Erik Sherman recently wrote in inc.com about a tech startup that offered a lifetime guarantee with its product in an attempt to get enough cash flow to remain in business.<\/p>\n
Interesting idea, but it didn’t work because the company went out of business, presumably angering a lot of customers. Depending on the product, it might have been an opportunity for a competitor to scoop up some business, albeit at some cost by assuming the balance of the guarantee.<\/p>\n
However, it raises the broader question of product and service guarantees, maybe not for life, but as best in class, best at the price point, etc. I have owned companies that guaranteed various products, ranging from chrome on exhaust parts to food in a restaurant. I’ve never paid out more than 5% or so in warranties, so they’ve been an excellent investment. We guarantee our courses as the best in class, certainly at our price point.\u00a0We have yet to have someone say it wasn’t true and demand a refund. As far as we know, we’re the only educational institution that guarantees its classes, which is one reason we offer the guarantee.<\/p>\n
What do you do, or should you do about this critical (in our mind) product or service differentiator?<\/p>\n
To read Erik’s article to get some perspective on the subject, go to http:\/\/www.inc.c.om\/erik-sherman\/the-tricky-business-of-offering-lifetime-guarantees.html<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" should you guarantee your product or service for life, or any other period? Continue reading