Risk Reward Management
No Risk – No Reward, Two friends are thinking of buying a similar product or service, One says he is going to give his business to company A, the other says he is going to use company B, how do you know which to choose?
“I’m buying from company A because if something goes wrong I know company A will take care of it quickly.” The other said “But if you buy from company B, nothing will go wrong.”
The first person replied, “Yeah, but it might, and I don’t want to have to worry about it.”
Whenever two parties come together to do business of ANY kind, one side is always asking the other (consciously or not) to assume more amount or ALL the risk. If you or company asks someone to take on all the risk, their inclination is NOT to buy.
You probably stand behind your product, company or service right now. If there is any problem, you or your company will fix it, replace it, or refund the money. But 99% of businesses don’t aggressively pursue the philosophy: - Risk Reversal Marketing
Your goal is to eliminate as much, if not all, the risk in the transaction for your client. When you take away the risk, you lower the barrier to action and eliminate the primary obstacle to buying. You should aggressively let your clients know, if they are dissatisfied in any way you will fix it at no charge, or give their money back, or whatever else it takes to demonstrate your total and passionate commitment to satisfy them.
If you’re thinking “I can’t do that” you shouldn’t be selling your product or service. People are willing to pay premiums as long as they don’t buy crap.
Clients will take advantage of this Risk reversal strategy and seldom ask for reimbursement. This type of offer will serve you 100% of the time.
When Orville and Wilbur Wright became the first to make a machine for passenger flight, they used risk reversal when they contacted the powers that be. They wrote they had a plane fit for practical use, that could fly at high speed, and that could land safely. They said “don’t send us one red cent! Just sign the contract, give us your specifications for your desired machine and we’ll make it, demonstrate it. Only when it’s done, do you pay for it.”
Once offered a risk reversal opportunity people are ready to do business with you. But what’s the best thing and right thing to sell them? …….
I found your site on google blog search and read a few of your other posts. Keep up the good work. Just added your RSS feed to my feed reader. Look forward to reading more from you.
- Sue.