What's the best money back guarantee for a physical high ticket item ($497 or $997 or more)?

by BJ Min
10 replies
What's the best money back guarantee for a physical high ticket item ($497 or $997 or more) such as a physical home study course?

30 days? 60 days? 365 days? anyone have experience and can you share with us what works best for you?

thanks
BJ
#$497 #$997 #back #guarantee #high #item #money #physical #ticket
  • Profile picture of the author marciayudkin
    Hi BJ,

    Direct mail experts tell us it's been proven over and over again that the longer the guarantee, the fewer the number of returns/refund requests.

    So, a one-year guarantee is better than a 30 or 90-day guarantee, and a five-year or even lifetime guarantee is more effective than a one-year one.

    30 days is way too short. You would get returns from people who hadn't had time to open the box yet!

    Marcia Yudkin, Experienced Infomarketer
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    Check out Marcia Yudkin's No-Hype Marketing Academy for courses on copywriting, publicity, infomarketing, marketing plans, naming, and branding - not to mention the popular "Marketing for Introverts" course.
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  • Profile picture of the author Alexa Smith
    Banned
    My understanding is that, in general, the number of guarantee claims is in inverse proportion to the length of the time-period.

    Giving something like a 5-year guarantee (or longer) typically produces the fewest claims: giving a month or two produces the most.

    I believe that this is fairly constant, both offline and online, throughout "marketing". That doesn't prove that it will be so for you, of course, but it's certainly the generally accepted wisdom among professional marketers.

    Edited to add: sorry, I was typing while Marcia posted, above. "I completely agree" was all I needed to say.
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  • Profile picture of the author Caleb Spilchen

    Giving something like a 5-year guarantee (or longer) typically produces the fewest claims: giving a month or two produces the most.
    A refund for a thousand dollar product 5 years later... would be real fun with taxes.

    Caleb
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    Canadian Expat Living in Medellin, Colombia

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    • Profile picture of the author Alexa Smith
      Banned
      Originally Posted by Caleb Spilchen View Post

      A refund for a thousand dollar product 5 years later... would be real fun with taxes.
      LOL, maybe ... (here it's easy: they allow you to claim it - inaccurately - as a deduction against the income of the tax-year in which the refund is paid, but I do take your point!).
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  • Profile picture of the author Don Grace
    The longer the guarantee period typically the better, it puts your prospect at ease knowing they have plenty of time to refund, plus being a physical product makes it even better. I've gone as far as 5 years.

    When you get into the 2k and above price (especially in IM) people mark their calenders to be sure they know when to refund in case the tooth fairy doesn't place a million bucks under their pillow in said time.

    One other option I've used a few times in very high end cases is no refunds. Get rid of the tire kickers from the start. Worked really well too and we had much better action taking customers. (Obviously you have to be able to deliver the goods otherwise you'll end up with disputes and charge backs)
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    • Profile picture of the author footbag_man
      I have purchased a high ticket item that had a 10-day guarantee.

      It means you need to make a fast decision and can almost put urgency in getting the refund.

      I think 1 year is the best..

      Also I would like all your opinion on this:
      If you are sending people out the actual DVD by post would you put a clause that you have to send the DVD's back to get the refund?

      It might lower refunds as people are more likely to send an email to get a refund and less likely to package up the DVD's etc and go to the post office and send everything back to you..

      What do you all think about that?

      Fergal
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  • Profile picture of the author Michael Ten
    Kohls and REI have the best ones that I've seen... return it whenever... IF you are not TOTALLY satisfied.
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  • Profile picture of the author Randall Magwood
    12 month money back guarantee. The longer the guarantee, the more they will have time to relax and chill on that $500 product. They got all the time in the world to put it into action... along with the cushiony feeling that they can return it whenever they want for a whole year.... but 98% never return it.
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  • Profile picture of the author ecoverartist
    I would suggest for a product under $1k, a one-year, no-questions-asked, love-it-or-shove-it guarantee. If I'm going to put that much money down, I want to know I have 365 days to make sure it exceeds my expectations!
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  • Profile picture of the author soot001
    There are many forex, and stock products that carries hefty prices, and are physical. May I ask why you are interested?
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