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2.41 MB
Extraction Summary
3
People
6
Organizations
0
Locations
0
Events
1
Relationships
4
Quotes
Document Information
Type:
Book excerpt / manuscript / business guide
File Size:
2.41 MB
Summary
This document appears to be a page from a business book or manuscript (likely 'The 4-Hour Workweek' by Timothy Ferriss based on the content style and specific examples) discussing marketing strategies known as 'lose-win guarantees' or 'risk reversal.' It provides examples from companies like Domino's, Cialis, and The Club, and details case studies of individuals named Johanna and Sherwood who increased sales revenue by offering aggressive product guarantees. The document bears a House Oversight Committee footer, suggesting it was part of a document production.
People (3)
| Name | Role | Context |
|---|---|---|
| Johanna | Business Case Study |
Adopted a lose-win offer regarding sport-specific flexibility products.
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| Sherwood | Business Case Study |
Adopted a 200% guarantee for shirts.
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| Narrator/Author | Author |
Refers to themselves as 'I', discusses their product 'BodyQUICK'.
|
Organizations (6)
| Name | Type | Context |
|---|---|---|
| Domino's Pizza |
Cited as an example of a guarantee.
|
|
| CIALIS |
Cited for its 'Promise Program'.
|
|
| THE CLUB |
Automobile anti-theft device company.
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| BodyQUICK |
Sports nutrition product owned/managed by the narrator.
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| The NR |
Group or concept referred to in the text (likely 'New Rich').
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| House Oversight Committee |
Implied by the footer 'HOUSE_OVERSIGHT'.
|
Relationships (1)
This was for BodyQUICK... I offered to not only refund customers...
Key Quotes (4)
"Lose-win guarantees not only remove risk for the consumer but put the company at financial risk."Source
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Quote #1
"Delivered in 30 minutes or less or it’s free!"Source
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Quote #2
"If your car is stolen, we’ll pay $500 of your insurance deductible."Source
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Quote #3
"Lose-win is the new win-win. Stand out and reap the rewards."Source
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Quote #4
Full Extracted Text
Complete text extracted from the document (3,031 characters)
costs me more than just the price I paid for the product, both in time and actual postage. Risk elimination just isn’t enough.
This is where we enter the neglected realm of lose-win guarantees and risk reversal. The NR use what most consider an afterthought—the guarantee—as a cornerstone sales tool.
The NR aim to make it profitable for the customer even if the product fails. Lose-win guarantees not only remove risk for the consumer but put the company at financial risk.
Here are a few examples of putting your money where your mouth is.
Delivered in 30 minutes or less or it’s free!
(Domino’s Pizza built its business on this guarantee.)
(Domino’s Pizza built its business on this guarantee.)
We’re so confident you’ll like CIALIS, if you don’t we’ll pay for the brand of your choice.
(The “CIALIS® Promise Program” offers a free sample of CIALIS and then offers to pay for competing products if CIALIS doesn’t live up to the hype.)
(The “CIALIS® Promise Program” offers a free sample of CIALIS and then offers to pay for competing products if CIALIS doesn’t live up to the hype.)
If your car is stolen, we’ll pay $500 of your insurance deductible.
(This guarantee helped THE CLUB become the #1-selling mechanical automobile anti-theft device in the world.)
(This guarantee helped THE CLUB become the #1-selling mechanical automobile anti-theft device in the world.)
110% guaranteed to work within 60 minutes of the first dose.
(This was for BodyQUICK and a first among sports nutrition products. I offered to not only refund customers the price of the product if it didn’t work within 60 minutes of the first dose, but also to send them a check for 10% more.)
(This was for BodyQUICK and a first among sports nutrition products. I offered to not only refund customers the price of the product if it didn’t work within 60 minutes of the first dose, but also to send them a check for 10% more.)
The lose-win guarantee might seem like a big risk, especially when someone can abuse it for profit like in the BodyQUICK example, but it isn’t … if your product delivers. Most people are honest.
Let’s look at some actual numbers.
Returns for BodyQUICK, even with a 60-day return period (and partially because of it57), are less than 3% in an industry in which the average is 12–15% for a normal 30-day 100% money-back guarantee. Sales increased more than 300% within four weeks of introducing the 110% guarantee, and returns decreased overall.
Johanna adopted this lose-win offer and came up with “Increase sport-specific flexibility 40% in two weeks or return it for a full refund (including shipping) and keep the 20-minute bonus DVD as our gift.”
Sherwood found his guarantee as well: “If these shirts are not the most comfortable you’ve ever worn, return them and get 2-times your purchase price back. Each shirt is also guaranteed for life—if it gets threadbare, send it back and we’ll replace it free of charge.”
Both of them increased sales more than 200% in the first two months. Return percentage remained the same for Johanna and increased 50% for Sherwood, from 2 to 3%. Disaster? Far from it. Instead of selling 50 and getting one back with a 100% guarantee [(50 x $100) – $100 = $4,900 in revenue], he sold 200 and got six back with the 200% guarantee [(200 x $100) – (6 x $200) = $18,800 in revenue]. I’ll take the latter.
Lose-win is the new win-win. Stand out and reap the rewards.
Little Blue Chip: How to Look Fortune 500 in 45 Minutes
Are you tired of sand being kicked in your face? I promise you new muscles in days!
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