product you are offering. If you intend to make money on the servicing of products in the future, obviously you won’t put a warranty on the services. If you want to sell spare parts or replacements, limit what you offer so that business comes back to you.

Time Period

This is a major concern. Not many people actually understand how to set the time period for a warranty. It depends on how much confidence you have on your product. Do you think you can afford a lifetime warranty? If yes, you should go for it. If not, don’t take any risks and limit to a year or six months.

Remember that offering a warranty should never result in losses for your company. Warranties are offered in order to attract customers and win their faith.

Entrepreneurial Learning

Be very careful while offering a warranty on your products or services. Win the faith of your customers but that’s it – don’t overdo it. If you do, you will be at a loss. Be strategic in your approach so that you win customers and your business sees a better turnover.

Leave a Comment

Your email address will not be published.

You may also like

Growing a Business

Want Great Guidance ? Find yourself a Super Mentor

post-image

They are the gods of small businesses, those inspired individuals who have achieved the highest levels of success. They can be the shining beacons who light up the path of running your business with their vision, wisdom and wealth of resources and contacts. They are The Mentors.

If you are fired with the passion to take your business to great heights, the best thing to do is find yourself a super mentor. Here are some tips to help in your quest

Pinpoint your Need

Sit down and focus your thoughts on your business growth strategy. Which area of the business needs a lift. Is is staffing, is it the finances, is it the production, is it the your lack of customers or is it the business as a whole that needs a makeover. Once you’ve zoomed in on the sore spot, this is where you need…

Read More
Growing a Business

Dreaming Big? You can Move Mountains with these Business Productivty Tips

post-image

You may be full of admiration for some people who seem to manage themselves and their work so usefully and efficiently. They seem to fit in so much productive work into the same number of hours which everyone has.. Let’s look what makes them tick and take a few tips.

Learn to identify your most productive hours

Its true, most productive people know which time of the day they can be most creative and efficient. They identify and allot these hours for the best part of their work. This way they are able to give their 100% awareness to the job and business productivity.

Early to rise- A winning habit

Waking up early is a personal habit that has all the plusses on its side. You need not necessarily go to work that early. It’s a habit that gives you more time for personal care, like mediation, exercise, walking,…

Read More
Growing a Business

Leadership Qualities that can make you an Icon

post-image

You may have reached the leadership position through sheer dedication to performance and a do or die attitude . Now that you are at the top, your viewpoint needs to change. You have to now be a role model, one whom others will look up to and follow. Here are some tips that can shape your leadership and management skills

Be Competent: Employees will look up to a leader who has good industry knowledge and management skills. If you do not possess these skills you should surround yourself with knowledgeable people who can offer good counsel. Competence is a trait all employees will admire.

Be Trustworthy: No one will look up to a person they cannot trust. Your employees will want to rely on you and count on you. In difficult situations, leaders are expected to apprise their employees of the situations and find solutions on how to address…

Read More
Raising Money

Are You offering Your Services Using the Right Pricing Strategies?

post-image

In these times of fierce competition, business people , mostly those that offer services and belong to the service based industry, are finding it a challenge to implement the right pricing strategies. It is virtually a struggle to set the right business price that will retain and attract the customers, and not drive them away. Follow these tips, the crucial dos and don’t s and you may be in a much better position to offer your services at the best price.

Maintain your Business identity and Dignity

If you are offering a unique or special product or service, don’t underrate it just because you want to build a better relationship with the customer. This will just cheapen your offering as another run of the mill. If its something special you are offering the customer, then communicate this fact to the client and get the equation right with the most…

Read More
Raising Money

What is a Fair Wage? How Do you Assess Fair Wage?

post-image

How do you figure out a fair wage?

This is a very common question for startups and small businesses. They can’t seem to decide or understand how to set wages and manage reputations at a time. They are determined to pay well but they also have to think about encouraging their employees to stay with them for a long time. This is why there is a need to think strategically.

Listed below are a few expert tips to help you decide:

Don’t Focus Only on Money

Money should never be the main focus for you or for your employees. You should decide on the wages in such a way that your employees are tied to your business. When your business does well they should be able to taste that success and vice versa.

Also, think about additional perks such as exclusive benefits and time off. Many employees value this more than the overall…

Read More
Raising Money

Tips to Winning Hard Negotiations With Ease

post-image

While some negotiations are easy, others are quite hard to win. If you stumble you will lose.

Whether it is a potential client or an investor, negotiations can be very tough and frustrating. The problem is that the moment you let your frustration overwhelm you, you will lose the deal and you will give in to whatever is being offered to you. In order to avoid that, here are tips to overcome tough times and to win even the hard negotiations:

Research!

Know your opponent as well as possible. This is the rule no matter what you do. You should understand your opponent to the T. Who the person is, what his culture is, what he thinks, what he stands for, how is his network, etc. are the questions you should ask yourself and answer through research before meeting up for the negotiation. Understanding the opponent will give you a great advantage.

Walking…

Read More