Newsletter - October 26, 2011

The Jewelry Crafter

A newsletter for the home jeweler

This newsletter will be published once per month, and will include hints and tips for your jewelry business. Any feedback or comments about the topics presented here are always appreciated. Click here to e-mail us.

If you have an idea for an upcoming article, or would like to submit an article for the newsletter, please contact us. Anyone who submits an article will receive a permanent link to their website in a special section of our link pages.

The Importance of a Guarantee

By

Mary Harvey

What is a guarantee? The Mirram-Webster Dictionary defines a guarantee as “an assurance of the quality of or of the length of use to be expected from a product offered for sale often with a promise of reimbursement”. So, what does this mean to you, the home jeweler? Why is a guarantee important? This week, we will go into this important part of your business.

Why offer a guarantee? A guarantee can give you a real competitive edge for your business, and can be a powerful marketing tool. A strong guarantee puts your customer at ease, lets them know that they are buying a quality product, and that you will stand behind it. This is especially important if you are selling over the internet, where you don’t have face-to-face contact with your customer. A guarantee can also increase the perceived value of your products, which will possibly increase your sales.

Many people think that if they offer a guarantee, it will increase the number of returns. Actually, studies have shown the opposite to be true.  When you offer a guarantee, you are reducing the skepticism of the customer about purchasing your product. You are putting the customer at ease about buying from you, and are boosting your credibility with potential customers. For this reason, a guarantee can actually increase your sales and reduce returns.

There are many different types of guarantees, and the type you offer is entirely up to you. You could offer an unconditional guarantee, a conditional guarantee, a money back guarantee, a satisfaction guarantee, and so on. Whichever guarantee you want to offer, there are a few points to remember:

  • Always spell out your warranty terms in clear and concise language. Let the customer know up front what is covered and what isn’t, the conditions under which the product can be returned, and if they will get a refund or exchange. 
  • Spell out the length of the warranty (30, 60, 90 days, lifetime, etc.). Usually, the longer the warranty, the more you will increase your sales.
  • Never promise anything that you are not prepared to deliver. Always live up to your guarantee.
  • Put your guarantee on all of your marketing materials. Your customers won’t know if you guarantee your items unless you tell them
  • Include a copy of your guarantee with every product you sell so that your customer knows exactly what to expect if they do need to return something.
  • Give the customer something extra. If they contact you after the guarantee period expires, do your best to resolve the situation. This makes for good customer service, and happy customers.

As you can see, offering a guarantee goes a long way to help you gain new customers and build your business. A strong guarantee builds trust, credibility, and shows your customer that you will stand behind what you sell. 

 

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