Want to make your company stand out? Do you want to communicate your excellent standards? Do you want to ensure your business is not lumped in with your substandard competitors? Then, it’s time for you to develop a high-value, guaranteed offer.
At first, offering a big guarantee may seem risky, but it’s actually one of the most reliable ways to communicate premium value and boost your margins. This strategy involves telling your clients that you will deliver the very best product or service without the usual hassles or their money back in exchange for a 30 percent premium. You also offer them a quote without the guarantee and without the 30 percent premium. The client then chooses which option makes the most sense for their needs.
At first glance, this strategy may seem like just another way to increase margins, but it’s more powerful than that. Whether the guaranteed option is accepted or not, it delivers a powerful message to your prospects about your confidence and the quality of your service. And when you offer to absolutely remove major doubts or indecisions via a guarantee, the value of your company, product, or services increases exponentially in the eyes of your prospective customers.
Here’s How Our Version of the Guaranteed Offer Works
A guaranteed offer essentially means that you commit to providing a product or service that meets or exceeds the client’s expectations or you refund their money. You identify common ways your competitors fail – missed deadlines, uneven results, lackluster service, etc. – and offer ways to eliminate those pain points. You also include things you already do, like stick to the estimate, deliver high quality, and so forth.
You offer two versions of the estimate. One included the guarantee with a 30 percent upcharge. The other is a competitive bid but without a guarantee. Customers then choose to accept it and pay more or decline the guarantee. But whether they spend more or not, the mere existence of this option is a surefire way to boost your reputation.
That’s because the true power of a guaranteed offer lies not in the offer itself but in the underlying message of excellence. It signals to potential clients that you are confident in your abilities and willing to back up your promises with tangible assurances. This kind of surprising confidence can be a compelling factor in their decision-making process, even if they don’t opt for the guaranteed offer.
Who Pays More for a Guarantee?
When a client opts for the guaranteed offer, it reveals several important characteristics about them. First, they are not highly price-sensitive. They value quality and timely completion over cost savings.
These clients also understand the importance of getting things done right and on schedule and are willing to pay a premium for this assurance. They expect great service.
They also reveal themselves as good customers who appreciate the value of your expertise. They want things done right, not the cheapest or fastest option. And to get things done right, they delegate tasks to professionals rather than handle them personally.
Customers who pay for a guarantee also want to avoid headaches and complications. They don’t want this to be a hassle, and assuming your company can meet or exceed the conditions of the guarantee, you are also identifying ideal candidates for recurring business.
For example, what if your guarantee addresses significant time pressures? A developer constructing a commercial building might need landscaping completed by a specific deadline to obtain a certificate of occupancy. Timing is critical, and the guarantee of timely completion is invaluable, justifying the premium cost.
A Money-Back Guarantee Ticks Many Boxes
A money-back guarantee ticks a long list of boxes for potential customers. And if your competitors do not offer a similar guarantee, it will move you miles ahead of them.
Imagine talking to a dentist offering a money-back guarantee if you’re unsatisfied with your cosmetic dentistry. You will immediately recognize that such guarantees are rare, making the offer stand out. Even if the dentist tells you there is a 30 percent premium for this money-back guarantee, you are impressed.
Rather than doubting the dentist’s competence, you think they must be really good to offer this kind of guarantee. You immediately know that you are dealing with a pro who is very confident in their processes and team.
Offering a money-back guarantee in almost any industry communicates that your company is willing to put its money where its mouth is. It suggests you are committed to eliminating pain points that competitors overlook or ignore. The guaranteed approach impresses customers and fosters trust and credibility with potential clients.
How Can Your Company Offer a Money-Back Guarantee?
One of the most common responses we get is, “We don’t offer guarantees in my industry. There are too many variables.” But the great thing is that if you are in an industry that doesn’t offer guarantees, your guarantee becomes much more valuable!
What if you found a spa or masseuse who offered a money-back guarantee? Or a house painter who said they’d get it done on schedule, on budget for a 30% premium? What if your dog trainer guaranteed a happy, relaxed, obedient dog? Or how would you feel about a cleaning service that guaranteed all 100 items on the checklist would be completed perfectly, every time, or your money back? Would you hire these people? Would you pay the premium?
You might agree to the guarantee, depending on how important the outcome is. And even if you didn’t pay for the guarantee, you’d know they are very good at what they do. A guaranteed offer is more than just a marketing tool; it’s a statement of confidence and commitment to quality.
Whether your clients choose to take the guarantee or not, the mere offer itself can significantly enhance your reputation, attract high-quality clients, and boost your margins.
7 Stage Advisors has coached thousands of companies worldwide to improve business strategies, attract new customers, increase margins, and drive revenue. Are you ready to turbocharge your business with innovative strategies like guaranteed offers? Contact us, and let’s start a conversation about how we can elevate your company to the next level.