Should you "boast" about your high refund rate?

I learned a long time ago that if you have too small a refund
rate this must mean that you are underselling your product. I’ve
seen a ton of discussion on Warrior forum about how online
vendors, especially of digital download products, hate refunds. I
can’t say that I love to know that a customer can get back their
money and I cannot get back my ebook either, but it’s a cost of
doing business online. Or is it?

Are there any ways that you can use your refund rate in order to
make more money?

Let’s return to the idea that if your refund is too small then
you must be underselling your product. This simply means that you
must ‘oversell’ your products to the extent that even people who
may not need your product will be convinced that they need it.
The idea is akin to making a pie crust—there will be some dough
left over from the trimmings to get that perfect circular shape.
If you use too little dough then your circle will not be
complete.

To use another analogy, the only way you can be sure that your
cup is full is if it is overflowing.

It’s the same with selling online—if you are not persuasive
enough then you will lose some sales that could have been in your
pocket. But if you do a really good job then some people would
buy who would then ask for a refund. So it turns out that it’s
better to have a modestly high refund rate than to have a very
low refund rate—at least that’s how the theory goes.

Now the question is how can you use this refund rate to make more
sales? Well, you simply state in your marketing message that your
refund rate for this product is, say 7%. What this does is that
assures your prospects that you do live up to refund requests and
then you can ‘boast’ that 93% of your customers find value in
your product.

This makes your product exclusive to the point that you can
further say that your product is not for everyone—of course those
who asks for a refund were those who your product was not for.

You can build exclusivity into your product by simply stating
that your product is not for everyone—which of course will be
true for just about any product.

So instead of being embarrassed about your refund rate and buying
into the myth that a 0% refund rate is a great thing, use your
refund rate to build confidence in more prospects and make more
sales.

What do you think?

-Ray Edwards