One of the very most powerful selling tools in the email order business is definitely the money back again guarantee. Shops — the best — also have long used this policy Can’t stand what you merely bought? Bring it back again to the store, show your receipt, as well as your money will be refunded.
My wife does it all time, and she shops a great deal! Of course for a few categories of goods, stores have long since halted this policy except where in fact the original merchandise was defective. I cannot picture any store that would be happy about taking back a bottle of perfume that was opened up and used. But times have changed.
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Can we take a traditional idea from the past and mildew it into an effective and profitable offering technique for today? Can we use the money back again guarantee to market perfume on the internet? I’ll “at and without question refund your money once.” Hudnut’s business flourished and he might well have been the first American to be very, very rich offering perfume and cosmetics.
In the first place, Hudnut was not sending out heavy, expensive, breakable bottles. He was sending out pellets — tablets — designed to be dissolved in water, and undoubtedly, water — and its own weight — were not included. This makes delivery simple, safe, and inexpensive. In a nutshell, the offer was self-liquidating.
Now look what else is going on. Hudnut, no doubt, is enclosing a catalog (1-page flier) with the outgoing orders. He is also capturing their titles and addresses for his email list, which he will use to distribute larger catalogs regularly. Customers who are happy with his perfumed pellets are also delighted that Hudnut respected them — that he considered them in all honesty citizens who not enjoy his perfume and then demand a refund. So excellent will is created and, I would expect, about 20 percent roughly of customers who got the 50-cent offer probably continued to buy his more costly products. That is good business.
It is also a good way for Hudnut to market nationally from his office in NY. Therefore paves the way for suppliers — countrywide — to want to stock the Hudnut range. Now think about the handful of individuals who might make multiple requests for Hudnut’s no-risk offer and each and every time request a refund? I can let you know how I’ve dealt with this problem and I suspect Hudnut did the same.
Would this strategy would today? The main element to causing this to be the strategy work is configuring it properly. Also, to make the strategy work, you must deliver a value your money can buy requesting absolutely. The “no risk” product must please customers and draw repeat business. If it does not, even if your “no risk” offer makes a little profit in advance, ultimately it will burn up and fail.
This can be an accountant’s misguided hedge that deflates the power of the promise by recommending that the seller is significantly less than fully self-confident that the client will be satisfied. Actually, there are no savings out of this hedge because it deflates sales proportionately to the “non-shipping charge” refund cost savings. Small print that voids a warranty — We had a local restaurant that distributed money saving coupons.
But every time you tried to use one they found some reason to dishonor it. Their food was good, however they are no longer is business. Is it any wonder? Are you ready to give it your own trial? I’m working on a promotion using this idea. I don’t know how long it will require me to assemble the facts and put it into action and I’m not sure which of my perfumes I’ll use for the offer (probably my best). I want to see what will happen if it is done by me right. I’ll report the results with time.
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